<SUBMISSION>
<ACCESSION-NUMBER>0000919567-09-000018
<TYPE>10-K
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20081231
<FILING-DATE>20090330
<DATE-OF-FILING-DATE-CHANGE>20090330
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>RENAISSANCE CAPITAL GROWTH & INCOME FUND III INC
<CIK>0000919567
<IRS-NUMBER>752533518
<STATE-OF-INCORPORATION>TX
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-K
<ACT>34
<FILE-NUMBER>001-11701
<FILM-NUMBER>09714485
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>8080 N CENTRAL EXPRWY
<STREET2>STE 210 LB59
<CITY>DALLAS
<STATE>TX
<ZIP>75206
<PHONE>2148918294
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>8080 N CENTRAL EXPWY., SUITE 210 LB 59
<CITY>DALLAS
<STATE>TX
<ZIP>75206
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>renn3200810k.htm
<TEXT>
<html>
    <head>
        <title></title>
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    <body style="FONT-SIZE: 11pt; FONT-FAMILY: 'CALIBRI'">
        <div style="WIDTH: 600px">
            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Washington, D. C. 20549</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Form 10-K</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Mark One</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" size="2">&nbsp;</font></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="48">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">x</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">for the Fiscal Year Ended December 31, 2008</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">or</font></font></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="48">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">o</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Commission File No. 33-75758</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 17pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">RENAISSANCE CAPITAL GROWTH &amp; INCOME FUND III, INC.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(Exact name of Registrant as specified in its charter)</font></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td valign="top" width="13%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Texas</font></b> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>

                    <td valign="top" width="6%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="6%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="13%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">75-2533518</font></b></p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" width="13%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(State of incorporation or organization)</font></p>
                    </td>

                    <td valign="top" width="6%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="6%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="13%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(I.R.S. Employer Identification No.)</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="37%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Suite 210, LB 59, 8080 North Central Expressway, Dallas, Texas</font></b></p>
                    </td>

                    <td valign="top" width="37%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">75206</font></b></p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" width="37%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(Address of principal executive offices)</font></p>
                    </td>

                    <td valign="top" width="37%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(Zip Code)</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Registrant&rsquo;s telephone number, including area code (214) 891-8294</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Securities Registered Pursuant to Section 12(b) of the Act:</font></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td valign="top" width="10%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="10%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="6%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="6%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="10%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Name of each exchange</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: #000000 0.8pt solid" valign="top" width="10%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Title of each class</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: #ffffff 3pt solid" valign="top" width="10%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #ffffff 3pt solid" valign="top" width="6%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #ffffff 3pt solid" valign="top" width="6%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 0.8pt solid" valign="top" width="10%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">on which registered</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" width="10%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Common</font></b></p>
                    </td>

                    <td valign="top" width="10%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="6%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="6%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="10%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NYSE A</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">mex</font></b></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Securities Registered Pursuant to Section 12(g) of the Act:</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Common Stock ($1.00 par value)</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(Title of Class)</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Indicate by check mark whether the Registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;Yes</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">o</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">No</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">x</font><br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;Yes</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">o</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">No&nbsp;&nbsp;</font><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">x</font><br>
            </font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" size="2">&nbsp;&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing
            requirements for the past 90 days.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;Yes</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">x</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">No</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">o</font></font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">1</font></a>
            </div>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Indicate by check mark if disclosure by delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant&rsquo;s knowledge, in definitive proxy or information statements incorporated by reference in Part
            III of this Form 10-K or any statement to this Form 10-K.</font><font size="2"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">o</font><br>
            </font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. (Check one):</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Large Accelerated Filer</font>
            <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">o</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Accelerated Filer</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">o</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Non-accelerated filer</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">x</font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Indicate by check mark whether the Registrant is a shell company as defined in Rule 12b-2 of the Act.&nbsp;</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">x</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">No</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'WINGDINGS'">o</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Yes</font><br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The aggregate market value of the voting and non-voting common equity held by non-affiliates, based on the closing price of such the Registrant&rsquo;s Common Stock as of</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">June 30, 2008, was</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">20,625,003.52.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">As of March</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">18,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2009, there were 4,463,967 shares of
            Registrant&rsquo;s Common Stock outstanding.</font></font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">2</font></a>
            </div>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p>&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"></p>

            <table cellspacing="0" cellpadding="0" align="left" border="0">
                <tr valign="bottom" height="21">
                    <th colspan="2">
                    </th>

                    <th colspan="2">
                    </th>

                    <th colspan="2">
                    </th>

                    <th width="-14">
                    </th>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="center" colspan="3"><font face="Times New Roman" size="2">TABLE OF CONTENTS&nbsp;</font></td>

                    <td width="1">
                    </td>

                    <td width="3">
                    </td>

                    <td width="24">
                    </td>

                    <td width="-14">
                    </td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="center" colspan="3"><font face="Times New Roman" size="2">PART I&nbsp;</font></td>

                    <td width="1">
                    </td>

                    <td width="3">
                    </td>

                    <td width="24">
                    </td>

                    <td width="-14">
                    </td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 1.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Business</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">4</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 1A.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Risk Factors</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">17</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="27">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 2.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Properties</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">19</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 3.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Legal Proceedings</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">19</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 4.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Submission of Matters to a Vote of Security Holders</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">19</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="center" colspan="3"><font face="Times New Roman" size="2">PART II&nbsp;</font></td>

                    <td width="1">
                    </td>

                    <td width="3">
                    </td>

                    <td valign="bottom" align="right" width="24">
                    </td>

                    <td valign="bottom" align="right" width="-14">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td valign="top" align="left" width="112"><font face="Times New Roman" size="2">Item 5.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Market for Registrant&rsquo;s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">19</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td valign="middle" align="left" width="112"><font face="Times New Roman" size="2">Item 6.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="middle" align="left" width="437"><font face="Times New Roman" size="2">Selected Financial Data</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">21</font></td>

                    <td valign="middle" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td valign="top" align="left" width="112"><font face="Times New Roman" size="2">Item 7.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">22</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 7A.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Quantitative and Qualitative Disclosure About Market Risk</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">24</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td valign="middle" align="left" width="112"><font face="Times New Roman" size="2">Item 8.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="middle" align="left" width="437"><font face="Times New Roman" size="2">Financial Statements and Supplementary Data</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="middle" align="right" width="24"><font face="Times New Roman" size="2">24</font></td>

                    <td valign="top" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td valign="top" align="left" width="112"><font face="Times New Roman" size="2">Item 9.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">24</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 9A(T).</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Controls and Procedures</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">25</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 9B.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Other Information</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">25</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="center" colspan="3"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PART III&nbsp;</font></td>

                    <td width="1">
                    </td>

                    <td width="3">
                    </td>

                    <td valign="bottom" align="right" width="24">
                    </td>

                    <td valign="bottom" align="right" width="-14">
                    </td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 10.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Directors, Executive Officers, and Corporate Governance</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">25</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 11.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Executive Compensation</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">30</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 12.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Security Ownership of Certain Beneficial Owners and Management</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">30</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 13.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Certain Relationships and Related Transactions</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">31</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 14.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Principal Accountant Fees and Services</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">31</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="center" colspan="3"><font face="Times New Roman" size="2">PART IV&nbsp;</font></td>

                    <td width="1">
                    </td>

                    <td width="3">
                    </td>

                    <td valign="bottom" align="right" width="24">
                    </td>

                    <td valign="bottom" align="right" width="-14">
                    </td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Item 15.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">Exhibits, Financial Statement Schedules</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">31</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Signatures</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="437"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="24"><font face="Times New Roman" size="2">32</font></td>

                    <td valign="bottom" align="right" width="-14"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" colspan="3"><font face="Times New Roman" size="2">Index to Financial Statements&nbsp;</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="3">
                    </td>

                    <td valign="bottom" align="right" width="24">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">F-1</font></p>
                    </td>

                    <td valign="bottom" align="right" width="-14">
                    </td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="112"><font face="Times New Roman" size="2">Financial Statements</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" colspan="4">
                        <p align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;F-3 TO F-24&nbsp;</font></p>
                    </td>

                    <td valign="bottom" align="right" width="-14">
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                &nbsp;
            </div>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                &nbsp;
            </div>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                &nbsp;
            </div>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                &nbsp;
            </div>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                &nbsp;
            </div>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">3</font></a>
            </div>

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            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Part I</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Certain of the statements included below, including those regarding future financial performance or results that are not historical facts, contain &ldquo;forward-looking&rdquo; information as that term is defined in the Securities Exchange Act of 1934, as amended. The words &ldquo;expect,&rdquo;
            &ldquo;believe,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;project,&rdquo; &ldquo;estimate,&rdquo; and similar expressions are intended to identify forward-looking statements. The Fund cautions readers that any such statements are not guarantees of future performance or events and that such statements involve risks, uncertainties and assumptions, including but not limited to industry conditions, general economic conditions, interest rates, competition, ability of the Fund to
            successfully manage its growth, and other factors discussed or included by reference in this Annual Report on Form 10-K. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, those actual results and outcomes may differ materially from those indicated in the forward-looking statements.</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 1. Business.</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">GENERAL</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Renaissance Capital Growth &amp; Income Fund III, Inc., (the &ldquo;Fund&rdquo; or the &ldquo;Registrant&rdquo;) is a non-diversified, closed-end fund that has elected to be treated as a business development company (a &ldquo;BDC&rdquo;) under the Investment Company Act of 1940, as amended (the &ldquo;1940
            Act&rdquo;). The Fund, a Texas corporation, was organized and commenced operations in 1994.</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The investment objective of the Fund is to provide its stockholders long-term capital appreciation by investing in</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">primarily</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">privately placed convertible securities and equity securities of emerging growth companies.</font><br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">RENN Capital Group, Inc. (&ldquo;RENN Group&rdquo; or the &ldquo;Investment Adviser&rdquo;), a Texas corporation, serves as the Investment Adviser to the Fund. In this capacity, RENN Group is primarily responsible for the selection, evaluation, structure, valuation, and administration of the Fund&rsquo;s
            investment portfolio, subject to the supervision of the Board of Directors. RENN Group is a registered investment adviser under the Investment Advisers Act of 1940, as amended (the &ldquo;Advisers Act&rdquo;).</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Our Internet website address is</font> <font size="2"><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">www.rencapital.com</font></u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. You can review the filings we have made with the U.S. Securities
            and Exchange Commission (&ldquo;SEC&rdquo;), free of charge, by linking to the Electronic Data Gathering, Analysis, and Retrieval System of the SEC (&ldquo;EDGAR&rdquo;) at</font> <u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">www.sec.gov</font></u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. From EDGAR, you should be able to access our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on
            Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934.</font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Generally, investments are, and will continue to be, in companies that have their common stock registered for public trading under the Securities Exchange Act of 1934, as amended (the &ldquo;1934 Act&rdquo;), or companies that in the opinion of the Investment Adviser have the ability to effect a public
            offering within three to five years. The Fund generally invests in privately placed convertible preferred stock, common stock, and warrants and debentures of a company to be held in the Fund&rsquo;s portfolio (&ldquo;Portfolio Company&rdquo;). The convertible preferred stock, warrants and debentures securities typically are convertible into, or exchangeable for, the common stock of the Portfolio Company. While such common stock of the Portfolio Company may be publicly traded, the
            common stock acquired by the Fund is often unregistered. Therefore, such securities are restricted from distribution or sale to the public except in compliance with certain holding periods and exemptions under the Securities Act of 1933, as amended (the &ldquo;1933 Act&rdquo;), or after registration pursuant to the 1933 Act. Typically, the Fund receives registration rights for shares to be registered within a certain period of time. The Fund also purchases shares of small and
            micro-cap issuers in the open markets. These shares are freely tradable and have no restrictions on resale.</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">From inception through December 31, 2008, the Fund had made investments in eighty-five</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(85) different Portfolio Companies having an aggregate cost of $108,285,380. At December 31, 2008, the Fund had active
            investments in thirty (30) Portfolio Companies. The Fund does not focus on particular industry segments. Instead, the Fund makes investment decisions using a bottom-up analysis of the potential Portfolio Company, with no predetermined industry bias.</font></font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">4</font></a>
            </div>

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                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Under the provisions of the 1940 Act, a Business Development Company generally is required to invest at least 70% of its assets directly in &ldquo;Eligible Portfolio Companies&rdquo; and temporary investments in &ldquo;cash items&rdquo; pending other investments. The term &ldquo;Eligible Portfolio
            Company&rdquo;</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">is defined below</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">under the section entitled</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&ldquo;Business Development Company&rdquo;. The Fund determines whether any prospective investment is an Eligible Portfolio Company at the time the investment
            is made, and the calculation of the requisite percentage is also made at that time and is based on the most recent valuation of the Fund&rsquo;s assets. Under the 1940 Act, a Business Development Company may invest up to 30% of its funds in companies that do not qualify as Eligible Portfolio Companies. In the event the Fund has less than 70% of its assets in the securities of Eligible Portfolio Companies, then the Fund will be prohibited from making investments in companies that are
            not Eligible Portfolio Companies until such time as the percentage of eligible investments again</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">is</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">at least equal to the 70% threshold.</font><br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Pending investment in securities of Eligible Portfolio Companies or other Portfolio Companies, the Registrant&rsquo;s funds are invested in short-term investments consisting primarily of cash or U.S. Government and agency obligations.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund&rsquo;s investment assets were classified by amount as follows:</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

            <table cellspacing="0" cellpadding="0" align="left" border="0">
                <tr>
                    <td align="left" width="324">
                    </td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="32">
                    </td>

                    <td align="right" width="8">
                    </td>

                    <td align="right" width="81">
                    </td>

                    <td valign="bottom" align="center" width="19">
                    </td>

                    <td valign="bottom" align="center" colspan="2"><font size="2">Percentage</font></td>
                </tr>

                <tr>
                    <td align="left" width="324">
                    </td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="32">
                    </td>

                    <td align="right" width="8">
                    </td>

                    <td align="right" width="81">
                    </td>

                    <td valign="bottom" align="center" width="19">
                    </td>

                    <td valign="bottom" align="center" colspan="2"><font size="2">of Net</font></td>
                </tr>

                <tr valign="bottom">
                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="324"><font face="Times New Roman" size="2">Classification</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="32"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="81"><font face="Times New Roman" size="2">Fair Value</font></td>

                    <td valign="bottom" align="center" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="center" colspan="2"><font face="Times New Roman" size="2">BDC Assets</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="324"><font face="Times New Roman" size="2">Investments in Eligible Portfolio Companies</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="32"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="8"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="81"><font face="Times New Roman" size="2">9,337,410</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="65"><font face="Times New Roman" size="2">50</font></td>

                    <td align="left" width="26"><font face="Times New Roman" size="2">.25%</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="324"><font face="Times New Roman" size="2">Cash and Cash Equivalents</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="32"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="81"><font face="Times New Roman" size="2">2,558,630</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="65"><font face="Times New Roman" size="2">13</font></td>

                    <td align="left" width="26"><font face="Times New Roman" size="2">.77%</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="324"><font face="Times New Roman" size="2">Interest and Dividends Receivable</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="32"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="81"><font face="Times New Roman" size="2">91,428</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="65"><font face="Times New Roman" size="2">0</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="26"><font face="Times New Roman" size="2">.49%</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="324"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="32"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="81"><font face="Times New Roman" size="2">11,987,468</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="65"><font face="Times New Roman" size="2">64</font></td>

                    <td align="left" width="26"><font face="Times New Roman" size="2">.51%</font></td>
                </tr>

                <tr>
                    <td align="left" width="324">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="32">
                    </td>

                    <td align="right" width="8">
                    </td>

                    <td align="right" width="81">
                    </td>

                    <td align="right" width="19">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="65">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="26">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="324"><font face="Times New Roman" size="2">Investments in Other Portfolio Companies</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="32"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="81"><font face="Times New Roman" size="2">6,594,515</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="65"><font face="Times New Roman" size="2">35</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="26"><font face="Times New Roman" size="2">.49%</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="324"><font face="Times New Roman" size="2">Net BDC Assets</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="32"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="8"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="81"><font face="Times New Roman" size="2">18,581,983</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="65"><font face="Times New Roman" size="2">100</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="26"><font face="Times New Roman" size="2">.00%</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="324"><font face="Times New Roman" size="2">Prepaid and Other Assets</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="32"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="81"><font face="Times New Roman" size="2">37,178</font></td>

                    <td width="19">
                    </td>

                    <td width="65">
                    </td>

                    <td width="26">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="324"><font face="Times New Roman" size="2">Total Assets</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="32"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="8"><font face="Times New Roman" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="81"><font face="Times New Roman" size="2">18,619,161</font></td>

                    <td width="19">
                    </td>

                    <td width="65">
                    </td>

                    <td width="26">
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Throughout the 2008 year the Fund remained in compliance with the BDC &ldquo;70% Rule&rdquo;, that is, it did not invest in Ineligible Portfolio Companies while its holdings of Eligible Portfolio Companies was below 70%.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Please see the enclosed financial statements for further financial information regarding the Fund.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">INVESTMENT OBJECTIVE</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The investment objective of the Fund is to provide its stockholders with long-term capital appreciation by investing primarily in privately placed&nbsp;convertible debt and equity securities of emerging growth public companies. The Fund seeks to provide returns to stockholders through cash dividends of net
            investment income and through distributions of realized gains.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">GENERAL INVESTMENT POLICIES</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund invests in the securities of emerging growth companies that are generally not available to the public and which typically require substantial financial commitment. An &ldquo;emerging growth company&rdquo; is generally considered to have the following attributes: (1) either a publicly held company
            with a relatively small market capitalization or a privately held company; (2) an established operating history,</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">but of a limited period so as to not have fully developed its market potential for the products or services offered; and (3) a provider of a new or unique product or service that allows the company an opportunity for exceptional growth. Emerging growth companies typically
            require non-conventional sources of financing because the extent and nature of the market for their products or services is not fully known. Consequently, there is uncertainty as to the rate and extent of growth and also uncertainty as to the capital and human resources required to achieve the goals sought.</font></font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">5</font></a>
            </div>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">With respect to investments in emerging growth companies, the Fund emphasizes investing in convertible debentures or convertible preferred stock of publicly held companies that the Fund anticipates will be converted into common stock and registered for public sale within three to five years after the private
            placement. In addition, the Fund invests in privately placed common stock of publicly traded issuers that are initially restricted from trading. To a lesser extent, the Fund may participate in bridge financings in the form of loans or other preferred securities which are convertible into common stock of the issuer or issued together with equity participation, or both, for companies which the Fund anticipates will complete a stock offering or other financing within a year from the
            date &nbsp;of&nbsp; the &nbsp;investment.&nbsp; The&nbsp; Fund may also make &nbsp;bridge loans,&nbsp;either</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">secured or unsecured, intended to carry the borrower to a private placement or an initial public offering, or to a merger, acquisition, or other strategic transaction.</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Generally, the debt securities of Portfolio Companies have an initial fixed term of five to seven years, with no amortization of the principal amount for the initial two to three years. Further, privately-placed investments in Portfolio Companies will be individually negotiated, non-registered for public
            trading, and will be subject to legal and contractual investment restrictions. Accordingly, the Fund&rsquo;s securities of Portfolio Companies are generally considered non-liquid.</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund has no fixed policy concerning the types of businesses or industry groups in which it may invest or as to the amount of funds that it will invest in any one issuer. However, the Fund will generally seek to limit its investment in securities of any single Portfolio Company to approximately 15% of the
            Portfolio Company&rsquo;s net assets at the time of the investment.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">In the event the Fund elects to participate as a member of the Portfolio Company&rsquo;s Board of Directors, either through advisory or full membership, the Fund&rsquo;s nominee to the board will generally be selected from among the officers of RENN Group. When, at the discretion of RENN Group, a suitable
            nominee is not available from among its officers, RENN Group will select, as alternate nominees, outside consultants who have prior experience as an independent outside director of a public company. At December 31, 2008, officers of the Fund served as directors of</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">seven</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">of the Fund&rsquo;s portfolio
            companies. The Fund makes available significant managerial assistance to its portfolio companies through participating in discussions with management and review of various management reports.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund&rsquo;s</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">current investment objectives</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">are non-fundamental,</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(that is, they may be</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">changed without a vote of the holders of a majority of the Fund&rsquo;s common stock).</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund is in the process of withdrawing</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund&rsquo;s
            election to be treated as a business development company (&ldquo;BDC&rdquo;) pursuant to Section 54(c) of the 1940 Act, and to continue operations as a registered closed-end investment company.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">If approved, it will be able to more freely invest in companies that do not meet the restrictive definition of &ldquo;Eligible Portfolio Company,&rdquo;</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">as currently required by the BDC rules. The Fund intends to continue to restrict its investments to</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">issuers which are either U.S. Domiciled or</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">U.S&ndash;listed</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">companies. It will also continue to avoid investing more that 25% of its total assets in any one industry so as to continue its qualification for taxation benefits as a Regulated Investment Company under</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Subchapter</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">M of the Internal
            Revenue Code.</font><br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">It is the policy of the Fund not to structure off-balance-sheet arrangements.</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">REGULATION UNDER THE INVESTMENT COMPANY ACT OF 1940</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The 1940 Act was enacted to regulate investment companies. In 1980, the 1940 Act was amended by the adoption of the Small Business Investment Incentive Act. The purpose of the amendment was to remove regulatory burdens on professionally managed investment companies engaged in providing capital to smaller
            companies. The Small Business Investment Incentive Act established a new type of investment company specifically identified as a Business Development Company as a way to encourage financial institutions and other major investors to provide a new source of capital for small developing businesses.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">BUSINESS DEVELOPMENT COMPANY</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">A business development company (&ldquo;BDC&rdquo;) is a closed-end management investment company that generally makes 70% or more of its investments in &ldquo;Eligible Portfolio Companies&rdquo; and &ldquo;cash items&rdquo; pending other investment. Under the 1940 Act, only certain companies may qualify as
            &ldquo;Eligible Portfolio Companies.&rdquo; To be an &ldquo;Eligible Portfolio Company,&rdquo; the company must satisfy the following:</font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">6</font></a>
            </div>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">it must be organized under the laws of, and have its principal place of business in, any state or states of the United States of America;</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">it is neither an investment company as defined in Section 3 of the 1940 Act (other than a small business investment company which is licensed by the Small Business Administration to operate under the Small Business Investment Act of 1958 and which is a
                        wholly-owned subsidiary of the business development company) nor a company which would be an investment company under the 1940 Act except for the exclusion from the definition of investment company in Section 3(c) of the 1940 Act; and</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="72">
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">it satisfies one of the following:</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top"><font size="2">&nbsp;</font></td>

                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1)</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">it does not have any class of securities listed on a national securities exchange; or</font></p>
                    </td>
                </tr>
            </table>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="top"><font size="2">&nbsp;</font></td>

                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2)</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">it has no class of securities on which a broker, dealer or national exchange member will extend credit; or</font></p>
                    </td>
                </tr>
            </table>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>
                </tr>
            </table>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top"><font size="2">&nbsp;</font></td>

                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">3)</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">it is controlled by a BDC (singly or in a group), in general terms, by virtue of the BDC&rsquo;s ownership of 25% or more of the company&rsquo;s voting securities and having a representative of the BDC on the company&rsquo;s board of directors;
                        or</font></p>
                    </td>
                </tr>
            </table>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="top"><font size="2">&nbsp;</font></td>

                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4)</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">it has total assets of not more than $4 million and capital and surplus of not less than $2 million.</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&ldquo;Eligible Portfolio Companies&rdquo; are, generally, those companies that, while being publicly held, might not have or do not have a broad-based market for their securities, or the securities that they wish to offer are restricted from public trading until registered. The Fund provides or offers to
            provide managerial assistance, and in certain circumstances contracts for the right to have a designee of the Fund elected to the board of directors of the Portfolio Company, or be designated as an advisory director. While these are the Fund&rsquo;s general policies, the application of these policies, of necessity, varies with each investment situation.</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1940 ACT REQUIREMENTS</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The BDC election exempts the Fund from some provisions of the 1940 Act. However, except for those specific provisions, the Fund will continue to be subject to all provisions of the 1940 Act not otherwise exempted, including the following:</font><br>
            <font size="2">&nbsp;</font></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">restrictions on the Fund from changing the nature of the Fund&rsquo;s business so as to cease to be, or to withdraw its election to be, a BDC without the affirmative votes of the lesser of the majority of the outstanding voting shares present in person or
                        by proxy or 67% of the outstanding shares present at the meeting if more than 50% of the outstanding shares are present.</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">restrictions against certain transactions between the Fund and affiliated persons;</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">restrictions on issuance of senior securities;</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">compliance with accounting rules and conditions as established by the SEC, including annual audits by independent accountants;</font></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>
                </tr>
            </table>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">compliance with fiduciary obligations imposed under the 1940 Act; and</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">requirement that the stockholders ratify the selection of the Fund&rsquo;s independent public accountants and the approval of the Fund&rsquo;s Advisory Agreement with the Investment Adviser or similar contracts and amendments thereto.</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">7</font></a>
            </div>

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            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">CO-INVESTMENTS WITH ADVISER-AFFILIATED FUNDS</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">In accordance with the conditions of an exemptive order of the SEC permitting co-investments (the &ldquo;Co-investment Order&rdquo;), many of the Fund&rsquo;s acquisitions and dispositions of investments are made in joint participation with funds that are also advised or managed by RENN Group
            (&ldquo;Adviser-Affiliated Funds&rdquo;).</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Co-investment Order provides that the Investment Adviser will review private placement investment opportunities on behalf of the Fund, including investments being considered on behalf of its Adviser-Affiliated Funds. If the Investment Adviser determines that any such investment is an eligible
            co-investment opportunity, the Fund must be offered the opportunity to invest in such investment in an amount recommended by the Adviser. Securities purchased by the Fund in a co-investment transaction with Adviser-Affiliated Funds will consist of the same class of securities and will have the same rights, price, terms and conditions. Any such co-investment transaction must be approved by the Fund&rsquo;s Board of Directors, including a majority of its independent directors. The
            Fund will not make any direct investment in the securities of any issuers in which the other Adviser-Affiliated Funds already hold an interest, except for follow-on investments in entities under a previous co-investment in which the Fund also participated. To the extent that the amount of a follow-on investment opportunity is not based on the amount of the Fund&rsquo;s and the Adviser-Affiliated Funds&rsquo; initial investments, the relative amount of investment by the
            Adviser-Affiliated Funds and the Fund will</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">first</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">be based on the ratio of the Fund&rsquo;s remaining funds available for investment to the aggregate of the Fund&rsquo;s and the Adviser-Affiliated Funds&rsquo; remaining funds available for investment.</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">To the extent that the Fund or any Adviser Affiliated Fund declines any portion of its</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">ratable</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">opportunity, the declined portion will be likewise prorated among</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">those</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">who wish to acquire an amount greater than their original ratio.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund will bear no more than its own transaction costs.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">INVESTMENT ADVISERS ACT OF 1940 AND THE ADVISORY AGREEMENT</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">RENN Group is the Investment Adviser to the Fund pursuant to the Advisory Agreement (the &ldquo;Advisory Agreement&rdquo;). RENN Group is registered as an Investment Adviser under the Advisers Act and is subject to its filing and other requirements. The Advisers Act also provides restrictions on the
            activities of registered advisers in order to protect clients from manipulative or deceptive practices.</font><br>
            <font size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Advisory Agreement is further subject to the 1940 Act, which requires that the Advisory Agreement, in addition to having to be initially ratified by the holders of a majority of the outstanding shares of the Fund, must precisely describe all compensation to be paid to RENN Group, must be approved annually
            by a majority vote of the</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Independent Directors of the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Board of Directors of the Fund,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and who are not a party to the agreement</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">may
            be terminated without penalty on at least 60 days notice by a vote of the holders of a majority of the outstanding shares of the Fund or by the vote of the Funds&rsquo; directors or the Adviser, and must automatically terminate in the event of assignment.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Pursuant to the Advisory Agreement, RENN Group receives a management fee equal to a quarterly rate of 0.4375% of the Fund&rsquo;s net assets, as determined at the end of such quarter with each such payment to be due on the last day of the calendar quarter. In addition, under the
            Advisory Agreement, RENN Group receives an incentive fee in an amount equal to 20% of the Fund&rsquo;s realized capital gains in excess of realized capital losses of the Fund after allowance for any unrealized capital losses in the portfolio investments of the Fund. The incentive fee is calculated and paid on an annual basis.</font> <font size="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">If the</font>
            <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">process of</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">ceasing to be</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">a BDC is</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">properly approved by the Shareholders, the basic management fee is expected to continue without change, but the incentive fee will be eliminated.</font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">FUND PORTFOLIO INVESTMENTS</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund had active investments in the following companies:</font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">8</font></a>
            </div>

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            </div>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Access Plans USA, Inc. (</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NASDAQ:</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">AUSA)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4929 West Royal Lane, Irving, TX 75063</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" size="2">&nbsp;</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif" size="1">Access Plans USA, Inc. develops and distributes various health insurance products and non-insurance health are discount programs to individuals, families, affinity groups and employer groups in the United
            States.</font><font face="Times New Roman, Times, serif"><font size="1"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><br>
            </font></font><font size="2"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008, the Fund owned a total of</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">890,500 shares of the
            company&rsquo;s common stock, options to purchase 3,659 shares of common stock at $2.30 per share and options to purchase 2,439 shares of common stock at $2.25 per share. These securities have a cost basis of $2,139,777.</font></font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">A-Power Energy Generation Systems, Ltd.</font></i></b>
            <b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NASDAQ:</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">APWR</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font size="1"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">No. 64 Huanghai Road, Yuhong District, Shenyang, Lianoning Province 110141</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><br>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">A-Power Energy Generation Systems, Ltd. designs, constructs, and tests distributed power generation and micro power grids to factories and users in the People&rsquo;s Republic of China. Its target customers include companies operating in various industries, including steel, chemical, cement, food processing and ethanol,</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and municipal governments, as well as state-owned Chinese power companies. The company was founded in 2003.</font></font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font size="1"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund owned 48,000 shares of common stock with a cost basis of $409,256.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Asian Financial, Inc. (Duoyuan Digital Printing Technology) (Private)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">No. 3 Jinyuan Road, Daxing District Industrial Development Zone, Beijing, China, 102600</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Duoyuan Digital Printing Technology engages in the design, development, and manufacture of offset printing equipment and solutions in the People&rsquo;s Republic of China. Duoyuan Digital Printing Technology is in the process of going through a reverse merger with a public shell known as Asian Financial,
            Inc.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'COURIER NEW'" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During the first quarter of 2008, the Fund received warrants to purchase 15,924 shares of common stock at $5.76 per share. The warrants were issued as a penalty</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">for</font>
            <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">failure to timely register the Fund&rsquo;s securities for resale under applicable securities laws.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund owned 130,209 shares of common stock</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and warrants to purchase 15,924
            shares of common stock at $5.76 per share. These securities have</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">a cost basis of $500,000.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">AuraSound</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, Inc.</font></i></b>
            <b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(OTCBB:</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">ARAU</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">11839 East Smith Avenue, Santa Fe Springs, CA 70670</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">AuraSound, Inc.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">engages in the development, commercialization and sale of audio products, sound systems and audio components using its patented and proprietary electromagnetic
            technology. Its products include micro-audio speakers, speaker component products, such as</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(loudspeaker transducers)</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and home and professional</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">audio products, including home audio systems, home theater systems and
            subwoofers.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund owned 1,000,000 shares of common stock and warrants to purchase 1,000,000 shares of common stock at $1.50 per share. These securities have a cost basis of $1,000,000.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><b><i><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Bovie Medical Corporation (AMEX:BVX)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">734 Walt Whitman Road, Melville, NY 11747</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Bovie Medical Corporation engages in the manufacture and marketing of medical products and the development of related technologies. The company offers electrosurgery products, which include desiccators, generators, electrodes, electrosurgery pencils, and various ancillary disposable
            products used in surgery for the cutting and coagulation of tissue, Bovie/Aaron 800 and 900 High Frequency Desiccators, which are designed for dermatology and plastic surgery for removing small skin lesions and growths, Bovie/Aaron 950 that is developed for outpatient surgical procedures used in various specialties, including dermatology, gynecology, and plastic surgery, Bovie/Aaron 1250, an electrosurgery generator, and Bovie/Aaron 2250/IDS 300, which is a multipurpose digital
            electrosurgery generator for the surgi-center market.</font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">9</font></a>
            </div>

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            </div>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Fund owned 500,000 shares of common stock in the company, having a cost basis of $907,845.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">BPO Management Services, Inc. (AMEX:</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">HAXS</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1290 North Hancock Street, Suite 202, Anaheim, CA 92807</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">BPO Management Services, Inc. provides business process outsourcing (BPO) services in the United States and Canada. It offers a range of services, including human resources, information technology, enterprise content management, and finance and accounting to support
            the back-office functions of middle-market enterprises on an outsourced basis.</font><br>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;<br>
            During the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">second quarter, the Fund exercised warrants to purchase 52,083 shares of Series D-2 preferred stock for $500,000.<br>
            &nbsp;<br>
            During the fourth quarter, the company restructured its balance sheet, consolidating a number of warrants and multiple classes of preferred stock into a single class of preferred stock.</font><br>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">As a result, at December 31, 2008, the Fund owned</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1,685,886 shares of Series</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">B</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">preferred stock. Such shares are convertible into 1,685,886</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">common shares</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and have a cost basis of $2,000,000.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">B</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">usiness Process Outsourcing (Outsource Partners International)</font></i></b>
            <b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Private</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">11150 Santa Monica Boulevard, Suite 350, Los Angeles, CA 90025</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Business Process Outsourcing aka Outsource Partners International is the largest professional services firm dedicated exclusively to the provision of finance, accounting and tax outsourcing services.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'COURIER NEW'" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">In the quarter ended September 30, 2008, the Fund exercised warrants to purchase 18,349 shares of common stock for $20,000.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund owned 18,349 shares of common stock, having a cost basis of $20,000.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">CaminoSoft Corporation (OTC:CMSF)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">600 North Hampshire Road, Suite 105, West Lake Village, CA 91361</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">CaminoSoft Corp. engages in the development and marketing of enterprise data management software for small and medium-sized organizations. It offers software solutions that store, manage, and safeguard data created in a business and application settings.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><br>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">year, the Fund received 273,907 common shares as payment in kind for interest on promissory notes held by the Fund.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Fund held a $250,000 promissory note. The Fund also owned 3,813,321</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">shares of common stock in the company having a
            basis of $5,295,521. Additionally, the Fund owned warrants to purchase</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">521,698</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">shares</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">of</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">common</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">stock</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">at exercise prices ranging from $0.53 per share to $0.86</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">per share, with varying expiration dates, and options to purchase 94,200 shares common with strike prices ranging from $0.41 per share to $0.61 per share.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Co</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">go Group</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, Inc.
            (</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NASDAQ:</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">COGO)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Room 1001 Tower C Skyworth Building High-Tech Industrial Park Nanshan, Shenzhen, China 518057</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Cogo</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Group, Inc. provides customized module design solutions to electronic manufacturers in China.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund held 200,000 shares of the company&rsquo;s common stock, with a cost basis of $836,019.</font></p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Dynamic Green Energy Limited</font></i></b>
            <b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Private</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Room 2001, Development Center Building, Renmin Road South, Shenzhen, China 518057</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; COLOR: #000000; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt">Dynamic Green Energy, Ltd.</font> <font size="2"><font style="FONT-SIZE: 10pt">is</font> <font style="FONT-SIZE: 10pt">one of China's most experienced and largest photovoltaic ("PV") module</font> <font style="FONT-SIZE: 10pt">assemblers</font>
            <font style="FONT-SIZE: 10pt">for</font> <font style="FONT-SIZE: 10pt">the solar power industry.&nbsp; Among its customers are some of the world's most technologically advanced solar companies, including SunPower Corporation and GE Energy to name a few.</font></font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'COURIER NEW'" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">In the quarter ended June 30, 2008, the Fund invested $1,000,000 in a 7%</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">convertible</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">promissory note.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund held a $1,000,000 convertible promissory note.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">eOriginal, Inc. (Private)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">351 West Camden Street, Suite 800, Baltimore, MD 21201</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">eOriginal, Inc. has a patented process for creating, executing, storing and retrieving legal documents in an electronic format.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund owned 10,680 shares of Series A Convertible Preferred Stock; 25,646 shares of Series B Convertible Preferred Stock; 51,249 shares of Series C Convertible Preferred Stock; 36,711 shares of Series D Convertible Preferred Stock; warrants to
            purchase</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1,142</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">shares of Series A Convertible Preferred Stock at an exercise price of $16.12 per share and warrants to purchase 14,861 shares of common stock at exercise prices ranging from $3.83</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to $20.97 per share. The aggregate
            cost basis is $6,872,270.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Gasco Energy, Inc. (AMEX:GSX)</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">8</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Inverness Drive East, Suite</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">100, Englewood, CO 80112</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Gasco Energy, Inc. operates as a natural gas and petroleum exploration, development and production company in the western United States.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">In the quarter ended March 31, 2008, the Fund sold 775,586 shares of common stock for $1,800,348, realizing a gain of $1,334,996.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund held options to buy 18,750 shares of the company&rsquo;s common stock at exercise prices ranging from $1.00</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">per share</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to $2.15</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">per share.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><b><i><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Global Axcess Corporation (OTCBB:GAXC)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">14 Inverness Drive East, Suite H-236, Englewood, CO 80112</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Global Axcess Corporation owns and operates automated teller machines (ATM) with locations primarily in the eastern and southwestern United States.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund owned 953,333 shares of common stock having a cost basis of $1,261,667 and warrants to purchase 1,486,667</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">shares of common stock at prices ranging from $1.75 per share to $5.00 per
            share.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Hemobiotech, Inc. (OTCBB:HMBT)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">5001 Spring Valley Road, Suite 1040 West, Dallas, TX 75244</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Hemobiotech, Inc. is a biopharmaceutical company engaged in the research and development of human blood substitute technology licensed from Texas Tech University Health Science Center School of Medicine (TTUHSC) in Texas. It focuses primarily on the production of
            HemoTech, an oxygen-carrying solution that performs like red blood cells.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund owned 1,200,000 shares of common stock. The stock had a cost basis of $1,284,117.</font></p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">HLS Systems International, Inc.
            (</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NASDAQ:</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">H</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">OLI</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">625 Broadway, Suite 1111, San Diego, CA 92101</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">HLS Systems International, Inc. operates as a holding company for Beijing HollySys Company Ltd. and Hangzhou HollySys Automation Co., Ltd. Those companies manufacture and market industrial automation and control systems.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund owned</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">58,500</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">shares of common stock. The stock had a cost basis of $498,557.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">i2Telecom International, Inc. (OTCBB:ITUI)</font></i></b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1200 Abernathy Road, Suite 1800, Atlanta, GA 30328</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">i2Telecom International, Inc. provides telecommunications services employing voice over Internet protocol (VoIP) technology.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund owned 4,165,316 shares of common stock.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">stock</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">had a cost basis of $711,200.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">iLinc Communications, Inc. (AMEX:ILC)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2999 North 44th Street, Suite 650, Phoenix, AZ 85018</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">iLinc Communications, Inc. provides Web conferencing software and services.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">In the quarter ended September 30, 2008, the Fund sold 23,266 shares of common stock for $4,127, realizing a loss of $9,781.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">owned</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">a $500,000 12% Convertible Subordinated Note convertible into ILC common at a rate of $1.00 per
            share.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Integrated Security Systems, Inc. (OTCBB:IZZI)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2009 Chenault Drive, Suite 114, Carrollton, TX 75006</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Integrated Security Systems, Inc. engages in the design, development, manufacture, distribution and servicing of security and traffic control products used in the commercial, industrial and government sectors.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" size="2">&nbsp;</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'COURIER NEW'" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">In the first quarter of 2008, the Fund received 976,622 shares of common stock as payment in kind for interest on promissory notes held by the Fund. Russell Cleveland received 102,170 shares of common stock for compensation as a member of the
            company&rsquo;s board of directors. Mr. Cleveland&rsquo;s stock was assigned to the Fund.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">In the third quarter of 2008, the Fund received 3,626,508 shares of common stock as payment in kind for interest on promissory notes held by the Fund. The shares had a cost basis of $129,200. During the third quarter of 2008,
            the Fund received an additional 110,755 shares of common stock. The shares were received in connection with Russell Cleveland&rsquo;s compensation as a member of Integrated Security Systems&rsquo; board of directors.</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Mr. Cleveland&rsquo;s stock was assigned to the Fund.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The shares had a cost basis of
            $4,242. The Fund also received 215,000 shares of common stock as compensation for extending the maturity date of certain promissory notes held by the Fund. The shares had a cost basis of $21,500.</font></font></font></p>

            <p></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">12</font></a>
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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'COURIER NEW'" align="justify"><font face="Times New Roman, Times, serif"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">In the</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">fourth</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">quarter of 2008, the Fund received</font>
            <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1,638,222</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">shares of common stock as payment in kind for interest on promissory notes held by the Fund. Russell Cleveland received</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">48,062</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">shares of common stock for compensation as a member of the company&rsquo;s board of
            directors. Mr. Cleveland&rsquo;s stock was assigned to the Fund.</font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund owned</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">a $200,000 7% promissory note, four 8% promissory notes aggregating</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$1,450,000,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">one</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$500,000 8% convertible promissory note,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">one</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$400,000
            6% convertible promissory note,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">7,500 shares of</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">9% preferred stock convertible</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">into 187,500 shares of common stock, with a cost basis of $150,000, 39,626,430</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">shares of common stock with a cost basis of $6,325,113,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">warrants to purchase 514,706 shares of common stock at $0.34 per share.</font></font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Murdoch Security &amp; Investigations, Inc. (Private)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2777 Summer Street, Stamford, CT 06905</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Murdoch Security &amp; Investigations, Inc. is a full service security company providing uniformed guard services and other custom security solutions to private and public sector clients throughout the northeastern United States.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'COURIER NEW'" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">In the first quarter of 2008, the Fund purchased 500,000 shares of common stock and warrants to purchase 500,000 shares of common stock at $0.70 per share for $250,000.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'COURIER NEW'" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During the year, the Fund received 112,500 shares of common stock as compensation for the company not going public by a specified date.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund owned 2,612,500 shares of common stock and warrants to purchase 2,500,000 shares of common stock at $0.70 per share.</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">These securities have a cost basis of $1,250,000.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Narrowstep, Inc. (OTCBB:NRWS)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">116 Village Boulevard,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Suite</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">200, Princeton, NJ
            08540</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Narrowstep, Inc. operates in the field of Internet-based video content delivery. The company develops, produces, transmits, and manages streaming video broadcasts via the Internet and television (TV) channels in Europe, Asia and the United States.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund owned 4,000,000 shares of common stock and warrants to purchase 2,000,000 shares of common stock at $0.50. The cost basis of these securities is $1,000,000.</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><b><i><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">PetroHunter Energy Corporation (OTCBB:PHUN)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">1600 Stout Street, Suite 200, Denver, CO 80202</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">PetroHunter Energy Corporation engages in the exploration and production of oil and gas properties. It owns interests</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in the Buckskin Mesa project comprising 20,000 net acres in Rio
            Blanco County,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Colorado,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Piceance II project consisting of 27 producing nonoperated wells and 16 nonproducing operated wells, the South Bronco project and the Gibson Gulch project,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Colorado. The company also holds various interests in Australia, including the Beetaloo project comprising 7 million net contiguous acres and the Northwest Shelf project, which consists of an exploration permit with 20,000 acres in Western Australia.</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During the year, the Fund received warrants to purchase 533,333 shares of common stock at $0.255 per share. The warrants were received</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in consideration for</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">a waiver of penalties and</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">for</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">an extension on the interest payments</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">on a promissory note held by the Fund.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund owned a $1,000,000 8.5% convertible debenture and warrants to purchase 7,200,000 shares of common stock at $0.255 per share.</font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">13</font></a>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Pipeline Data, Inc. (OTCBB:PPDA)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1515 Hancock Street Suite 301, Quincy, MA 02169</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Pipeline Data, Inc. provides merchant payment processing services and related software products in the United States. The Company delivers credit and debit card-based payment processing solutions primarily to small to medium-sized merchants that operate in physical &lsquo;brick and mortar&rsquo; business
            environments, over the Internet, or in mobile or wireless settings through cellular-based wireless devices.</font><br>
            &nbsp;<br>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During the fourth quarter, the Fund exchanged warrants to purchase 150,000 shares of common stock at $1.40 per share for an additional $69,000 senior secured note.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund held a $569,000</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">senior secured</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">convertible</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">10%</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">note.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Points International Ltd. (OTCBB:PTSEF)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">179 John Street 8th Floor, Toronto, ON, Canada M5T 1X4</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Points International, Ltd. owns and operates Points.com, an online loyalty program management portal that enables consumers to earn, buy, share, redeem, swap and redeem miles and points with various loyalty programs and retail
            partners.</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund owned a total of 900,000 shares of common stock having a cost basis of $492,000.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Riptide Worldwide, Inc.</font></i></b>
            <b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">OTCBB</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">:</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">RTWW</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">
            )</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1351 Dividend Drive, Suite G, Marietta, GA 30067</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Riptide Worldwide, Inc. provides business process management and information technology services in the United States and internationally. It offers custom programming services to build configurable enterprise software solutions for revenue and financial management systems, enterprise application integration,
            user-interface frameworks, middle-tier frameworks, military and commercial modeling and simulation, and military C3 centers (Command, Control and Communications).</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During the fourth quarter, the Fund sold 896,434 shares of common stock for $9,453, realizing a loss of $329,491.</font><br>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund owned</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">941,962</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">shares of the company&rsquo;s common stock having a cost basis of $754,387.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Silverleaf Resorts, Inc. (</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NASDAQ:</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">SVLF)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1221 River Bend Drive, Suite 120, Dallas, TX 75247</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Silverleaf Resorts, Inc. engages in the development, marketing and operation of timeshare resorts in the United States. It operates resorts under the brands &lsquo;getaway resorts&rsquo; and &lsquo;destination resorts&rsquo;. The company markets and sells vacation intervals in its resorts, which also offer
            amenities, such as fishing, boating, horseback riding, swimming, tennis and golf.</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">owned</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">100,000 shares of common stock. The stock had a cost basis of</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$430,000.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Symbollon Pharmaceuticals, Inc.
            (</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NASDAQ:</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">S</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">YMBA</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">37 Loring Drive, Framingham, MA 01702</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Symbollon Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on the development and commercialization of proprietary products based on its molecular iodine technology for women's healthcare and antimicrobials uses.</font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">14</font></a>
            </div>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="justify">
                <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund owned 607,143 shares of common stock having a basis of $500,000. The Fund also owned warrants to purchase 607,143 shares at $1.00 per share.</font>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Vertical Branding, Inc. (OTCBB:VBDG)</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">16000 Ventura Boulevard, Suite 301, Encino, CA 91436</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Vertical Branding, Inc. is a consumer product branding, marketing and</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">distribution</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">company in the United States. The company offers personal
            care, fitness, beauty and household products. It sells its products through its retail distribution business, catalogues, international distribution channels and other non-electronic distribution outlets.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During the year, the Fund received 20,058 shares of common stock and options to purchase 30,087 shares of common stock at strike prices ranging from $0.37 to $0.49. These securities were received in connection with Robert C. Pearson&rsquo;s compensation as a member of Vertical Branding&rsquo;s board of
            directors. These securities have an aggregate cost basis of $ 17,506.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund owned 1,686,725 shares of common stock, warrants to purchase 1,666,666 shares of common stock at prices ranging from $1.00 to $1.50 per share and options to purchase 30,087 shares of common
            stock at prices ranging from $0.37 to $0.49, with an aggregate cost basis of $1,017,506.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">VALUATION OF INVESTMENTS</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">On a weekly basis, RENN Group prepares a valuation to determine fair value of the investments of the Fund. The Board of Directors of the Fund approves the valuation on a quarterly basis. Interim board involvement may occur if material issues arise before quarter end. The valuation principles are described
            below.</font></p>

            <p></p>

            <table>
                <tr>
                    <td width="24">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Unrestricted common stock of companies listed on an exchange, NASDAQ or in the over-the-counter market is valued at the closing price on the date of valuation.</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <table>
                <tr>
                    <td width="24">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Restricted common stock of companies listed on an exchange, NASDAQ or in the over-the-counter market is valued based on the quoted price for an otherwise identical unrestricted security of the same issuer that trades in a public market, adjusted to reflect
                        the effect of significant restrictions.</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <table>
                <tr>
                    <td width="24">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The unlisted preferred stock of companies with common stock listed on an exchange, NASDAQ or in the over-the-counter market is valued at the closing price of the common stock into which the preferred stock is convertible on the date of valuation.</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <table>
                <tr>
                    <td width="24">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Debt securities are valued at fair value. The Fund considers, among other things, whether a debt issuer is in default or bankruptcy. It also considers the underlying collateral. Fair value is generally determined to be the greater of the face value of the
                        debt or the market value of the underlying common stock into which the instrument may be converted.</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <table>
                <tr>
                    <td width="24">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The unlisted in-the-money warrants or options of companies with the underlying common stock listed on an exchange, NASDAQ or in the over-the-counter market are valued at fair value (the positive difference between the closing price of the underlying common
                        stock and the strike price of the warrant or option). An out-of-the money warrant or option has no value; thus, we assign no value to it.</font></p>
                    </td>
                </tr>
            </table>

            <p align="center"><font face="Times New Roman, Times, serif" size="2">15</font></p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <table>
                <tr>
                    <td width="24">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Investments in privately held entities are valued at fair value. If there is no independent and objective pricing authority (i.e. a public market) for such investments, fair value is based on the latest sale of equity securities to independent third
                        parties. If a private entity does not have an independent value established over an extended period of time, then the Investment Adviser will determine fair value on the basis of appraisal procedures established in good faith and approved by the Board of Directors.</font></p>
                    </td>
                </tr>
            </table>

            <p align="left"><font face="Times New Roman, Times, serif" size="2">PERSONNEL</font></p>

            <p align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund has no employees, but instead has contracted RENN Group pursuant to the Advisory Agreement to provide all management and operating activities.</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">As of December 31, 2008</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">RENN Group had</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">eleven employees engaged in performing the duties and functions required by the Fund. At the present time, a substantial portion of RENN Group&rsquo;s staff time is devoted to activities of the Fund. However, because of the diversity of skills required, the Fund cannot afford to employ all these persons
            solely for its own needs, and therefore, these employees are not engaged solely in activities of the Fund.</font></font></font></p>

            <p align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">No accurate data or estimate is available as to the percentage of time, individually or as a group, that will be devoted to the affairs of the Fund. The officers and employees have and will devote such time as is required, in their sole discretion, for the conduct of business, including the provision of management services to Portfolio
            Companies.</font><br>
            <font size="2">&nbsp;</font></font></p>

            <p align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">RENN Group currently serves as the Investment Manager to Renaissance US Growth Investment Trust PLC (&ldquo;RUSGIT&rdquo;). RUSGIT is a public limited company registered in the United Kingdom and listed on the London Stock Exchange. RUSGIT invests in privately placed convertible securities issued by companies similar to the investments of the
            Fund. RUSGIT invests pari-passu with the Fund on all relevant terms, except that amounts invested may differ.</font><br>
            <font size="2">&nbsp;</font></font></p>

            <p align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">RENN Group also serves as the Investment Adviser to</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Global</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Special Opportunities Trust PLC (&ldquo;GSOT&rdquo;) and is specifically responsible for
            managing</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">its</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">growth</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">portfolio.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">G</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">SOT is a public limited
            company registered in the United Kingdom and listed</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">on the London Stock Exchange. GSOT invests in publicly traded equities, fixed-income and convertible securities of publicly traded issuers, and also invests in privately placed convertible instruments issued by companies similar to the investments of the Fund. For privately placed investments,</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">GSOT invests on a pari-passu basis with the Fund as to all relevant terms of the investment, except that amounts invested may differ.</font><br>
            </font></font></p>

            <p align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">RENN Group also serves as the Investment Adviser to Premier RENN</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Entrepreneurial</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Fund Limited (&ldquo;PRENN&rdquo;). PRENN is an open-end investment company
            registered with limited liability in Guernsey. PRENN invests primarily in privately placed equity and convertible debt securities issued by companies similar to the investments of the Fund. PRENN invests pari-passu with the Fund on all relevant terms, except that amounts invested may differ.</font></font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">RENN Group also serves as the Investment Adviser to Premier</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">China Opportunities</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Fund (&ldquo;CHOPPS&rdquo;)</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">manages its US-listed investments.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">CHOPPS</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">is an open-end investment company registered with limited liability in Guernsey, and</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">invests primarily in publicly traded equities.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">As regarding its U.S. listed investments,</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">CHOPPS</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">invests pari-passu with the Fund on all relevant terms, except that amounts invested may differ.</font></font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">CODE OF ETHICS</font><br>
            <font size="2">&nbsp;</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund and RENN Group have adopted a Code of Ethics pursuant to Rule&nbsp;17j-1 under the 1940 Act applicable to all of their respective officers and employees. The Code of Ethics is on public file with, and is available from, the Securities and Exchange
            Commission&rsquo;s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling the Commission at (202)-942-8090, and this Code of Ethics is available on the EDGAR database as an exhibit to the Fund&rsquo;s Form&nbsp;8-K (File No. 001-11701),</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><a name="PAGENUM"><font face="Times New Roman" size="2"><font face="Times New Roman, Times, serif" size="2">16</font></font></a></p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">which is found on the Commission internet site at www.sec.gov. A copy of this Code of Ethics may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov, or by writing the Commission&rsquo;s Public
            Reference Section, Washington, D.C. 20549-0102. We have made the Fund&rsquo;s Code of Ethics available on our website at</font></font> <font face="Times New Roman, Times, serif" size="2"><u>www.renncapital.com</u></font> <font face="Times New Roman, Times, serif"><font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and will post any future amendments to the Code on our website as soon as practicable after its adoption by the Board by
            Directors.</font></font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 1A. Risk Factors.</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">You should carefully consider the risks described below and all other information contained in this annual report on Form 10-K, including our consolidated financial statements and the related notes thereto before making a decision to purchase our common stock. The risks and uncertainties described below are
            not the only ones facing us. Additional risks and uncertainties not presently known to us, or not presently deemed material by us, may also impair our operations and performance. If any of the following risks actually occur, our business, financial condition or results of operations could be materially adversely affected. If that happens, the trading price of our common stock could decline, and you may lose all or part of your investment.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">We May be Unable to Participate in Certain Investment Opportunities</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. As a Business Development Company, we are required to invest at least 70% of our assets directly in &ldquo;Eligible Portfolio
            Companies&rdquo;. As a result, we will be unable to make new investments in companies that are not considered Eligible Portfolio Companies if at any time we have less than 70% of our portfolio invested in companies that are Eligible Portfolio Companies.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Our Growth is Dependent on Investing in Quality Transactions</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. <font face="Times New Roman, Times, serif">Sustaining growth depends on our ability to identify, evaluate, finance, and invest in companies that meet
            our investment criteria. Accomplishing such results on a cost-effective basis is a function of our marketing capabilities and skillful management of the investment process. Failure to achieve future growth could have a material adverse effect on our business, financial condition, and results of operations.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Failure to Invest Capital Effectively May Decrease Our Stock Price</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. If we fail to invest our capital effectively, our return on equity may be decreased, which could reduce the price of the shares of our common
            stock.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Highly Competitive Market for Investments</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. <font face="Times New Roman, Times, serif">The Fund has significant competition for investment opportunities. Competitive sources for growth capital include insurance
            companies, banks, equipment leasing firms, investment bankers, venture capital and</font></font> <font face="Times New Roman, Times, serif" size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">other</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">private equity funds, money managers, hedge funds, and private investors. Many of these sources have substantially greater financial resources than are available</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">from</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund. Therefore, the Fund will have to compete for investment opportunities based on its ability to respond to the needs of the prospective portfolio company and its willingness to provide management assistance. In some instances,</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the requirement</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">that the Fund provide management assistance will cause the Fund to be non-competitive.</font><br>
            </font>&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><i><font style="FONT-SIZE: 10pt"><u>We&nbsp; will&nbsp; be&nbsp; particularly&nbsp;&nbsp; sensitive&nbsp; to&nbsp; the&nbsp; risks&nbsp; associated&nbsp; with&nbsp; equity investments in small-cap and micro-cap companies.</u>&nbsp;</font></i> <font style="FONT-SIZE: 10pt">Our equity&nbsp; investments&nbsp; are focused on
            common stocks of small-cap and micro-cap companies. We will therefore be&nbsp; particularly&nbsp; sensitive to the risks&nbsp; associated with smaller&nbsp; companies.&nbsp; The general risks associated with equity securities are particularly&nbsp; pronounced for</font> <font size="2"><font style="FONT-SIZE: 10pt">securities issued by companies with small market capitalizations.&nbsp; Micro-cap and</font> <font style="FONT-SIZE: 10pt">other small capitalization companies may offer
            greater opportunities for capital appreciation than larger companies,&nbsp; but may also involve certain special risks. They are more&nbsp; likely than&nbsp; larger&nbsp; companies&nbsp; to have&nbsp; limited&nbsp; product&nbsp; lines, markets&nbsp; or&nbsp; financial&nbsp; resources,&nbsp; or&nbsp; to&nbsp; depend&nbsp; on&nbsp; a&nbsp; small management group.&nbsp; Securities of smaller companies may trade less frequently and in lesser volume than more widely held securities and
            their values may fluctuate</font> <font style="FONT-SIZE: 10pt">more sharply than other securities.&nbsp; They may also trade in the over-the-counter market or may otherwise have limited liquidity. These securities&nbsp; may&nbsp; therefore&nbsp; be more&nbsp; vulnerable&nbsp; to&nbsp; adverse&nbsp; developments&nbsp; than securities&nbsp; of larger&nbsp; companies. In addition,&nbsp; we may have&nbsp; difficulty&nbsp; establishing&nbsp; or closing out our securities&nbsp; positions
            in smaller&nbsp; companies at prevailing market prices.&nbsp; Also, there may be less&nbsp; publicly-available&nbsp; information&nbsp; about smaller companies&nbsp; or less&nbsp; market&nbsp; interest in their&nbsp; securities&nbsp; as compared to larger companies,&nbsp; and it may take longer for the prices of the&nbsp; securities&nbsp; to reflect the full value of the issuers&rsquo; earnings potential or assets.</font></font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Lack of Publicly Available Information on Certain Portfolio Companies</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. Some of the securities in our portfolio are issued by privately held companies. There is generally little or no publicly available
            information about such companies, and we must rely on the diligence of our management to obtain the information necessary for our decision to invest. There can be no assurance that such diligence efforts will uncover all material information necessary to make fully informed investment decisions.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><a name="PAGENUM"><font face="Times New Roman" size="2"><font face="Times New Roman, Times, serif" size="2">17</font></font></a></p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Dependence on Key Management</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. Selecting, structuring and closing our investments depends upon the diligence and skill of our management, which is responsible for identifying, evaluating, negotiating, monitoring
            and disposing of our investments. Our management's capabilities will significantly impact our results of operations. If we lose any member of our management team and he or she cannot be promptly replaced with an equally capable team member, our results of operations could be significantly impacted.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><a name="PAGENUM"></a>&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Failure to Deploy Capital May Lower Returns</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. Our failure to successfully deploy sufficient capital may reduce our return on equity.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Results May Fluctuate</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. Our operating results may fluctuate materially due to a number of factors including, among others, variations in and the timing of the recognition of realized and unrealized gains or
            losses, the degree to which we encounter competition in our portfolio companies&rsquo; markets, the ability to find and close suitable investments, and general economic conditions. As a result of these factors, results for any period should not be relied upon as being indicative of performance in future periods.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Uncertain Value of Certain Restricted Securities</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. Our net asset value is based on the values assigned to the various investments in our portfolio, determined in good faith by our board of directors. Because of
            the inherent uncertainty of the valuation of portfolio securities which do not have readily ascertainable market values, our fair value determinations may differ materially from the values which would be applicable to unrestricted securities having a public market.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Illiquid Securities May Adversely Affect Our Business</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. Our portfolio contains securities which are subject to restrictions on sale because they were acquired from issuers in "private placement" transactions or
            because we are deemed to be an affiliate of the issuer. Unless an exemption from the registration requirements of the Securities Act of 1933 is available, we will not be able to sell these securities publicly without the expense and time required to register the securities under applicable federal and state securities laws. In addition, contractual or practical limitations may restrict our ability to liquidate our securities in portfolio companies, because we may own a relatively
            large percentage of the issuer's outstanding securities. Sales may also be limited by unfavorable market conditions. The illiquidity of our investments may preclude or delay the disposition of such securities, which may make it difficult for us to obtain cash equal to the value at which we record our investments.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Regulated Industry</font></u></i><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">.</font></i> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Publicly traded investment funds are highly regulated. Changes in securities laws or regulations
            governing our operations or our failure to comply with those laws or regulations may adversely affect our business.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Failure to Qualify for Favorable Tax Treatment</font></u></i><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">.</font></i> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">We may not qualify for pass-through tax treatment as a regulated
            investment company ("RIC") if we are unable to comply with the requirements of Subchapter M of the Internal Revenue Code. Failure to qualify as a regulated investment company would subject the Fund to federal income tax as if it were an ordinary corporation, which would result in a substantial reduction in both the Fund&rsquo;s net assets and the amount of income available for distribution to stockholders. The loss of this pass-through tax treatment could have a material adverse
            effect on the total return, if any, obtainable from an investment in our common stock.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Highly Leveraged Portfolio Companies</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. Some of our portfolio companies could incur substantial indebtedness in relation to their overall capital base. Such indebtedness often requires the balance of the loan to
            be refinanced when it matures. If portfolio companies cannot generate adequate cash flow to meet the principal and interest payments on their indebtedness, the value of our investments could be reduced or eliminated through foreclosure on the portfolio company's assets or by the portfolio company's reorganization or bankruptcy.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Our Common Stock Often Trades at a Discount</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. The Fund&rsquo;s stock frequently trades at a discount from net asset value. Stockholders desiring liquidity usually sell their shares at current market value, and
            therefore may not realize the full net asset value of their shares. This is a risk separate and distinct from the risk that a fund's performance may cause its net asset value to decrease.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">18</font></a></p>

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                    <hr width="100%" noshade>
                </div>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Nature of Investment in Our Common Stock</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. Our stock is intended for investors seeking long-term capital appreciation. Our investments in portfolio securities generally require some time to reach maturity, and
            such investments generally are illiquid. An investment in our shares should not be considered a complete investment program. Each prospective purchaser should take into account his or her investment objectives as well as his or her other investments when considering the purchase of our shares.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Our Stock Price May Fluctuate Significantly</font></u></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. The market price of our common stock may fluctuate significantly. The market price and marketability of shares of our common stock may from time to time be
            significantly affected by numerous factors, including our investment results, market conditions, and other influences and events over which we have no control and that may not be directly related to us.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Failure to Meet Listing Standards</font></u></i><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">.</font></i> <font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">We are current in our SEC filings, and we
            believe we have met all our listing requirements on the</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NYSE Amex</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Exchange. However, there can be no assurance that we will continue to meet the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NYSE Amex</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Exchange listing standards or any other listing standards,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and the stock could be delisted.</font></font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 2. Properties</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund&rsquo;s business activities are conducted from the offices of RENN Group, which offices are currently leased until November 30, 2010 in a multi-story general office building in Dallas, Texas. The use of such office facilities, including office furniture, phone services, computer equipment, and files
            are provided by RENN Group at its expense pursuant to the Advisory Agreement.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 3. Legal Proceedings</font></b><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">None</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 4. Submission of Matters to a Vote of Security Holders</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">None.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Part II</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 5. Market for Registrant&rsquo;s Common Equity and Related Stockholder Matters</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">TRADING</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund&rsquo;s common stock is traded on the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NSYE</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Amex</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Exchange</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">under the ticker RCG. The following table sets forth, for the periods indicated, the high and low closing sale prices for the Common Stock as: (i) reported on Bloomberg;</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and (ii) adjusted for</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">distributions. The prices listed as &ldquo;adjusted for</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">distributions&rdquo; were derived by adding to the share price all</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">distributions</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">paid</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and the taxes paid in connection with the distributions deemed to have been paid</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">from</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the inception of the Fund in 1994</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">through the relevant
            date.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <table cellspacing="0" cellpadding="0" width="550" border="0">
                <tr>
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="154">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="218" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">As Stated</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="240" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Adjusted For Distributions</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="154">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="104">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Low</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="114">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">High</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Low</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">High</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="154">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">First quarter 2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="104">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 5.18</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="114">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 6.48</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="96">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 20.83</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">22.13</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="154">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Second quarter 2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="104">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 5.07</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="114">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 6.25</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="96">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 20.82</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">22.00</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="154">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Third quarter 2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="104">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 3.64</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="114">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 5.10</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="96">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 19.49</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">20.95</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="154">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Fourth quarter 2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="104">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 1.90</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="114">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 4.10</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="96">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 17.85</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">20.05</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 17.3pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="154">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="104">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="114">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="96">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="144">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="154">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">First quarter 2007</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="104">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 9.00</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="114">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 10.15</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="96">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 24.62</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="144">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 25.77</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="154">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Second quarter 2007</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="104">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 8.85</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="114">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 9.50</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="96">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 24.47</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="144">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 25.12</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="154">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Third quarter 2007</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="104">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 7.75</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="114">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 9.05</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="96">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 23.37</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="144">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 24.67</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="154">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Fourth quarter 2007</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="104">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 5.90</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="114">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 7.98</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="96">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 21.62</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="144">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 23.60</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><a name="PAGENUM"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font face="Times New Roman, Times, serif" size="2">19</font></font></a></p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The following section contains more information regarding the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">distributions</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund has paid since inception.</font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"></a>&nbsp;
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">DIVIDENDS/DISTRIBUTIONS</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">In the past, the Fund has provided returns to stockholders through cash</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">distributions</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and deemed dividends of its net investment
            income,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">realized gains</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and return of capital. At December 31, 2008, the Fund has declared a total of $14.21</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">per share in cash</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">distributions</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to its stockholders since inception in 1994. Since inception the fund has declared deemed dividends of $4.98 per share and paid taxes of $1.74 per share on behalf of stockholders on these dividends for a net deemed dividend of $3.24 per share deemed paid to stockholders.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund has no fixed dividend policy. The Fund&rsquo;s Board of Directors will periodically consider the declaration of either a cash dividend</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and/or a deemed dividend. &ldquo;Deemed dividends&rdquo; are declared dividends
            of realized capital gains that are retained in the Fund for investment and are deemed by the IRS to be distributed to the Fund&rsquo;s stockholders if the Fund transmits 35% of the deemed dividends to the IRS as tax deposits on behalf of the stockholders and advises the stockholders how to apply the tax deposit to their personal taxes for that year. Under the Internal Revenue Code the Fund must withhold taxes at the maximum corporate rate of 35% and the remainder of the dividend is
            retained by the Fund for investment. The stockholders are allowed to increase their basis in their holdings by their share of the amount retained for investment, and to claim as a tax</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">credit</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the portion of the withholdings remitted by the Fund to the IRS on their behalf.</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Any stockholder who has no tax liability may apply for refund of the tax credit.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During the year ended December 31, 2008, the Fund</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">paid a total of $0.30 per share in distributions to shareholders. From this $0.30, $0.18 per share, or $803,515, was realized taxable net long term</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">capital</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">gains. All of the net capital gains were distributed in cash</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in March and July of 2008. Also from the $0.30</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">per share</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund distributed $0.12 per share, or $535,677, designated as return of capital, paid in cash, during July and October of 2008.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">DIVIDEND REINVESTMENT PLAN</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Pursuant to the Dividend Reinvestment Plan (the &ldquo;Reinvestment Plan&rdquo;) any stockholders whose shares are registered in their own names will be deemed to have elected to have all dividends and distributions automatically reinvested in Fund shares pursuant to the Reinvestment Plan unless and except
            for each such stockholder who individually elects to receive such on a current basis in lieu of reinvestment. In the case of stockholders such as banks, brokers or nominees that hold shares for others who are beneficial owners (&ldquo;Nominee Stockholders&rdquo;), the Plan Agent, American Stock Transfer &amp; Trust Co. (the &ldquo;Plan Agent&rdquo;) will administer the Reinvestment Plan on the basis of the number of shares certified by such Nominee Stockholders as registered for
            stockholders that have not elected to receive dividends and distributions in cash.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Investors that own shares registered in the name of a Nominee Stockholder should consult with such nominee as to participation or withdrawal from such plan.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">All communications regarding the Reinvestment Plan should be directed to the Plan Agent.</font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">20</font></a>
            </div>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NUMBER OF HOLDERS</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">As of December 31, 2008, there were approximately</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">614</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">record holders of the Fund&rsquo;s common stock. This total does not include
            stockholders with shares held under beneficial ownership in nominee name or within clearinghouse positions of brokerage firms or banks, which represent 49% of the outstanding shares of the Fund.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 6. Selected Financial Data.</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The following selected financial data for the period January 1, 2004</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">through December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">is derived from the Fund&rsquo;s audited</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">financial</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">statements and should be read in conjunction with the Fund&rsquo;s</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">financial</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">statements and</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">notes</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">thereto and &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&rdquo; included in Item 7 of this Annual Report on Form 10-K.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"></p>

            <table cellspacing="0" cellpadding="0" align="left" border="0">
                <tr valign="bottom" height="1">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" colspan="15">
                        <p align="center"><font size="2">Selected Financial Data</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center"><font face="Times New Roman" size="2">2008</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center"><font face="Times New Roman" size="2">2007</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center"><font face="Times New Roman" size="2">2006</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center"><font face="Times New Roman" size="2">2005</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="64">
                        <p align="center"><font face="Times New Roman" size="2">2004</font></p>
                    </td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">Gross income (loss), including net realized gain (loss)</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right"><font face="Times New Roman" size="2">1,376,837</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right"><font face="Times New Roman" size="2">4,215,319</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right"><font face="Times New Roman" size="2">14,444,683</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right"><font face="Times New Roman" size="2">6,569,365</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">14,514,741</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">Net unrealized appreciation</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td width="64">
                    </td>

                    <td width="1">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">(depreciation) on investments</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">(18,023,424</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">(12,797,981</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">(13,339,923</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">(19,537,884</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">9,397,996</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">Net income (loss)</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">(17,992,940</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">(10,161,897</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">(4,035,913</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">(16,023,666</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">18,971,481</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">Net income (loss) per share</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">(4.03</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">(2.28</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">(0.90</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">(3.60</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">4.36</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">Total assets</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">18,619,161</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">40,123,140</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">58,649,555</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">62,548,375</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">117,387,109</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">Net assets</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">18,427,016</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">37,759,148</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">48,367,442</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">54,188,943</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">74,582,499</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">Net assets per share</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">4.13</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">8.46</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">10.84</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">12.14</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">17.14</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>
            </table>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"></p>

            <table cellspacing="0" cellpadding="0" align="left" border="0">
                <tr valign="bottom" height="22">
                    <td align="left" width="235"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="-6" colspan="19"><font size="2">&nbsp;Selected Financial Data</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="235"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="-6" colspan="3"><font face="Times New Roman" size="2">&nbsp;&nbsp;2008</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="3"><font face="Times New Roman" size="2">&nbsp;2007&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="9">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="3"><font face="Times New Roman" size="2">&nbsp;2006&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="6">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="-1" colspan="3"><font face="Times New Roman" size="2">&nbsp;2005&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="4">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" colspan="3">
                        <p align="center"><font face="Times New Roman" size="2">&nbsp;2004&nbsp;</font></p>
                    </td>
                </tr>

                <tr valign="bottom" height="18">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Investment income</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">0.</font></td>

                    <td width="28">
                        <p align="left"><font face="Times New Roman" size="2">13</font></p>
                    </td>

                    <td align="left" width="3">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">0.</font></td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">19</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="32"><font face="Times New Roman" size="2">0.</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">21</font></td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">0.</font></td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">14</font></td>

                    <td align="right" width="4">
                    </td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="43"><font face="Times New Roman" size="2">0.</font></td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">15</font></td>
                </tr>

                <tr valign="bottom" height="20">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Operating expenses</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">(0.&nbsp;</font></td>

                    <td width="28">
                        <p align="left"><font face="Times New Roman" size="2">29)</font></p>
                    </td>

                    <td align="left" width="3">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">(0.</font></td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">36)</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="32"><font face="Times New Roman" size="2">(1.</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">14)</font></td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">(0.</font></td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">66)</font></td>

                    <td align="right" width="4">
                    </td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="43"><font face="Times New Roman" size="2">(1.</font></td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">12)</font></td>
                </tr>

                <tr valign="bottom" height="20">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Interest expense</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">(0.&nbsp;</font></td>

                    <td width="28">
                        <p align="left"><font face="Times New Roman" size="2">01)</font></p>
                    </td>

                    <td align="left" width="3">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">0.</font></td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">00</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td align="right" width="32"><font face="Times New Roman" size="2">( 0.</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">01)</font></td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">(0.</font></td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">02)</font></td>

                    <td align="right" width="4">
                    </td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="43"><font face="Times New Roman" size="2">(0.</font></td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">02)</font></td>
                </tr>

                <tr valign="bottom" height="13">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Net investment loss</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">(0.&nbsp;</font></td>

                    <td width="28">
                        <p align="left"><font face="Times New Roman" size="2">17)</font></p>
                    </td>

                    <td align="left" width="3">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">(0.</font></td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">17)</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="32"><font face="Times New Roman" size="2">(0.</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">94)</font></td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">(0.</font></td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">54)</font></td>

                    <td align="right" width="4">
                    </td>

                    <td valign="bottom" align="left" width="7">
                        <p><font face="Times New Roman" size="2">$&nbsp;</font></p>
                    </td>

                    <td align="right" width="43"><font face="Times New Roman" size="2">(0.</font></td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">98)</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Cash distributions from return of capital</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">(0.&nbsp;</font></td>

                    <td width="28">
                        <p align="left"><font face="Times New Roman" size="2">12)</font></p>
                    </td>

                    <td align="left" width="3">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="19">
                    </td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;-</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="32">
                    </td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">&nbsp;-</font></td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="36">
                    </td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">&nbsp;-</font></td>

                    <td align="right" width="4">
                    </td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="43">
                    </td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;-</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Cash distributions from net capital gains</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">(0.&nbsp;</font></td>

                    <td width="28">
                        <p align="left"><font face="Times New Roman" size="2">18)</font></p>
                    </td>

                    <td align="left" width="3">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">(0.</font></td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">10)</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="32"><font face="Times New Roman" size="2">(0.</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">40)</font></td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">(1.</font></td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">33)</font></td>

                    <td align="right" width="4">
                    </td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="43"><font face="Times New Roman" size="2">(3.</font></td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">17)</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Net realized gain on investments</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">0.</font></td>

                    <td width="28">
                        <p align="left"><font face="Times New Roman" size="2">18</font></p>
                    </td>

                    <td align="left" width="3">
                        <p>&nbsp;</p>
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">1.</font></td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">09</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="32"><font face="Times New Roman" size="2">4.</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">43</font></td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">1.</font></td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">33</font></td>

                    <td align="right" width="4">
                    </td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="43"><font face="Times New Roman" size="2">3.</font></td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">18</font></td>
                </tr>

                <tr valign="bottom" height="2">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Taxes paid on behalf of stockholders</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="28">
                        <p align="left"><font face="Times New Roman" size="2">-</font></p>
                    </td>

                    <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">(0.</font></td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">33)</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="32"><font face="Times New Roman" size="2">(1.</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">41)</font></td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="36">
                    </td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">&nbsp;-</font></td>

                    <td align="right" width="4">
                    </td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="43">
                    </td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;-</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Net increase (decrease) in unrealized appreciation of investments</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">(4.&nbsp;</font></td>

                    <td width="28">
                        <p align="left"><font face="Times New Roman" size="2">04)</font></p>
                    </td>

                    <td align="left" width="3">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">(2.</font></td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">87)</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="32"><font face="Times New Roman" size="2">(2.</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">99)</font></td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">(4.</font></td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">38)</font></td>

                    <td align="right" width="4">
                    </td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="43"><font face="Times New Roman" size="2">2.</font></td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">16</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Increase (decrease) in net asset value</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">(4.&nbsp;</font></td>

                    <td width="28">
                        <p align="left"><font face="Times New Roman" size="2">33)</font></p>
                    </td>

                    <td align="left" width="3">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">(2.</font></td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">38)</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="32"><font face="Times New Roman" size="2">(1.</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">30)</font></td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">(5.</font></td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">00)</font></td>

                    <td align="right" width="4">
                    </td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="43"><font face="Times New Roman" size="2">1.</font></td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">19</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Capital stock transactions</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="28">
                        <p align="left"><font face="Times New Roman" size="2">-</font></p>
                    </td>

                    <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="19">
                    </td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;-</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="32">
                    </td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">&nbsp;-</font></td>

                    <td align="left" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">0.</font></td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">35</font></td>

                    <td align="right" width="4">
                    </td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="43">
                    </td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;-</font></td>
                </tr>

                <tr valign="bottom" height="9">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Effect of share change</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="28">
                        <p align="left"><font face="Times New Roman" size="2">-</font></p>
                    </td>

                    <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="19">
                    </td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">-</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="32">
                    </td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">-&nbsp;</font></td>

                    <td align="right" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">(0.</font></td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">43)</font></td>

                    <td align="right" width="4">
                    </td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="43">
                    </td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">-</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Net Asset Value:</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="23">
                    </td>

                    <td width="28">
                    </td>

                    <td align="left" width="3">
                    </td>

                    <td align="left" width="21">
                    </td>

                    <td width="19">
                    </td>

                    <td width="30">
                    </td>

                    <td width="9">
                    </td>

                    <td align="left" width="14">
                    </td>

                    <td width="32">
                    </td>

                    <td width="27">
                    </td>

                    <td width="6">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td width="36">
                    </td>

                    <td width="25">
                    </td>

                    <td width="4">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td width="43">
                    </td>

                    <td width="20">
                    </td>
                </tr>

                <tr valign="bottom" height="12">
                    <td align="left" width="235"><font face="Times New Roman" size="2">Beginning of year</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">8.</font></td>

                    <td align="left" width="28"><font face="Times New Roman" size="2">46</font></td>

                    <td align="left" width="3">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">10.</font></td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">84</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="32"><font face="Times New Roman" size="2">12.</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">14</font></td>

                    <td align="right" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">17.</font></td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">14</font></td>

                    <td align="right" width="4">
                    </td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="43"><font face="Times New Roman" size="2">15.</font></td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">95</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="235"><font face="Times New Roman" size="2">End of year</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                    <td align="right" width="23"><font face="Times New Roman" size="2">4.</font></td>

                    <td align="left" width="28"><font face="Times New Roman" size="2">13</font></td>

                    <td align="left" width="3">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="19"><font face="Times New Roman" size="2">8.</font></td>

                    <td align="left" width="30"><font face="Times New Roman" size="2">46</font></td>

                    <td align="right" width="9">
                    </td>

                    <td align="left" width="14"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="32"><font face="Times New Roman" size="2">10.</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="2">84</font></td>

                    <td align="right" width="6">
                    </td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">12.</font></td>

                    <td align="left" width="25"><font face="Times New Roman" size="2">14</font></td>

                    <td align="right" width="4">
                    </td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="43"><font face="Times New Roman" size="2">17.</font></td>

                    <td align="left" width="20"><font face="Times New Roman" size="2">14</font></td>
                </tr>
            </table>
            <br>
            <br>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">21</font></a>
            </div>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">I</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">tem 7. Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">GENERAL</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The primary purpose of the Fund is to provide capital to emerging growth public companies whose ability to service the securities is sufficient to provide income to the Fund and whose growth potential is sufficient to provide opportunity for long-term capital appreciation.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">AMENDMENT TO ADVISORY AGREEMENT</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">On March 1, 2007, the Fund and RENN Group entered into an amendment to the Advisory Agreement. The amendment clarified that the Fund will pay RENN Group an incentive fee in an amount equal to 20% of all net realized capital gains, if any, computed net of all realized capital losses and unrealized capital
            depreciation of the Fund. The calculation of the incentive fee does not incorporate any offset of unrealized capital depreciation by unrealized capital appreciation. The effect of the use of this method to calculate the incentive fee is that each year, the cumulative performance of the Fund since its inception will provide the basis for the calculation of the incentive fee.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Agreement also clarified that the base management fee paid to RENN Group will be assessed following the assessment of the incentive fee. Thus, the base management fee will be calculated net of any incentive fee payable.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">SOURCES OF OPERATING INCOME</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The operating income for the Fund is investment income, either in the form of interest on debentures, dividends on stock, or interest on securities held pending investment in portfolio companies. The Fund primarily generates income through capital gains. Furthermore, the Fund in some cases receives due
            diligence, commitment, and closing fees, as well as other similar types of revenue. Director&rsquo;s compensation received by RENN Group (or its personnel) for services to a Portfolio Company on behalf of the Fund is paid to the Fund.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">LIQUIDITY AND CAPITAL RESOURCES</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During the year ended December 31, 2008, the Fund invested $1,000,000 in one (1) new portfolio investment and invested</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">a total of an</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">additional $1,141,220</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in follow-on investments in eight (8) portfolio companies. Cash</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">distributions</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">paid</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to stockholders in 2008 amounted to $1,785,589. During 2008, gains were realized from the sale of securities of Gasco Energy, Inc., Medical Action Industries, Inc., Nutradyne Group, Inc., Pipeline Data, Inc.,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Simtek Corporation,</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">offset by realized losses from the sale of securities of AdStar, Inc., Advance Nanotech, Inc., Gaming &amp; Entertainment Group, Inc., iLinc Communications, Inc., Riptide Worldwide, Inc., and US Home Systems, Inc. Net operating loss for 2008 was $17,992,940,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and net cash provided by operating activities was $664,270. The
            Fund did not issue any new shares pursuant to the Dividend Reinvestment Plan during the year ended December 31, 2008. However, those stockholders who participated in the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">dividend reinvestment plan</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">had</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">101,449 shares</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">purchased on their behalf</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in the open market from cash</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">distributions</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">paid in 2008.</font></font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund had $2,558,630 in cash and cash equivalents and $192,145 in liabilities.&nbsp;</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">believes that current cash and securities levels are sufficient to pay expenses as they come due and to make investments.</font><br>
            &nbsp;</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The majority of the Fund&rsquo;s investments in Portfolio Companies are individually negotiated, are initially not registered for public trading, and are subject to legal and contractual investment restrictions. Accordingly, many of the Portfolio Investments are
            considered non-liquid. This lack of liquidity primarily affects the ability</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">of the Fund to exit from certain of its existing investments, and therefore its ability</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to make new investments.</font><br>
            &nbsp;</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">From time to time, funds or securities are deposited in margin accounts and invested in government securities. Government securities used as cash equivalents typically consist of U. S. Treasury securities or other U. S. Government and Agency obligations having
            slightly higher yields and maturity dates of three months or less when purchased. These investments qualify for investment as permitted in Section 55(a)(1) through (5) of the 1940 Act. These securities are generally valued at market price as market prices are generally available for these securities.</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">At December 31, 2008, the Fund had no margin balances.</font></font></font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">22</font></a>
            </div>

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            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">RESULTS OF OPERATIONS</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2008 Compared to 2007</font></u></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During the year ended December 31, 2008, the Fund made additional portfolio investments aggregating $2,141,220 compared to $9,326,046 in 2007.</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During 2008,</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund realized proceeds from the sale of investments in the amount of</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$5,238,491</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">compared to $8,792,947 in 2007. The Fund&rsquo;s 2008 net loss of $17,992,940</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">is due to a combination of a net investment loss of $771,010, net</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">increase</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in unrealized</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">depreciation on investments of $18,023,424, and net realized gain
            on investments of $801,494.</font></font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Interest income increased from $345,510 during 2007 to $454,420</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">primarily due to additional interest bearing investments</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">during 2008. Dividend income during 2008 was $33,193 compared to $432,478 for 2007. The decrease</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in dividend income</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">was primarily due to fewer dividends being earned on lower cash equivalent balances</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and fewer dividends being earned on</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">certain</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">investments.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Other income increased to $87,730 in 2008 from $48,601 in 2007</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">as a result of the receipt of additional fee income for service on the boards of portfolio companies.</font></font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Legal and professional fees increased 15.7%, from $354,127 in 2007 to $409,836 for 2008, primarily due to an increase in legal services during 2008 offset by a reduction in</font>
            <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">professional</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">fees</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">relating to</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Sarbanes-Oxley</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">compliance.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">There</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">are</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">no incentive fees</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">due to the Adviser for</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the years ended December 31, 2008 and 2007.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Management fees decreased to $455,005 in 2008 from $792,545 in 2007, a&nbsp;decrease of 42.6% due to the reduction in net asset values in 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">primarily</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">as a result of lower portfolio values in 2008.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund experienced net</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">loss of $17,992,940</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in 2008 compared</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to a net loss of $10,161,897</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in 2007. The Fund had a net realized gain on investments of $801,494</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in 2008 compared to $3,388,730 (net of income tax paid on behalf of the stockholders of $1,485,135) in 2007. In 2008</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund&rsquo;s net change in unrealized depreciation on investments was</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$18,023,424, compared to $12,791,981</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in 2007.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The variance is</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">primarily attributable</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to lower portfolio market values on investments held at year end.</font></font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2007 Compared to 2006</font></u></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During the year ended December 31, 2007, the Fund made additional portfolio investments aggregating $9,326,046 compared to $4,116,806 in 2006. The Fund realized proceeds from the sale of investments in the amount of $8,792,947 compared to $20,932,760 in 2006. The
            Fund&rsquo;s 2007</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">net loss of $10,161,897 is due to a combination of a net investment loss of $752,646, net decrease in unrealized appreciation on investments of $12,797,981, and net realized gain on investments (net of income tax paid on behalf of the stockholders of $1,485,135) of $3,388,730.</font></font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Interest income increased from $340,145 during 2006</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to $345,510 during 2007. Dividend income during 2007</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">was $432,478 compared to $584,139 for 2006. The decrease was primarily due to fewer dividends being earned on the lower cash equivalent balances. Commitment and other fee income increased to $48,601 in 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">from $27,684 in 2006.</font><br>
            &nbsp;</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Legal and professional fees decreased 45.7%, from $651,701 in 2006</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to $354,127 for 2007, primarily due to a reduction in audit and consulting services during
            2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(the Fund&rsquo;s 2003 through 2005</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">audits were completed during 2006). There is no incentive fee due to the Adviser for 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">compared to $3,157,367 in 2006, primarily due to aggregate net realized gains being offset by capital
            unrealized depreciation in 2007. Management fees decreased to $792,545 in 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">from $935,776 in 2006, a&nbsp;decrease of 15.3% due to the reduction in net asset values in 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">as a result of capital gains dividends and lower portfolio values in 2007.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">A net loss of $4,035,913 in 2006</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">increased to a net loss of $10,161,897 in 2007. The Fund had a net realized gain on investments (net of income tax paid on behalf of
            the stockholders of $1,485,135) of $3,388,730 in 2007, compared to $13,492,715 in 2006. In 2006</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund&rsquo;s net change in unrealized depreciation on investments was $13,339,923,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">compared to $12,797,981 in 2007. The variance is due to lower portfolio market values on investments held at year
            end.</font></font></font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">2</font></a>3
            </div>

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                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">CONTRACTUAL OBLIGATIONS</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund has a contract for the purchase of services under which it will have future commitments: the Advisory Agreement, pursuant to which RENN Group has agreed to serve as the Fund&rsquo;s Investment Adviser. Such agreement has contractual obligations with fees which are based on values of the portfolio
            investments which the Fund owns. For further information regarding the Fund&rsquo;s obligations under the Investment Advisory Agreement, see Note 4 of the Financial Statements.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Because the Fund does not enter into other long-term debt obligations, capital lease obligations, operating lease obligations, or purchase obligations that would otherwise be reflected on the Fund&rsquo;s Statement of Assets and Liabilities, a table of contractual obligations has not been
            presented.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 7A. Quantitative and Qualitative Disclosure About Market Risk.</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund is subject to significant financial market risks, including changes in the price of the securities of the Fund&rsquo;s portfolio companies and (to a lesser extent) changes in interest rates. The Fund does not use derivative financial instruments to mitigate any of these
            risks. The return on the Fund&rsquo;s investments is generally not affected by foreign currency fluctuations.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">A majority of the Fund&rsquo;s net assets consists of common stocks and warrants and options to purchase common stock in publicly traded companies. These investments are directly exposed to equity price risk, in that a percentage change in these equity prices would result in a similar
            percentage change in the fair value of these securities.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">A majority of the Fund&rsquo;s portfolio of investments consists of the common stock and warrants and options to purchase the common stock of publicly traded companies that may be considered small-cap and micro-cap companies, in that the total equity valuation of such companies is
            typically under $250 million. Publicly traded securities of smaller companies tend to be extremely volatile. In a general stock market decline (such as occurred in late 2008 and early 2009), the stock of smaller companies may be expected to decline by a relatively greater percentage than the stocks of larger companies. Therefore, in a general stock market decline, the net asset value of the Fund&rsquo;s portfolio (and therefore the Fund&rsquo;s stock price) may decline by a greater
            percentage than the decline of publicly traded stocks generally.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">A lesser percentage of the Fund&rsquo;s net assets consist of fixed-rate convertible debentures and other debt instruments as well as convertible preferred securities. Since these instruments are generally priced at a fixed rate, changes in market interest rates do not directly impact
            interest income, although they could impact the Fund&rsquo;s yield on future investments in debt instruments. In addition, changes in market interest rates are not typically a significant factor in the Fund&rsquo;s determination of fair value of its debt instruments, as it is generally assumed they will be held to maturity, and their fair values are determined on the basis of the terms of the particular instrument and the financial condition of the issuer.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">A small percentage of the Fund&rsquo;s net assets consist of equity investments in private companies. The Fund would anticipate no impact on these investments from modest changes in public market equity prices. However, should significant changes in market prices occur, there could be
            a longer-term effect on valuations of private companies which could affect the carrying value and the amount and timing of proceeds realized on these investments.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 8. Financial Statements and Supplementary Data.</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The financial statements filed as part of this report are listed in &ldquo;Index to Financial Statements&rdquo; on page F-1 hereof.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.</font></b><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">None.</font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">24</font></a>
            </div>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 9A</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(T)</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">.</font></b> <b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Controls and
            Procedures.</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Evaluation of Disclosure Controls</font></i></b> <b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and</font></i></b> <b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Procedures</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, we evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(3) under the Securities Exchange Act of 1934, as amended
            (the &ldquo;Exchange Act&rdquo;) required by Exchange Act Rules 13a-15(b) or 15d-15(e)), as of the end of the period covered by this report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of that date to provide reasonable assurance that the information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and
            reported within the time periods specified in SEC rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by us in such reports is accumulated and communicated to our management, including the principal executive officer and principal financial officer, as appropriate to allow timely decision regarding required disclosure.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Management&rsquo;s</font></i></b> <b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Annual</font></i></b> <b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Report on Internal Control Over Financial Reporting</font></i></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we assessed the effectiveness of our internal control over
            financial reporting as of the end of the period covered by this report based on the framework in &ldquo;Internal Control&mdash;Integrated Framework&rdquo; issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that assessment, our Chief Executive Officer and Chief Financial Officer concluded that our internal control over financial reporting was effective to provide reasonable assurance regarding the reliability of our financial reporting and the
            preparation of our financial statement for external purposes in accordance with United States generally accepted accounting principles.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">This annual report does not include an attestation report of the Fund&rsquo;s registered public accounting firm regarding internal control over financial reporting. Management&rsquo;s report was not subject to attestation by the Fund&rsquo;s registered public accounting firm pursuant to temporary rules of the
            Securities and Exchange Comminssion that permit the Fund to provide only management&rsquo;s report in this annual report.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Evaluation of Changes in Internal Control Over Financial Reporting</font></i></b><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During the fourth quarter of fiscal 2008, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 9B. Other Information.</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">None.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Part III</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 10. Directors and Executive Officers of Registrant.</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Directors</font></i></b><br>
            <font face="Times New Roman, Times, serif" size="2">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Pursuant to the Fund&rsquo;s Articles of Incorporation and Bylaws, the Board of Directors consists of five directors and is divided into three classes, with each class to serve for a three-year term or until a successor is elected. The term of office of the Class One
            directors will expire at the annual meeting of stockholders</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to be held in 2011, the term of office of the Class Two directors will expire at the annual meeting of</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">stockholders</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to be held in 2009, and the term of
            office of the Class Three directors will expire at the annual meeting of</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">stockholders</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to be held in 2010.</font></font></font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">25</font></a>
            </div>

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                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Because the Board of Directors is divided into classes, only those directors in a single class may be changed in any one year. Consequently, changing a majority of the Board of Directors would require two years (although under Texas law, procedures exist to remove
            directors, even if they are not then standing for reelection and, under SEC regulations, procedures exist for including appropriate stockholder proposals in the annual proxy statement). Having a classified Board of Directors, which may be regarded as an &ldquo;anti-takeover&rdquo; provision, may make it more difficult for stockholders of the Fund to change the majority of directors, thus having the effect of maintaining the continuity of management.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Class One Directors - Term expires at the Annual Meeting</font></u></b> <b><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to be held in 2011</font></u></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Peter Collins</font></i></b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, age 64, has been a financial and management consultant to closely-held businesses for</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">more than</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">ten years in the USA, the UK, and Europe, in areas of finance, start-ups, joint ventures, and mergers and acquisitions. He has advised companies in every segment of industry (including manufacturing, distribution, service, agriculture, construction, and multimedia) and in all stages of development (from start-up to bankruptcy). Mr. Collins was educated in England, where he received a B.Sc. in Civil
            Engineering from Liverpool University and a M.Sc. in Business Administration from The City University, London. He has served as a Class One Director since 1994.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">J. Philip McCormick</font></i></b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, age</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">66, has been an independent investor and
            corporate advisor since 1999; He served as Executive Vice President and Chief Financial Officer of Highway Master Communication, Inc. from 1997 to 1998; Senior Vice President and Chief Financial Officer of Enserch Exploration, Inc. from 1995 to 1997; Senior Vice President - Transmission of Lone Star Gas Company, a division of Enserch Corporation, from 1993 to 1995; Senior Vice President &mdash; Finance of Lone Star Gas Company from 1991 to 1993; and Audit Partner, member of senior
            management and member of the Board of Directors of KPMG and KMG Main Hurdman from 1973 to 1991.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Mr. McCormick is also a director of Quest Energy Partners L.P.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">He has served as a Class One Director since 2006.</font></font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Class Two Director - Term expires at the Annual Meeting</font></u></b> <b><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to be held in 2009</font></u></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Charles C. Pierce, Jr.</font></i></b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, age 74, is the retired Vice-Chairman of Dain Rauscher, Inc., and he worked in the securities industries for 42 years. Mr. Pierce was a former president on the Texas Stock &amp; Bond
            Dealers Association, an organization that advised the Texas Legislature on certain industry matters. He was also chairman of the South Central District of the Security Industry Association covering Texas, Oklahoma, New Mexico, Kansas and Colorado. He is a private investor. He has served as a Class Two Director since 2002.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Class Three Directors - Term Expires at the Annual Meeting</font></u></b> <b><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to be held in 2010</font></u></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Russell Cleveland</font></i></b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, <font face="Times New Roman, Times, serif">age</font></font>
            <font face="Times New Roman, Times, serif" size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">70, is the Chairman of the Board, President, Chief Executive Officer, and Director of the Fund since 1994. He is a Chartered Financial Analyst with more than 35 years experience as a specialist in investments in smaller capitalization companies. A graduate of the Wharton School of Business, Mr. Cleveland has served as President of the Dallas Association
            of Investment Analysts. Mr. Cleveland is also the President, Chief Executive Officer, sole Director, and the majority stockholder of RENN Group, the Investment Adviser to the Fund. RENN Group is also the Investment Manager of Renaissance US Growth Investment Trust PLC (&ldquo;RUSGIT&rdquo;),</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and the Investment Adviser to</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Global</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Special Opportunities Trust PLC, investment trusts listed on the London Stock Exchange, Premier RENN</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Entrepreneurial</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Fund Limited, an open-end
            investment company registered with limited liability in Guernsey,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and Premier China Opportunities Fund Limited, an open-end collective Class B investment scheme under &sect;235 of the UK Financial Services and Markets Act 2000, with A shares listed on the Channel Islands Stock Exchange.. Mr. Cleveland also serves on the Boards of Directors of RUSGIT, CaminoSoft Corp., Cover-All Technologies, Inc.,
            Integrated Security Systems, Inc.,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">BPO Management Services Inc.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Access Plans USA,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Inc.</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">He has served as a Class Three Director since 1994.</font><br>
            </font>&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Ernest C. Hill</font></i></b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, age</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">68, has a broad background in convertible securities analysis with major NYSE brokerage firms and
            institutional investors. He specializes in computer-aided investment analysis and administrative procedures. Mr. Hill was awarded a Ford Fellowship to the Stanford School of Business, where he received an MBA, with honors, in Investment and Finance. Mr. Hill&rsquo;s prior experience includes service as Assistant Professor of Finance, Southern Methodist University and Associate Director of the Southwestern Graduate School of Banking. He has served as a Class Three Director since
            1994.</font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">26</font></a>
            </div>

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            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Board of Directors has determined that all of the Fund&rsquo;s directors, other than Russell Cleveland, the President and Chief Executive Officer of the Fund, are independent directors. Certain information concerning the Fund&rsquo;s directors is set forth below:</font></p>

            <table cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="BORDER-BOTTOM: #000000 0.8pt solid" valign="bottom" width="19%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Name, Address</font></b><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(1)</font></sup></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and Age</font></b></p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 0.8pt solid" valign="bottom" width="14%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Positions</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Held</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">with Fund</font></b></p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 0.8pt solid" valign="bottom" width="16%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Director&rsquo;s</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Term of</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Office and</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Length of</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Time Served</font></b></p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 0.8pt solid" valign="bottom" width="17%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Principal</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Occupation(s)</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Past 5</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Years</font></b></p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 0.8pt solid" valign="bottom" width="12%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Number of Portfolios in Fund Complex Overseen by Director</font></b> <b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(3)</font></b></p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 0.8pt solid" valign="bottom" width="12%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Other</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Director-</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">ships</font></b> <b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in Public Companies</font></b> <b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Held by Director</font></b></p>
                    </td>
                </tr>

                <tr height="85">
                    <td valign="top" width="19%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Peter Collins</font></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Age 6</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4</font><br>
                        <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="14%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Director</font><br>
                        <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="16%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 10pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Class One Director since 1994. Term expires at</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Annual Meeting</font>
                        <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">held in 2011</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">.</font></p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="17%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Consultant</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and private investor</font><br>
                        <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="12%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="12%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">None</font><br>
                        <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" width="19%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="14%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="16%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="17%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="12%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="12%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" width="19%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">J. Philip McCormick</font></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Age</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">66</font><br>
                        <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="14%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Director</font><br>
                        <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="16%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 10pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Class One Director since 2006. Term expires at</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Annual Meeting</font>
                        <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">held in 2011</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">.</font></p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="17%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Consultant</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and private investor</font><br>
                        <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="12%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="12%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">None</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" width="19%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Charles C. Pierce, Jr.</font></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Age 7</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="14%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Director</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="16%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Class Two Director since 2002. Term expires at</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Annual Meeting</font>
                        <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">held in 2009</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">.</font></p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="17%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Retired Vice-Chairman of Dain Rauscher and private investor</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="12%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="12%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">None</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" width="19%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="14%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="16%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="17%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="12%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="12%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" width="19%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Ernest C. Hill</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Age 68</font></p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="14%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Director</font><br>
                        <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="16%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Class Three Director since 1994. Term expires at</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Annual Meeting</font>
                        <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">held in 2010</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">.</font></p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="17%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Consultant</font><br>
                        <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="12%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="12%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">None</font><br>
                        <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>
                </tr>
            </table>

            <table cellspacing="0" cellpadding="0" width="102%" border="0">
                <tr>
                    <td valign="top" width="137">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Interested Director:</font></i></b><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></i></b></p>
                    </td>

                    <td valign="top" width="7">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="76">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="3">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" colspan="3">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" colspan="3">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="12%" colspan="3">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr style="HEIGHT: 101.7pt">
                    <td valign="top" width="137">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Russell Cleveland</font><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(2)</font></sup></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Age</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">70</font><br>
                        <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>

                    <td valign="top" width="7">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="76">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Chairman of the Board, President, Chief</font></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Executive Officer,</font></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and Director</font></p>
                    </td>

                    <td valign="top" colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font face="Times New Roman, Times, serif"><font size="2">Class Three Director since 1994. Term expires at <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Annual Meeting</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">held
                        in 2010</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">.</font></font></font></p>
                    </td>

                    <td valign="top" width="11">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font face="Times New Roman, Times, serif" size="2">President &amp; Chief Executive Officer of RENN Group</font></p>
                    </td>

                    <td valign="top" width="39">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">5</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="1%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="top" width="16%" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">BPO Management Services, Inc., CaminoSoft Corp., Cover-All Technologies, Inc., Integrated Security Systems, Inc., Access Plans USA, Inc.</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" align="left" border="0">
                <tr valign="bottom">
                    <td valign="top" align="right"><font face="Times New Roman" size="2">(1)</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="576"><font face="Times New Roman" size="2">The address of all such persons is c/o RENN Capital Group, Inc., 8080 N. Central Expressway, Suite 210, LB-59, Dallas, TX 75206.</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td valign="top" align="right"><font face="Times New Roman" size="2">(2)</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="576"><font face="Times New Roman" size="2">Mr. Cleveland is also President and CEO of RENN Capital Group, Inc. See "information About the Fund's Officers and the Investment Adviser."</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="right"><font face="Times New Roman" size="2">(3)</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="576"><font face="Times New Roman" size="2">The term "Fund Complex" means all funds which share a common investment adviser.</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>
            </table>
            <br>
            <br>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">27</font></a>
            </div>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Committees and Meetings</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Board of Directors held</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">twenty-two</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(22) meetings or executed consent actions in lieu of meetings during 2008, and each director attended
            or executed at least seventy-five per cent (75%) of these meetings and consent actions.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Audit Committee</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During 2008, the Audit Committee consisted of Ernest C. Hill,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Chairman, Peter Collins, Charles C. Pierce, Jr. and J. Philip McCormick. The Audit Committee held</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">five</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(5) meetings in 2008. The Audit Committee is comprised entirely of independent directors, and is appointed by the Board of Directors to assist the Board in fulfilling its oversight responsibilities. The Audit Committee&rsquo;s primary duties and responsibilities are to:</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="48">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">appoint and approve the compensation of the Fund&rsquo;s independent auditors, including those to be retained for the purpose of preparing or issuing an audit report or performing other audit review or attestation services for the Fund;</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="48">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">review the scope of the audit services of the Fund&rsquo;s independent auditors, and the annual results of their audits;</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="48">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">monitor the independence and performance of the Fund&rsquo;s independent auditors;</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="48">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">generally oversee the accounting and financial reporting processes of the Fund and the audits of its financial statements;</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="48">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">review the reports and recommendations of the Fund&rsquo;s independent auditors;</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="48">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">provide an avenue of communication among the independent auditors, management and the Board of Directors; and</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="48">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">&middot;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">address any matters between the Fund and its independent auditors regarding financial reporting.</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund&rsquo;s independent auditors must report directly to the Audit Committee.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Board of Directors has determined that J. Philip McCormick satisfies the standard for &ldquo;audit committee financial expert&rdquo; within the meaning of the rules of the SEC. The SEC rules provide that audit committee financial experts do not have any additional duties, obligations or liabilities and
            are not considered experts under the U.S.&nbsp;Securities Act of 1933.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Nominating and Corporate Governance Committee</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Nominating and Corporate Governance Committee was created in January 2004 and is responsible for nominating individuals to serve as directors. The Nominating and Corporate Governance Committee is composed entirely of independent Fund
            directors</font><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">.</font></b> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Its members are Chairman Charles C. Pierce, Jr., Ernest C. Hill, and Peter Collins.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Committee considers and recommends nominees for election as directors of the Fund. Stockholders wishing to recommend qualified candidates for consideration by the Fund may do so by writing to the Secretary of the Fund at the address shown in the Notice providing the candidate&rsquo;s name, biographical
            data and qualifications. In its assessment of each potential candidate, the Committee reviews the nominee&rsquo;s judgment, experience, independence, financial literacy, knowledge of emerging growth companies, understanding of the Fund and its investment objectives,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and such other factors as the Committee may determine. The Committee also takes into account the ability of a director to devote the
            time and effort necessary to fulfill his or her responsibilities. At the direction of the Board of Directors, the Committee also considers various corporate governance policies and procedures.</font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">28</font></a>
            </div>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Officers</font></i></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Russell Cleveland</font></i></b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, age</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">70, has served as Chairman of the Board, President, Chief Executive Officer, and a Class Three director
            of the Fund since 1994. He has also served as the President, Chief Executive Officer, sole Director, and the majority stockholder of RENN Group since 1994. He is a Chartered Financial Analyst with more than 35 years experience as a specialist in investments for smaller capitalization companies. A graduate of the Wharton School of Business, Mr. Cleveland has served as President of the Dallas Association of Investment Analysts. Mr. Cleveland also serves on the Boards of Directors of
            Renaissance US Growth Investment Trust PLC, BPO Management Services, Inc., CaminoSoft Corp., Cover-All Technologies, Inc., Integrated Security Systems, Inc., and Access Plans USA, Inc.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Barbe Butschek</font></i></b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, <font face="Times New Roman, Times, serif">age 54, has served as the Secretary and Treasurer of the Fund since 1994. She currently serves as Senior Vice-President, Secretary and Treasurer of RENN
            Group and has served with RENN Group</font></font> <font face="Times New Roman, Times, serif" size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">with responsibilities for financial reporting and various other duties</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">since 1977</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and has been the minority shareholder of RENN Group
            since 1991.</font><br>
            </font>&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Robert C. Pearson</font></i></b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, age 73, has served as Vice President of the Fund since April 1997. He joined RENN Group in April 1997 and is Senior Vice-President - Investments. Mr. Pearson brought more than thirty years of
            experience to RENN Group&rsquo;s corporate finance function. From May 1994 to May 1997, Mr. Pearson was an independent financial management consultant. From May 1990 to May 1994, he served as Chief Financial Officer and Executive Vice-President of Thomas Group, Inc., a management consulting firm, where he was instrumental in moving a small privately held company from a start-up to a public company with more than $40 million in revenues. Prior to 1990, Mr. Pearson was responsible for
            all administrative activities for the Superconducting Super Collider Laboratory. In addition, from 1960 to 1985, Mr. Pearson served in a variety of positions at Texas Instruments in financial planning and analysis, holding such positions as Vice-President - Controller and Vice-President - Finance. Mr. Pearson holds a BS in Business from the University of Maryland and was a W.A. Paton Scholar with an MBA from the University of Michigan. He is a director of</font>
            <i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">e</font></i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Original, Inc., CaminoSoft Corp.,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and Vertical Branding.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Scott E. Douglass</font></i></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">,</font></b> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">age</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">50, has
            served as a Vice President of the Fund since November 2004. He has worked for three sell-side firms in the roles of institutional sales and investment banking. Prior to that he was a commercial loan officer for the First National Bank of Boston and Fleet Financial Group which are now part of Bank of America. He holds a Masters Degree in Business Administration from the Olin Graduate School of Business at Babson College.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Z. Eric Stephens</font></i></b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, age</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">40, has served as a Vice President of RENN Group since January 2006 and a Vice President of the Fund
            since August 2006. His responsibilities with RENN Group include due diligence, portfolio monitoring and portfolio selection. Previously, Mr. Stephens was a director with CBIZ Valuation Group, a national valuation consulting firm. While with CBIZ, he valued public and private companies, performed purchase price allocations and goodwill impairment tests, wrote fairness opinions and solvency opinions and acted as an expert witness. Prior to working for CBIZ, Mr. Stephens was a staff
            accountant with the U.S. Securities and Exchange Commission. While with the SEC, he conducted on-site examinations of investment companies and investment advisers. Mr. Stephens has a BA in economics and finance from Southwestern Oklahoma State University and an MBA from Texas A&amp;M University and is a Chartered Financial Analyst.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Section 16(a) of the Securities Exchange Act of 1934, as amended, requires the Fund's officers and directors and persons who own more than 10% of a registered class of the Fund's equity securities to file reports of ownership and changes in ownership with the SEC. Officers, directors, and greater-than-10%
            beneficial owners are required by SEC regulations to furnish the Fund with copies of all Section 16(a) forms they file. The Fund believes that during the fiscal year ended December 31, 2008, all Section 16(a) filings relating to the Fund's Common Stock applicable to its officers, directors, and greater-than-10% beneficial owners were timely filed.</font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">29</font></a>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 11. Executive Compensation.</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font size="1"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund has no employees, and therefore does not compensate any employees. Officers of the Fund receive no compensation from the Fund. The Fund has never issued options or warrants to officers or directors of the Fund. The Fund does not have any stock
            option plan or similar plan, retirement or pension plan, or any other form of compensatory plan for employees.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">As a result, the Fund does not have a compensation committee.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Instead, the Fund has contracted with RENN Group pursuant to the Advisory Agreement to provide all management and operating activities.</font>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">DIRECTOR COMPENSATION</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Directors who are not employees of either the Fund or RENN Group receive a monthly fee of $2,000 ($3,000 per month for the Chairman of the Audit Committee), plus $750 and out-of-pocket expenses for each quarterly valuation meeting attended. The Fund does not pay any fees to, or reimburse expenses of, its
            directors who are considered &ldquo;interested persons&rdquo; of the Fund. The aggregate compensation for the period from January 1 to December 31, 2008, that the Fund paid each director, and the aggregate compensation paid to each director for the most recently completed fiscal year by other funds to which RENN Group provided investment advisory services is set forth below:</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

            <table cellspacing="0" cellpadding="0" align="left" border="0">
                <tr valign="bottom">
                    <td align="left" width="120"><font face="Times New Roman" size="2">Name</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="49">
                        <p align="center"><font face="Times New Roman" size="2">Fees Earned or Paid in Cash</font></p>
                    </td>

                    <td width="6">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td align="left" width="46">
                        <p align="center"><font face="Times New Roman" size="2">Stock Awards</font></p>
                    </td>

                    <td align="left" width="3">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td align="left" width="48">
                        <p align="center"><font face="Times New Roman" size="2">Option Awards</font></p>
                    </td>

                    <td align="left" width="3">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td align="left" width="78">
                        <p align="center"><font face="Times New Roman" size="2">Non-Equity Incentive Plan Compensation</font></p>
                    </td>

                    <td align="left" width="2">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td align="left" width="94">
                        <p align="center"><font face="Times New Roman" size="2">Change in Pension Value and Nonqualified Deferred Compensation Earnings</font></p>
                    </td>

                    <td align="left" width="1">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td align="left" width="69">
                        <p align="center"><font face="Times New Roman" size="2">All Other Compensation</font></p>
                    </td>

                    <td align="left" width="2">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td align="right" width="7">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td width="50">
                        <p align="center"><font face="Times New Roman" size="2">Total</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="120"><font face="Times New Roman" size="2">Russell Cleveland (1)</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="8"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="49"><font face="Times New Roman" size="2">--</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="46"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="48"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="78"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="94"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="69"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="7"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">--</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="120"><font face="Times New Roman" size="2">Peter Collins</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="8"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="49"><font face="Times New Roman" size="2">27,000</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="46"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="48"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="78"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="94"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="69"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="7"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">27,000</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="120"><font face="Times New Roman" size="2">Ernest C. Hill</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="8"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="49"><font face="Times New Roman" size="2">39,000</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="46"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="48"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="78"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="94"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="69"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="7"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">39,000</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="120"><font face="Times New Roman" size="2">Charles C. Pierce, Jr.</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="8"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="49"><font face="Times New Roman" size="2">27,000</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="46"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="48"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="78"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="94"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="69"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="7"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">27,000</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="120"><font face="Times New Roman" size="2">J. Philip McCormick</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="8"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="49"><font face="Times New Roman" size="2">26,250</font></td>

                    <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="46"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="48"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="78"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="94"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="69"><font face="Times New Roman" size="2">$ --</font></td>

                    <td align="left" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="7"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">26,250</font></td>
                </tr>
            </table>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" align="left" border="0">
                <tr valign="bottom">
                    <td valign="middle" align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="top" width="23">
                        <p align="left"><font face="Times New Roman" size="2">(1)</font></p>
                    </td>

                    <td align="left" width="545">
                        <p><font face="Times New Roman" size="2">Mr. Cleveland is President and Chief Executive Officer of RENN Group and a more than 5% beneficial owner of the Fund.</font></p>
                    </td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>
            </table>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 12. Security Ownership of Certain Beneficial Owners and Management.</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund has no equity compensation plans. The following table sets forth certain information known to the Fund with respect to beneficial ownership of the Fund&rsquo;s Common Stock as of December 31, 2008:</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(i) for all
            persons who are beneficial owners of more</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">than 5%</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">of the outstanding shares of the Fund&rsquo;s Common Stock;</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(ii) each director and nominee for director of the Fund; and (iii) all executive officers and directors of the Fund as a
            group:</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

            <table cellspacing="0" cellpadding="0" align="left" border="0">
                <tr valign="bottom">
                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="427"><font face="Times New Roman" size="2">Name of Beneficial Owner</font></td>

                    <td align="right" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="106">
                        <p align="center"><font face="Times New Roman" size="2">Number of Shares&nbsp; Beneficially Owned&nbsp; or Directly or Indirectly</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="15">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="2"><font face="Times New Roman" size="2">Percent of Class&nbsp;</font></td>

                    <td align="right">
                    </td>

                    <td align="left">
                    </td>
                </tr>

                <tr valign="bottom" height="20">
                    <td align="left" width="427"><font face="Times New Roman" size="2">Russell Cleveland, Chairman, President, Chief Executive Officer, and Director (1)</font></td>

                    <td align="right" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="106"><font face="Times New Roman" size="2">415,484</font></td>

                    <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;<sup>(2)</sup></font></td>

                    <td align="right" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="17"><font face="Times New Roman" size="2">9.</font></td>

                    <td width="4">
                        <p align="left"><font face="Times New Roman" size="2">31%&nbsp;</font></p>
                    </td>

                    <td align="right">
                    </td>

                    <td align="left">
                    </td>
                </tr>

                <tr valign="bottom" height="18">
                    <td align="left" width="427"><font face="Times New Roman" size="2">Peter Collins, Director</font></td>

                    <td align="right" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="106"><font face="Times New Roman" size="2">2, 502</font></td>

                    <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;<sup>(3)</sup></font></td>

                    <td align="right" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="17"><font face="Times New Roman" size="2">0.</font></td>

                    <td width="4">
                        <p align="left"><font face="Times New Roman" size="2">05%&nbsp;</font></p>
                    </td>

                    <td align="right">
                    </td>

                    <td align="left">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="427"><font face="Times New Roman" size="2">Charles C. Pierce, Jr., Director</font></td>

                    <td align="right" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="106"><font face="Times New Roman" size="2">2,299</font></td>

                    <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="17"><font face="Times New Roman" size="2">0.</font></td>

                    <td width="4"><font face="Times New Roman, Times, serif" size="2">05%</font></td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="427"><font face="Times New Roman, Times, serif" size="2">Ernest C. Hill, Director</font></td>

                    <td align="right" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="106"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                    <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="6"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="17"><font face="Times New Roman, Times, serif" size="2">0.</font></td>

                    <td width="4"><font face="Times New Roman, Times, serif" size="2">00%</font></td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="427"><font face="Times New Roman, Times, serif" size="2">J. Philip McCormick, Director</font></td>

                    <td align="right" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="106"><font face="Times New Roman, Times, serif" size="2">3,500</font></td>

                    <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="6"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="17"><font face="Times New Roman, Times, serif" size="2">0.</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="4"><font face="Times New Roman, Times, serif" size="2">08%</font></td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="427"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="106"><font face="Times New Roman, Times, serif" size="2">423,785</font></td>

                    <td align="left" width="15">
                    </td>

                    <td align="right" width="6"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="17"><font face="Times New Roman, Times, serif" size="2">9.</font></td>

                    <td width="4"><font face="Times New Roman, Times, serif" size="2">43%</font></td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="427"><font face="Times New Roman, Times, serif" size="2">other officers</font></td>

                    <td align="right" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="106"><font face="Times New Roman, Times, serif" size="2">11,861</font></td>

                    <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="6"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="17"><font face="Times New Roman, Times, serif" size="2">0.</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="4"><font face="Times New Roman, Times, serif" size="2">27%</font></td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="427"><font face="Times New Roman, Times, serif" size="2">All directors and officers of the Fund as a group (9 persons)</font></td>

                    <td align="right" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="106"><font face="Times New Roman, Times, serif" size="2">435,646</font></td>

                    <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="6"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="17"><font face="Times New Roman, Times, serif" size="2">9.</font></td>

                    <td width="4"><font face="Times New Roman, Times, serif" size="2">70%</font></td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>
            </table>
            <br>
            <br>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">30</font></a></p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" align="left" border="0">
                <tr valign="bottom">
                    <td align="right" width="14"><font face="Times New Roman" size="2">(1)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="left" width="568"><font face="Times New Roman" size="2">"Interested person" as defined by the 1940 Act.</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td valign="top" align="right" width="14"><font face="Times New Roman" size="2">(2)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="left" width="568"><font face="Times New Roman" size="2">Consists of 36,216 shares owned by the Cleveland Family Limited Partnership and 335,468 shares owned by RENN Investment Limited Partnership and 43,800 shares owned by RENN Capital Group, Inc.</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="right" width="14"><font face="Times New Roman" size="2">(3)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="left" width="568"><font face="Times New Roman" size="2">Includes 130 shares owned by Hilary Collins, Mr. Collin's spouse</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="right" width="14">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="left" width="568"><font face="Times New Roman" size="2">*as of December 31, 2008</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>
            </table>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 13</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">. Certain Relationships and Related Transactions and Director Independence.</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">In 2008, the Fund incurred a management fee to RENN Group of $455,005</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">of which $374,033</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">was paid in 2008. There was no incentive fee
            incurred for 2008. The Fund also received directors&rsquo;</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">fees from portfolio companies with respect to Mr. Cleveland&rsquo;s and Mr. Pearson&rsquo;s services as directors. Russell Cleveland and Barbe Butschek own 80% and 20%, respectively, of the Common Stock of RENN Group. The sole director of RENN Group is Russell Cleveland.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 14. Principal Accountant Fees and Services.</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The following table presents fees paid by the Fund for professional services rendered by KBA Group LLP and accounting consultants for the fiscal years ended December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007.</font></p>

            <table cellspacing="0" cellpadding="0" width="550" border="0">
                <tr>
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="355">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="143">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Fiscal 2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="133">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Fiscal 2007</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="355">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Fee Category</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="143">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Fees</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="133">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Fees</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="355">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="143">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="133">&nbsp;</td>
                </tr>

                <tr height="20">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="355">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Audit Fee</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" width="143">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp; 136,850</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="133">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp; 148,575</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="355">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Audit-Related Fees</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="143">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="133">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="355">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Tax Fees</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="143">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="133">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="355">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">All Other Fees</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="143">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></u></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="133">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;-</font></u></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="355">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Total Fees</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="143">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp; 136,850</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="133">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp; 148,575</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Audit Fees</font></b> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">were for professional services rendered for the audit of the Fund&rsquo;s annual financial statements and review of the Fund&rsquo;s quarterly financial statements. No non-audit fees were paid to the
            independent audit firm of KBA Group LLP.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">No Other Fees</font></b> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">were paid by the Fund to KBA Group LLP for the fiscal years ended December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">or 2007.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Part IV</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Item 15. Exhibits, Financial Statement Schedules.</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">DOCUMENTS FILED AS PART OF THIS FORM 10K</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Financial Statements</font></u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">:</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The financial statements filed as part of this report are listed in &ldquo;Index to Financial Statements&rdquo; on page F-1 hereof.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Financial Schedules</font></u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">:</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">There are no schedules presented since none are applicable.</font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">31</font></a>
            </div>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">EXHIBITS</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">3.1</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Restated Articles of Incorporation</font><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1</font></sup></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">3.2</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Bylaws</font><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2</font></sup></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">10.1</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Dividend Reinvestment Plan</font><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">3</font></sup></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">10.2</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Amendment No. 1 to Dividend Reinvestment Plan</font><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4</font></sup></p>
                    </td>
                </tr>
            </table>
            <br>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">10.3</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Amended Investment Advisory Agreement</font><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">5</font></sup></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">10.5</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Custodial Agreement with The Frost National Bank</font><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">6</font></sup></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">14</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Code of Ethics</font><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">7</font></sup></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">31.1</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Certification of the principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">31.2</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Certification of the principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">32.1</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Certification of the principal executive officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">32.2</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Certification principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1</font></sup></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Incorporated by reference from Form N-2 as filed with the Securities and Exchange Commission February 25, 1994 (Registration No. 33-75758).</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2</font></sup></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Incorporated by reference from Form N-2 as filed with the Securities and Exchange Commission February 25, 1994 (Registration No. 33-75758).</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">3</font></sup></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Incorporated by reference from Form N-2 as filed with the Securities and Exchange Commission February 25, 1994 (Registration No. 33-75758).</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4</font></sup></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Incorporated by reference from Form N-2 as filed with the Securities and Exchange Commission February 25, 1994 (Registration No. 33-75758).</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">5</font></sup></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Incorporated by reference from Form 10-K for the year ended December 31, 2006 as filed with the Securities and Exchange Commission (File No. 033-75758).</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">6</font></sup></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Incorporated by reference from Form 10-K for the year ended December 31, 2000 as filed with the Securities and Exchange Commission (File No. 001-11701).</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><sup><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">7</font></sup></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Incorporated by reference from Form 8-K as filed with the Securities and Exchange Commission (File No. 001-11701).</font></p>
                    </td>
                </tr>
            </table>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">32</font></a>
            </div>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Signatures</font></b></p>

            <p><br>
            &nbsp;<font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td style="BACKGROUND: #ffffff" valign="top" width="279">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font size="2">Date:</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">March</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">18, 2009</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="319">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="top" width="279">
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="2">
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="319"><font face="Times New Roman" size="2">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="top" width="279">
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="2">
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="319"><font face="Times New Roman" size="2">(Registrant)</font></td>
                </tr>

                <tr height="34">
                    <td style="BACKGROUND: #ffffff" valign="top" width="279">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><br>
                        &nbsp;</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><br>
                        &nbsp;</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff; BORDER-BOTTOM: black 1px solid" valign="top" width="319">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><br>
                        &nbsp;</font></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">/s/&nbsp;Russell Cleveland</font></font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="top" width="279">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="319">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">By:&nbsp;&nbsp;<font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Russell Cleveland, Chairman and President</font></font></font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Fund in the capacities and on the date indicated Signatures.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td style="BACKGROUND: #ffffff; BORDER-BOTTOM: #000000 0.8pt solid" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Signature</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff; BORDER-BOTTOM: #000000 0.8pt solid" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Capacity in Which Signed</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff; BORDER-BOTTOM: #000000 0.8pt solid" valign="middle" width="30%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Date</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="30%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff; BORDER-BOTTOM: black 1px solid" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">/s/ Russell Cleveland</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="30%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Russell Cleveland</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="33%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Chairman, President and Director</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="30%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">March</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">18, 2009</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="30%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff; BORDER-BOTTOM: black 1px solid" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">/s/ Barbe Butschek</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="30%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Barbe Butschek</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="33%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Secretary and Treasurer</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="30%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">March</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">18, 2009</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="30%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff; BORDER-BOTTOM: black 1px solid" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">/s/ Ernest C. Hill</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="30%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Ernest C. Hill</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="33%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Director</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="30%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">March</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">18, 2009</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="30%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff; BORDER-BOTTOM: black 1px solid" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">/s/ Peter Collins</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="30%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Peter Collins</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="33%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Director</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="30%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">March</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">18, 2009</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="30%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff; BORDER-BOTTOM: black 1px solid" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">/s/ J. Philip McCormick</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="30%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">J. Philip McCormick</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="33%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Director</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="30%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">March</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">18, 2009</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="30%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff; BORDER-BOTTOM: black 1px solid" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">/s/ Charles C. Pierce, Jr.</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="30%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="middle" width="33%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Charles C. Pierce, Jr.</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="33%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Director</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="middle" width="2%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="30%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">March</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">18, 2009</font></p>
                    </td>
                </tr>
            </table>

            <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
            </div>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">33</font></a>
            </div>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr>
            </div>

            <p></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="649" border="0">
                <tr>
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="649" colspan="2">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">INDEX TO FINANCIAL STATEMENTS</font></b></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" width="138">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="138">
                        <p style="MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Page</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Report of Independent</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Registered Public Accounting Firm</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">
                        <p style="MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">F-2</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Statements of Assets and Liabilities</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008 and 2007</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">
                        <p style="MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">F-3</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Schedules of Investments</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008 and 2007</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">
                        <p style="MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">F-4 through F-14</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Statements of Operations</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Years ended December 31, 2008, 2007, and 2006</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">
                        <p style="MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">F-15</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Statements of Changes in Net Assets</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Years ended December 31, 2008, 2007, and 2006</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">
                        <p style="MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">F-16</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Statements of Cash Flows</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Years ended December 31, 2008, 2007, and 2006</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">
                        <p style="MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">F-17</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="511">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Notes to Financial Statements</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="138">
                        <p style="MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">F-18 through F-24</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F-1</font></p>
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            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font></u></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Stockholders and Board of Directors</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Renaissance Capital Growth &amp; Income Fund III, Inc.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">We have audited the accompanying statements of assets and liabilities of Renaissance Capital Growth &amp; Income Fund III, Inc. (the "Fund") including the schedules of investments as of December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and the related statements of operations, changes in net assets and cash flows for the years ended December 31, 2008, 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2006</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and financial highlights for the years ended December 31, 2008</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007. These financial statements and financial highlights are the responsibility of the Fund&rsquo;s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material
            misstatement. The Fund is not required to have nor were we engaged to perform,&nbsp;audits of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund&rsquo;s internal control over financial reporting. Accordingly, we express no such opinion. An
            audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Renaissance Capital Growth &amp; Income Fund III, Inc. as of December 31, 2008</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and the results of its operations and its cash flows for the years ended December 31, 2008, 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2006</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and the financial highlights for the
            years ended December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in conformity with accounting principles generally accepted in the United States of America.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td style="BACKGROUND: #ffffff" valign="top" width="40%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="5%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="5%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="40%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="top" width="40%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font face="Times New Roman, Times, serif" size="2">/s/ KBA GROUP LLP</font>&nbsp;</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="5%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="5%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="40%">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BACKGROUND: #ffffff" valign="top" width="40%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">KBA Group LLP</font></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Dallas, TX</font></p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="5%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="5%">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left">&nbsp;</p>
                    </td>

                    <td style="BACKGROUND: #ffffff" valign="top" width="40%">&nbsp;</td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">March 18, 2009</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F-2</font></p>
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            <p></p>

            <div title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Statements of Assets and Liabilities</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"></p>

                <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                    <tr valign="bottom">
                        <th colspan="2">
                        </th>

                        <th>
                        </th>

                        <th colspan="2">
                        </th>

                        <th width="9">
                        </th>

                        <th colspan="2">
                        </th>

                        <th>
                        </th>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="83">
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">2008</font></p>
                        </td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid">
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">2007</font></p>
                        </td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td>
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">ASSETS</font></p>
                        </td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>
                    </tr>

                    <tr>
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                        <td align="left">
                        </td>

                        <td align="left">
                        </td>

                        <td align="right">
                        </td>

                        <td align="right" width="83">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right">
                        </td>

                        <td align="right">
                        </td>

                        <td align="left">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">Cash and cash equivalents</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td align="right" width="83"><font face="Times New Roman, Times, serif" size="2">2,558,630</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">3,679,949</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">Investments at fair value, cost of $41,524,234</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; and $43,820,011 at December 31, 2008 and</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; 2007, respectively</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="83"><font face="Times New Roman, Times, serif" size="2">15,931,925</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">36,251,126</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">Interest and dividends receivable</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="83"><font face="Times New Roman, Times, serif" size="2">91,428</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">141,402</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">Prepaid and other assets</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="83"><font face="Times New Roman, Times, serif" size="2">37,178</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">50,663</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr>
                        <td align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left">
                        </td>

                        <td align="left">
                        </td>

                        <td align="right">
                        </td>

                        <td align="right" width="83">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right">
                        </td>

                        <td align="right">
                        </td>

                        <td align="left">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="83"><font face="Times New Roman, Times, serif" size="2">18,619,161</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">40,123,140</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr>
                        <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left">
                        </td>

                        <td align="left">
                        </td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td>
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">LIABILITIES AND NET ASSETS</font></p>
                        </td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>
                    </tr>

                    <tr>
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                        <td align="left">
                        </td>

                        <td align="left">
                        </td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">Liabilities:</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>&nbsp;</td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Accounts payable</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td align="right" width="83"><font face="Times New Roman, Times, serif" size="2">105,273</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">57,726</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font> </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Dividends payable</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="83"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp; -</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">446,397</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Accounts payable - affiliate</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="83"><font face="Times New Roman, Times, serif" size="2">86,872</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">374,734</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Taxes payable on behalf of stockholders</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="83"><font face="Times New Roman, Times, serif" size="2">-</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">1,485,135</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr>
                        <td align="left">
                        </td>

                        <td align="left">
                        </td>

                        <td align="left">
                        </td>

                        <td align="right">
                        </td>

                        <td align="right" width="83">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right">
                        </td>

                        <td align="right">
                        </td>

                        <td align="left">
                        </td>
                    </tr>

                    <tr valign="bottom" height="15">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="83"><font face="Times New Roman, Times, serif" size="2">192,145</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">2,363,992</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">Commitments and contingencies</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>
                    </tr>

                    <tr>
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                        <td align="left">
                        </td>

                        <td align="left">
                        </td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">Net assets:</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">Common stock, $1 par value;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; 20,000,000 shares authorized ; 4,673,867 shares issued;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; 4,463,967 shares outstanding</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="83"><font face="Times New Roman, Times, serif" size="2">4,673,867</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">4,673,867</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">Additional paid-in-capital</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="83"><font face="Times New Roman, Times, serif" size="2">26,617,105</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">27,925,813</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">Treasury stock at cost, 209,900 shares</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="83"><font face="Times New Roman, Times, serif" size="2">(1,734,967</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">)&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">(1,734,967</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">)&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">Net realized gain on investments retained</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="83"><font face="Times New Roman, Times, serif" size="2">14,463,320</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">14,463,320</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">Net unrealized depreciation of investments</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="83"><font face="Times New Roman, Times, serif" size="2">(25,592,309</font></td>

                        <td width="9">
                            <p align="left"><font face="Times New Roman, Times, serif" size="2">)</font></p>
                        </td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(7,568,885</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
                    </tr>

                    <tr>
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>

                        <td align="left">
                        </td>

                        <td align="left">
                        </td>

                        <td align="right">
                        </td>

                        <td align="right" width="83">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right">
                        </td>

                        <td align="right">
                        </td>

                        <td align="left">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">Net assets, equivalent to $4.13 and $8.46</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>&nbsp;</td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; per share at December 31, 2008 and</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td>
                        </td>

                        <td width="83">
                        </td>

                        <td width="9">
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>

                        <td>
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; 2007, respectively</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="83"><font face="Times New Roman, Times, serif" size="2">18,427,016</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">37,759,148</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr>
                        <td align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left">
                        </td>

                        <td align="left">
                        </td>

                        <td align="right">
                        </td>

                        <td align="right" width="83">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right">
                        </td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right">
                        </td>

                        <td align="left">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="83"><font face="Times New Roman, Times, serif" size="2">18,619,161</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">40,123,140</font></td>

                        <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>
                </table>
                <br>
                <br>
            </div>

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                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

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                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

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                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

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                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

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                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">See</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">accompanying notes</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-3</font><br>
                &nbsp;</p>
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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Schedules of Investments</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font></font></p>

            <p></p>

            <div title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"></p>

                <table cellspacing="0" cellpadding="0" width="600" border="0">
                    <tr height="21">
                        <th colspan="2">
                        </th>

                        <th colspan="14"><font face="Times New Roman, Times, serif" size="2">2008</font></th>
                    </tr>

                    <tr>
                        <th colspan="2">
                        </th>

                        <th colspan="2">
                        </th>

                        <th width="11">
                        </th>

                        <th colspan="2">
                        </th>

                        <th colspan="2">
                        </th>

                        <th width="12">
                        </th>

                        <th colspan="2">
                        </th>

                        <th width="3">
                        </th>

                        <th colspan="3"><font face="Times New Roman, Times, serif" size="2">% of</font></th>
                    </tr>

                    <tr height="19">
                        <th colspan="2">
                        </th>

                        <th valign="bottom" align="center" colspan="3"><font face="Times New Roman, Times, serif" size="2">Interest</font></th>

                        <th colspan="2"><font face="Times New Roman, Times, serif" size="2">Maturity</font></th>

                        <th colspan="2"><font face="Times New Roman, Times, serif" size="2">Fair</font></th>

                        <th width="12">
                        </th>

                        <th colspan="2">
                        </th>

                        <th width="3">
                        </th>

                        <th colspan="3"><font face="Times New Roman, Times, serif" size="2">Investment</font></th>
                    </tr>

                    <tr valign="bottom">
                        <th colspan="2">
                        </th>

                        <th style="BORDER-BOTTOM: black 1px solid" colspan="3"><font face="Times New Roman, Times, serif" size="2">Rate</font></th>

                        <th style="BORDER-BOTTOM: black 1px solid" colspan="2"><font face="Times New Roman, Times, serif" size="2">Date</font></th>

                        <th style="BORDER-BOTTOM: black 1px solid" colspan="2"><font face="Times New Roman, Times, serif" size="2">Value</font></th>

                        <th style="BORDER-BOTTOM: black 1px solid" width="12">
                        </th>

                        <th style="BORDER-BOTTOM: black 1px solid" colspan="2"><font face="Times New Roman, Times, serif" size="2">Cost</font></th>

                        <th style="BORDER-BOTTOM: black 1px solid" width="3">
                        </th>

                        <th style="BORDER-BOTTOM: black 1px solid" colspan="3"><font face="Times New Roman, Times, serif" size="2">Assets</font></th>
                    </tr>

                    <tr>
                        <td align="left" width="208">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="19">
                        </td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="208"><font face="Times New Roman" size="2">Eligible Portfolio Investments -</font></td>

                        <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom" height="19">
                        <td align="left" width="208"><font face="Times New Roman" size="2">&nbsp;&nbsp; Convertible Debentures and</font></td>

                        <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom" height="18">
                        <td align="left" width="208"><font face="Times New Roman" size="2">&nbsp;&nbsp; Promissory Notes</font></td>

                        <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="208">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="19">
                        </td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom" height="17">
                        <td align="left" width="208"><font face="Times New Roman" size="2">CaminoSoft Corp. -</font></td>

                        <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="208"><font face="Times New Roman" size="2">&nbsp;&nbsp; Promissory note (2)</font></td>

                        <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="48"><font face="Times New Roman" size="2">7</font></td>

                        <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;%</font></td>

                        <td width="90">
                            <p align="right"><font face="Times New Roman" size="2">4/30/2009</font></p>
                        </td>

                        <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="16"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                        <td align="right" width="62"><font face="Times New Roman" size="2">250,000</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="2"><font face="Times New Roman" size="2">$</font></td>

                        <td align="right" width="55"><font face="Times New Roman" size="2">250,000</font></td>

                        <td align="right" width="3">
                        </td>

                        <td width="49">
                            <p align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1</font></p>
                        </td>

                        <td width="13">
                            <p align="left"><font face="Times New Roman" size="2">.57</font></p>
                        </td>

                        <td width="30"><font face="Times New Roman, Times, serif" size="2">%</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="208">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="19">
                        </td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td align="left" width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom" height="19">
                        <td align="left" width="208"><font face="Times New Roman" size="2">Integrated Security Systems, Inc. -</font></td>

                        <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td align="left" width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="208"><font face="Times New Roman" size="2">&nbsp;&nbsp; Convertible Promissory note (2)</font></td>

                        <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="48"><font face="Times New Roman" size="2">6</font></td>

                        <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="90">
                            <p align="right"><font face="Times New Roman" size="2">9/30/2009</font></p>
                        </td>

                        <td align="left" width="6"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="62"><font face="Times New Roman" size="2">400,000</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="55"><font face="Times New Roman" size="2">400,000</font></td>

                        <td align="right" width="3">
                        </td>

                        <td width="49">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">2</font></p>
                        </td>

                        <td width="13"><font face="Times New Roman, Times, serif" size="2">.51</font></td>

                        <td width="30">&nbsp;</td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="208"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Convertible Promissory note (2)</font></td>

                        <td align="left" width="19"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="3"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="48"><font face="Times New Roman, Times, serif" size="2">8</font></td>

                        <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td width="90">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">9/30/2009</font></p>
                        </td>

                        <td align="left" width="6"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="62"><font face="Times New Roman, Times, serif" size="2">750,000</font></td>

                        <td align="left" width="12"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">750,000</font></td>

                        <td align="right" width="3">
                        </td>

                        <td width="49">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">4</font></p>
                        </td>

                        <td width="13">
                            <p align="left"><font face="Times New Roman, Times, serif" size="2">.71</font></p>
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="208"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Promissory note (2)</font></td>

                        <td align="left" width="19"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="3"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="48"><font face="Times New Roman, Times, serif" size="2">7</font></td>

                        <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td width="90">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">9/30/2009</font></p>
                        </td>

                        <td align="left" width="6"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="62"><font face="Times New Roman, Times, serif" size="2">200,000</font></td>

                        <td align="left" width="12"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">200,000</font></td>

                        <td align="right" width="3">
                        </td>

                        <td width="49">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">1</font></p>
                        </td>

                        <td width="13"><font face="Times New Roman, Times, serif" size="2">.26</font></td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="208"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Promissory note (2)</font></td>

                        <td align="left" width="19"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="3"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="48"><font face="Times New Roman, Times, serif" size="2">8</font></td>

                        <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td width="90">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">9/30/2009</font></p>
                        </td>

                        <td align="left" width="6"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="62"><font face="Times New Roman, Times, serif" size="2">1,200,000</font></td>

                        <td align="left" width="12"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">1,200,000</font></td>

                        <td align="right" width="3">
                        </td>

                        <td width="49">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">7</font></p>
                        </td>

                        <td width="13">
                            <p align="left"><font face="Times New Roman, Times, serif" size="2">.52</font></p>
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="208"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                        <td align="left" width="19">
                        </td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td align="left" width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="208"><font face="Times New Roman, Times, serif" size="2">iLinc Communications, Inc. -</font></td>

                        <td align="left" width="19"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td align="left" width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="208"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Convertible debenture</font></td>

                        <td align="left" width="19"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="3"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="48"><font face="Times New Roman, Times, serif" size="2">12</font></td>

                        <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td width="90">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">3/29/2012</font></p>
                        </td>

                        <td align="left" width="6"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="62"><font face="Times New Roman, Times, serif" size="2">500,000</font></td>

                        <td align="left" width="12"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">500,000</font></td>

                        <td align="right" width="3">
                        </td>

                        <td width="49">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">3</font></p>
                        </td>

                        <td width="13"><font face="Times New Roman, Times, serif" size="2">.14</font></td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="208"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                        <td align="left" width="19">
                        </td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td align="left" width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="208"><font face="Times New Roman, Times, serif" size="2">PetroHunter Energy Corp -</font></td>

                        <td align="left" width="19"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td align="left" width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="208"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Convertible debenture</font></td>

                        <td align="left" width="19"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="3"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="48"><font face="Times New Roman, Times, serif" size="2">8..5</font></td>

                        <td align="left" width="11">
                        </td>

                        <td width="90">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;11/5/2012</font></p>
                        </td>

                        <td align="left" width="6"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="62"><font face="Times New Roman, Times, serif" size="2">1,000,000</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="right" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">1,000,000</font></td>

                        <td align="right" width="3">
                        </td>

                        <td width="49">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;6</font></p>
                        </td>

                        <td width="13">
                            <p align="left"><font face="Times New Roman, Times, serif" size="2">.27</font></p>
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="208"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                        <td align="left" width="19">
                        </td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td align="left" width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom" height="17">
                        <td align="left" width="208"><font face="Times New Roman, Times, serif" size="2">Pipeline Data, Inc. -</font></td>

                        <td align="left" width="19"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td width="3">
                        </td>

                        <td width="48">
                        </td>

                        <td width="11">
                        </td>

                        <td width="90">
                        </td>

                        <td width="6">
                        </td>

                        <td width="16">
                        </td>

                        <td width="62">
                        </td>

                        <td width="12">
                        </td>

                        <td width="2">
                        </td>

                        <td width="55">
                        </td>

                        <td width="3">
                        </td>

                        <td align="left" width="49">
                        </td>

                        <td width="13">
                        </td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="208"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Convertible debenture</font></td>

                        <td align="left" width="19"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="3"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="48"><font face="Times New Roman, Times, serif" size="2">8</font></td>

                        <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td width="90">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">6/29/2010</font></p>
                        </td>

                        <td align="left" width="6"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="62"><font face="Times New Roman, Times, serif" size="2">569,000</font></td>

                        <td align="left" width="12"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="55"><font face="Times New Roman, Times, serif" size="2">569,000</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="3">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="49">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">3</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="13"><font face="Times New Roman, Times, serif" size="2">.57</font></td>

                        <td width="30">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="208"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                        <td align="left" width="19"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="3"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="48">
                        </td>

                        <td align="left" width="11">
                        </td>

                        <td align="left" width="90"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="6"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="16"><font face="Times New Roman, Times, serif" size="2">$&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="62"><font face="Times New Roman, Times, serif" size="2">4,869,000</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="right" width="2"><font face="Times New Roman, Times, serif" size="2">$&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="55"><font face="Times New Roman, Times, serif" size="2">4,869,000</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="3">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="49">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">30</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="13"><font face="Times New Roman, Times, serif" size="2">.55</font></td>

                        <td width="30"><font face="Times New Roman, Times, serif" size="2">%</font></td>
                    </tr>
                </table>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>
            </div>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">See</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">accompanying notes</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-4</font></p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Schedules of Investments (continued)</font></font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font></font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"></p>

            <div title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt">
                <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                    <tr valign="bottom" height="21">
                        <th colspan="2">
                        </th>

                        <th style="BORDER-BOTTOM: black 1px solid" colspan="13"><font face="Times New Roman, Times, serif" size="2">2008</font></th>
                    </tr>

                    <tr valign="bottom" height="17">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56">
                        </td>

                        <td align="left" width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td colspan="3">
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">% of</font></p>
                        </td>
                    </tr>

                    <tr valign="bottom" height="20">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">Fair</font></p>
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td colspan="3">
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">Investment</font></p>
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="56">
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">Shares</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="12">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="12"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="57">
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">Cost</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="14">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="7">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="69">
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">Value</font></p>
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" colspan="3">
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">Assets</font></p>
                        </td>
                    </tr>

                    <tr valign="bottom" height="17">
                        <td align="left" width="275"><font face="Times New Roman" size="2">Eligible Portfolio Investments -</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common Stock, Preferred Stock,</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; and Miscellaneous Securities</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="275">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="9">
                        </td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">AuraSound, Inc.</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56"><font face="Times New Roman" size="2">1,000,000</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">$</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">1,000,000</font></td>

                        <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">$</font></td>

                        <td align="right" width="69"><font face="Times New Roman" size="2">20,000</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="14">
                        </td>

                        <td width="36">
                            <p align="right"><font face="Times New Roman" size="2">0</font></p>
                        </td>

                        <td align="right" width="17"><font face="Times New Roman" size="2">.13</font></td>

                        <td align="left" width="11"><font face="Times New Roman" size="2">%</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="275">&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="9">
                        </td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">BPO Management Services, Inc.</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Series F, preferred (2)</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56"><font face="Times New Roman" size="2">1,685,886</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">2,000,000</font></td>

                        <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="69"><font face="Times New Roman" size="2">270,111</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="14">
                        </td>

                        <td width="36">
                            <p align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp; 1</font></p>
                        </td>

                        <td align="right" width="17"><font face="Times New Roman" size="2">.69</font></td>

                        <td align="left" width="11">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="275">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="9">
                        </td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">Business Process Outsourcing Ltd. -</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (1)</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56"><font face="Times New Roman" size="2">18,349</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">20,000</font></td>

                        <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="69"><font face="Times New Roman" size="2">79,268</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="14">
                        </td>

                        <td align="right" width="36"><font face="Times New Roman" size="2">0</font></td>

                        <td align="right" width="17"><font face="Times New Roman" size="2">.50</font></td>

                        <td align="left" width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56"><font face="Times New Roman" size="2">3,813,321</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">5,295,521</font></td>

                        <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="69"><font face="Times New Roman" size="2">38,050</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="14">
                        </td>

                        <td align="right" width="36"><font face="Times New Roman" size="2">0</font></td>

                        <td align="right" width="17"><font face="Times New Roman" size="2">.24</font></td>

                        <td align="left" width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">CaminoSoft Corp. -</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (2)</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="275">&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="9">
                        </td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">eOriginal, Inc. -</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Series A, preferred stock (2)</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56"><font face="Times New Roman" size="2">10,680</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">4,692,207</font></td>

                        <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="69"><font face="Times New Roman" size="2">40,904</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="14">
                        </td>

                        <td align="right" width="36"><font face="Times New Roman" size="2">0</font></td>

                        <td align="right" width="17"><font face="Times New Roman" size="2">.26</font></td>

                        <td align="left" width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Series B, preferred stock (2)</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56"><font face="Times New Roman" size="2">25,646</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">620,329</font></td>

                        <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="69"><font face="Times New Roman" size="2">98,224</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="14">
                        </td>

                        <td align="right" width="36"><font face="Times New Roman" size="2">0</font></td>

                        <td align="right" width="17"><font face="Times New Roman" size="2">.26</font></td>

                        <td align="left" width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Series C, preferred stock (2)</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56"><font face="Times New Roman" size="2">51,249</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">1,059,734</font></td>

                        <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="69"><font face="Times New Roman" size="2">196,284</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="14">
                        </td>

                        <td align="right" width="36"><font face="Times New Roman" size="2">&nbsp;1</font></td>

                        <td align="right" width="17"><font face="Times New Roman" size="2">.23</font></td>

                        <td align="left" width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Series D, preferred stock (2)</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56"><font face="Times New Roman" size="2">36,711</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">500,000</font></td>

                        <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="69"><font face="Times New Roman" size="2">140,603</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="14">
                        </td>

                        <td align="right" width="36"><font face="Times New Roman" size="2">0</font></td>

                        <td align="right" width="17"><font face="Times New Roman" size="2">.88</font></td>

                        <td align="left" width="11">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="275">&nbsp;&nbsp;</td>

                        <td align="left" width="9">
                        </td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">Global Axcess Corporation -</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56"><font face="Times New Roman" size="2">953,333</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">1,261,667</font></td>

                        <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="69"><font face="Times New Roman" size="2">123,933</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="14">
                        </td>

                        <td align="right" width="36"><font face="Times New Roman" size="2">0</font></td>

                        <td align="right" width="17"><font face="Times New Roman" size="2">.78</font></td>

                        <td align="left" width="11">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="275">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="9">
                        </td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">i2 Telecom -</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56"><font face="Times New Roman" size="2">4,165,316</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">711,200</font></td>

                        <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="69"><font face="Times New Roman" size="2">208,266</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="14">
                        </td>

                        <td align="right" width="36"><font face="Times New Roman" size="2">1</font></td>

                        <td align="right" width="17"><font face="Times New Roman" size="2">.31</font></td>

                        <td align="left" width="11">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="275">&nbsp;&nbsp;</td>

                        <td align="left" width="9">
                        </td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">Integrated Security Systems, Inc. -</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (2)</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56"><font face="Times New Roman" size="2">39,626,430</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">6,325,113</font></td>

                        <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="69"><font face="Times New Roman" size="2">789,309</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="14">
                        </td>

                        <td align="right" width="36"><font face="Times New Roman" size="2">4</font></td>

                        <td align="right" width="17"><font face="Times New Roman" size="2">.95</font></td>

                        <td align="left" width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Series D, preferred stock (2)</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56"><font face="Times New Roman" size="2">7,500</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">150,000</font></td>

                        <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="69"><font face="Times New Roman" size="2">3,750</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="14">
                        </td>

                        <td align="right" width="36"><font face="Times New Roman" size="2">&nbsp;0</font></td>

                        <td align="right" width="17"><font face="Times New Roman" size="2">.02</font></td>

                        <td align="left" width="11">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="275">&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="9">
                        </td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">Hemobiotech, Inc. -</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="7">
                        </td>

                        <td width="56">
                        </td>

                        <td width="12">
                        </td>

                        <td width="12">
                        </td>

                        <td width="57">
                        </td>

                        <td width="14">
                        </td>

                        <td width="7">
                        </td>

                        <td width="69">
                        </td>

                        <td width="4">
                        </td>

                        <td width="14">
                        </td>

                        <td width="36">
                        </td>

                        <td width="17">
                        </td>

                        <td width="11">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="275"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                        <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="56"><font face="Times New Roman" size="2">1,200,000</font></td>

                        <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">1,284,117</font></td>

                        <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="69"><font face="Times New Roman" size="2">876,000</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="14">
                        </td>

                        <td align="right" width="36"><font face="Times New Roman" size="2">5</font></td>

                        <td align="right" width="17"><font face="Times New Roman" size="2">.50</font></td>

                        <td align="left" width="11">
                        </td>
                    </tr>
                </table>
            </div>

            <div title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt">
                <br>
                <br>
            </div>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">See</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">accompanying notes</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-5</font></p>

            <div title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt">
                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                    <hr width="100%" noshade>
                </div>
            </div>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Schedules of Investments (continued)</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"></p>

            <div title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt">
                <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                    <tr valign="bottom" height="21">
                        <td align="left" width="290"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="12"><font face="Times New Roman" size="2">&nbsp;2008</font></td>
                    </tr>

                    <tr valign="bottom" height="18">
                        <td align="left" width="290"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td align="center" colspan="2"><font face="Times New Roman, Times, serif" size="2">% of</font></td>
                    </tr>

                    <tr valign="bottom" height="17">
                        <td align="left" width="290"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                        <td align="right" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57">
                        </td>

                        <td align="left" width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td align="center" colspan="2"><font face="Times New Roman, Times, serif" size="2">Fair</font></td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td align="center" colspan="2">I<font face="Times New Roman, Times, serif" size="2">nvestment</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="57">
                            <p align="center"><font face="Times New Roman" size="2">Shares</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="11">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="67">
                            <p align="center"><font face="Times New Roman" size="2">Cost</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="2"><font face="Times New Roman, Times, serif" size="2">Value</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="4">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="4">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="2"><font face="Times New Roman, Times, serif" size="2">Assets</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">Eligible Portfolio Investments -</font></td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Common Stock, Preferred Stock,</font></td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;and Miscellaneous Securities, continued</font></td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="290">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">Murdoch Security &amp; Investigations, Inc.-</font></td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Common stock (1)</font></td>

                        <td align="right" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">2,612,250</font></td>

                        <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="67"><font face="Times New Roman" size="2">1,250,000</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="55"><font face="Times New Roman" size="2">1,306,250</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="39"><font face="Times New Roman" size="2">8</font></td>

                        <td align="left" width="28"><font face="Times New Roman" size="2">.20</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="290">&nbsp;&nbsp;&nbsp;</td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">Narrowstep, Inc -</font></td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Common stock</font></td>

                        <td align="right" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">4,000,000</font></td>

                        <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="67"><font face="Times New Roman" size="2">1,000,000</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="55"><font face="Times New Roman" size="2">28,000</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="39"><font face="Times New Roman" size="2">0</font></td>

                        <td align="left" width="28"><font face="Times New Roman" size="2">.18</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="290">&nbsp;&nbsp;&nbsp;</td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">Riptide Worldwide, Inc. (Shea Development Corp). -</font></td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Common stock</font></td>

                        <td align="right" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">941,962</font></td>

                        <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="67"><font face="Times New Roman" size="2">754,387</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="55"><font face="Times New Roman" size="2">9,419</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="39"><font face="Times New Roman" size="2">0</font></td>

                        <td align="left" width="28"><font face="Times New Roman" size="2">.06</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="290">&nbsp;&nbsp;</td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr valign="bottom" height="17">
                        <td align="left" width="290"><font face="Times New Roman" size="2">Symbollon Pharmaceuticals, Inc. -</font></td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Common stock</font></td>

                        <td align="right" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">607,143</font></td>

                        <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="67"><font face="Times New Roman" size="2">500,000</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="55"><font face="Times New Roman" size="2">4,250</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="39"><font face="Times New Roman" size="2">0</font></td>

                        <td align="left" width="28"><font face="Times New Roman" size="2">.03</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="290">&nbsp;&nbsp;</td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">Vertical Branding, Inc.-</font></td>

                        <td width="5">
                        </td>

                        <td width="57">
                        </td>

                        <td width="11">
                        </td>

                        <td width="12">
                        </td>

                        <td width="67">
                        </td>

                        <td width="10">
                        </td>

                        <td width="10">
                        </td>

                        <td width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Common stock (2)</font></td>

                        <td align="right" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57"><font face="Times New Roman" size="2">1,686,725</font></td>

                        <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="67"><font face="Times New Roman" size="2">1,008,628</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="55"><font face="Times New Roman" size="2">235,789</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="39"><font face="Times New Roman" size="2">1</font></td>

                        <td align="left" width="28"><font face="Times New Roman" size="2">.48</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="290">&nbsp;&nbsp;&nbsp;</td>

                        <td align="right" width="5">
                        </td>

                        <td align="right" width="57">
                        </td>

                        <td align="left" width="11">
                        </td>

                        <td align="right" width="12">
                        </td>

                        <td align="right" width="67">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="10">
                        </td>

                        <td align="right" width="55">
                        </td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td width="39">
                        </td>

                        <td width="28">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">Miscellaneous Securities (3)</font></td>

                        <td align="right" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="57">
                        </td>

                        <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="67"><font face="Times New Roman" size="2">8,877</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="55"><font face="Times New Roman" size="2">-</font></td>

                        <td width="4">
                        </td>

                        <td width="4">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="39">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="28">
                            <p align="center">-</p>
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="290">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="right" width="5">
                        </td>

                        <td align="right" width="57">
                        </td>

                        <td align="left" width="11">
                        </td>

                        <td align="right" width="12">
                        </td>

                        <td align="right" width="67">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="10">
                        </td>

                        <td align="right" width="55">
                        </td>

                        <td align="right" width="4">
                        </td>

                        <td align="right" width="4">
                        </td>

                        <td align="right" width="39">
                        </td>

                        <td align="left" width="28">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="290"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="5">
                        </td>

                        <td align="right" width="57">
                        </td>

                        <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="12"><font face="Times New Roman" size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="67"><font face="Times New Roman" size="2">29,441,780</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="10"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="55"><font face="Times New Roman, Times, serif" size="2">4,468,410</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="39"><font face="Times New Roman" size="2">28</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="28"><font face="Times New Roman" size="2">.06&nbsp;%</font></td>
                    </tr>
                </table>
            </div>

            <div title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt">
                <br>
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            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Schedules of Investments (continued)</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font></font></font></p>

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                <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                    <tr valign="bottom" height="19">
                        <th width="298">
                        </th>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="12"><font face="Times New Roman, Times, serif" size="2">2008</font></td>
                    </tr>

                    <tr valign="bottom" height="21">
                        <td align="left" width="298"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td width="19">
                        </td>

                        <td width="60">
                        </td>

                        <td width="3">
                        </td>

                        <td width="3">
                        </td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td colspan="2">
                            <p align="center"><font face="Times New Roman" size="2">% of</font></p>
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="298"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                        <td width="33">
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">Interest</font></p>
                        </td>

                        <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="44">
                            <p align="center"><font face="Times New Roman" size="2">Maturity</font></p>
                        </td>

                        <td align="left" width="9">
                            <p align="center">&nbsp;</p>
                        </td>

                        <td align="left" width="19">
                            <p align="center">&nbsp;</p>
                        </td>

                        <td align="left" width="60">
                            <p align="center">&nbsp;</p>
                        </td>

                        <td align="left" width="3">
                            <p align="center">&nbsp;</p>
                        </td>

                        <td align="left" width="3">
                            <p align="center">&nbsp;</p>
                        </td>

                        <td width="44">
                            <p align="center"><font face="Times New Roman" size="2">Fair</font></p>
                        </td>

                        <td align="left" width="9">
                            <p align="center">&nbsp;</p>
                        </td>

                        <td colspan="2">
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">Investment</font></p>
                        </td>
                    </tr>

                    <tr valign="bottom" height="15">
                        <td align="left" width="298">
                            <p align="center">&nbsp;</p>
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="33">
                            <p align="center"><font face="Times New Roman, Times, serif" size="2">Rate</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="1">
                            <p align="center">&nbsp;</p>
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="44">
                            <p align="center"><font face="Times New Roman" size="2">Date</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" colspan="2">
                            <p align="center"><font face="Times New Roman" size="2">Cost</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="44">
                            <p align="center"><font face="Times New Roman" size="2">Value</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" colspan="2">
                            <p align="center"><font face="Times New Roman" size="2">Assets&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr height="17">
                        <td align="left" width="298">
                        </td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="1">
                        </td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td width="19">
                        </td>

                        <td width="60">
                        </td>

                        <td width="3">
                        </td>

                        <td width="3">
                        </td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td width="34">
                        </td>

                        <td width="27">
                        </td>
                    </tr>

                    <tr valign="bottom" height="16">
                        <td align="left" width="298"><font face="Times New Roman" size="2">Other Portfolio Investments -</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td width="19">
                        </td>

                        <td width="60">
                        </td>

                        <td width="3">
                        </td>

                        <td width="3">
                        </td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td width="34">
                        </td>

                        <td width="27">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="298"><font face="Times New Roman" size="2">&nbsp;&nbsp; Convertible Debentures and</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td width="19">
                        </td>

                        <td width="60">
                        </td>

                        <td width="3">
                        </td>

                        <td width="3">
                        </td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td width="34">
                        </td>

                        <td width="27">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="298"><font face="Times New Roman" size="2">&nbsp;&nbsp; Promissory Notes</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="1"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td width="19">
                        </td>

                        <td width="60">
                        </td>

                        <td width="3">
                        </td>

                        <td width="3">
                        </td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td width="34">
                        </td>

                        <td width="27">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="298">&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="1">
                        </td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td width="19">
                        </td>

                        <td width="60">
                        </td>

                        <td width="3">
                        </td>

                        <td width="3">
                        </td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td width="34">
                        </td>

                        <td width="27">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="298">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="1">
                        </td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td width="19">
                        </td>

                        <td width="60">
                        </td>

                        <td width="3">
                        </td>

                        <td width="3">
                        </td>

                        <td width="44">
                        </td>

                        <td width="9">
                        </td>

                        <td width="34">
                        </td>

                        <td width="27">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="298"><font face="Times New Roman" size="2">Dynamic Green Energy Limited. -</font> </td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="1">
                        </td>

                        <td align="left" width="44">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="19">
                        </td>

                        <td align="left" width="60">
                        </td>

                        <td align="left" width="3">
                        </td>

                        <td align="left" width="3">
                        </td>

                        <td align="left" width="44">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="34">
                        </td>

                        <td align="left" width="27">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="298">&nbsp;&nbsp; <font face="Times New Roman, Times, serif" size="2">Convertible Promissory note (1)</font></td>

                        <td align="left" width="33">
                            <p align="center"><font face="Times New Roman" size="2">7%</font></p>
                        </td>

                        <td align="left" width="1">
                        </td>

                        <td align="left" width="44"><font face="Times New Roman, Times, serif" size="2">6/10/2011</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="19"><font size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="60">
                            <p align="right"><font face="Times New Roman" size="2">1,000,000</font></p>
                        </td>

                        <td align="left" width="3">
                        </td>

                        <td align="left" width="3"><font size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="44">
                            <p align="right"><font face="Times New Roman" size="2">1,000,000</font></p>
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="34"><font face="Times New Roman, Times, serif" size="2">6</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="27"><font face="Times New Roman, Times, serif" size="2">.27%</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="298">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="1">
                        </td>

                        <td align="left" width="44">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="19">
                        </td>

                        <td align="left" width="60">
                        </td>

                        <td align="left" width="3">
                        </td>

                        <td align="left" width="3">
                        </td>

                        <td align="left" width="44">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="34">
                        </td>

                        <td align="left" width="27">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="298"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="1"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="19"><font face="Times New Roman, Times, serif" size="2">&nbsp;$</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="60">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">1,000,000</font></p>
                        </td>

                        <td align="left" width="3"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="3"><font face="Times New Roman, Times, serif" size="2">&nbsp;$</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" width="44">
                            <p align="right"><font face="Times New Roman, Times, serif" size="2">1,000,000</font></p>
                        </td>

                        <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="34"><font face="Times New Roman, Times, serif" size="2">6</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="27"><font face="Times New Roman, Times, serif" size="2">.27%</font></td>
                    </tr>
                </table>
            </div>

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                <br>
            </div>

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            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt" align="center"><font face="Times New Roman" size="2">See <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">accompanying notes</font></font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman" size="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-7</font></font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <div title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt">
                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                    <hr width="100%" noshade>
                </div>
            </div>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Schedules of Investments (continued)</font></font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font></font></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" align="left" border="0">
                <tr valign="bottom">
                    <th colspan="2">
                    </th>

                    <th width="47">
                    </th>

                    <th width="7">
                    </th>

                    <th colspan="2">
                    </th>

                    <th width="19">
                    </th>

                    <th colspan="2">
                    </th>

                    <th width="12">
                    </th>

                    <th colspan="2">
                    </th>

                    <th width="28">
                    </th>

                    <th colspan="2">
                    </th>

                    <th>
                    </th>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="11"><font face="Times New Roman, Times, serif" size="2">2008</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom" height="21">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="-25" colspan="2">
                        <p align="center"><font size="2">&nbsp;&nbsp;% of</font></p>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                        <p align="center"><font size="2">&nbsp;<font face="Times New Roman, Times, serif">Fair</font></font></p>
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td align="center" width="-25" colspan="2"><font size="2">Investment</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="47">
                        <p align="center"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Shares</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="7">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="64">
                        <p align="center"><font face="Times New Roman" size="2">Cost</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="19">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70">
                        <p align="center"><font face="Times New Roman" size="2"><font face="Times New Roman" size="2">Value</font></font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="12">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="4">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="-25" colspan="2">
                        <p align="center"><font size="2">Assets</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                    </td>

                    <td>
                    </td>
                </tr>

                <tr height="20">
                    <td align="left" width="257">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">Other Portfolio Investments -</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom" height="19">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common Stock, Preferred Stock,</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom" height="18">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;&nbsp; and Miscellaneous Securities</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="257">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="12">
                    </td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">Access Plans (Precis) -</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (2)</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="47"><font face="Times New Roman" size="2">890,500</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="14"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">2,139,777</font></td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right" width="70"><font face="Times New Roman" size="2">204,815</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">1</font></td>

                    <td align="left" width="28"><font face="Times New Roman" size="2">.29%</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="257">&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="12">
                    </td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom" height="27">
                    <td align="left" width="257"><font face="Times New Roman" size="2">A-Power Energy Generation Systems, Ltd. . -</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="47"><font face="Times New Roman" size="2">48,000</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">409,256</font></td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="70"><font face="Times New Roman" size="2">206,400</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">1</font></td>

                    <td align="left" width="28"><font face="Times New Roman" size="2">.30</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="257">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="12">
                    </td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">Asian Financial, Inc. -</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (1)</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="47"><font face="Times New Roman" size="2">130,209</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">500,000</font></td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="70"><font face="Times New Roman" size="2">500,000</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">3</font></td>

                    <td align="left" width="28"><font face="Times New Roman" size="2">.14</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="257">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="12">
                    </td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">Bovie Medical Corporation -</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="47"><font face="Times New Roman" size="2">500,000</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">907,845</font></td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="70"><font face="Times New Roman" size="2">3,120,000</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">19</font></td>

                    <td align="left" width="28"><font face="Times New Roman" size="2">.58</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="257">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="12">
                    </td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">COGO Group, Inc. (Comtech Group, Inc). -</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="47"><font face="Times New Roman" size="2">200,000</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">836,019</font></td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="70"><font face="Times New Roman" size="2">972,000</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">6</font></td>

                    <td align="left" width="28"><font face="Times New Roman" size="2">.10</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="257">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="12">
                    </td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">HLS Systems International, Ltd. -</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="47"><font face="Times New Roman" size="2">58,500</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">498,557</font></td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="70"><font face="Times New Roman" size="2">163,800</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">1</font></td>

                    <td align="left" width="28"><font face="Times New Roman" size="2">.03</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="257">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="12">
                    </td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">Points International, Ltd. -</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="47"><font face="Times New Roman" size="2">900,000</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">492,000</font></td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="70"><font face="Times New Roman" size="2">355,500</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">2</font></td>

                    <td align="left" width="28"><font face="Times New Roman" size="2">.23</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="257">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="12">
                    </td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">Silverleaf Resorts, Inc. -</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="47">
                    </td>

                    <td width="7">
                    </td>

                    <td width="14">
                    </td>

                    <td width="64">
                    </td>

                    <td width="19">
                    </td>

                    <td width="10">
                    </td>

                    <td width="70">
                    </td>

                    <td width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="47"><font face="Times New Roman" size="2">100,000</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="64"><font face="Times New Roman" size="2">430,000</font></td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="70"><font face="Times New Roman" size="2">72,000</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="36"><font face="Times New Roman" size="2">0</font></td>

                    <td align="left" width="28"><font face="Times New Roman" size="2">.45</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="257">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="right" width="14">
                    </td>

                    <td align="right" width="64">
                    </td>

                    <td align="left" width="19">
                    </td>

                    <td align="right" width="10">
                    </td>

                    <td align="right" width="70">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">Miscellaneous Securities</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="47"><font face="Times New Roman" size="2">-</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="64"><font face="Times New Roman" size="2">-</font></td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">-</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="4">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="36">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="28"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; -</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="right" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="64"><font face="Times New Roman" size="2">6,213,454</font></td>

                    <td align="left" width="19">
                    </td>

                    <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">5,594,515</font></td>

                    <td align="left" width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="36">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">35</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="28"><font face="Times New Roman, Times, serif" size="2">.12%</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="257">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="right" width="14">
                    </td>

                    <td align="right" width="64">
                    </td>

                    <td align="left" width="19">
                    </td>

                    <td align="right" width="10">
                    </td>

                    <td align="right" width="70">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td width="36">
                    </td>

                    <td width="28">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="257"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="right" width="14"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="64"><font face="Times New Roman" size="2">41,524,235</font></td>

                    <td align="left" width="19">
                    </td>

                    <td align="right" width="10"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">15,931,925</font></td>

                    <td align="left" width="12">
                    </td>

                    <td width="4">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="36"><font face="Times New Roman, Times, serif" size="2">100</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="28"><font face="Times New Roman, Times, serif" size="2">.00%</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p></p>

            <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">See</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">accompanying notes</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-8</font></p>
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            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Schedules of Investments (continued)</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font></p>

            <p></p>

            <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
                &nbsp;
            </div>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr height="87">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Allocation</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">of Investments -</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="13">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="54">
                    </td>

                    <td valign="bottom" width="2">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="11">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="80">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="6">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp; Restricted Shares, Unrestricted Shares,</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="13">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="54">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="2">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="11">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="80">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="6">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp; Miscellaneous Securities, and Cash and</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="13">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="54">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="2">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="11">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="80">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="6">&nbsp;</td>
                </tr>

                <tr height="21">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp; Cash Equivalents</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="13">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="54">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="2">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="11">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="80">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="6">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2008</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="6">
                    </td>
                </tr>

                <tr height="14">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="13">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="54">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="2">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="11">
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" align="right" width="80">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">% of</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="6">
                    </td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="13">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="54">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="2">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Fair</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="11">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="80">
                        <p><font face="Times New Roman, Times, serif" size="2">Investement</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="6">
                    </td>
                </tr>

                <tr style="HEIGHT: 15.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="13">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Cost</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="2">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="78">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Value</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="11">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="80">
                        <p align="center"><font size="2">Assets</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="6">
                    </td>
                </tr>

                <tr height="19">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="13">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="54">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="2">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="11">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="80">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="6">
                    </td>
                </tr>

                <tr style="HEIGHT: 12.8pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Private Securities (1)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="13"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="54">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;2,770,000</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="2"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="78">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">2,885,518</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="11">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">&nbsp;</p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="80">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">&nbsp;&nbsp;18.11%</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="6">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Restricted Securities (2)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="13"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="54">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">26,591,309</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="2"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="78">
                        <p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; 4,817,839</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="11">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="80"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;30.24%</font></td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="6">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Unrestricted Securities</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="13"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="54">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">12,154,048</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="2"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="78">
                        <p><font face="Times New Roman, Times, serif" size="2">8,228,568</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" align="right" width="11">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" align="right" width="80">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">&nbsp;&nbsp;51.65%</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" width="6">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Miscellaneous Securities (3)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="13"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">8,877</font></font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="2"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" align="justify" width="78">
                        <p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" align="right" width="11">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="80">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px"><font style="FONT-SIZE: 10pt; COLOR: #000000; BORDER-BOTTOM: 2.25pt double; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp; 0.00%</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" width="6">
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="272">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="13"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" align="right" width="54">
                        <p align="right"><font face="Times New Roman, Times, serif"><font size="2">41,524,23<font style="FONT-SIZE: 10pt; COLOR: #000000; BORDER-BOTTOM: 2.25pt double; FONT-FAMILY: 'TIMES NEW ROMAN'">4</font></font></font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="2"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" align="right" width="78">
                        <p><font face="Times New Roman, Times, serif" size="2">15,931,925</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" align="right" width="11">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" align="right" width="80">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px"><font style="FONT-SIZE: 10pt; COLOR: #000000; BORDER-BOTTOM: 2.25pt double; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">100.00%</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="6">
                    </td>
                </tr>
            </table>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"></p>

            <p></p>
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                <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                    <tr valign="bottom">
                        <td align="left" width="20"><font face="Times New Roman" size="2">(1)</font></td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="left" width="537"><font face="Times New Roman" size="2">Securities in a privately owned company.</font></td>

                        <td align="left" width="3">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td valign="top" align="left" width="20"><font face="Times New Roman" size="2">(2)</font></td>

                        <td align="left" width="4">
                        </td>

                        <td align="left" width="537"><font face="Times New Roman" size="2">Restricted securities due to the Fund&rsquo;s having a director on issuer&rsquo;s board or held less than 6 months.</font></td>

                        <td align="left" width="3">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td valign="top" align="left" width="20"><font face="Times New Roman" size="2">(3)</font></td>

                        <td align="left" width="4">
                        </td>

                        <td align="left" width="537"><font face="Times New Roman" size="2">Other securities such as warrants and options.</font></td>

                        <td align="left" width="3">
                        </td>
                    </tr>
                </table>
                <br>
                <br>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">See</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">accompanying notes</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-9</font></p>
            </div>
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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Schedules of Investments (continued)</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font></font></font></p>

            <p>&nbsp;</p>

            <table cellspacing="0" cellpadding="0" align="left" border="0">
                <tr valign="bottom" height="18">
                    <th width="186" colspan="1">
                    </th>

                    <th width="47" colspan="1">
                    </th>

                    <th width="30">
                    </th>

                    <td width="11">
                    </td>

                    <th width="55" colspan="1">
                    </th>

                    <td width="23">
                    </td>

                    <th width="24">
                    </th>

                    <th width="49" colspan="1">
                    </th>

                    <th width="11" colspan="1">
                    </th>

                    <th width="13">
                    </th>

                    <th width="72" colspan="1">
                    </th>

                    <th width="18">
                    </th>

                    <th width="12" colspan="1">
                    </th>

                    <th width="58">
                    </th>
                </tr>

                <tr valign="bottom" height="18">
                    <td align="left" width="186"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="13"><font face="Times New Roman, Times, serif" size="2">2007</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>

                    <td width="47">
                    </td>

                    <td width="30">
                    </td>

                    <td width="11">
                    </td>

                    <td width="55">
                    </td>

                    <td width="23">
                    </td>

                    <td width="24">
                    </td>

                    <td width="49">
                    </td>

                    <td width="11">
                    </td>

                    <td width="13">
                    </td>

                    <td width="72">
                    </td>

                    <td width="18">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td width="12">
                    </td>

                    <td width="58">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">% of</font></p>
                    </td>
                </tr>

                <tr valign="bottom" height="21">
                    <td align="left" width="186"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                    <td width="47">
                        <p align="center"><font face="Times New Roman" size="2">&nbsp;&nbsp;Interest</font></p>
                    </td>

                    <td align="left" width="30">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td align="left" width="11">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td align="left" width="55">
                        <p align="center"><font face="Times New Roman" size="2">&nbsp;Maturity</font></p>
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td align="right" width="49">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td align="center" width="11">
                    </td>

                    <td align="left" width="13">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td width="72">
                        <p align="center"><font face="Times New Roman" size="2">Fair</font></p>
                    </td>

                    <td width="18">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td width="12">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td width="58">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">Investment</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="47">
                        <p align="center"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rate</font></p>
                    </td>

                    <td align="left" width="30">
                    </td>

                    <td align="left" width="11">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="55">
                        <p align="center"><font face="Times New Roman" size="2">&nbsp;Date</font></p>
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="49">
                        <p align="center"><font face="Times New Roman" size="2">Cost</font></p>
                    </td>

                    <td align="center" width="11">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="72">
                        <p align="center"><font face="Times New Roman" size="2">Value</font></p>
                    </td>

                    <td width="18">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="12">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="58">
                        <p align="center"><font face="Times New Roman" size="2">Assets</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman" size="2">Eligible Portfolio Investments -</font></td>

                    <td width="47">
                    </td>

                    <td width="30">
                    </td>

                    <td width="11">
                    </td>

                    <td width="55">
                    </td>

                    <td width="23">
                    </td>

                    <td width="24">
                    </td>

                    <td width="49">
                    </td>

                    <td width="11">
                    </td>

                    <td width="13">
                    </td>

                    <td width="72">
                    </td>

                    <td width="18">
                    </td>

                    <td width="12">
                    </td>

                    <td width="58">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman" size="2">&nbsp;&nbsp; Convertible Debentures and</font></td>

                    <td width="47">
                    </td>

                    <td width="30">
                    </td>

                    <td width="11">
                    </td>

                    <td width="55">
                    </td>

                    <td width="23">
                    </td>

                    <td width="24">
                    </td>

                    <td width="49">
                    </td>

                    <td width="11">
                    </td>

                    <td width="13">
                    </td>

                    <td width="72">
                    </td>

                    <td width="18">
                    </td>

                    <td width="12">
                    </td>

                    <td width="58">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman" size="2">&nbsp;&nbsp; Promissory Notes</font></td>

                    <td width="47">
                    </td>

                    <td width="30">
                    </td>

                    <td width="11">
                    </td>

                    <td width="55">
                    </td>

                    <td width="23">
                    </td>

                    <td width="24">
                    </td>

                    <td width="49">
                    </td>

                    <td width="11">
                    </td>

                    <td width="13">
                    </td>

                    <td width="72">
                    </td>

                    <td width="18">
                    </td>

                    <td width="12">
                    </td>

                    <td width="58">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="186">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="30">
                    </td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="55">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24">
                    </td>

                    <td align="right" width="49">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="72">
                    </td>

                    <td align="left" width="18">
                    </td>

                    <td align="right" width="12">
                    </td>

                    <td align="left" width="58">
                    </td>
                </tr>

                <tr valign="bottom" height="21">
                    <td align="left" width="186"><font face="Times New Roman" size="2">CaminoSoft Corp. -</font></td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td align="right" width="49">
                    </td>

                    <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left" width="13">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td align="right" width="72">
                    </td>

                    <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" colspan="2">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Promissory note (2)</font></td>

                    <td width="47">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">7</font></p>
                    </td>

                    <td width="30"><font face="Times New Roman, Times, serif" size="2">&nbsp;%</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">1/19/2008</font></td>

                    <td width="23">
                    </td>

                    <td width="24">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;$</font></p>
                    </td>

                    <td width="49">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">250,000</font></p>
                    </td>

                    <td width="11">
                    </td>

                    <td width="13">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;$</font></p>
                    </td>

                    <td width="72">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">250,000</font></p>
                    </td>

                    <td width="18">
                    </td>

                    <td width="12">
                    </td>

                    <td width="58">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">0.69%</font></p>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td width="47">
                    </td>

                    <td width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55">
                    </td>

                    <td width="23">
                    </td>

                    <td width="24">
                    </td>

                    <td width="49">
                    </td>

                    <td width="11">
                    </td>

                    <td width="13">
                    </td>

                    <td width="72">
                    </td>

                    <td width="18">
                    </td>

                    <td width="12">
                    </td>

                    <td width="58">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">Integrated Security Systems, Inc. -</font></td>

                    <td align="right" width="47">
                    </td>

                    <td width="30">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="11">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="55">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="49">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="72">
                    </td>

                    <td align="left" width="18">
                    </td>

                    <td colspan="2">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Convertible Promissory note (2)</font></td>

                    <td align="right" width="47"><font face="Times New Roman, Times, serif" size="2">6</font></td>

                    <td align="left" width="30"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">9/30/2008</font></td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="49"><font face="Times New Roman, Times, serif" size="2">400,000</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="72"><font face="Times New Roman, Times, serif" size="2">400,000</font></td>

                    <td align="left" width="18">
                    </td>

                    <td align="center" colspan="2">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10&nbsp;</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Promissory note (2)</font></td>

                    <td align="right" width="47"><font face="Times New Roman, Times, serif" size="2">8</font></td>

                    <td align="left" width="30"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">9/30/2008</font></td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="49"><font face="Times New Roman, Times, serif" size="2">525,000</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="72"><font face="Times New Roman, Times, serif" size="2">525,000</font></td>

                    <td align="left" width="18">
                    </td>

                    <td align="center" colspan="2">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; 1.45&nbsp;</font></p>
                    </td>
                </tr>

                <tr valign="bottom" height="16">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Promissory note (2)</font></td>

                    <td align="right" width="47"><font face="Times New Roman, Times, serif" size="2">7</font></td>

                    <td align="left" width="30"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">9/30/2008</font></td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="49"><font face="Times New Roman, Times, serif" size="2">200,000</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="72"><font face="Times New Roman, Times, serif" size="2">200,000</font></td>

                    <td align="left" width="18">
                    </td>

                    <td align="center" colspan="2">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; 0.55&nbsp;</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Promissory note (2)</font></td>

                    <td align="right" width="47"><font face="Times New Roman, Times, serif" size="2">8</font></td>

                    <td align="left" width="30"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">9/30/2008</font></td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="49"><font face="Times New Roman, Times, serif" size="2">175,000</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="72"><font face="Times New Roman, Times, serif" size="2">175,000</font></td>

                    <td align="left" width="18">
                    </td>

                    <td colspan="2">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.48&nbsp;</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Promissory note (2)</font></td>

                    <td align="right" width="47"><font face="Times New Roman, Times, serif" size="2">8</font></td>

                    <td align="left" width="30"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">9/30/2008</font></td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="49"><font face="Times New Roman, Times, serif" size="2">450,000</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="72"><font face="Times New Roman, Times, serif" size="2">450,000</font></td>

                    <td align="left" width="18">
                    </td>

                    <td align="center" colspan="2">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; 1.24&nbsp;</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Convertible promissory note (2)</font></td>

                    <td align="right" width="47"><font face="Times New Roman, Times, serif" size="2">8</font></td>

                    <td align="left" width="30"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">12/14/2008</font></td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="49"><font face="Times New Roman, Times, serif" size="2">500,000</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="72"><font face="Times New Roman, Times, serif" size="2">500,000</font></td>

                    <td align="left" width="18">
                    </td>

                    <td align="center" colspan="2">
                        <p align="right"><font face="Times New Roman, Times, serif"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, serif">&nbsp;&nbsp; &nbsp;&nbsp; 1.38&nbsp;</font></font></font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Promissory note (2)</font></td>

                    <td width="47">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">8</font></p>
                    </td>

                    <td width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">12/12/2008</font></td>

                    <td width="23">
                    </td>

                    <td width="24">
                    </td>

                    <td width="49">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">300,000</font></p>
                    </td>

                    <td width="11">
                    </td>

                    <td width="13">
                    </td>

                    <td width="72">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">300,000</font></p>
                    </td>

                    <td width="18">
                    </td>

                    <td width="12">
                    </td>

                    <td width="58">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.83</font></p>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24">
                    </td>

                    <td align="right" width="49">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="72">
                    </td>

                    <td align="left" width="18">
                    </td>

                    <td width="12">
                    </td>

                    <td width="58">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">iLinc Communications, Inc. -</font></td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="30"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="49">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="72">
                    </td>

                    <td align="left" width="18">
                    </td>

                    <td align="center" colspan="2">
                        <p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Convertible debenture</font></td>

                    <td width="47">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">12</font></p>
                    </td>

                    <td width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td width="55">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">3/29/2012</font></p>
                    </td>

                    <td width="23">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="24">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="49">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">500,000</font></p>
                    </td>

                    <td width="11">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="13">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="72">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">500,000</font></p>
                    </td>

                    <td width="18">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="12">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="58">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.38</font></p>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24">
                    </td>

                    <td align="right" width="49">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="72">
                    </td>

                    <td align="left" width="18">
                    </td>

                    <td align="right" width="12">
                    </td>

                    <td align="left" width="58">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">PetroHunter Energy Corp -</font></td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="49">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="72">
                    </td>

                    <td align="left" width="18">
                    </td>

                    <td align="center" colspan="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186">
                        <p align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Convertible debenture (2)</font></p>
                    </td>

                    <td width="47">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">8.5</font></p>
                    </td>

                    <td width="30">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td align="right" width="11">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td align="right" width="55">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">11/5/2012</font></p>
                    </td>

                    <td width="23">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="24">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="49">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">1,000,000</font></p>
                    </td>

                    <td width="11">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="13">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="72">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">1,466,667</font></p>
                    </td>

                    <td width="18">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="12">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="58">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; 4.05</font></p>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24">
                    </td>

                    <td align="right" width="49">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="72">
                    </td>

                    <td align="left" width="18">
                    </td>

                    <td width="12">
                    </td>

                    <td width="58">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">Pipeline Data, Inc. -</font></td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="30"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="49">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" width="72">
                    </td>

                    <td align="left" width="18">
                    </td>

                    <td align="center" colspan="2">
                        <p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186">
                        <p align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Convertible debenture</font></p>
                    </td>

                    <td width="47">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">8</font></p>
                    </td>

                    <td width="30">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td align="right" width="11">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td align="right" width="55">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">6/29/2010</font></p>
                    </td>

                    <td width="23">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="24">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="49">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">500,000</font></p>
                    </td>

                    <td width="11">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="13">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="72">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">500,000</font></p>
                    </td>

                    <td width="18">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="12">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td width="58">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.37</font></p>
                    </td>
                </tr>

                <tr>
                    <td align="left" width="186">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24">
                    </td>

                    <td align="right" width="49">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="72">
                    </td>

                    <td align="left" width="18">
                    </td>

                    <td align="right" width="12">
                    </td>

                    <td align="left" width="58">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">Simtek Corporation -</font></td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td align="right" width="49">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="13">
                    </td>

                    <td align="right" width="72">
                    </td>

                    <td align="left" width="18">
                    </td>

                    <td align="center" colspan="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Convertible debenture (2)</font></td>

                    <td align="right" width="47"><font face="Times New Roman, Times, serif" size="2">7.5</font></td>

                    <td align="left" width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">&nbsp;6/28/2009</font></td>

                    <td align="left" width="23">
                    </td>

                    <td width="24">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;$</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="49"><font face="Times New Roman, Times, serif" size="2">700,000</font></td>

                    <td align="right" width="11">
                    </td>

                    <td valign="bottom" align="right" width="13"><font face="Times New Roman, Times, serif" size="2">&nbsp;$</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="72">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, serif">738,182</font></font></p>
                    </td>

                    <td align="left" width="18"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" colspan="2">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.04</font></p>
                    </td>
                </tr>

                <tr valign="bottom" height="19">
                    <td align="right" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font> </td>

                    <td width="47">
                    </td>

                    <td width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55">
                    </td>

                    <td width="23">
                    </td>

                    <td width="24">
                    </td>

                    <td width="49">
                    </td>

                    <td width="11">
                    </td>

                    <td width="13">
                    </td>

                    <td width="72">
                    </td>

                    <td width="18">
                    </td>

                    <td width="12">
                    </td>

                    <td width="58">
                    </td>
                </tr>

                <tr valign="bottom" height="17">
                    <td align="left" width="186"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;$</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="49"><font face="Times New Roman, Times, serif" size="2">5,500,000</font></td>

                    <td align="right" width="11">
                    </td>

                    <td width="13">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">$</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="72"><font face="Times New Roman, Times, serif" size="2">6,004,849</font></td>

                    <td align="left" width="18">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16.57%</font></td>
                </tr>

                <tr>
                    <td align="left" width="186">
                    </td>

                    <td align="right" width="47">
                    </td>

                    <td align="left" width="30">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="right" width="55">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="24">
                    </td>

                    <td align="right" width="49">
                    </td>

                    <td align="right" width="11">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="72">
                    </td>

                    <td align="left" width="18">
                    </td>

                    <td width="12">
                    </td>

                    <td width="58">
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">See</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">accompanying notes</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-10</font></p>
            <!-- NEXT PAGE SECTION BREAK  -->

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Schedules of Investments (continued)</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font></font></font></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" align="left" border="0">
                <tr valign="bottom">
                    <th width="210" colspan="1">
                    </th>

                    <th width="4">
                    </th>

                    <th style="BORDER-BOTTOM: black 1px solid" colspan="11"><font face="Times New Roman, Times, serif" size="2">2007</font></th>

                    <th width="5" colspan="1">
                    </th>

                    <th width="4">
                    </th>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td colspan="2">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">% of</font></p>
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51">
                    </td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">Fair</font></p>
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td colspan="2">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">Investment</font></p>
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="51">
                        <p align="center"><font face="Times New Roman" size="2">Shares</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="16">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="11">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="62">
                        <p align="center"><font face="Times New Roman" size="2">Cost</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="17">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="8">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="76">
                        <p align="center"><font face="Times New Roman" size="2">Value</font></p>
                    </td>

                    <td align="left" width="5">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="21">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" colspan="2">
                        <p align="center"><font size="2">Assets</font></p>
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">Eligible Portfolio Investments -</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common Stock, Preferred Stock,</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; and Miscellaneous Securities</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="210">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="4">
                    </td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">Advance Nanotech, Inc. -</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">5,796</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman"><font size="2">&nbsp;<font face="Times New Roman, Times, serif">$</font></font></font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;11,199</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,652</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">0</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.00%</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="210">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="4">
                    </td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">AuraSound, Inc.</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">1,000,000</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">1,000,000</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">1,100,000</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">3</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.03</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="210">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="4">
                    </td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">BPO Management Services, Inc.</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Series D, preferred (2)</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">104,167</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">1,000,000</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">716,667</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">1</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.98</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Series D2, preferred (2)</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">52,084</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">500,000</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">358,333</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">0</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.99</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="210">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="4">
                    </td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">CaminoSoft Corp. -</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (2)</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">3,539,414</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">5,275,000</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">283,153</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">0</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.78</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="210">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="4">
                    </td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">eOriginal, Inc. -</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Series A, preferred stock (1)</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">10,680</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">4,692,207</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">145,462</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">0</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.40</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Series B, preferred stock (1)</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">25,646</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">620,329</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">349,299</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">0</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.96</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Series C, preferred stock (1)</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">51,249</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">1,059,734</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">698,011</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">1</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.93</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Series D, preferred stock (1)</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">36,711</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">500,000</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">500,004</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">1</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.38</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="210">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="4">
                    </td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">Gaming &amp; Entertainment Group, Inc. -</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">112,500</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">50,625</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">788</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">0</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.00</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="210">&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="4">
                    </td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">Gasco Energy, Inc. -</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">775,586</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">465,352</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">1,543,416</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">4</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.26</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="210">&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="4">
                    </td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">Global Axcess Corporation -</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">953,333</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">1,261,667</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">324,133</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">0</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.89</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="210">&nbsp;&nbsp;&nbsp;</td>

                    <td align="left" width="4">
                    </td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">i2 Telecom -</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="51">
                    </td>

                    <td width="16">
                    </td>

                    <td width="11">
                    </td>

                    <td width="62">
                    </td>

                    <td width="17">
                    </td>

                    <td width="8">
                    </td>

                    <td width="76">
                    </td>

                    <td width="5">
                    </td>

                    <td width="21">
                    </td>

                    <td width="50">
                    </td>

                    <td width="59">
                    </td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">237,510</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">36,200</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">17,814</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">0</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.05</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="210"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (2)</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="51"><font face="Times New Roman" size="2">3,927,806</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="62"><font face="Times New Roman" size="2">675,000</font></td>

                    <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="8">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">294,585</font></td>

                    <td align="left" width="5">
                    </td>

                    <td align="left" width="21"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="50"><font face="Times New Roman" size="2">0</font></td>

                    <td align="left" width="59"><font face="Times New Roman" size="2">.81</font></td>

                    <td width="5">
                    </td>

                    <td width="4">
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

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            <p>&nbsp;</p>

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                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-11</font></p>
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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Schedules of Investments (continued)</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font></font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"></p>

            <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="10"><font face="Times New Roman" size="2">2007</font></td>
                </tr>

                <tr>
                    <td align="left" width="271">
                    </td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td align="center" width="69">
                    </td>

                    <td align="center" width="13">
                    </td>

                    <td align="center" width="-27" colspan="2"><font face="Times New Roman, Times, serif" size="2">% of</font></td>
                </tr>

                <tr>
                    <td align="left" width="271">
                    </td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td align="center" width="69"><font face="Times New Roman, Times, serif" size="2">Fair</font></td>

                    <td align="center" width="13">
                    </td>

                    <td align="center" width="-27" colspan="2"><font face="Times New Roman, Times, serif" size="2">Investment</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="76">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">Shares</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="20">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="19">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="67">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">Cost</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="11">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="9">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="69"><font face="Times New Roman, Times, serif" size="2">Value</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="13">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="-27" colspan="2"><font face="Times New Roman, Times, serif" size="2">Assets</font></td>
                </tr>

                <tr height="23">
                    <td align="left" width="271"><font face="Times New Roman, Times, serif" size="2">Eligible Portfolio Investments -</font></td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td width="13">
                    </td>

                    <td width="31">
                    </td>

                    <td width="35">
                    </td>
                </tr>

                <tr valign="bottom" height="14">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common Stock, Preferred Stock,</font></td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td width="13">
                    </td>

                    <td width="31">
                    </td>

                    <td width="35">
                    </td>
                </tr>

                <tr valign="bottom" height="21">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp; and Miscellaneous Securities, continued</font></td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="35">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="271">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19">
                    </td>

                    <td align="right" width="67">
                    </td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9">
                    </td>

                    <td align="right" width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">Integrated Security Systems, Inc.</font></td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="67">
                    </td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="69">
                    </td>

                    <td valign="bottom" align="right" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" colspan="2">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td width="271">
                        <p align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (2)</font></p>
                    </td>

                    <td align="right" width="76"><font face="Times New Roman, Times, serif" size="2">30,733,532</font></td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">5,661,058</font></p>
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">2,766,018</font></p>
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" width="35">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">7.63</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (2)</font></td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">2,175,559</font></td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">400,734</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="69"><font face="Times New Roman" size="2">195,800</font></td>

                    <td valign="bottom" align="right" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" colspan="2"><font face="Times New Roman" size="2">0.54</font></td>
                </tr>

                <tr valign="bottom" height="-209">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp; Series D, preferred stock (2)</font></td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">7,500</font></td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">150,000</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="69"><font face="Times New Roman" size="2">16,875</font></td>

                    <td valign="bottom" align="right" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" colspan="2"><font face="Times New Roman" size="2">0.05</font></td>
                </tr>

                <tr>
                    <td align="left" width="271">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">Hemobiotech, Inc. -</font></td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">1,200,000</font></td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">1,284,117</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="69"><font face="Times New Roman" size="2">1,680,000</font></td>

                    <td valign="bottom" align="right" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" colspan="2"><font face="Times New Roman" size="2">4.63</font></td>
                </tr>

                <tr>
                    <td align="left" width="271">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">Murdoch Security &amp; Investigations, Inc.-</font></td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (1)</font></td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">2,000,000</font></td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">1,000,000</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="69"><font face="Times New Roman" size="2">1,000,000</font></td>

                    <td valign="bottom" align="right" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" colspan="2"><font face="Times New Roman" size="2">2.76</font></td>
                </tr>

                <tr>
                    <td align="left" width="271">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">Narrowstep, Inc -</font></td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (2)</font></td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">4,000,000</font></td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">1,000,000</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="69"><font face="Times New Roman" size="2">440,000</font></td>

                    <td valign="bottom" align="right" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" colspan="2"><font face="Times New Roman" size="2">1.21</font></td>
                </tr>

                <tr>
                    <td align="left" width="271">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">Nutradyne Group, Inc. -</font></td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">13,917</font></td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">12,500</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="69"><font face="Times New Roman" size="2">21,571</font></td>

                    <td valign="bottom" align="right" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" colspan="2"><font face="Times New Roman" size="2">0.06</font></td>
                </tr>

                <tr>
                    <td align="left" width="271">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">Shea Development Corp. -</font></td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (2)</font></td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">1,838,396</font></td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">1,093,332</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="69"><font face="Times New Roman" size="2">643,439</font></td>

                    <td valign="bottom" align="right" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" colspan="2"><font face="Times New Roman" size="2">1.78</font></td>
                </tr>

                <tr>
                    <td align="left" width="271">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">Simtek Corp. -</font></td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (2)</font></td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">640,763</font></td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">1,799,294</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="69"><font face="Times New Roman" size="2">1,486,570</font></td>

                    <td valign="bottom" align="right" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" colspan="2"><font face="Times New Roman" size="2">4.10</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (2)</font></td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">90,909</font></td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">200,000</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="69"><font face="Times New Roman" size="2">210,909</font></td>

                    <td valign="bottom" align="right" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" colspan="2"><font face="Times New Roman" size="2">0.58</font></td>
                </tr>

                <tr>
                    <td align="left" width="271">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">Symbollon Pharmaceuticals, Inc. -</font></td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">607,143</font></td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">500,000</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="69"><font face="Times New Roman" size="2">391,607</font></td>

                    <td valign="bottom" align="right" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" colspan="2"><font face="Times New Roman" size="2">1.08</font></td>
                </tr>

                <tr>
                    <td align="left" width="271">&nbsp;&nbsp;&nbsp;</td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">Vertical Branding, Inc.-</font></td>

                    <td width="76">
                    </td>

                    <td width="20">
                    </td>

                    <td width="19">
                    </td>

                    <td width="67">
                    </td>

                    <td width="11">
                    </td>

                    <td width="9">
                    </td>

                    <td width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (2)</font></td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">1,666,667</font></td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">1,000,000</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="69"><font face="Times New Roman" size="2">666,667</font></td>

                    <td valign="bottom" align="right" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" colspan="2"><font face="Times New Roman" size="2">1.84</font></td>
                </tr>

                <tr>
                    <td align="left" width="271">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19">
                    </td>

                    <td align="right" width="67">
                    </td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9">
                    </td>

                    <td align="right" width="69">
                    </td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td valign="bottom" align="left" width="35">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">Miscellaneous Securities (3)</font></td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="67"><font face="Times New Roman" size="2">-</font></td>

                    <td align="left" width="11">
                    </td>

                    <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="69"><font face="Times New Roman" size="2">187,727</font></td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">0.52</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="271"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="19"><font face="Times New Roman" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="67"><font face="Times New Roman" size="2">31,248,348</font></td>

                    <td width="11">
                    </td>

                    <td width="9">
                        <p align="right"><font face="Times New Roman" size="2">$</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="69"><font face="Times New Roman" size="2">16,040,500</font></td>

                    <td valign="bottom" align="right" width="13">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="center" colspan="2">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">44.24%</font></p>
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p></p>

            <p></p>

            <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">See</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">accompanying notes</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-12</font></p>
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            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Schedules of Investments (continued)</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and
            2007</font></font></font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"></p>

            <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                <tr valign="bottom" height="19">
                    <th width="269" colspan="1">
                    </th>

                    <th style="BORDER-BOTTOM: black 1px solid" colspan="11"><font face="Times New Roman, Times, serif" size="2">2007</font></th>
                </tr>

                <tr valign="bottom" height="17">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td width="12">
                    </td>

                    <td colspan="2">
                        <p align="center"><font size="2">&nbsp;% of</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="right" width="67">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="left" width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                        <p align="center"><font size="2">&nbsp;Fair</font></p>
                    </td>

                    <td width="11">
                    </td>

                    <td width="12">
                    </td>

                    <td colspan="2">
                        <p align="center"><font size="2">Investment</font></p>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="67">
                        <p align="center"><font face="Times New Roman" size="2">Shares</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="13">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="8">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="65">
                        <p align="center"><font face="Times New Roman" size="2">Cost</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="16">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="5">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="58">
                        <p align="center"><font size="2">Value</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="11">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="12">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="2"><font size="2">Assets</font></td>
                </tr>

                <tr valign="bottom" height="16">
                    <td align="left" width="269"><font face="Times New Roman" size="2">Other Portfolio Investments -</font></td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td width="12">
                    </td>

                    <td width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common Stock, Preferred Stock,</font></td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td width="12">
                    </td>

                    <td width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp; and Miscellaneous Securities</font></td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td width="12">
                    </td>

                    <td width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="269">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td width="12">
                    </td>

                    <td width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">Access Plans (Precis) -</font></td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td width="12">
                    </td>

                    <td width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (2)</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">890,500</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="left" width="8"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                    <td align="right" width="65"><font face="Times New Roman" size="2">2,139,777</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                    <td align="right" width="58"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;952,835</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="31"><font face="Times New Roman, Times, serif" size="2">2</font></td>

                    <td align="left" width="38"><font face="Times New Roman" size="2">.63%</font></td>
                </tr>

                <tr>
                    <td align="left" width="269">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">AdStar, Inc. -</font></td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">253,500</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="65"><font face="Times New Roman" size="2">330,718</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="58"><font face="Times New Roman" size="2">96,330</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="31"><font face="Times New Roman" size="2">0</font></td>

                    <td align="left" width="38"><font face="Times New Roman" size="2">.27</font></td>
                </tr>

                <tr>
                    <td align="left" width="269">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">Asian Financial, Inc. -</font></td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock (1)</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">130,209</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="65"><font face="Times New Roman" size="2">500,000</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="58"><font face="Times New Roman" size="2">500,000</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="31"><font face="Times New Roman" size="2">1</font></td>

                    <td align="left" width="38"><font face="Times New Roman" size="2">.38</font></td>
                </tr>

                <tr>
                    <td align="left" width="269">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">Bovie Medical Corporation -</font></td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">500,000</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="65"><font face="Times New Roman" size="2">907,844</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="58"><font face="Times New Roman" size="2">3,185,000</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="31"><font face="Times New Roman" size="2">8</font></td>

                    <td align="left" width="38"><font face="Times New Roman" size="2">.79</font></td>
                </tr>

                <tr>
                    <td align="left" width="269">&nbsp;&nbsp;&nbsp;</td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">Chardan South China Acquisition Corp-</font></td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">48,000</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="65"><font face="Times New Roman" size="2">409,256</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="58"><font face="Times New Roman" size="2">640,800</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="31"><font face="Times New Roman" size="2">1</font></td>

                    <td align="left" width="38"><font face="Times New Roman" size="2">.77</font></td>
                </tr>

                <tr>
                    <td align="left" width="269">&nbsp;&nbsp;&nbsp;</td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">Comtech Group, Inc. -</font></td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">200,000</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="65"><font face="Times New Roman" size="2">836,019</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="58"><font face="Times New Roman" size="2">3,222,000</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="31"><font face="Times New Roman" size="2">8</font></td>

                    <td align="left" width="38"><font face="Times New Roman" size="2">.89</font></td>
                </tr>

                <tr>
                    <td align="left" width="269">&nbsp;&nbsp;&nbsp;</td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">HLS Systems International, Ltd. -</font></td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">58,500</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="65"><font face="Times New Roman" size="2">498,557</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="58"><font face="Times New Roman" size="2">521,820</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="31"><font face="Times New Roman" size="2">1</font></td>

                    <td align="left" width="38"><font face="Times New Roman" size="2">.44</font></td>
                </tr>

                <tr>
                    <td align="left" width="269">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">iLinc Communications, Inc. -</font></td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">23,266</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="65"><font face="Times New Roman" size="2">13,908</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="58"><font face="Times New Roman" size="2">12,564</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="31"><font face="Times New Roman" size="2">0</font></td>

                    <td align="left" width="38"><font face="Times New Roman" size="2">.03</font></td>
                </tr>

                <tr>
                    <td align="left" width="269">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">Medical Action Industries, Inc. -</font></td>

                    <td width="67">
                    </td>

                    <td width="13">
                    </td>

                    <td width="8">
                    </td>

                    <td width="65">
                    </td>

                    <td width="16">
                    </td>

                    <td width="5">
                    </td>

                    <td width="58">
                    </td>

                    <td width="11">
                    </td>

                    <td valign="bottom" align="right" width="12">
                    </td>

                    <td valign="bottom" align="right" width="31">
                    </td>

                    <td width="38">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="269"><font face="Times New Roman" size="2">&nbsp;&nbsp; Common stock</font></td>

                    <td align="right" width="67"><font face="Times New Roman" size="2">30,150</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="65"><font face="Times New Roman" size="2">237,209</font></td>

                    <td align="left" width="16">
                    </td>

                    <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="58"><font face="Times New Roman" size="2">628,628</font></td>

                    <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="31"><font face="Times New Roman" size="2">1</font></td>

                    <td align="left" width="38"><font face="Times New Roman" size="2">.73</font></td>
                </tr>
            </table>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><!-- CONTINUOUS SECTION BREAK -->&nbsp;&nbsp;&nbsp;</font></p>

            <p></p>

            <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">See</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">accompanying notes</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-13</font></p>
            </div>
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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Schedules of Investments (continued)</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font></font></font></p>
            <!-- CONTINUOUS SECTION BREAK -->

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr height="21">
                    <td>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="10"><font face="Times New Roman, Times, serif" size="2">2007</font></td>
                </tr>

                <tr>
                    <td>
                    </td>

                    <td width="52">
                    </td>

                    <td width="14">
                    </td>

                    <td width="11">
                    </td>

                    <td width="65">
                    </td>

                    <td width="24">
                    </td>

                    <td width="16">
                    </td>

                    <td width="51">
                    </td>

                    <td width="44">
                    </td>

                    <td colspan="2">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">% of</font></p>
                    </td>
                </tr>

                <tr height="17">
                    <td><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><font face="Times New Roman, Times, serif" size="2">Fair</font></p>
                    </td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td colspan="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;Investment</font></td>
                </tr>

                <tr height="20">
                    <td>&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="52">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><font face="Times New Roman, Times, serif" size="2">Shares</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="65">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><font face="Times New Roman, Times, serif" size="2">Cost</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="51">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><font face="Times New Roman, Times, serif" size="2">Value</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" colspan="2">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;Assets</font></p>
                    </td>
                </tr>

                <tr height="18">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">Other Portfolio Investments -</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font> </td>
                </tr>

                <tr height="15">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">&nbsp; Common Stock, Preferred Stock,</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr height="19">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">&nbsp; and Miscellaneous Securities</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr height="21">
                    <td>&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td width="52">&nbsp;</td>

                    <td width="14">&nbsp;</td>

                    <td width="11">&nbsp;</td>

                    <td width="65">&nbsp;</td>

                    <td width="24">&nbsp;</td>

                    <td width="16">&nbsp;</td>

                    <td width="51">&nbsp;</td>

                    <td width="44">&nbsp;</td>

                    <td width="34">&nbsp;</td>

                    <td width="22">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">Points International, Ltd. -</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">&nbsp;&nbsp;Common stock</font></p>
                    </td>

                    <td width="52">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font face="Times New Roman, Times, serif">900,000</font></p>
                    </td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">492,000</font></p>
                    </td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="51">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">3,735,000</font></p>
                    </td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.10</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">Silverleaf Resorts, Inc. -</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">&nbsp;&nbsp;Common stock</font></p>
                    </td>

                    <td width="52">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font face="Times New Roman, Times, serif">100,000</font></p>
                    </td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">430,000</font></p>
                    </td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td valign="bottom" align="right" width="51">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">416,000</font></p>
                    </td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.01</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr height="19">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">US Home Systems, Inc. -</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">&nbsp;&nbsp;Common stock</font></p>
                    </td>

                    <td width="52">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font face="Times New Roman, Times, serif">55,000</font></p>
                    </td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">276,375</font></p>
                    </td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">294,800</font></p>
                    </td>

                    <td valign="bottom" align="right" width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.01</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">Miscellaneous Securities</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="65">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">-</font></p>
                    </td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="51">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp; &nbsp;-</font></p>
                    </td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.00</font></p>
                    </td>
                </tr>

                <tr height="14">
                    <td><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="65">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font face="Times New Roman, Times, serif">7,071,663</font></p>
                    </td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="51">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">14,205,777</font></p>
                    </td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">39.19%</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'CALIBRI'" align="left"><font face="Times New Roman, Times, serif">$</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" width="65">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'CALIBRI'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">43,820,011</font></p>
                    </td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'CALIBRI'" face="Times New Roman, Times, serif">$</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" width="51">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">36,251,126</font></p>
                    </td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'CALIBRI'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">100.00%</font></p>
                    </td>
                </tr>

                <tr>
                    <td><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td width="52">
                    </td>

                    <td width="14">
                    </td>

                    <td width="11">
                    </td>

                    <td width="65">
                    </td>

                    <td width="24">
                    </td>

                    <td width="16">
                    </td>

                    <td width="51">
                    </td>

                    <td width="44">
                    </td>

                    <td width="34">
                    </td>

                    <td width="22">
                    </td>
                </tr>

                <tr>
                    <td>
                    </td>

                    <td width="52">
                    </td>

                    <td width="14">
                    </td>

                    <td width="11">
                    </td>

                    <td width="65">
                    </td>

                    <td width="24">
                    </td>

                    <td width="16">
                    </td>

                    <td width="51">
                    </td>

                    <td width="44">
                    </td>

                    <td width="34">
                    </td>

                    <td width="22">
                    </td>
                </tr>

                <tr>
                    <td><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td width="52">
                    </td>

                    <td width="14">
                    </td>

                    <td width="11">
                    </td>

                    <td width="65">
                    </td>

                    <td width="24">
                    </td>

                    <td width="16">
                    </td>

                    <td width="51">
                    </td>

                    <td width="44">
                    </td>

                    <td width="34">
                    </td>

                    <td width="22">
                    </td>
                </tr>

                <tr>
                    <td><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                    <td width="52">
                    </td>

                    <td width="14">
                    </td>

                    <td width="11">
                    </td>

                    <td width="65">
                    </td>

                    <td width="24">
                    </td>

                    <td width="16">
                    </td>

                    <td width="51">
                    </td>

                    <td width="44">
                    </td>

                    <td width="34">
                    </td>

                    <td width="22">
                    </td>
                </tr>

                <tr>
                    <td><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                    <td width="52">
                    </td>

                    <td width="14">
                    </td>

                    <td width="11">
                    </td>

                    <td width="65">
                    </td>

                    <td width="24">
                    </td>

                    <td width="16">
                    </td>

                    <td width="51">
                    </td>

                    <td width="44">
                    </td>

                    <td width="34">
                    </td>

                    <td width="22">
                    </td>
                </tr>

                <tr height="16">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">Allocation of Investments -</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">&nbsp; Restricted Shares, Unrestricted Shares,</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td>
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp; and Other Securities</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">Private Securities (1)</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'CALIBRI'" face="Times New Roman, Times, serif">$</font></p>
                    </td>

                    <td width="65">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">8,372,270</font></p>
                    </td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'CALIBRI'" face="Times New Roman, Times, serif">$</font></p>
                    </td>

                    <td valign="bottom" align="right" width="51">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">3,192,776</font></p>
                    </td>

                    <td valign="bottom" align="right" width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">8.81%</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">Restricted Securities (2)</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'CALIBRI'" face="Times New Roman, Times, serif">$</font></p>
                    </td>

                    <td width="65">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">25,394,195</font></p>
                    </td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'CALIBRI'" face="Times New Roman, Times, serif">$</font></p>
                    </td>

                    <td width="51">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">14,036,700</font></p>
                    </td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">38.73%</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">Unrestricted Securities</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'CALIBRI'" face="Times New Roman, Times, serif">$</font></p>
                    </td>

                    <td width="65">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">10,053,546</font></p>
                    </td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'CALIBRI'" face="Times New Roman, Times, serif">$</font></p>
                    </td>

                    <td width="51">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">18,833,923</font></p>
                    </td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">51.94%</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td>
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font face="Times New Roman, Times, serif">Miscellaneous Securities (3)</font></p>
                    </td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'CALIBRI'" face="Times New Roman, Times, serif">$</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="65">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">-</font></p>
                    </td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'CALIBRI'" face="Times New Roman, Times, serif">$</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" valign="middle" align="right" width="51">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">187,727</font></p>
                    </td>

                    <td valign="middle" align="right" width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" valign="middle" align="right" colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">0.52%</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'CALIBRI'" align="left"><font face="Times New Roman, Times, serif">$</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" width="65">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'CALIBRI'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">43,820,011</font></p>
                    </td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'CALIBRI'" face="Times New Roman, Times, serif">$</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" width="51">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'CALIBRI'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">36,251,126</font></p>
                    </td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'CALIBRI'" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">100.00%</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 12.7pt">
                    <td><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="52"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="65"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="51"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="44"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="34"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td width="22"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>
            </table>
            <br>
            <br>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                <tr valign="bottom">
                    <td align="right" width="14"><font face="Times New Roman" size="2">(1</font></td>

                    <td align="left" width="15"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="545"><font face="Times New Roman" size="2">Securities in a privately owned company.</font></td>

                    <td align="left" width="26"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="right" width="14"><font face="Times New Roman" size="2">(2</font></td>

                    <td align="left" width="15"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="545"><font face="Times New Roman" size="2">Restricted securities due to the Fund&rsquo;s having a director on issuer&rsquo;s board or held less than 1 year.</font></td>

                    <td align="left" width="26"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="right" width="14"><font face="Times New Roman" size="2">(3</font></td>

                    <td align="left" width="15"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="545"><font face="Times New Roman" size="2">Other securities such as warrants and options.</font></td>

                    <td align="left" width="26"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>
            </table>
            <br>
            <br>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">See</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">accompanying notes</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-14</font></p>
            </div>
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            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
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            </div>

            <p></p>

            <div title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Statements</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">of</font>
                <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Operations</font></font></font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008,</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2007 and 2006</font></font></font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"></p>

                <table cellspacing="0" cellpadding="0" align="left" border="0">
                    <tr valign="bottom" height="22">
                        <th width="291" colspan="1">
                        </th>

                        <th width="16">
                        </th>

                        <th width="70" colspan="1">
                        </th>

                        <th width="3">
                        </th>

                        <td width="33">
                        </td>

                        <td width="4">
                        </td>

                        <th width="71" colspan="1">
                        </th>

                        <td width="6">
                        </td>

                        <th width="17">
                        </th>

                        <td width="10">
                        </td>

                        <th width="75" colspan="1">
                        </th>

                        <th width="4">
                        </th>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="70"><font face="Times New Roman" size="2">2008</font></td>

                        <td align="center" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="center" width="4">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="71"><font face="Times New Roman" size="2">2007</font></td>

                        <td align="left" width="6">
                        </td>

                        <td align="center" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="center" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="75"><font face="Times New Roman" size="2">2006</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="291">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="16">
                        </td>

                        <td width="70">
                        </td>

                        <td width="3">
                        </td>

                        <td width="33">
                        </td>

                        <td width="4">
                        </td>

                        <td valign="bottom" align="right" width="71">
                        </td>

                        <td width="6">
                        </td>

                        <td width="17">
                        </td>

                        <td width="10">
                        </td>

                        <td width="75">
                        </td>

                        <td width="4">
                        </td>
                    </tr>

                    <tr valign="bottom" height="9">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Investment income:</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="70">
                        </td>

                        <td width="3">
                        </td>

                        <td width="33">
                        </td>

                        <td width="4">
                        </td>

                        <td valign="bottom" align="right" width="71">
                        </td>

                        <td width="6">
                        </td>

                        <td width="17">
                        </td>

                        <td width="10">
                        </td>

                        <td width="75">
                        </td>

                        <td width="4">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Interest income</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                        <td align="right" width="70"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;454,420</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;345,510</font></td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td align="right" width="75"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;340,145</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Dividend income</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="70"><font face="Times New Roman" size="2">33,193</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">432,478</font></td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75"><font face="Times New Roman" size="2">584,139</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Other income</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">87,730</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">48,601</font></td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="75"><font face="Times New Roman" size="2">27,684</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="291">
                        </td>

                        <td align="left" width="16">
                        </td>

                        <td align="right" width="70">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="3">
                        </td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71">
                        </td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75">
                        </td>

                        <td align="left" width="4">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">575,343</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">826,589</font></td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="75"><font face="Times New Roman" size="2">951,968</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="291">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="16">
                        </td>

                        <td width="70">
                        </td>

                        <td width="3">
                        </td>

                        <td width="33">
                        </td>

                        <td width="4">
                        </td>

                        <td valign="bottom" align="right" width="71">
                        </td>

                        <td width="6">
                        </td>

                        <td width="17">
                        </td>

                        <td width="10">
                        </td>

                        <td width="75">
                        </td>

                        <td width="4">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Expenses:</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="70">
                        </td>

                        <td width="3">
                        </td>

                        <td width="33">
                        </td>

                        <td width="4">
                        </td>

                        <td valign="bottom" align="right" width="71">
                        </td>

                        <td width="6">
                        </td>

                        <td width="17">
                        </td>

                        <td width="10">
                        </td>

                        <td width="75">
                        </td>

                        <td width="4">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">General and administrative</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="70"><font face="Times New Roman" size="2">440,671</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">432,563</font></td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75"><font face="Times New Roman" size="2">335,641</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Incentive fee to affiliate</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="70"><font face="Times New Roman" size="2">-</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">-</font></td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75"><font face="Times New Roman" size="2">3,157,367</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Interest expense</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="70"><font face="Times New Roman" size="2">40,841</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">-</font></td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75"><font face="Times New Roman" size="2">60,188</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Legal and professional fees</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="70"><font face="Times New Roman" size="2">409,836</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">354,127</font></td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75"><font face="Times New Roman" size="2">651,701</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Management fee to affiliate</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">455,005</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">792,545</font></td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="75"><font face="Times New Roman" size="2">935,776</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="291">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="16">
                        </td>

                        <td align="right" width="70">&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="3">
                        </td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71">
                        </td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75">
                        </td>

                        <td align="left" width="4">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">1,346,353</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">1,579,235</font></td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="75"><font face="Times New Roman" size="2">5,140,673</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="291">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="16">
                        </td>

                        <td align="right" width="70">
                        </td>

                        <td align="left" width="3">
                        </td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71">
                        </td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75">
                        </td>

                        <td align="left" width="4">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Net investment loss</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(771,010</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2"><u>)</u></font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">(752,646</font></td>

                        <td align="left" width="6"><font size="2"><u>)</u></font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="75"><font face="Times New Roman" size="2">(4,188,705</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2"><u>)</u></font></td>
                    </tr>

                    <tr>
                        <td align="left" width="291">&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="16">
                        </td>

                        <td width="70">
                        </td>

                        <td width="3">
                        </td>

                        <td width="33">
                        </td>

                        <td width="4">
                        </td>

                        <td valign="bottom" align="right" width="71">
                        </td>

                        <td width="6">
                        </td>

                        <td width="17">
                        </td>

                        <td width="10">
                        </td>

                        <td width="75">
                        </td>

                        <td width="4">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Realized and unrealized gain (loss) on investments:</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="70">
                        </td>

                        <td width="3">
                        </td>

                        <td width="33">
                        </td>

                        <td width="4">
                        </td>

                        <td valign="bottom" align="right" width="71">
                        </td>

                        <td width="6">
                        </td>

                        <td width="17">
                        </td>

                        <td width="10">
                        </td>

                        <td width="75">
                        </td>

                        <td width="4">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Net unrealized depreciation of &nbsp;investments</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="70"><font face="Times New Roman" size="2">(18,023,424</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">(12,797,981</font></td>

                        <td align="left" width="6"><font size="2">)</font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75"><font face="Times New Roman" size="2">(13,339,923</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Net realized gain on investments</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="70"><font face="Times New Roman" size="2">801,494</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">4,873,865</font></td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75"><font face="Times New Roman" size="2">19,795,521</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Income tax expense paid on behalf of&nbsp;&nbsp;stockholders</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">-</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">(1,485,135</font></td>

                        <td align="left" width="6"><font size="2"><u>)</u></font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="75"><font face="Times New Roman" size="2">(6,302,806</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2"><u>)</u></font></td>
                    </tr>

                    <tr height="20">
                        <td align="left" width="291">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="16">
                        </td>

                        <td align="right" width="70">
                        </td>

                        <td align="left" width="3">
                        </td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71">
                        </td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75">
                        </td>

                        <td align="left" width="4">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Net gain (loss) on investments</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(17,221,930</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2"><u>)</u></font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">(9,409,251</font></td>

                        <td align="left" width="6"><font size="2"><u>)</u></font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="75"><font face="Times New Roman" size="2">152,792</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="291">
                        </td>

                        <td align="left" width="16">
                        </td>

                        <td align="right" width="70">
                        </td>

                        <td align="left" width="3">
                        </td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71">
                        </td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75">
                        </td>

                        <td align="left" width="4">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Net loss</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="70"><font face="Times New Roman" size="2">(17,992,940</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="3"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4"><font size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">(10,161,897</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="6"><font size="2"><u>)</u></font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="10"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="75"><font face="Times New Roman, Times, serif" size="2">(4,035,913</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="4"><font face="Times New Roman, Times, serif" size="2">)</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="291">
                        </td>

                        <td align="left" width="16">
                        </td>

                        <td align="right" width="70">
                        </td>

                        <td align="left" width="3">
                        </td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71">
                        </td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75">
                        </td>

                        <td align="left" width="4">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman, Times, serif" size="2">Net loss per share</font></td>

                        <td align="left" width="16"><font face="Times New Roman, Times, serif" size="2">&nbsp;$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="70"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4.03</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="3"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4"><font size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" valign="bottom" align="right" width="71"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.28</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="6"><font face="Times New Roman, Times, serif" size="2"><u>)</u></font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="10"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="75"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.90</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="4"><font face="Times New Roman" size="2"><u>)</u></font></td>
                    </tr>

                    <tr>
                        <td align="left" width="291">
                        </td>

                        <td align="left" width="16">
                        </td>

                        <td align="right" width="70">
                        </td>

                        <td align="left" width="3">
                        </td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td valign="bottom" align="right" width="71">
                        </td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="75">
                        </td>

                        <td align="left" width="4">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="291"><font face="Times New Roman" size="2">Weighted average shares outstanding</font></td>

                        <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="70"><font face="Times New Roman" size="2">4,463,967</font></td>

                        <td align="left" width="3"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="33">
                        </td>

                        <td align="left" width="4">
                        </td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" valign="bottom" align="right" width="71"><font face="Times New Roman" size="2">4,463,967</font></td>

                        <td align="left" width="6">
                        </td>

                        <td align="left" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="75"><font face="Times New Roman" size="2">4,463,967</font></td>

                        <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>
                </table>
                <br>
                <br>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>
            </div>

            <p></p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p></p>

            <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">See</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">accompanying notes</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-15</font></p>
            </div>
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                <hr>
            </div>

            <p></p>

            <div title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Statements of</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Changes in Net Assets</font></font></font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Years Ended December 31, 2008</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">,
                and 2006</font></font></font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"></p>

                <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                    <tr valign="bottom" height="9">
                        <th width="286" colspan="1">
                        </th>

                        <th width="2">
                        </th>

                        <td width="10">
                        </td>

                        <th width="68" colspan="1">
                        </th>

                        <th width="10">
                        </th>

                        <td width="31">
                        </td>

                        <td width="10">
                        </td>

                        <th width="68" colspan="1">
                        </th>

                        <th width="11">
                        </th>

                        <td width="17">
                        </td>

                        <td width="14">
                        </td>

                        <th width="68" colspan="1">
                        </th>

                        <th width="5">
                        </th>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="286"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="68"><font face="Times New Roman" size="2">2008</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="31">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="68"><font face="Times New Roman" size="2">2007</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="center" width="17">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="14">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="68"><font face="Times New Roman" size="2">2006</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="286"><font face="Times New Roman" size="2">From operations:</font></td>

                        <td align="left" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td width="68">
                        </td>

                        <td width="10">
                        </td>

                        <td width="31">
                        </td>

                        <td width="10">
                        </td>

                        <td width="68">
                        </td>

                        <td width="11">
                        </td>

                        <td width="17">
                        </td>

                        <td width="14">
                        </td>

                        <td width="68">
                        </td>

                        <td width="5">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="286"><font face="Times New Roman" size="2">Net investment loss</font></td>

                        <td align="left" width="2"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="10"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td align="right" width="68"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;(771,010</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="31">
                        </td>

                        <td align="left" width="10"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td align="right" width="68"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;(752,646</font></td>

                        <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="14"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(4,188,705</font></td>

                        <td align="left" width="5"><font face="Times New Roman, Times, serif" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="286"><font face="Times New Roman, Times, serif" size="2">Net realized gain on investments</font></td>

                        <td align="left" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="68"><font face="Times New Roman, Times, serif" size="2">801,494</font></td>

                        <td align="left" width="10"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="31">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="68"><font face="Times New Roman, Times, serif" size="2">4,873,865</font></td>

                        <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="14">
                        </td>

                        <td align="right" width="68"><font face="Times New Roman, Times, serif" size="2">19,795,521</font></td>

                        <td align="left" width="5"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="286"><font face="Times New Roman, Times, serif" size="2">Income tax expense paid on behalf of stockholders</font></td>

                        <td align="left" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="68"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                        <td align="left" width="10"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="31">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(1,485,135</font></td>

                        <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="14">
                        </td>

                        <td align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(6,302,806</font></td>

                        <td align="left" width="5"><font face="Times New Roman, Times, serif" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="286"><font face="Times New Roman, Times, serif" size="2">Net unrealized (depreciation) of investments</font></td>

                        <td align="left" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(18,023,424</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="10"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                        <td align="left" width="31">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(12,797,981</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="11"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="14">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(13,339,923</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="5"><font face="Times New Roman, Times, serif" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom" height="16">
                        <td align="left" width="286"><font face="Times New Roman, Times, serif" size="2">Net loss</font></td>

                        <td align="left" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(17,992,940</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="10"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                        <td align="left" width="31">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(10,161,897</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="11"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="14">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(4,035,913</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="5"><font face="Times New Roman, Times, serif" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="286"><font face="Times New Roman, Times, serif" size="2">From distributions to stockholders:</font></td>

                        <td align="left" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td width="68">
                        </td>

                        <td width="10">
                        </td>

                        <td width="31">
                        </td>

                        <td width="10">
                        </td>

                        <td width="68">
                        </td>

                        <td width="11">
                        </td>

                        <td width="17">
                        </td>

                        <td width="14">
                        </td>

                        <td width="68">
                        </td>

                        <td width="5">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="286"><font face="Times New Roman, Times, serif" size="2">Cash dividends declared from realized gains</font></td>

                        <td align="left" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(1,339,192</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="10"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                        <td align="left" width="31">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(446,397</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="11"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="14">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(1,785,588</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="5"><font face="Times New Roman, Times, serif" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="286"><font face="Times New Roman, Times, serif" size="2">Total decrease in net assets</font></td>

                        <td align="left" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(19,332,132</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="10"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                        <td align="left" width="31">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(10,608,294</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="11"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="14">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">(5,821,501</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="5"><font face="Times New Roman, Times, serif" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="286"><font face="Times New Roman, Times, serif" size="2">Net assets:</font></td>

                        <td align="left" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td width="68">
                        </td>

                        <td width="10">
                        </td>

                        <td width="31">
                        </td>

                        <td width="10">
                        </td>

                        <td width="68">
                        </td>

                        <td width="11">
                        </td>

                        <td width="17">
                        </td>

                        <td width="14">
                        </td>

                        <td width="68">
                        </td>

                        <td width="5">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="286"><font face="Times New Roman, Times, serif" size="2">Beginning of period</font></td>

                        <td align="left" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">37,759,148</font></td>

                        <td align="left" width="10"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="31">
                        </td>

                        <td align="left" width="10">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">48,367,442</font></td>

                        <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="14">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">54,188,943</font></td>

                        <td align="left" width="5"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="286"><font face="Times New Roman, Times, serif" size="2">End of period</font></td>

                        <td align="left" width="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="10"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="68"><font face="Times New Roman, Times, serif" size="2">&nbsp;18,427,016</font></td>

                        <td align="left" width="10"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                        <td align="left" width="31">
                        </td>

                        <td align="left" width="10"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="68"><font face="Times New Roman" size="2">37,759,148</font></td>

                        <td align="left" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="17">
                        </td>

                        <td align="left" width="14"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="68"><font face="Times New Roman" size="2">&nbsp;48,367,442</font></td>

                        <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>
                </table>
                <br>
                <br>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>
            </div>

            <p></p>

            <p></p>

            <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">See</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">accompanying notes</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-16</font></p>
            </div>
            <!-- NEXT PAGE SECTION BREAK  -->

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr>
            </div>

            <p></p>

            <div title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Statements of</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Cash Flows</font></font></font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Years Ended December 31, 2008</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, 2007</font> , and 2006</font></font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"></p>

                <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="61"><font face="Times New Roman" size="2">2008</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="center" width="12">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="8">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="62"><font face="Times New Roman" size="2">2007</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="center" width="9">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="9">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="center" width="64"><font face="Times New Roman" size="2">2006</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom" height="18">
                        <td align="left" width="345"><font face="Times New Roman" size="2">Cash flows from operating activities:</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="61">
                        </td>

                        <td width="7">
                        </td>

                        <td width="12">
                        </td>

                        <td width="8">
                        </td>

                        <td width="62">
                        </td>

                        <td width="8">
                        </td>

                        <td width="9">
                        </td>

                        <td width="9">
                        </td>

                        <td width="64">
                        </td>

                        <td width="5">
                        </td>
                    </tr>

                    <tr valign="bottom" height="11">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp; Net loss</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                        <td align="right" width="61"><font face="Times New Roman" size="2">(17,992,940</font></td>

                        <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8"><font size="2">$</font></td>

                        <td align="right" width="62"><font face="Times New Roman" size="2">(10,161,897</font></td>

                        <td align="left" width="8"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9"><font size="2">$</font></td>

                        <td align="right" width="64"><font face="Times New Roman" size="2">(4,035,913</font></td>

                        <td align="left" width="5"><font face="Times New Roman" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp; Adjustments to reconcile net loss</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="61">
                        </td>

                        <td width="7">
                        </td>

                        <td width="12">
                        </td>

                        <td width="8">
                        </td>

                        <td width="62">
                        </td>

                        <td width="8">
                        </td>

                        <td width="9">
                        </td>

                        <td width="9">
                        </td>

                        <td width="64">
                        </td>

                        <td width="5">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; to net cash provided by (used in) operating&nbsp;activities:</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="61">
                        </td>

                        <td width="7">
                        </td>

                        <td width="12">
                        </td>

                        <td width="8">
                        </td>

                        <td width="62">
                        </td>

                        <td width="8">
                        </td>

                        <td width="9">
                        </td>

                        <td width="9">
                        </td>

                        <td width="64">
                        </td>

                        <td width="5">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; Net decrease in unrealized depreciation of investments</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="61"><font face="Times New Roman" size="2">18,023,424</font></td>

                        <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62"><font face="Times New Roman" size="2">12,797,981</font></td>

                        <td align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64"><font face="Times New Roman" size="2">13,339,923</font></td>

                        <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; Net realized gain on investments</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="61"><font face="Times New Roman" size="2">(801,494</font></td>

                        <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62"><font face="Times New Roman" size="2">(4,873,865</font></td>

                        <td align="left" width="8"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64"><font face="Times New Roman" size="2">(19,795,521</font></td>

                        <td align="left" width="5"><font face="Times New Roman" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; (Increase) decrease in interest and dividend receivables</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="61"><font face="Times New Roman" size="2">49,974</font></td>

                        <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62"><font face="Times New Roman" size="2">4,744</font></td>

                        <td align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64"><font face="Times New Roman" size="2">(97,920</font></td>

                        <td align="left" width="5"><font face="Times New Roman" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; (Increase) decrease in prepaid and other assets</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="61"><font face="Times New Roman" size="2">13,485</font></td>

                        <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62"><font face="Times New Roman" size="2">(24,897</font></td>

                        <td align="left" width="8"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64"><font face="Times New Roman" size="2">75,832</font></td>

                        <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; Increase (decrease) in accounts payable</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="61"><font face="Times New Roman" size="2">47, 547</font></td>

                        <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62"><font face="Times New Roman" size="2">(111,119</font></td>

                        <td align="left" width="8"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64"><font face="Times New Roman" size="2">82,063</font></td>

                        <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; Increase in due to broker</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="61"><font face="Times New Roman" size="2">-</font></td>

                        <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62"><font face="Times New Roman" size="2">-</font></td>

                        <td align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64"><font face="Times New Roman" size="2">(2,075,975</font></td>

                        <td align="left" width="5"><font face="Times New Roman" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; (Decrease) increase in accounts payable-affiliate</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="61"><font face="Times New Roman" size="2">(287,862</font></td>

                        <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62"><font face="Times New Roman" size="2">(3,435,728</font></td>

                        <td align="left" width="8"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64"><font face="Times New Roman" size="2">1,759,473</font></td>

                        <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; Increase (decrease) in taxes payable on behalf of stockholders</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="61"><font face="Times New Roman" size="2">(1,485,135</font></td>

                        <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62"><font face="Times New Roman" size="2">(4,817,671</font></td>

                        <td align="left" width="8"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64"><font face="Times New Roman" size="2">6,302,806</font></td>

                        <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; Purchase of investments</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="61"><font face="Times New Roman" size="2">(2,141,220</font></td>

                        <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62"><font face="Times New Roman" size="2">(9,326,046</font></td>

                        <td align="left" width="8"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64"><font face="Times New Roman" size="2">(4,116,806</font></td>

                        <td align="left" width="5"><font face="Times New Roman" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; Proceeds from sale of investments</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="61"><font face="Times New Roman" size="2">5,238,491</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="62"><font face="Times New Roman" size="2">8,792,947</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="64"><font face="Times New Roman" size="2">20,932,760</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom" height="-28">
                        <td align="left" width="345"><font face="Times New Roman" size="2">Net cash provided by (used in) operating activities</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="61"><font face="Times New Roman" size="2">664,270</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="62"><font face="Times New Roman" size="2">(11,155,551</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="8"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="64"><font face="Times New Roman" size="2">12,370,722</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">Cash flows from financing activities:</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="61">
                        </td>

                        <td width="7">
                        </td>

                        <td width="12">
                        </td>

                        <td width="8">
                        </td>

                        <td width="62">
                        </td>

                        <td width="8">
                        </td>

                        <td width="9">
                        </td>

                        <td width="9">
                        </td>

                        <td width="64">
                        </td>

                        <td width="5">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp; Cash dividends</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="61"><font face="Times New Roman" size="2">(1,785,589</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="62"><font face="Times New Roman" size="2">-</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="64"><font face="Times New Roman" size="2">(5,931,274</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="5"><font face="Times New Roman" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">Net cash used in financing activities</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="61"><font face="Times New Roman" size="2">(1,785,589</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="62"><font face="Times New Roman" size="2">-</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="64"><font face="Times New Roman" size="2">(5,931,274</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="5"><font face="Times New Roman" size="2">)</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">Net increase (decrease) in cash and cash equivalents</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="right" width="61"><font face="Times New Roman" size="2">(1,121,319</font></td>

                        <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62"><font face="Times New Roman" size="2">(11,155,551</font></td>

                        <td align="left" width="8"><font face="Times New Roman" size="2">)</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64"><font face="Times New Roman" size="2">6,439,448</font></td>

                        <td align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">Cash and cash equivalents at beginning&nbsp;of the period</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="61"><font face="Times New Roman" size="2">3,679,949</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="62"><font face="Times New Roman" size="2">14,835,500</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="right" width="64"><font face="Times New Roman" size="2">8,396,052</font></td>

                        <td style="BORDER-BOTTOM: black 1px solid" align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">Cash and cash equivalents at end of period</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="61"><font face="Times New Roman" size="2">&nbsp;&nbsp;2,558,630</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="62"><font face="Times New Roman" size="2">&nbsp;&nbsp;3,679,949</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9"><font size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="64"><font face="Times New Roman" size="2">14,835,500</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="345">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="61">
                        </td>

                        <td align="left" width="7">
                        </td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64">
                        </td>

                        <td align="left" width="5">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">&nbsp;Supplemental disclosure of cash flow information:</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="61">
                        </td>

                        <td width="7">
                        </td>

                        <td width="12">
                        </td>

                        <td width="8">
                        </td>

                        <td width="62">
                        </td>

                        <td width="8">
                        </td>

                        <td width="9">
                        </td>

                        <td width="9">
                        </td>

                        <td width="64">
                        </td>

                        <td width="5">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="345">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="61">
                        </td>

                        <td align="left" width="7">
                        </td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64">
                        </td>

                        <td align="left" width="5">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">Cash paid during the period for interest</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="61"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,841</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8"><font size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="62"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9"><font size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="64"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,188</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="345">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="61">
                        </td>

                        <td align="left" width="7">
                        </td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64">
                        </td>

                        <td align="left" width="5">
                        </td>
                    </tr>

                    <tr valign="bottom" height="17">
                        <td align="left" width="345"><font face="Times New Roman" size="2">Taxes paid on behalf of stockholders/excise taxes</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="61"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;1,485,135</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8"><font size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="62"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;6,302,806</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9"><font size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="64"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,378</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>

                    <tr>
                        <td align="left" width="345">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="10">
                        </td>

                        <td width="61">
                        </td>

                        <td width="7">
                        </td>

                        <td width="12">
                        </td>

                        <td width="8">
                        </td>

                        <td width="62">
                        </td>

                        <td width="8">
                        </td>

                        <td width="9">
                        </td>

                        <td width="9">
                        </td>

                        <td width="64">
                        </td>

                        <td width="5">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">Supplemental disclosure of non-cash financing transaction:</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td width="61">
                        </td>

                        <td width="7">
                        </td>

                        <td width="12">
                        </td>

                        <td width="8">
                        </td>

                        <td width="62">
                        </td>

                        <td width="8">
                        </td>

                        <td width="9">
                        </td>

                        <td width="9">
                        </td>

                        <td width="64">
                        </td>

                        <td width="5">
                        </td>
                    </tr>

                    <tr>
                        <td align="left" width="345">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                        <td align="left" width="10">
                        </td>

                        <td align="right" width="61">
                        </td>

                        <td align="left" width="7">
                        </td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="right" width="62">
                        </td>

                        <td align="left" width="8">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9">
                        </td>

                        <td align="right" width="64">
                        </td>

                        <td align="left" width="5">
                        </td>
                    </tr>

                    <tr valign="bottom">
                        <td align="left" width="345"><font face="Times New Roman" size="2">Cash dividends declared from realized gains but not yet paid</font></td>

                        <td align="left" width="10"><font face="Times New Roman" size="2">$&nbsp;</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="61"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="12">
                        </td>

                        <td align="left" width="8"><font size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="62"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;446,397</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="8"><font face="Times New Roman" size="2">&nbsp;</font></td>

                        <td align="left" width="9">
                        </td>

                        <td align="left" width="9"><font size="2">$</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="64"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></td>

                        <td style="BORDER-BOTTOM: black 2.25pt double" align="left" width="5"><font face="Times New Roman" size="2">&nbsp;</font></td>
                    </tr>
                </table>
                <br>
                <br>

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                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

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                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

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                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">See</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">accompanying notes</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">-17</font></p>
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            <div title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif" size="1">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif" size="1">Notes to Financial Statements</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman, Times, serif"><font size="1"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Years Ended December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">, 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">,
                and 2006</font></font></font></p>
            </div>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Note 1 -</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Organization and Business Purpose</font></u><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Renaissance Capital Growth &amp; Income Fund III, Inc., (the &ldquo;Fund&rdquo;</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">or the &ldquo;Registrant&rdquo;) is a non-diversified, closed-end fund that has elected
            to be treated as a business development company (a &ldquo;BDC&rdquo;) under the Investment Company Act of 1940, as amended (the &ldquo;1940 Act&rdquo;). The Fund, a Texas corporation, was organized and commenced operations in 1994.</font><br>
            &nbsp;</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The investment objective of the Fund is to provide its stockholders long-term capital appreciation by investing primarily in privately placed convertible securities and equity securities of emerging growth companies.</font><br>
            <font size="2">&nbsp;</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">RENN Capital Group, Inc. (&ldquo;RENN Group&rdquo; or the &ldquo;Investment</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Adviser&rdquo;), a Texas corporation, serves as the Investment</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Adviser</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">to the Fund. In this capacity, RENN Group is primarily responsible for the selection, evaluation, structure, valuation, and administration of the Fund&rsquo;s investment portfolio, subject to the supervision of the Board of Directors. RENN Group is a registered investment</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">adviser</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">under the Investment Advisers Act of 1940, as amended (the &ldquo;Advisers Act&rdquo;).</font></font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Note 2 -</font><font size="2"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Summary of Significant Accounting Policies</font></u><br>
            </font></font>&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Valuation of Investments</font></b><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Portfolio investments are stated at quoted market or fair value as determined by the Investment</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Adviser</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(Note 6).</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Other</font></b><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund follows industry practice and records security transactions on the trade date. Dividend income is recorded on the record date. Interest income is recorded as earned on the accrual basis.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Cash and Cash Equivalents</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. As of December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007, cash and cash equivalents are at risk to the extent that they
            exceed Federal Deposit Insurance Corporation insured amounts. To minimize this risk, the Fund places its cash and cash equivalents with major U.S. financial institutions.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Income Taxes</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund has elected the special income tax treatment available to &ldquo;regulated investment companies&rdquo; (&ldquo;RIC&rdquo;) under Subchapter M of the Internal Revenue Code (&ldquo;IRC&rdquo;) which allows the Fund to be relieved of federal income tax on that part of its net investment income and
            realized capital gains that it pays out to its stockholders. Such requirements include, but are not limited to certain qualifying income tests, asset diversification tests and distribution of substantially all of the Fund&rsquo;s taxable investment income to its stockholders. It is the intent of management to comply with all IRC requirements as they pertain to a RIC and to distribute all of the Fund&rsquo;s taxable investment income and realized long-term capital gains within the
            defined period under the IRC to qualify as a RIC. Failure to qualify as a RIC would subject the Fund to federal income tax</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">as if the Fund were an ordinary</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">corporation</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">which could result in a substantial reduction in the Fund&rsquo;s
            net assets as well as the amount of cash available for distribution to stockholders. Continued qualification as a RIC requires management to satisfy certain investment diversification requirements in future years. There can be no assurance that the Fund will qualify as a RIC in subsequent years.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

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            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif" size="1"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Renaissance Capital Growth &amp; Income Fund
            III, Inc.</font></font></font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif" size="1"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Notes to Financial Statements
            (continued)</font></font></font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif" size="1"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;Years Ended December 31, 2008, 2007,
            and 2006</font></font></font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'"></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Federal income taxes payable on behalf of stockholders on realized gains that the Fund elects to retain are accrued and reflected as tax expense paid on behalf of stockholders on the last day of the tax year in which such gains are
            realized.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font face="Times New Roman, Times, serif" size="1"><font face="Times New Roman, Times, serif" size="2">In January 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the Fund adopted the Financial Accounting Standards Board Interpretation No. 48,
            &ldquo;</font><i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Accounting for Uncertainty in Income Taxes</font></i> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">- An Interpretation of FASB Statement No. 109&rdquo; (&ldquo;FIN 48&rdquo;). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in a company&rsquo;s financial statements and requires companies to determine whether it is &ldquo;more
            likely than not&rdquo; that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. It also provides guidance on the recognition, measurement and classification of income tax uncertainties, along with any related interest and penalties. The Fund did not recognize any adjustments to the Fund&rsquo;s financial statements as a result of the implementation of FIN 48.</font><br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif" size="1">Net Loss Per Share</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font size="1"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Net&nbsp;loss per share is based on the weighted average number of shares outstanding of 4,463,967 during 2008,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2007, and 2006.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif" size="1">Use of Estimates</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif" size="1">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts and disclosures in the financial statements. Actual
            results could differ from these estimates.&nbsp;</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font size="1"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Note 3 -</font><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Due to/from Broker</font></u></font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund conducts business</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">with various brokers for its investment activities.&nbsp; The clearing and depository operations for the investment activities are performed pursuant to agreements with these brokers. &ldquo;Due to
            broker&rdquo; represents unsettled purchase transactions and &ldquo;due from broker&rdquo; represents unsettled sales transactions. The Fund is subject to credit risk to the extent the brokers are unable to deliver cash balances or securities, or clear security transactions on the Fund&rsquo;s behalf.&nbsp; The Investment</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Adviser</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">actively monitors the Fund&rsquo;s exposure to these brokers and believes the likelihood of loss under those circumstances is remote. At December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2007, there were no &ldquo;due to broker&rdquo; or &ldquo;due from broker&rdquo;
            balances.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;Note 4 -&nbsp;</font><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Management Fees and Incentive Fees and Reimbursement</font></u></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Investment</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Adviser for the Fund is registered as an investment adviser under the Investment Advisers Act of 1940. Pursuant to an Investment Advisory Agreement (the
            &ldquo;Agreement&rdquo;),&nbsp;the Investment Adviser performs certain services, including certain management, investment advisory and administrative services necessary for the operation of the Fund. In addition, under the Agreement, the Investment Adviser is reimbursed by the Fund for certain directly</font> allocable administrative expenses. A summary of fees and reimbursements paid by the Fund under either the Agreement or the prospectus is as follows:</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif" size="2">The Investment</font> <font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Adviser</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">receives a management fee equal to a quarterly rate of 0.4375% of the Fund&rsquo;s
            net assets, as determined at the end of such quarter, each payment to be due as of the last day of the calendar quarter. The Fund incurred</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$455,005, $792,545, and $935,776 in 2008, 2007, and 2006,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">respectively, for such management fees.</font></font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font face="Times New Roman, Times, serif" size="2">F-</font><a name="PAGENUM"><font face="Times New Roman, Times, serif" size="2">19</font></a></p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Notes to Financial Statements (continued)</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Years Ended December 31, 2008, 2007, and 2006</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif" size="2">The Investment Adviser receives an incentive fee in an amount equal to 20% of the Fund&rsquo;s cumulative realized capital gains in excess of cumulative realized capital losses of the Fund after allowance for any unrealized capital depreciation on the portfolio investments of the Fund at the end of the
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">year</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">being calculated, less cumulative incentive fees previously accrued. Unrealized capital depreciation equals net unrealized capital losses on each class of security without netting net unrealized capital gains on other classes of securities. The incentive fee is calculated, accrued, and</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">paid on an annual basis.The Fund incurred, $0, $0, and $3,157,367 during the years ended 2008, 2007, and 2006, respectively, for such incentive fees.</font></font></p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="justify">
                <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">The Investment</font> <font face="Times New Roman, Times, serif" size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Adviser was reimbursed by the Fund for directly allocable administrative expenses paid by the Investment Adviser on behalf of the Fund. Such reimbursements were $73,654, $230,797, and $386,809 in 2008, 2007, and 2006
                respectively.</font><br>
                &nbsp;</font>
            </div>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">As of December 31, 2008 and 2007, the Fund had an accounts payable of $86,872, and&nbsp;$374,734, respectively, for the amount due for the fees and expense reimbursements disclosed
            above.</font><br>
            </font><font size="2">&nbsp;</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Note 5 -</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Eligible Portfolio Companies and Investments</font></u><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Eligible Portfolio Companies</font></b><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund invests primarily in convertible securities and equity investments of companies that qualify as Eligible Portfolio Companies as defined in Section 2(a)(46) of the 1940 Act or in securities that otherwise qualify for</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">investment as permitted in Section 55(a)(1) through (7) of the 1940 Act. Under the provisions of the 1940 Act at least 70% of the Fund&rsquo;s assets, as defined under Section 55 of the 1940 Act, must be invested in securities listed in Paragraphs 55(a)(1) through (6) of the 1940 Act (&ldquo;Eligible Portfolio Investments&rdquo;). In the event the Fund has less than 70% of its assets invested in Eligible
            Portfolio Investments, then the Fund will be prohibited from making non-eligible investments until such time as the percentage of Eligible Portfolio Investments again exceeds the 70% threshold. The Fund was in compliance with these provisions at December 31, 2008 and 2007.<br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Investments</font></b><br>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Investments are carried in the statements of assets and liabilities as of December 31, 2008 and 2007, at fair value, as determined in good faith by the Investment</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Adviser,</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">subject to the approval of the Fund&rsquo;s Board of Directors. The convertible debt securities held by the Fund generally have maturities between five and seven years and are convertible (at the discretion of the Fund) into the common stock of the issuer at a set conversion price. The common stock underlying these securities is generally unregistered and thinly to moderately traded. Generally, the Fund
            negotiates registration rights at the time of purchase and the portfolio companies are required to register the shares within a designated period and the cost of registration is borne by the portfolio company. Interest on the convertible securities is generally payable monthly.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The convertible debt securities generally</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">contain</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">embedded</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">call</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">options</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">giving the issuer the right to call the
            underlying issue. In these instances, the Fund has the right of redemption or conversion. The embedded call option will generally not vest until certain conditions are achieved by the issuer. Such conditions may require that minimum thresholds be met relating to underlying market prices, liquidity, and other factors.</font><br>
            <font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Note 6 -</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Valuation of
            Investments</font></u><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Effective January 1, 2008, the Fund adopted FAS 157,</font> <i><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Fair Value Measurements</font></i> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(&ldquo;FAS 157&rdquo;), which establishes a framework
            for measuring fair value and applies to existing accounting pronouncements that require or permit fair value measurements. A fair value hierarchy is established within FAS 157 that prioritizes the sources (&ldquo;inputs&rdquo;) used to measure fair value into three broad levels: inputs based on quoted market prices in active markets (Level 1 inputs); observable inputs based on corroboration with available market data (Level 2 inputs);</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font face="Times New Roman" size="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">F-20</font></font></p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Notes to Financial Statements (continued)</font></font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Years Ended December 31, 2008, 2007, and 2006</font></font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and unobservable inputs based on uncorroborated market data or a reporting entity&rsquo;s own assumptions (Level 3 inputs). The adoption of FAS 157 has not had a significant impact on the Fund&rsquo;s financial statements and has</font>
            <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">not resulted in any significant changes in the valuation</font></font></font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">of investments. The Fund&rsquo;s valuation policies are as follows:<br>
            &nbsp;</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"></p>

            <table>
                <tr>
                    <td valign="top" width="27">
                    </td>

                    <td valign="top" align="center" width="53">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="top" width="510">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">On a weekly basis, RENN Group prepares a valuation to determine fair value of the investments of the Fund. The Board of Directors of the Fund approves the valuation on a quarterly
                        basis. Interim board involvement may occur if material issues arise before quarter end. The valuation principles are described below.</font></font></p>
                    </td>
                </tr>
            </table>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <table>
                <tr>
                    <td width="24">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Unrestricted common stock of companies listed on an exchange,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NASDAQ</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">or in the
                        over-the-counter market is valued at the closing price on the date of valuation.</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <table>
                <tr>
                    <td width="24">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Restricted common stock of companies listed on an exchange,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NASDAQ</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">or in the
                        over-the-counter market is valued based on the quoted price for an otherwise identical unrestricted security of the same issuer that trades in a public market, adjusted to reflect the effect of significant restrictions.</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <table>
                <tr>
                    <td width="24">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The unlisted preferred stock of companies with common stock listed on an exchange,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NASDAQ</font>
                        <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">or in the over-the-counter market is valued at the closing price of the common stock into which the preferred stock is convertible on the date of valuation.</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <table>
                <tr>
                    <td width="24">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Debt securities are valued at fair value. The Fund considers, among other things, whether a debt issuer is in default or bankruptcy. It also considers the underlying collateral. Fair value is generally determined to be the greater of the face value of the
                        debt or the market value of the underlying common stock into which the instrument may be converted.</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <table>
                <tr>
                    <td width="24">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The unlisted in-the-money warrants or options of companies with the underlying common stock listed on an exchange,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">NASDAQ</font>
                        <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">or in the over-the-counter market are valued at fair value (the positive difference between the closing price of the underlying common stock and the strike price of the warrant or option). An out-of-the money warrant or option has no value; thus, we assign no value to it.</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <table>
                <tr>
                    <td width="24">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Investments in privately held entities are valued at fair value. If there is no independent and objective pricing authority (i.e. a public market) for such investments, fair value is based on the latest sale of equity securities to independent third
                        parties. If a private entity does not have an independent value established over an extended period of time, then the Investment Adviser will determine fair value on the basis of appraisal procedures established in good faith and approved by the Board of Directors.</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">The following table shows a summary of investments measured at fair value on a recurring basis classified under the appropriate level of fair value hierarchy as of December 31, 2008:</font></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr>
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" width="108">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" width="156">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" width="126">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Quoted Prices in Active Markets for Identical Assets</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" width="132" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Significant Other Observable Inputs</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="114" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Significant Unobservable Inputs</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="108">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Description</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="156">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="126">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(Level 1)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="132" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(Level 2)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="114" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(Level 3)</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="108">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Investments</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="156">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$15,931,925</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="144" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$7,394,428</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="108">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$8,537,497</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp; $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 15pt">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="108">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Cash equivalents</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="156">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2,558,630</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="144" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$</font>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;<font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="108">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">F-21</font></p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr width="100%" noshade>
            </div>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Notes to Financial Statements (continued)</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">Years Ended December 31, 2008, 2007, and 2006</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="6">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify">&nbsp;</p>
                    </td>

                    <td valign="top" width="618">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">As of December 31, 2008 and December 31, 2007, the net unrealized depreciation associated with investments held by the Fund was</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$25,592,</font>
                        <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">309</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and $7,568,885, respectively. As of December 31, 2008 and December 31, 2007, the Fund had gross unrealized gains of $2,463,654 and $10,846,388, respectively, and gross unrealized losses of $28,055,963</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and $18,415,273,
                        respectively.</font></p>
                    </td>
                </tr>
            </table>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Note</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">7</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Income Taxes</font></u><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 2007,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and March,</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">June, and September 2008, the Board of Directors declared cash</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">distributions</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">of $0.10 per share, $446,397, which</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">were</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">designated as distributions</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">of realized capital gains and return of capital in accordance with the IRC,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">which assured that any Federal income tax on such realized capital gains, if any, is paid by the Fund&rsquo;s stockholders.
            These</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">distributions</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">were paid to the stockholders during January, March, July, and October</font></font></font> <font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2008, respectively.</font>
            <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">During 2008 management followed a policy of distributing all of the Fund&rsquo;s taxable investment income and realized capital gains within the defined period under the IRC to</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">ensure</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">that any Federal income tax on such
            income, if any, is paid by the Fund&rsquo;s stockholders. Accordingly,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">no income tax expense was reported by the Fund</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">for the year ended</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">December 31, 2008.</font><br>
            &nbsp;</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">During December, 2007, the Board of Directors, in accordance with rules under subchapter M of the IRC, declared a designated undistributed capital gain dividend (&ldquo;Deemed Distribution&rdquo;) for 2007 on net taxable long-term capital
            gains of $4,243,244 that remained after the</font> <font size="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">December</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">2007</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">cash dividend noted above. The Fund recorded a liability of $1,485,135 (which was paid during the first month of 2008) for taxes payable on behalf of its stockholders as of December 31, 2007. This amount was
            also recorded as income tax expense paid on behalf of stockholders in the statement of operations for the year ended December 31, 2007. Stockholders of record at December 31, 2007 received a tax credit of $0.33 per share. The balance of $2,758,108 was retained by the Fund.</font></font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">During December 2006, the Board of Directors, in accordance with rules under subchapter M of the IRC, declared a Deemed Distribution for 2006 on net taxable long-term capital gains of $18,008,018.</font>
            <font size="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">During the year-ended December 31, 2006, the Fund also distributed $0.40 per share in cash</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">distributions which were designated as net long-term realized capital gains.</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">The Fund recorded a liability of $6,302,806 (which was paid during the first quarter of 2007) for taxes
            payable on behalf of its stockholders as of December 31, 2006. This amount was also recorded as income tax expense paid on behalf of stockholders in the statements of operations for 2006. Stockholders of record at December 31, 2006, received a tax credit of $1.41 per share. The balance of $11,705,212 was retained by the Fund.</font><b><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></b></font></font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Note 8 -&nbsp;</font><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Commitments and Contingencies</font></u></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">As disclosed in Note 4, the Fund is obligated to pay to the Investment Adviser an incentive fee equal to 20% of the Fund&rsquo;s cumulative realized capital gains in excess of cumulative realized capital losses of the Fund after allowance for any capital depreciation
            on the portfolio investments of the Fund. As incentive fees on capital gains are not due to the Investment Adviser until the capital gains are realized, any obligations for incentive fees based on unrealized capital gains are not reflected in the accompanying financial statements, as there is no assurance that the unrealized gains as of the end of any period will ultimately become realized. Had an incentive fee been accrued as a liability based on all unrealized capital gains, net
            assets of the Fund would have been reduced by $0 and $2,058,485 as of December 31, 2008 and</font> <font size="2"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2007, respectively.</font></font></font></p>

            <p></p>

            <p></p>

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                <hr>
            </div>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Notes to Financial Statements (continued)</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;Years Ended December 31, 2008, 2007, and 2006</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Note</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">9</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Financial Highlights</font></u></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Selected per share data and ratios for each share of common stock outstanding throughout the years ended December 31, 2008</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">are as
            follows:</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"></p>

            <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                <tr valign="bottom" height="7">
                    <td align="left" width="378"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="38">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="2"><font face="Times New Roman" size="2">2008</font></td>

                    <td width="20">
                    </td>

                    <td width="42">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" colspan="2">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">2007</font></p>
                    </td>

                    <td width="17">
                    </td>
                </tr>

                <tr valign="bottom" height="19">
                    <td align="left" width="378"><font face="Times New Roman" size="2">Net asset value, beginning of period</font></td>

                    <td align="right" width="38"><font face="Times New Roman" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">8.46</font></td>

                    <td align="right" width="20">
                    </td>

                    <td align="right" width="42"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" colspan="2">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">10.84</font></p>
                    </td>

                    <td width="17">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="378">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="38">
                    </td>

                    <td align="right" width="41">
                    </td>

                    <td align="left" width="22">
                    </td>

                    <td align="right" width="20">
                    </td>

                    <td align="right" width="42">
                    </td>

                    <td align="right" width="16">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="17">
                    </td>
                </tr>

                <tr valign="bottom" height="22">
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">Net investment loss</font></td>

                    <td align="right" width="38">
                    </td>

                    <td align="right" colspan="2"><font size="2"><font face="Times New Roman, Times, serif">(0.<font face="Times New Roman, Times, serif">17</font></font></font></td>

                    <td align="left" width="20"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                    <td align="right" width="42"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">(0.17</font></td>

                    <td align="left" width="17"><font face="Times New Roman, Times, serif" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td width="38">
                    </td>

                    <td width="41">
                    </td>

                    <td width="22">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td align="right" width="42">
                    </td>

                    <td width="16">
                    </td>

                    <td width="23">
                    </td>

                    <td width="17">
                    </td>
                </tr>

                <tr valign="bottom" height="25">
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">Net realized and unrealized gain (loss)</font></td>

                    <td width="38">
                    </td>

                    <td width="41">
                    </td>

                    <td width="22">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td align="right" width="42">
                    </td>

                    <td width="16">
                    </td>

                    <td width="23">
                    </td>

                    <td width="17">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; on investments</font></td>

                    <td align="right" width="38">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">(3.86</font></td>

                    <td align="left" width="20"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                    <td align="right" width="42"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">(2.11</font></td>

                    <td align="left" width="17"><font face="Times New Roman, Times, serif" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="right" width="38">
                    </td>

                    <td align="right" width="41">
                    </td>

                    <td align="left" width="22">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td align="right" width="42">
                    </td>

                    <td align="right" width="16">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="17">
                    </td>
                </tr>

                <tr valign="bottom" height="10">
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">Total return from investment operations</font></td>

                    <td align="right" width="38">
                    </td>

                    <td align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">(4.03</font></td>

                    <td align="left" width="20"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                    <td align="right" width="42"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">(2.28</font></td>

                    <td align="left" width="17"><font face="Times New Roman, Times, serif" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="right" width="38">
                    </td>

                    <td align="right" width="41">
                    </td>

                    <td align="left" width="22">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td align="right" width="42">
                    </td>

                    <td align="right" width="16">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="17">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions:</font></td>

                    <td align="right" width="38">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">(0.30</font></td>

                    <td align="left" width="20"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                    <td align="right" width="42"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">(0.10</font></td>

                    <td align="left" width="17"><font face="Times New Roman, Times, serif" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="right" width="38">
                    </td>

                    <td align="right" width="41">
                    </td>

                    <td align="left" width="22">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td align="right" width="42">
                    </td>

                    <td align="right" width="16">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="17">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net asset value, end of period</font></td>

                    <td align="right" width="38"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">4.13</font></td>

                    <td align="left" width="20">
                    </td>

                    <td align="right" width="42"><font face="Times New Roman, Times, serif" size="2">&nbsp;$</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">8.46</font></td>

                    <td align="left" width="17">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="right" width="38">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="41">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="22">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td align="right" width="42">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="16">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="23">
                    </td>

                    <td align="left" width="17">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Per share market value, end of period</font></td>

                    <td align="right" width="38"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">2.92</font></td>

                    <td align="left" width="20">
                    </td>

                    <td align="right" width="42"><font face="Times New Roman, Times, serif" size="2">&nbsp;$</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">6.15</font></td>

                    <td align="left" width="17">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="right" width="38">
                    </td>

                    <td align="right" width="41">
                    </td>

                    <td align="left" width="22">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="42">
                    </td>

                    <td align="right" width="16">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="17">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">Portfolio turnover rate</font></td>

                    <td align="right" width="38">
                    </td>

                    <td align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">8.19</font></td>

                    <td align="left" width="20"><font face="Times New Roman, Times, serif" size="2">%</font></td>

                    <td align="left" width="42"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">21.11</font></td>

                    <td align="left" width="17"><font face="Times New Roman, Times, serif" size="2">%</font></td>
                </tr>

                <tr>
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="right" width="38">
                    </td>

                    <td align="right" width="41">
                    </td>

                    <td align="left" width="22">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td align="left" width="42">
                    </td>

                    <td align="right" width="16">
                    </td>

                    <td align="left" width="23">
                    </td>

                    <td align="left" width="17">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">Annual return (a)</font></td>

                    <td align="right" width="38">
                    </td>

                    <td align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">(52.52</font></td>

                    <td align="left" width="20"><font face="Times New Roman, Times, serif" size="2">)%</font></td>

                    <td align="left" width="42"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">(41.43</font></td>

                    <td align="left" width="17"><font face="Times New Roman, Times, serif" size="2">)%</font></td>
                </tr>

                <tr>
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td width="38">
                    </td>

                    <td width="41">
                    </td>

                    <td width="22">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td width="42">
                    </td>

                    <td width="16">
                    </td>

                    <td width="23">
                    </td>

                    <td width="17">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">Ratio to average net assets (b):</font></td>

                    <td width="38">
                    </td>

                    <td width="41">
                    </td>

                    <td width="22">
                    </td>

                    <td align="left" width="20">
                    </td>

                    <td width="42">
                    </td>

                    <td width="16">
                    </td>

                    <td width="23">
                    </td>

                    <td width="17">
                    </td>
                </tr>

                <tr valign="bottom" height="15">
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Net investment loss</font></td>

                    <td align="right" width="38">
                    </td>

                    <td align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">(2.75</font></td>

                    <td align="left" width="20"><font face="Times New Roman, Times, serif" size="2">)%</font></td>

                    <td align="left" width="42"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">(1.65</font></td>

                    <td align="left" width="17"><font face="Times New Roman, Times, serif" size="2">)%</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Expenses, including incentive fees</font></td>

                    <td align="right" width="38">
                    </td>

                    <td align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">4.79</font></td>

                    <td align="left" width="20"><font face="Times New Roman, Times, serif" size="2">%</font></td>

                    <td align="left" width="42"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">3.46</font></td>

                    <td align="left" width="17"><font face="Times New Roman, Times, serif" size="2">%</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="378"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; Expenses, excluding incentive fee</font></td>

                    <td align="right" width="38">
                    </td>

                    <td align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">4.79</font></td>

                    <td align="left" width="20"><font face="Times New Roman, Times, serif" size="2">%</font></td>

                    <td align="left" width="42"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td align="right" colspan="2"><font face="Times New Roman, Times, serif" size="2">3.46</font></td>

                    <td align="left" width="17"><font face="Times New Roman, Times, serif" size="2">%</font></td>
                </tr>
            </table>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="617" border="0">
                <tr>
                    <td valign="top" width="37">
                        <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.2in 0pt 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(a)</font></p>
                    </td>

                    <td valign="top" width="504" colspan="7">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Annual return was calculated by comparing the common stock price on the first day of the period to the common stock price on the last day of the period, in accordance with American Institute of Certified Public Accountants guidelines.</font></p>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(b)</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Average net assets have been computed based on quarterly valuations.</font></p>
                    </td>
                </tr>
            </table>

            <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">F-23</font></p>
            </div>
            <!-- NEXT PAGE SECTION BREAK  -->

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr>
            </div>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Renaissance Capital Growth &amp; Income Fund III, Inc.</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Notes to Financial Statements (continued)</font></p>

            <p title="EE+ Page Header" style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'CALIBRI'" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;Years Ended December 31, 2008, 2007, and 2006</font></p>

            <p><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Note 10</font> <font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font><font style="FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font><u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Selected Quarterly Data</font></u><font style="FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                <tr valign="bottom" height="17">
                    <th width="237" colspan="1">
                    </th>

                    <th style="BORDER-BOTTOM: black 1px solid" align="center" width="-4" colspan="11"><font face="Times New Roman, Times, serif" size="2">2008</font></th>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="center" width="74"><font face="Times New Roman" size="2">1st</font></td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="center" width="78"><font face="Times New Roman" size="2">2nd</font></td>

                    <td align="center" width="4">
                    </td>

                    <td align="center" width="12">
                    </td>

                    <td width="76">
                        <p align="center"><font face="Times New Roman" size="2">3rd</font></p>
                    </td>

                    <td align="center" width="7">
                    </td>

                    <td align="center" width="12">
                    </td>

                    <td align="center" width="75"><font size="2">4th</font></td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="74"><font face="Times New Roman" size="2">&nbsp;Quarter</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="7">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="13">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="78"><font face="Times New Roman" size="2">Quarter</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="4">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="12">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="76"><font face="Times New Roman" size="2">Quarter</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="7">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="12">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="75"><font size="2">Quarter</font></td>

                    <td align="center" width="4">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="237">
                    </td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78">
                    </td>

                    <td align="left" width="4">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75">
                    </td>

                    <td align="left" width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">Net investment loss</font></td>

                    <td align="right" width="74"><font face="Times New Roman" size="2">($ 277,138</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78"><font face="Times New Roman" size="2">($ 230,402</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">($ 91,006</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75"><font face="Times New Roman" size="2">($ 172,464</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="237">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78">
                    </td>

                    <td align="left" width="4">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75">
                    </td>

                    <td align="left" width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">Net unrealized appreciation (depreciation) on investments</font></td>

                    <td align="right" width="74"><font face="Times New Roman" size="2">(4,915,956</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78"><font face="Times New Roman" size="2">(4,063,158</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">(5,756,759</font></td>

                    <td valign="bottom" align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75"><font face="Times New Roman" size="2">(3,287,551</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="237">&nbsp;&nbsp;</td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78">
                    </td>

                    <td align="left" width="4">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75">
                    </td>

                    <td align="left" width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">Net realized gain (loss) on investments</font></td>

                    <td align="right" width="74"><font face="Times New Roman" size="2">1,287,083</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78"><font face="Times New Roman" size="2">(15,501</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">(188,802</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75"><font face="Times New Roman" size="2">(281,287</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="237">&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78">
                    </td>

                    <td align="left" width="4">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75">
                    </td>

                    <td align="left" width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">Net income (loss)</font></td>

                    <td align="right" width="74"><font face="Times New Roman" size="2">($3,906,011</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78"><font face="Times New Roman" size="2">($4,309,061</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">($6,036,567</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75"><font face="Times New Roman" size="2">($3,741,302</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="237">&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78">
                    </td>

                    <td align="left" width="4">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75">
                    </td>

                    <td align="left" width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">Net income (loss) per share</font></td>

                    <td align="right" width="74"><font face="Times New Roman" size="2">($ 0.88</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78"><font face="Times New Roman" size="2">($ 0.97</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">($ 1.35</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75"><font face="Times New Roman" size="2">($ 0.83</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="237">&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78">
                    </td>

                    <td align="left" width="4">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75">
                    </td>

                    <td align="left" width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">Weighted average shares outstanding</font></td>

                    <td align="right" width="74"><font face="Times New Roman" size="2">4,463,967</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78"><font face="Times New Roman" size="2">4,463,967</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">4,463,967</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75"><font face="Times New Roman" size="2">4,463,967</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr>
                    <td align="left" width="237">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td width="78">
                    </td>

                    <td width="4">
                    </td>

                    <td width="12">
                    </td>

                    <td width="76">
                    </td>

                    <td width="7">
                    </td>

                    <td width="12">
                    </td>

                    <td width="75">
                    </td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="11"><font face="Times New Roman, Times, serif" size="2">2007</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="center" width="74"><font face="Times New Roman" size="2">&nbsp;1st</font></td>

                    <td align="center" width="7">
                    </td>

                    <td align="center" width="13">
                    </td>

                    <td align="center" width="78"><font face="Times New Roman" size="2">2nd</font></td>

                    <td align="center" width="4">
                    </td>

                    <td align="center" width="12">
                    </td>

                    <td align="center" width="76"><font face="Times New Roman" size="2">3rd</font></td>

                    <td align="center" width="7">
                    </td>

                    <td align="center" width="12">
                    </td>

                    <td align="center" width="75"><font size="2">4th</font></td>

                    <td width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="74"><font face="Times New Roman" size="2">&nbsp;Quarter</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="7">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="13">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="78"><font face="Times New Roman" size="2">&nbsp;Quarter</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="4">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="12">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="76"><font face="Times New Roman" size="2">&nbsp;Quarter</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="7">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="12">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="center" width="75"><font size="2">&nbsp;Quarter</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="4">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="237">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78">
                    </td>

                    <td align="left" width="4">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75">
                    </td>

                    <td align="left" width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">Net investment loss</font></td>

                    <td align="right" width="74"><font face="Times New Roman" size="2">($ 115,003</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78"><font face="Times New Roman" size="2">($ 322,584</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">($ 161,653</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75"><font face="Times New Roman" size="2">($ 153,406</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="237">
                    </td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78">
                    </td>

                    <td align="left" width="4">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75">
                    </td>

                    <td align="left" width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">Net unrealized appreciation (depreciation) on investments</font></td>

                    <td align="right" width="74"><font face="Times New Roman" size="2">472,619</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78"><font face="Times New Roman" size="2">(1,703,609</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">(6,259,982</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75"><font face="Times New Roman" size="2">(5,307,009</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="237">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78">
                    </td>

                    <td align="left" width="4">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75">
                    </td>

                    <td align="left" width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">Net realized gain (loss) on investments</font></td>

                    <td align="right" width="74"><font face="Times New Roman" size="2">-</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78"><font face="Times New Roman" size="2">2,033,769</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">2,386,440</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75"><font face="Times New Roman" size="2">453,656</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr>
                    <td align="left" width="237">&nbsp;&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78">
                    </td>

                    <td align="left" width="4">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75">
                    </td>

                    <td align="left" width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">Income tax expense paid on behalf of stockholders</font></td>

                    <td align="right" width="74"><font face="Times New Roman" size="2">-</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78"><font face="Times New Roman" size="2">-</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">-</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75"><font face="Times New Roman" size="2">(1,485,135</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="237">&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78">
                    </td>

                    <td align="left" width="4">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75">
                    </td>

                    <td align="left" width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">Net income (loss)</font></td>

                    <td align="right" width="74"><font face="Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;&nbsp;357,616</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78"><font face="Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,576</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">($4,035,195</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75"><font face="Times New Roman" size="2">($6,491,894</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="237">&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78">
                    </td>

                    <td align="left" width="4">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75">
                    </td>

                    <td align="left" width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">Net income (loss) per share</font></td>

                    <td align="right" width="74"><font face="Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.08</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78"><font face="Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.00</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">($ 0.90</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">)</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75"><font face="Times New Roman" size="2">($ 1.46</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">)</font></td>
                </tr>

                <tr>
                    <td align="left" width="237">&nbsp;&nbsp;&nbsp;</td>

                    <td align="right" width="74">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78">
                    </td>

                    <td align="left" width="4">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76">
                    </td>

                    <td align="left" width="7">
                    </td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75">
                    </td>

                    <td align="left" width="4">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="237"><font face="Times New Roman" size="2">Weighted average shares outstanding</font></td>

                    <td align="right" width="74"><font face="Times New Roman" size="2">4,463,967</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="13">
                    </td>

                    <td align="right" width="78"><font face="Times New Roman" size="2">4,463,967</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="76"><font face="Times New Roman" size="2">4,463,967</font></td>

                    <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="12">
                    </td>

                    <td align="right" width="75"><font face="Times New Roman" size="2">4,463,967</font></td>

                    <td align="left" width="4"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>
            </table>
            <br>
            <br>

            <p>&nbsp;</p>

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            <p>&nbsp;</p>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>exhibit311.htm
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
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    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <div style="WIDTH: 600px">
            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Exhibit 31.</font></b><b><font style="FONT-SIZE: 10pt">1</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002<br>
            &nbsp;</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">I,</font> <font style="FONT-SIZE: 10pt">Russell Cleveland, Chief</font> <font style="FONT-SIZE: 10pt">Executive</font> <font style="FONT-SIZE: 10pt">Officer of Renaissance Capital Growth &amp; Income Fund III, Inc., certify that:</font></p>

            <p></p>

            <p></p>

            <table>
                <tr>
                    <td width="72">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in" align="justify"><font style="FONT-SIZE: 10pt">I have reviewed this annual report on Form 10-K of Renaissance Capital Growth &amp; Income Fund III, Inc.;</font></p>
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p><br>
            </p>

            <p></p>

            <table>
                <tr>
                    <td width="72">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top"><font face="Times New Roman, Times, serif" size="2">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font> </td>
                </tr>
            </table>
            <br>
            <br>

            <p><font face="Times New Roman, Times, serif"><br>
            </font></p>

            <p></p>

            <table>
                <tr>
                    <td width="72">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top"><font face="Times New Roman, Times, serif" size="2">Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</font> </td>
                </tr>
            </table>
            <br>
            <br>

            <p><font face="Times New Roman, Times, serif"><br>
            </font></p>

            <p></p>

            <table>
                <tr>
                    <td width="72">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top"><font face="Times New Roman, Times, serif" size="2">The registrant&rsquo;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have;</font></td>
                </tr>
            </table>
            <br>
            <br>

            <p></p>

            <table>
                <tr>
                    <td width="120">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0px"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt" face="Times New Roman, Times, serif">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be disgined under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made know to us by others within those entities,
                        particulary during the period in which this report is being prepared;</font></p>
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p></p>

            <table>
                <tr>
                    <td width="120">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0px"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt" face="Times New Roman, Times, serif">Evaluated the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p>
                    </td>
                </tr>
            </table>
            <br>
            <br>
            <br>

            <p></p>

            <p></p>

            <table>
                <tr>
                    <td width="120">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0px"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt" face="Times New Roman, Times, serif">Disclosed in this report any change in the registrant&rsquo;s internal control over financial reporting that occurred during the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is
                        reasonably likely to materially affect, the registrant&rsquo;s internal control over financial reporting; and</font></p>
                    </td>
                </tr>
            </table>
            <br>
            <br>
            <br>

            <p></p>

            <p></p>

            <table>
                <tr>
                    <td width="72">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="justify"><font style="FONT-SIZE: 10pt" face="Times New Roman, Times, serif">The registrant&rsquo;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of the registrant&rsquo;s board of directors (or persons performing the equivalent
                        function):</font></p>
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p><br>
            </p>

            <p></p>

            <table>
                <tr>
                    <td width="120">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: 0px"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt" face="Times New Roman, Times, serif">All significant deficiencies in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial information; and</font></p>
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p><br>
            </p>

            <p></p>

            <table>
                <tr>
                    <td width="120">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: 0px"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top"><font face="Times New Roman, Times, serif" size="2">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s internal control over financial reporting.</font> </td>
                </tr>
            </table>
            <br>
            <br>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                <tr valign="bottom">
                    <th colspan="1">
                    </th>

                    <th>
                    </th>

                    <th colspan="1">
                    </th>

                    <th>
                    </th>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">Date: March 18, 2009</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">/s/ Russell Cleveland</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td><font size="2">Russell Cleveland</font></td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td><font size="2">&nbsp;Chief Executive Officer</font></td>

                    <td>
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p><br>
            </p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1.5in; TEXT-INDENT: -108px" align="justify"></p>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1.5in; TEXT-INDENT: -108px" align="justify"></p>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1.5in; TEXT-INDENT: -108px" align="justify"></p>
            <br>
            <br>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>3
<FILENAME>exhibit312.htm
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <div style="WIDTH: 600px">
            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Exhibit 31.2</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002<br>
             &nbsp;</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt" face="Times New Roman, Times, serif">I, Barbe Butschek, Chief Financial Officer of Renaissance Capital Growth &amp; Income Fund III, Inc., certify that:</font></p>

            <p></p>

            <p></p>

            <table>
                <tr>
                    <td width="72">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in" align="justify"><font style="FONT-SIZE: 10pt" face="Times New Roman, Times, serif">I have reviewed this annual report on Form 10-K of Renaissance Capital Growth &amp; Income Fund III, Inc.;</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <table>
                <tr>
                    <td width="72">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top"><font face="Times New Roman, Times, serif" size="2">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font> </td>
                </tr>
            </table>
            <br>

            <table>
                <tr>
                    <td width="72">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top"><font face="Times New Roman, Times, serif" size="2">Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</font> </td>
                </tr>
            </table>
            <br>

            <table>
                <tr>
                    <td width="72">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top"><font face="Times New Roman, Times, serif" size="2">The registrant&rsquo;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have;</font></td>
                </tr>
            </table>
            <br>
            <font face="Times New Roman, Times, serif" size="2"></font>

            <table>
                <tr>
                    <td width="120">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0px"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt" face="Times New Roman, Times, serif">Designed&nbsp; such disclosure controls and procedures, or caused such disclosue controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made know to us by others within those
                        entities, particulary during the period in which this report is being prepared;</font></p>
                    </td>
                </tr>
            </table>
            <br>
            <br>
            <br>
            <br>


            <p></p>

            <p></p>

            <table>
                <tr>
                    <td width="120">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0px"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt" face="Times New Roman, Times, serif">Evaluated the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p>
                    </td>
                </tr>
            </table>
            <br>
            <br>
            <br>


            <p></p>

            <p></p>

            <table>
                <tr>
                    <td width="120">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0px"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt" face="Times New Roman, Times, serif">Disclosed in this report any change in the registrant&rsquo;s internal control over financial reporting that occurred during the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is
                        reasonably likely to materially affect, the registrant&rsquo;s internal control over financial reporting; and</font></p>
                    </td>
                </tr>
            </table>
            <br>
            <br>
            <br>


            <p></p>

            <p></p>

            <table>
                <tr>
                    <td width="72">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="justify"><font style="FONT-SIZE: 10pt" face="Times New Roman, Times, serif">The registrant&rsquo;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of the registrant&rsquo;s board of directors (or persons performing the equivalent
                        function):</font></p>
                    </td>
                </tr>
            </table>
            <br>
            <br>


            <p><br>
            </p>

            <p></p>

            <table>
                <tr>
                    <td width="120">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: 0px"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt" face="Times New Roman, Times, serif">All significant deficiencies in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial information; and</font></p>
                    </td>
                </tr>
            </table>
            <br>
            <br>


            <p><br>
            </p>

            <p></p>

            <table>
                <tr>
                    <td width="120">
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: 0px"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'" face="Times New Roman, Times, serif">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top"><font face="Times New Roman, Times, serif" size="2">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s internal control over financial reporting.</font> </td>
                </tr>
            </table>
            <br>
            <br>


            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" align="left" border="0">
                <tr valign="bottom">
                    <th colspan="1">
                    </th>

                    <th>
                    </th>

                    <th colspan="1">
                    </th>

                    <th>
                    </th>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">Date: March 18, 2009</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">/s/ Barbe Butschek</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td><font size="2">Barbe Butschek</font></td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td><font size="2">&nbsp;Chief&nbsp;Financial Officer</font></td>
                </tr>
            </table>
            <br>
            <br>


            <p>&nbsp;</p>


            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1.5in; TEXT-INDENT: -108px" align="justify"></p>
            <br>
            <br>
        </div>
    </body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>exhibit321.htm
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <div style="WIDTH: 600px">
            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Exhibit 32.1</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">CERTIFICATION PURSUANT TO<br>
            18 U.S.C. SECTION 1350<br>
            AS ADOPTED PURSUANT TO<br>
             SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">In connection with the Annual Report of Renaissance Capital Growth &amp; Income Fund III, Inc., (the &ldquo;Company&rdquo;) on Form 10-K for the period ended December 31, 2006 as filed with the Securities and Exchange Commission on the date hereof (the &ldquo;Report&rdquo;), each of the undersigned, in the capacities and on the dates indicated below,
            hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:<br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="justify"><font style="FONT-SIZE: 10pt">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="justify"><font style="FONT-SIZE: 10pt">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.</font></p>

            <p></p>

            <p></p>

            <table style="MARGIN-LEFT: 0.3in" cellspacing="0" cellpadding="0" width="546" border="0">
                <tr>
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="216">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Date: March 18, 2009</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="69">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="top" width="269">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">/s/ Russell Cleveland&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="216">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="69">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="269">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Russell Cleveland</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="216">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="69">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="269"><font face="Times New Roman, Times, serif" size="2">President and Chief Executive Officer</font></td>
                </tr>
            </table>
            <br>
            <br>


            <p></p>
        </div>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>5
<FILENAME>exhibit322.htm
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <div style="WIDTH: 600px">
            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Exhibit 32.</font></b><b><font style="FONT-SIZE: 10pt">2</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">CERTIFICATION PURSUANT TO<br>
            18 U.S.C. SECTION 1350<br>
            AS ADOPTED PURSUANT TO<br>
             SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">In connection with the Annual Report of Renaissance Capital Growth &amp; Income Fund III, Inc., (the &ldquo;Company&rdquo;) on Form 10-K for the period ended December 31, 2006 as filed with the Securities and Exchange Commission on the date hereof (the &ldquo;Report&rdquo;), each of the undersigned, in the capacities and on the dates indicated below,
            hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:<br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="justify"><font style="FONT-SIZE: 10pt">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="justify"><font style="FONT-SIZE: 10pt">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.</font></p>

            <p></p>

            <p></p>

            <table style="MARGIN-LEFT: 0.3in" cellspacing="0" cellpadding="0" width="546" border="0">
                <tr>
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Date: March 18, 2009</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="7">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="top" width="269">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">/s/</font> <font style="FONT-SIZE: 10pt">Barbe Butschek</font><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="276">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="7">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="269">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Barbe Butschek</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="276">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="7">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="top" width="269"><font face="Times New Roman, Times, serif" size="2">Chief Financial Officer</font></td>
                </tr>
            </table>
            <br>
            <br>


            <p></p>
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</TEXT>
</DOCUMENT>
</SUBMISSION>
