Document:

Pledge and Security Agreement

 Exhibit 10(o) 
  
 [GRAPHIC APPEARS HERE] 
  
 PLEDGE AND SECURITY AGREEMENT 
  
 THIS PLEDGE AND SECURITY AGREEMENT (“Agreement”) is made as of the 15th day of March, 2004, by EQUUS II INCORPORATED, a Delaware corporation (hereinafter called “Debtor,”), whose place of business, and chief
executive office (as those terms are used in the Code) is located at 2929 Allen Parkway, Suite 2500, Houston, Texas 77019 and whose organizational identification number issued by the appropriate authority of the State of Delaware is 2271275, and
whose federal taxpayer identification number is 76-0345915, in favor of THE FROST NATIONAL BANK, a national banking association (“Secured Party”), whose address is P.O. Box 1600, San Antonio, Texas 78296. Debtor hereby agrees with
Secured Party as follows: 
  
 1. Definitions. As used in
this Agreement, the following terms shall have the meanings indicated below: 
  
 (a) The term “Obligor” shall mean Debtor. 
  
 (b) The term “Code” shall mean the Texas Business and Commerce Code as in effect in the State of Texas on the date of
this Agreement or as it may hereafter be amended from time to time. 
  
 (c) The term “Collateral” shall mean any and all investment property, instruments, chattel paper and general intangibles owned by Debtor from time to time, including all notes receivable, common and
preferred stock, stock options, warrants, and other investments which at any given time are included in Debtor’s computation of Net Asset Value (hereinafter collectively called the “Pledged Securities”); however neither the
Collateral, nor Debtor’s Net Asset Value, shall include any of the foregoing items which are held from time to time in Account Number VB 01383 98 maintained by Debtor with UBS Financial Services, Inc. or in Account Number Z42-496693 maintained
by Debtor with Fidelity Investments. “Collateral” as used in this Agreement, includes the Pledged Securities and, without limitation, (1) all money this day delivered to and deposited with Secured Party, and all money heretofore
delivered or which shall hereafter be delivered to or come into the possession, custody or control of Secured Party representing proceeds of, payment on, or distributions related to any of the Pledged Securities during the existence of this
Agreement or the Loan Agreement, and whether held in a general or special account, together with (2) any stock rights, rights to subscribe, liquidating dividends, stock dividends, property, cash distributions, dividends paid in stock, new
securities, cash dividends or other property which Debtor may hereafter become entitled to receive on account of the Collateral and (3) all Debtor’s rights, title and interest in that certain custody account (Account No. 1000308) maintained
with Secured Party, (4) all certificates, instruments, records, data and/or other documents evidencing the foregoing and following (including without limitation, any computer software on which such records and data may be 

 located), (5) all renewals, replacements and substitutions of all of the foregoing, (6) all Additional
Property (as hereinafter defined), and (7) all PRODUCTS and PROCEEDS of all of the foregoing. The designation of proceeds does not authorize Debtor to sell, transfer or otherwise convey any of the foregoing property. The delivery at any time by
Debtor to Secured Party of any property as a pledge to secure payment or performance of any indebtedness or obligation whatsoever shall also constitute a pledge of such property as Collateral hereunder. 
  
 (d) The term “Loan Agreement” means the
Loan Agreement dated as of March 15, 2004, between Debtor and Secured Party, together with all amendments and restatements thereto. 
  
 (e) The term “Indebtedness” shall mean (i) all indebtedness, obligations and liabilities of Obligor to Secured Party of
any kind or character, now existing or hereafter arising, whether direct, indirect, related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several or joint and several, and regardless of whether such indebtedness, obligations and
liabilities may, prior to their acquisition by Secured Party, be or have been payable to or in favor of a third party and subsequently acquired by Secured Party (it being contemplated that Secured Party may make such acquisitions from third
parties), including without limitation all indebtedness, obligations and liabilities of Obligor to Secured Party now existing or hereafter arising by note, draft, acceptance, guaranty, endorsement, letter of credit, assignment, purchase, overdraft,
discount, indemnity agreement or otherwise, including, without limitation that one certain promissory note dated March 15, 2004, in the original principal amount of $6,500,000.00 executed by Obligor and payable to the order of Secured Party, (ii)
all accrued but unpaid interest on any of the indebtedness described in (i) above, (iii) all obligations of Obligor to Secured Party under any documents evidencing, securing, governing and/or pertaining to all or any part of the indebtedness
described in (i) and (ii) above, (iv) all costs and expenses incurred by Secured Party in connection with the collection and administration of all or any part of the indebtedness and obligations described in (i), (ii) and (iii) above or the
protection or preservation of, or realization upon, the collateral securing all or any part of such indebtedness and obligations, including without limitation all reasonable attorneys’ fees, and (v) all renewals, extensions, modifications and
rearrangements of the indebtedness and obligations described in (i), (ii), (iii) and (iv) above. 
  
 (f) The term “Loan Documents” shall mean all instruments and documents evidencing, securing, governing, guaranteeing
and/or pertaining to the Indebtedness. 
  
 (g)
The term “Net Asset Value” shall mean Debtor’s total assets, excluding all intangible assets, less Debtor’s total liabilities, which, in accordance with generally accepted accounting principles, would be required to
be reflected on a balance sheet of Debtor. 
  
 (h) The term “Obligated Party” shall mean any party other than Obligor who secures, guarantees and/or is otherwise obligated to pay all or any portion of the Indebtedness. 
  

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 (i) The term “Pledged Securities” shall include, but are not limited to,
(i) all publicly traded securities sold or issued by the companies listed on Schedule 1 owned by Debtor and pledged to Secured Party, including all income from, and all proceeds of, such securities and (ii) all of the privately held
securities issued or sold by the companies listed on Schedule 1 owned by Debtor and pledged to Secured Party, including all income from, and all proceeds of, such securities. 
  
 All words and phrases used herein which are expressly defined in Section 1.201, Chapter 8 or Chapter 9 of the Code shall have the meaning
provided for therein. Other words and phrases defined elsewhere in the Code shall have the meaning specified therein except to the extent such meaning is inconsistent with a definition in Section 1.201, Chapter 8 or Chapter 9 of the Code.
Capitalized terms not otherwise defined herein have the meaning specified in the Loan Agreement. 
  
 2. Security Interest. As security for the Indebtedness, Debtor, for value received, hereby grants to Secured Party a continuing security interest
in the Collateral. 
  
 3. Additional Property. Collateral
shall also include the following property (collectively, the “Additional Property”) which Debtor becomes entitled to receive or shall receive in connection with any other Collateral: (a) any stock certificate, including without
limitation, any certificate representing a stock dividend or any certificate in connection with any recapitalization, reclassification, merger, consolidation, conversion, sale of assets, combination of shares, stock split or spin-off; (b) any
option, warrant, subscription or right, whether as an addition to or in substitution of any other Collateral; (c) any dividends or distributions of any kind whatsoever, whether distributable in cash, stock or other property; (d) any interest,
premium or principal payments; and (e) any conversion or redemption proceeds; provided, however, that until the occurrence of an Event of Default (as hereinafter defined), Debtor shall be entitled to all cash dividends and all interest paid on the
Collateral (except interest paid on any certificate of deposit pledged hereunder) free of the security interest created under this Agreement. All Additional Property received by Debtor shall be received in trust for the benefit of Secured Party. All
Additional Property and all certificates or other written instruments or documents evidencing and/or representing the Additional Property that is received by Debtor, together with such instruments of transfer as Secured Party may request, shall
immediately be delivered to or deposited with Secured Party and held by Secured Party as Collateral under the terms of this Agreement. If the Additional Property received by Debtor shall be shares of stock or other securities, such shares of stock
or other securities shall be duly endorsed in blank or accompanied by proper instruments of transfer and assignment duly executed in blank with, if requested by Secured Party, signatures guaranteed by a bank or member firm of the New York Stock
Exchange, all in form and substance satisfactory to Secured Party. Secured Party shall be deemed to have possession of any Collateral in transit to Secured Party or its agent. 
  
 4. Stock Power. Obligor agrees, at the request of the Secured Party, to execute promptly additional stock powers in
blank in connection with any certificates evidencing all or part of the Collateral. 
  

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 5. Voting Rights. As long as no Event of Default shall have occurred hereunder, any voting rights
incident to any stock or other securities pledged as Collateral may be exercised by Debtor, provided, however, that Debtor will not exercise, or cause to be exercised, any such voting rights, without the prior written consent of Secured Party, if
the direct or indirect effect of such vote will result in an Event of Default hereunder. 
  
 6. Maintenance of Collateral. Other than the exercise of reasonable care to assure the safe custody of any Collateral in Secured Party’s possession from time to time, Secured Party does not have any
obligation, duty or responsibility with respect to the Collateral. Without limiting the generality of the foregoing, Secured Party shall not have any obligation, duty or responsibility to do any of the following: (a) ascertain any maturities, calls,
conversions, exchanges, offers, tenders or similar matters relating to the Collateral or informing Debtor with respect to any such matters; (b) fix, preserve or exercise any right, privilege or option (whether conversion, redemption or otherwise)
with respect to the Collateral unless (i) Debtor makes written demand to Secured Party to do so, (ii) such written demand is received by Secured Party in sufficient time to permit Secured Party to take the action demanded in the ordinary course of
its business, and (iii) Debtor provides additional collateral, acceptable to Secured Party in its sole discretion; (c) collect any amounts payable in respect of the Collateral (Secured Party being liable to account to Debtor only for what Secured
Party may actually receive or collect thereon); (d) sell all or any portion of the Collateral to avoid market loss; (e) sell all or any portion of the Collateral unless and until (i) Debtor makes written demand upon Secured Party to sell the
Collateral, and (ii) Debtor provides additional collateral, acceptable to Secured Party in its sole discretion; or (f) hold the Collateral for or on behalf of any party other than Debtor. 
  
 7. Representations and Warranties. Debtor hereby represents and warrants the following to Secured Party: 

 
 (a) Authority. The execution, delivery and
performance of this Agreement and all of the other Loan Documents by Debtor have been duly authorized by all necessary corporate action of Debtor. 
  
 (b) Accuracy of Information. All information heretofore, herein or hereafter supplied to Secured Party by or on behalf of Debtor
with respect to the Collateral is true and correct. The exact legal name, organizational identification number and federal taxpayer identification number of Debtor are correctly shown in the first paragraph hereof. 
  
 (c) Enforceability. This Agreement and the other Loan
Documents constitute legal, valid and binding obligations of Debtor, enforceable in accordance with their respective terms, except as limited by bankruptcy, insolvency or similar laws of general application relating to the enforcement of
creditors’ rights and except to the extent specific remedies may generally be limited by equitable principles. 
  
 (d) Ownership and Liens. Debtor has good and marketable title to the Collateral free and clear of all liens, security interests,
encumbrances or adverse claims, except for the 
  

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 security interest created by this Agreement. No dispute, right of setoff, counterclaim or defense exists
with respect to all or any part of the Collateral. Debtor has not executed any other security agreement currently affecting the Collateral and no financing statement or other instrument similar in effect covering all or any part of the Collateral is
on file in any recording office except as may have been executed or filed in favor of Secured Party. 
  
 (e) No Conflicts or Consents. Neither the ownership, the intended use of the Collateral by Debtor, the grant of the security
interest by Debtor to Secured Party herein nor the exercise by Secured Party of its rights or remedies hereunder, will (i) conflict with any provision of (A) any domestic or foreign law, statute, rule or regulation, (B) the articles or certificate
of incorporation or bylaws of Debtor, or (C) any agreement, judgment, license, order or permit applicable to or binding upon Debtor or otherwise affecting the Collateral, or (ii) result in or require the creation of any lien, charge or encumbrance
upon any assets or properties of Debtor or of any person except as may be expressly contemplated in the Loan Documents. Except as expressly contemplated in the Loan Documents, no consent, approval, authorization or order of, and no notice to or
filing with, any court, governmental authority or third party is required or deemed preferable in connection with the grant by Debtor of the security interest herein or the exercise by Secured Party of its rights and remedies hereunder. 

 
 (f) Security Interest. Debtor has and will have at
all times full right, power and authority to grant a security interest in the Collateral to Secured Party in the manner provided herein, free and clear of any lien, security interest or other charge or encumbrance. This Agreement creates a legal,
valid and binding security interest in favor of Secured Party in the Collateral. 
  
 (g) Location/Identity. Debtor’s place of business and chief executive office (as those terms are used in the Code), as the
case may be is located at the address set forth on the first page hereof. Except as specified elsewhere herein, all Collateral and records concerning the Collateral shall be kept at such address. Debtor’s organizational structure, state of
organization, and organizational number (the “Organizational Information” are as set forth on the first page hereof. Except as specified herein, the Organizational Information shall not change. 
  
 (h) Solvency of Debtor. As of the date hereof, and
after giving effect to this Agreement and the completion of all other transactions contemplated by Debtor at the time of the execution of this Agreement, (i) Debtor is and will be solvent, (ii) the fair saleable value of Debtor’s assets exceeds
and will continue to exceed Debtor’s liabilities (both fixed and contingent), (iii) Debtor is paying and will continue to be able to pay its debts as they mature, and (iv) if Debtor is not an individual, Debtor has and will have sufficient
capital to carry on Debtor’s businesses and all businesses in which Debtor is about to engage. 
  
 (i) Securities. Any certificates evidencing securities pledged as Collateral are valid and genuine and have not been altered. All
securities pledged as Collateral have been duly authorized and validly issued, are fully paid and non-assessable, and were not issued in violation 
  

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 of the preemptive rights of any party or of any agreement by which Debtor or the issuer thereof is bound.
No restrictions or conditions exist with respect to the transfer or voting of any securities pledged as Collateral, except as has been disclosed to Secured Party in writing. 
  
 8. Affirmative Covenants. Debtor will comply with the covenants contained in this Section at all times during the
period of time this Agreement is effective unless Secured Party shall otherwise consent in writing. 
  
 (a) Ownership and Liens. Debtor will maintain good and marketable title to all Collateral free and clear of all liens, security
interests, encumbrances or adverse claims, except for the security interest created by this Agreement and the security interests and other encumbrances expressly permitted by the other Loan Documents. Debtor will not permit any dispute, right of
setoff, counterclaim or defense to exist with respect to all or any part of the Collateral. Debtor will cause any financing statement or other security instrument with respect to the Collateral to be terminated, except as may exist or as may have
been filed in favor of Secured Party. Debtor hereby irrevocably appoints Secured Party as Debtor’s attorney-in-fact, such power of attorney being coupled with an interest, with full authority in the place and stead of Debtor and in the name of
Debtor or otherwise, for the purpose of terminating any financing statements currently filed with respect to the Collateral. Debtor will defend at its expense Secured Party’s right, title and security interest in and to the Collateral against
the claims of any third party. 
  
 (b)
Inspection of Books and Records. Debtor will keep adequate records concerning the Collateral and will permit Secured Party and all representatives and agents appointed by Secured Party to inspect Debtor’s books and records of or relating
to the Collateral at any time during normal business hours, to make and take away photocopies, photographs and printouts thereof and to write down and record any such information. 
  
 (c) Adverse Claim. Debtor covenants and agrees to promptly notify Secured Party of any claim, action
or proceeding affecting title to the Collateral, or any part thereof, or the security interest created hereunder and, at Debtor’s expense, defend Secured Party’s security interest in the Collateral against the claims of any third party.
Debtor also covenants and agrees to promptly deliver to Secured Party a copy of all written notices received by Debtor with respect to the Collateral, including without limitation, notices received from the issuer of any securities pledged hereunder
as Collateral. 
  
 (d) Further Assurances.
Debtor will contemporaneously with the execution hereof and from time to time thereafter at its expense promptly execute and deliver all further instruments and documents and take all further action necessary or appropriate or that Secured Party may
request in order (i) to perfect and protect the security interest created or purported to be created hereby and the first priority of such security interest, (ii) to enable Secured Party to exercise and enforce its rights and remedies hereunder in
respect of the Collateral, and (iii) to otherwise effect the purposes of this Agreement, including without limitation: (A) executing (if 
  

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 requested) and filing any financing or continuation statements, or any amendments thereto; (B) obtaining
written confirmation from the issuer of any securities pledged as Collateral of the pledge of such securities, in form and substance satisfactory to Secured Party; (C) cooperating with Secured Party in registering the pledge of any securities
pledged as Collateral with the issuer of such securities; (D) delivering notice of Secured Party’s security interest in any securities pledged as Collateral to any financial intermediary, clearing corporation or other party required or deemed
preferable by Secured Party, in form and substance satisfactory to Secured Party; and (E) obtaining written confirmation of the pledge of any securities constituting Collateral from any financial intermediary, clearing corporation or other party
required or deemed preferable by Secured Party, in form and substance satisfactory to Secured Party. If all or any part of the Collateral is securities issued by an agency or department of the United States, Debtor covenants and agrees, at Secured
Party’s request, to cooperate in registering such securities in Secured Party’s name or with Secured Party’s account maintained with a Federal Reserve Secured Party. 
  
 (e) Control Agreements. Debtor will cooperate with Secured Party in obtaining a control agreement in
form and substance satisfactory to Secured Party with respect to Collateral for which such agreement is required or deemed preferable for perfection of a security interest pursuant to the Code (as determined by Secured Party in its sole discretion).

  
 9. Negative Covenants. Debtor will comply with the
covenants contained in this Section at all times during the period of time this Agreement is effective, unless Secured Party shall otherwise consent in writing. 
  
 (a) Transfer or Encumbrance. Debtor will not (i) sell, assign (by operation of law or otherwise) or
transfer Debtor’s rights in any of the Collateral, (ii) grant a lien or security interest in or execute, authorize, file or record any financing statement or other security instrument with respect to the Collateral to any party other than
Secured Party, or (iii) deliver actual or constructive possession of any certificate, instrument or document evidencing and/or representing any of the Collateral to any party other than Secured Party; provided, however, Debtor may add or delete
Collateral solely as permitted under Section 1 of the Loan Agreement, 
  
 (b) Impairment of Security Interest. Debtor will not take or fail to take any action which would in any manner impair the value or enforceability of Secured Party’s security interest in any Collateral.

  
 (c) Restrictions on Securities. Debtor
will not, after the date of this Agreement, enter into any agreement creating any restriction or condition upon the transfer, voting or control of any securities pledged as Collateral, except as consented to in writing by Secured Party. 

 
 10. Rights of Secured Party. Secured Party shall have the rights
contained in this Section at all times during the period of time this Agreement is effective. 
  

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 (a) Power of Attorney. Debtor hereby irrevocably appoints Secured Party as
Debtor’s attorney-in-fact, such power of attorney being coupled with an interest, with full authority in the place and stead of Debtor and in the name of Debtor or otherwise, to take any action and to execute any instrument which Secured Party
may from time to time in Secured Party’s discretion deem necessary or appropriate to accomplish the purposes of this Agreement, including without limitation, the following action: (i) transfer any securities, instruments, documents or
certificates pledged as Collateral in the name of Secured Party or its nominee; (ii) use any interest, premium or principal payments, conversion or redemption proceeds or other cash proceeds received in connection with any Collateral to reduce any
of the Indebtedness; (iii) exchange any of the securities pledged as Collateral for any other property upon any merger, consolidation, reorganization, recapitalization or other readjustment of the issuer thereof, and, in connection therewith, to
deposit and deliver any and all of such securities with any committee, depository, transfer agent, registrar or other designated agent upon such terms and conditions as Secured Party may deem necessary or appropriate; (iv) exercise or comply with
any conversion, exchange, redemption, subscription or any other right, privilege or option pertaining to any securities pledged as Collateral; provided, however, except as provided herein, Secured Party shall not have a duty to exercise or comply
with any such right, privilege or option (whether conversion, redemption or otherwise) and shall not be responsible for any delay or failure to do so; and (v) file any claims or take any action or institute any proceedings which Secured Party may
deem necessary or appropriate for the collection and/or preservation of the Collateral or otherwise to enforce the rights of Secured Party with respect to the Collateral. 
  
 (b) Performance by Secured Party. If Debtor fails to perform any agreement or obligation provided
herein, Secured Party may itself perform, or cause performance of, such agreement or obligation, and the expenses of Secured Party incurred in connection therewith shall be a part of the Indebtedness, secured by the Collateral and payable by Debtor
on demand. 
  
 Notwithstanding any other provision herein to the contrary, Secured
Party does not have any duty to exercise or continue to exercise any of the foregoing rights and shall not be responsible for any failure to do so or for any delay in doing so. 
  
 11. Events of Default. Each of the following constitutes an “Event of Default” under this Agreement:

  
 (a) Default in Payment. The failure,
refusal or neglect of Obligor to make any payment of principal or interest on the Indebtedness, or any portion thereof, as the same shall become due and payable, and the continuation of such failure after the giving of any required notice and the
expiration of any applicable cure period, or 
  
 (b) Non-Performance of Covenants. The failure of Obligor or any Obligated Party to timely and properly observe, keep or perform any covenant, agreement, warranty or 
  

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 condition required herein or in any of the other Loan Documents and the continuation of such failure
after the giving of any required notice and the expiration of any applicable cure period; or 
  
 (c) Default Under other Loan Documents. The occurrence of an event of default under any of the other Loan Documents; or 

 
 (d) False Representation. Any representation
contained herein or in any of the other Loan Documents made by Obligor or any Obligated Party is false or misleading in any material respect; or 
  
 (e) Default to Third Party. The occurrence of any event which permits the acceleration of the maturity of any indebtedness owing by
Obligor or any Obligated Party to any third party under any agreement or undertaking; or 
  
 (f) Debtor’s Bankruptcy or Insolvency. If Obligor or any Obligated Party: (i) becomes insolvent, or makes a transfer in fraud
of creditors, or makes an assignment for the benefit of creditors, or admits in writing its inability to pay its debts as they become due; (ii) generally is not paying its debts as such debts become due; (iii) has a receiver, trustee or custodian
appointed for, or take possession of, all or substantially all of the assets of such party or any of the Collateral, either in a proceeding brought by such party or in a proceeding brought against such party and such appointment is not discharged or
such possession is not terminated within sixty (60) days after the effective date thereof or such party consents to or acquiesces in such appointment or possession; (iv) files a petition for relief under the United States Secured Bankruptcy Code or
any other present or future federal or state insolvency, bankruptcy or similar laws (all of the foregoing hereinafter collectively called “Applicable Secured Bankruptcy Law”) or an involuntary petition for relief is filed against
such party under any Applicable Secured Bankruptcy Law and such involuntary petition is not dismissed within sixty (60) days after the filing thereof, or an order for relief naming such party is entered under any Applicable Secured Bankruptcy Law,
or any composition, rearrangement, extension, reorganization or other relief of debtors now or hereafter existing is requested or consented to by such party; (v) fails to have discharged within a period of sixty (60) days any attachment,
sequestration or similar writ levied upon any property of such party; or (vi) fails to pay within thirty (30) days any final money judgment against such party; or 
  
 (g) Execution on Collateral. The Collateral or any portion thereof is taken on execution or other
process of law in any action against Debtor; or 
  
 (h) Abandonment. Debtor abandons the Collateral or any portion thereof; or 
  
 (i) Action by Other Lienholder. The holder of any lien or security interest on any of the assets of Debtor, including without
limitation, the Collateral (without hereby implying the consent of Secured Party to the existence or creation of any such lien or security interest on the Collateral), declares a default thereunder or institutes foreclosure or other proceedings for
the enforcement of its remedies thereunder; or 
  

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 (j) Liquidation, Death and Related Events. If Obligor or any Obligated Party is an
entity, the liquidation, dissolution, merger or consolidation of any such entity or, if Obligor or any Obligated Party is an individual, the death or legal incapacity of any such individual; or 
  
 (k) Search Report. Secured Party shall receive at any
time following the execution of this Agreement a search report indicating that Secured Party’s security interest is not prior to all other security interests or other interests reflected in the report. 
  
 12. Remedies and Related Rights. If an Event of Default shall have
occurred, and without limiting any other rights and remedies provided herein, under any of the other Loan Documents or otherwise available to Secured Party, Secured Party may exercise one or more of the rights and remedies provided in this Section.

  
 (a) Remedies. Secured Party may from
time to time at its discretion, without limitation and without notice except as expressly provided in any of the Loan Documents: 
  
 (i) exercise in respect of the Collateral all the rights and remedies of a secured party under the Code (whether or not the Code applies
to the affected Collateral); 
  
 (ii) reduce its
claim to judgment or foreclose or otherwise enforce, in whole or in part, the security interest granted hereunder by any available judicial procedure; 
  
 (iii) sell or otherwise dispose of, at its office, on the premises of Debtor or elsewhere, the Collateral, as a unit or in parcels, by
public or private proceedings, and by way of one or more contracts (it being agreed that the sale or other disposition of any part of the Collateral shall not exhaust Secured Party’s power of sale, but sales or other dispositions may be made
from time to time until all of the Collateral has been sold or disposed of or until the Indebtedness has been paid and performed in full), and at any such sale or other disposition it shall not be necessary to exhibit any of the Collateral;

  
 (iv) buy the Collateral, or any portion
thereof, at any public sale; 
  
 (v) buy the
Collateral, or any portion thereof, at any private sale if the Collateral is of a type customarily sold in a recognized market or is of a type which is the subject of widely distributed standard price quotations; 
  
 (vi) apply for the appointment of a receiver for the
Collateral, and Debtor hereby consents to any such appointment; and 
  

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 (vii) at its option, retain the Collateral in satisfaction of the Indebtedness whenever
the circumstances are such that Secured Party is entitled to do so under the Code or otherwise, to the full extent permitted by the Code, Secured Party shall be permitted to elect whether such retention shall be in full or partial satisfaction of
the Indebtedness. 
  
 In the event Secured Party shall elect to
sell the Collateral, Secured Party may sell the Collateral without giving any warranties as and shall be permitted to specifically disclaim any warranties of title or the like. Further, if Secured Party sells any of the Collateral on credit, Debtor
will be credited only with payments actually made by the purchaser, received by Secured Party and applied to the Indebtedness. In the event the purchaser fails to pay for the Collateral, Secured Party may resell the Collateral and Debtor shall be
credited with the proceeds of the sale. Debtor agrees that in the event Debtor or any Obligor is entitled to receive any notice under the Code, as it exists in the state governing any such notice, of the sale or other disposition of any Collateral,
reasonable notice shall be deemed given when such notice is deposited in a depository receptacle under the care and custody of the United States Postal Service, postage prepaid, at such party’s address set forth on the first page hereof, ten
(10) days prior to the date of any public sale, or after which a private sale, of any of such Collateral is to be held. Secured Party shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. Secured Party
may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. Debtor further acknowledges and
agrees that the redemption by Secured Party of any certificate of deposit pledged as Collateral shall be deemed to be a commercially reasonable disposition under Section 9.610 of the Code. 
  
 (b) Private Sale of Securities. Debtor recognizes
that Secured Party may be unable to effect a public sale of all or any part of the securities pledged as Collateral because of restrictions in applicable federal and state securities laws and that Secured Party may, therefore, determine to make one
or more private sales of any such securities to a restricted group of purchasers who will be obligated to agree, among other things, to acquire such securities for their own account, for investment and not with a view to the distribution or resale
thereof. Debtor acknowledges that each any such private sale may be at prices and other terms less favorable than what might have been obtained at a public sale and, notwithstanding the foregoing, agrees that each such private sale shall be deemed
to have been made in a commercially reasonable manner and that Secured Party shall have no obligation to delay the sale of any such securities for the period of time necessary to permit the issuer to register such securities for public sale under
any federal or state securities laws. Debtor further acknowledges and agrees that any offer to sell such securities which has been made privately in the manner described above to not less than five (5) bona fide offerees shall be deemed to
involve a “public sale” for the purposes of Chapter 9 of the Code, notwithstanding that such sale may not constitute a “public offering” under any federal or state securities laws and that Secured Party may, in such event, bid
for the purchase of such securities. 
  

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 (c) Application of Proceeds. If any Event of Default shall have occurred, Secured
Party may at its discretion apply or use any cash held by Secured Party as Collateral, and any cash proceeds received by Secured Party in respect of any sale or other disposition of, collection from, or other realization upon, all or any part of the
Collateral as follows in such order and manner as Secured Party may elect: 
  
 (i) to the repayment or reimbursement of the reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) incurred by Secured Party in connection with (A) the
administration of the Loan Documents, (B) the custody, preservation, use or operation of, or the sale of, collection from, or other realization upon, the Collateral, and (C) the exercise or enforcement of any of the rights and remedies of Secured
Party hereunder; 
  
 (ii) to the payment or other
satisfaction of any liens and other encumbrances upon the Collateral; 
  
 (iii) to the satisfaction of the Indebtedness; 
  
 (iv) by holding such cash and proceeds as Collateral; 
  
 (v) to the payment of any other amounts required by applicable law (including without limitation, Section
9.6l5(a)(3) of the Code or any other applicable statutory provision); and 
  
 (vi) by delivery to Debtor or any other party lawfully entitled to receive such cash or proceeds whether by direction of a court of competent jurisdiction or otherwise. 
  
 (d) Deficiency. In the event that the proceeds of any
sale of, collection from, or other realization upon, all or any part of the Collateral by Secured Party are insufficient to pay all amounts to which Secured Party is legally entitled, Obligor and any party who guaranteed or is otherwise obligated to
pay all or any portion of the Indebtedness shall be liable for the deficiency, together with interest thereon as provided in the Loan Documents, to the full extent permitted by the Code. 
  
 (e) Non-Judicial Remedies. In granting to Secured Party the power to enforce its rights hereunder
without prior judicial process or judicial hearing, Debtor expressly waives, renounces and knowingly relinquishes any legal right which might otherwise require Secured Party to enforce its rights by judicial process. Debtor recognizes and concedes
that non-judicial remedies are consistent with the usage of trade, are responsive to commercial necessity and are the result of a bargain at arm’s length. Nothing herein is intended to prevent Secured Party or Debtor from resorting to judicial
process at either party’s option. 
  
 (f)
Other Recourse. Debtor waives any right to require Secured Party to proceed against any third party, exhaust any Collateral or other security for the Indebtedness, or to have 
  

 - 12 - 

 any third party joined with Debtor in any suit arising out of the Indebtedness or any of the Loan
Documents, or pursue any other remedy available to Secured Party. Debtor further waives any and all notice of acceptance of this Agreement and of the creation, modification, rearrangement, renewal or extension of the Indebtedness. Debtor further
waives any defense arising by reason of any disability or other defense of any third party or by reason of the cessation from any cause whatsoever of the liability of any third party. Until all of the Indebtedness shall have been paid in full,
Debtor shall have no right of subrogation and Debtor waives the right to enforce any remedy which Secured Party has or may hereafter have against any third party, and waives any benefit of and any right to participate in any other security
whatsoever now or hereafter held by Secured Party. Debtor authorizes Secured Party, and without notice or demand and without any reservation of rights against Debtor and without affecting Debtor’s liability hereunder or on the Indebtedness, to
(i) take or hold any other property of any type from any third party as security for the Indebtedness, and exchange, enforce, waive and release any or all of such other property, (ii) apply such other property and direct the order or manner of sale
thereof as Secured Party may in its discretion determine, (iii) renew, extend, accelerate, modify, compromise, settle or release any of the Indebtedness or other security for the Indebtedness, (iv) waive, enforce or modify any of the provisions of
any of the Loan Documents executed by any third party, and (v) release or substitute any third party. 
  
 (g) Voting Rights. Upon the occurrence of an Event of Default, Debtor will not exercise any voting rights with respect to
securities pledged as Collateral. Debtor hereby irrevocably appoints Secured Party as Debtor’s attorney-in-fact (such power of attorney being coupled with an interest) and proxy to exercise any voting rights with respect to Debtor’s
securities pledged as Collateral upon the occurrence of an Event of Default. 
  
 (h) Dividend Rights and Interest Payments. Upon the occurrence of an Event of Default: 
  
 (i) all rights of Debtor to receive and retain the dividends and interest payments which it would otherwise be authorized to receive and
retain pursuant to Section 3 shall automatically cease, and all such rights shall thereupon become vested with Secured Party which shall thereafter have the sole right to receive, hold and apply as Collateral such dividends and interest payments;
and 
  
 (ii) all dividend and interest payments
which are received by Debtor contrary to the provisions of clause (i) of this Subsection shall be received in trust for the benefit of Secured Party, shall be segregated from other funds of Debtor, and shall be forthwith paid over to Secured Party
in the exact form received (properly endorsed or assigned if requested by Secured Party), to be held by Secured Party as Collateral. 
  
 13. INDEMNITY. DEBTOR HEREBY INDEMNIFIES AND AGREES TO HOLD HARMLESS SECURED PARTY, AND ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS AND
REPRESENTATIVES (EACH AN “INDEMNIFIED 
  

 - 13 - 

 PERSON”) FROM AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, CLAIMS, LOSSES, DAMAGES, PENALTIES, ACTIONS,
JUDGMENTS, SUITS, COSTS, EXPENSES OR DISBURSEMENTS OF ANY KIND OR NATURE (COLLECTIVELY, THE “CLAIMS”) WHICH MAY BE IMPOSED ON, INCURRED BY, OR ASSERTED AGAINST, ANY INDEMNIFIED PERSON ARISING IN CONNECTION WITH THE LOAN DOCUMENTS, THE
INDEBTEDNESS OR THE COLLATERAL (INCLUDING WITHOUT LIMITATION, THE ENFORCEMENT OF THE LOAN DOCUMENTS AND THE DEFENSE OF ANY INDEMNIFIED PERSON’S ACTIONS AND/OR INACTIONS IN CONNECTION WITH THE LOAN DOCUMENTS). THE INDEMNIFICATION PROVIDED FOR IN
THIS SECTION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT AND SHALL EXTEND AND CONTINUE TO BENEFIT EACH INDIVIDUAL OR ENTITY WHO IS OR HAS AT ANY TIME BEEN AN INDEMNIFIED PERSON HEREUNDER. 
  
 14. Miscellaneous. 
  
 (a) Entire Agreement. This Agreement contains the
entire agreement of Secured Party and Debtor with respect to the Collateral. If the parties hereto are parties to any prior agreement, either written or oral, relating to the Collateral, the terms of this Agreement shall amend and supersede the
terms of such prior agreements as to transactions on or after the effective date of this Agreement, but all security agreements, financing statements, guaranties, other contracts and notices for the benefit of Secured Party shall continue in full
force and effect to secure the Indebtedness unless Secured Party specifically releases its rights thereunder by separate release. 
  
 (b) Amendment. No modification, consent or amendment of any provision of this Agreement or any of the other Loan Documents shall be
valid or effective unless the same is in writing and authenticated by the party against whom it is sought to be enforced, except to the extent of amendments specifically permitted by the Code without authentication by the Debtor or Obligor.

  
 (c) Actions by Secured Party. The
lien, security interest and other security rights of Secured Party hereunder shall not be impaired by (i) any renewal, extension, increase or modification with respect to the Indebtedness, (ii) any surrender, compromise, release, renewal, extension,
exchange or substitution which Secured Party may grant with respect to the Collateral, or (iii) any release or indulgence granted to any endorser, guarantor or surety of the Indebtedness. The taking of additional security by Secured Party shall not
release or impair the lien, security interest or other security rights of Secured Party hereunder or affect the obligations of Debtor hereunder. 
  
 (d) Waiver by Secured Party. Secured Party may waive any Event of Default without waiving any other prior or subsequent Event of
Default. Secured Party may remedy any default without waiving the Event of Default remedied. Neither the failure by Secured Party to 
  

 - 14 - 

 exercise, nor the delay by Secured Party in exercising, any right or remedy upon any Event of Default
shall be construed as a waiver of such Event of Default or as a waiver of the right to exercise any such right or remedy at a later date. No single or partial exercise by Secured Party of any right or remedy hereunder shall exhaust the same or shall
preclude any other or further exercise thereof, and every such right or remedy hereunder may be exercised at any time. No waiver of any provision hereof or consent to any departure by Debtor therefrom shall be effective unless the same shall be in
writing and signed by Secured Party and then such waiver or consent shall be effective only in the specific instances, for the purpose for which given and to the extent therein specified. No notice to or demand on Debtor in any case shall of itself
entitle Debtor to any other or further notice or demand in similar or other circumstances. 
  
 (e) Costs and Expenses. Debtor will upon demand pay to Secured Party the amount of any and all costs and expenses (including
without limitation, attorneys’ fees and expenses), which Secured Party may incur in connection with (i) the transactions which give rise to the Loan Documents, (ii) the preparation of this Agreement and the perfection and preservation of the
security interests granted under the Loan Documents, (iii) the administration of the Loan Documents, (iv) the custody, preservation, use or operation of, or the sale of, collection from, or other realization upon, the Collateral, (v) the exercise or
enforcement of any of the rights of Secured Party under the Loan Documents, or (vi) the failure by Debtor to perform or observe any of the provisions hereof. 
  

(f) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND
APPLICABLE FEDERAL LAWS, EXCEPT TO THE EXTENT PERFECTION AND THE EFFECT OF PERFECTION OR NON-PERFECTION OF THE SECURITY INTEREST GRANTED HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL, ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE
STATE OF TEXAS. 
  
 (g) Venue. This
Agreement has been entered into in the county in Texas where Secured Party’s address for notice purposes is located, and it shall be performable for all purposes in such county. Courts within the State of Texas shall have jurisdiction over any
and all disputes arising under or pertaining to this Agreement and venue for any such disputes shall be in the county or judicial district where this Agreement has been executed and delivered. 
  
 (h) Severability. If any provision of this Agreement
is held by a court of competent jurisdiction to be illegal, invalid or unenforceable under present or future laws, such provision shall be fully severable, shall not impair or invalidate the remainder of this Agreement and the effect thereof shall
be confined to the provision held to be illegal, invalid or unenforceable. 
  
 (i) No Obligation. Nothing contained herein shall be construed as an obligation on the part of Secured Party to extend or continue to extend credit to Obligor. 
  

 - 15 - 

 (j) Notices. All notices, requests, demands or other communications required or
permitted to be given pursuant to this Agreement shall be in writing and given by (i) personal delivery, (ii) expedited delivery service with proof of delivery, or (iii) United States mail, postage prepaid, registered or certified mail, return
receipt requested, sent to the intended addressee at the address set forth on the first page hereof or to such different address as the addressee shall have designated by written notice sent pursuant to the terms hereof and shall be deemed to have
been received either, in the case of personal delivery, at the time of personal delivery, in the case of expedited delivery service, as of the date of first attempted delivery at the address and in the manner provided herein, or in the case of mail,
upon deposit in a depository receptacle under the care and custody of the United States Postal Service. Either party shall have the right to change its address for notice hereunder to any other location within the continental United States by notice
to the other party of such new address at least thirty (30) days prior to the effective date of such new address. 
  
 (k) Binding Effect and Assignment. This Agreement (i) creates a continuing security interest in the Collateral, (ii) shall be
binding on Debtor and the heirs, executors, administrators, personal representatives, successors and assigns of Debtor, and (iii) shall inure to the benefit of Secured Party and its successors and assigns. Without limiting the generality of the
foregoing, Secured Party may pledge, assign or otherwise transfer the Indebtedness and its rights under this Agreement and any of the other Loan Documents to any other party. Debtor’s rights and obligations hereunder may not be assigned or
otherwise transferred without the prior written consent of Secured Party. 
  
 (l) Termination. It is contemplated by the parties hereto that from time to time there may be no, outstanding Indebtedness, but notwithstanding such occurrences, this Agreement shall remain valid and shall be
in full force and effect as to subsequent outstanding Indebtedness. Upon (i) the satisfaction in full of the Indebtedness, (ii) the termination or expiration of any commitment of Secured Party to extend credit to Obligor, (iii) written request for
the termination hereof delivered by Debtor to Secured Party, and (iv) written release delivered by Secured Party to Debtor, this Agreement and the security interests created hereby shall terminate. Upon termination of this Agreement and
Debtor’s written request, Secured Party will, at Debtor’s sole cost and expense, return to Debtor such of the Collateral as shall not have been sold or otherwise disposed of or applied pursuant to the terms hereof and execute and deliver
to Debtor such documents as Debtor shall reasonably request to evidence such termination. 
  
 (m) Cumulative Rights. All rights and remedies of Secured Party hereunder are cumulative of each other and of every other right or
remedy which Secured Party may otherwise have at law or in equity or under any of the other Loan Documents, and the exercise of one or more of such rights or remedies shall not prejudice or impair the concurrent or subsequent exercise of any other
rights or remedies. Further, except as specifically noted as a waiver herein, no provision of this Agreement is intended by the parties to this Agreement to waive any rights, benefits or protection afforded to Secured Party under the Code.

  

 - 16 - 

 (n) Gender and Number. Within this Agreement, words of any gender shall be held
and construed to include the other gender, and words in the singular number shall be held and construed to include the plural and words in the plural number shall be held and construed to include the singular, unless in each instance the context
requires otherwise. 
  
 (o) Descriptive
Headings. The headings in this Agreement are for convenience only and shall in no way enlarge, limit or define the scope or meaning of the various and several provisions hereof. 
  
 15. Financing Statement Filings. Debtor recognizes that financing statements pertaining to the Collateral have been
or may be filed in one or more of the following jurisdictions: the location of Debtor’s principal residence, the location of Debtor’s place of business, the location of Debtor’s chief executive office, or other such place as the
Debtor may be “located” under the provisions of the Code; where Debtor maintains any Collateral, or has its records concerning any Collateral, as the case may be. Without limitation of any other covenant herein, Debtor will neither cause
or permit any change in the location of (i) any Collateral, (ii) any records concerning any Collateral, or (iii) Debtor’s principal residence, the location of Debtor’s place of business, or the location of Debtor’s chief executive
office, as the case may be, to a jurisdiction other than as represented in Subsection 6(g), nor will Debtor change its name or the Organizational Information as represented in Subsection 6(g), unless Debtor shall have notified Secured
Party in writing of such change at least thirty (30) days prior to the effective date of such change, and shall have first taken all action required or deemed preferable by Secured Party for the purpose of further perfecting or protecting the
security interest in favor of Secured Party in the Collateral. In any written notice furnished pursuant to this Subsection, Debtor will expressly state that the notice is required by this Agreement and contains facts that may require additional
filings of financing statements, amendments or other notices for the purpose of continuing perfection of Secured Party’s security interest in the Collateral. 
  
 Without limiting Secured Party’s rights hereunder, Debtor authorizes Secured Party to file financing statements or
amendments thereto under the provisions of the Code as amended from time to time. 
  
 EXECUTED as of the date first written above. 
  

			
	DEBTOR:
	
	 EQUUS II INCORPORATED

		
	 By:
	 	 /s/ Nolan Lehmann

	 	 	 Nolan Lehmann

	 	 	 President

  

 - 17 - 

	
	 SECURED PARTY:

	
	 THE FROST NATIONAL BANK,
 a national banking association

	
	 By: /s/ Nancy L. Clarkson

	 Name: Nancy L. Clarkson

	 Title: Market President

  

 - 18 - 

 SCHEDULE 1  
 Portfolio Investments 
  
 Stock
Certificates 
  

									
	Issuer

	 	 	  	Certificate
Number

	  	Class of Stock

	  	Number of
Shares

	1.	 	 Champion Window Holdings, Inc.
	  	51	  	Common	  	1,160,000
	2.	 	 Champion Window Holding, Inc.
	  	63	  	Common	  	10,000
	3.	 	 Equicom, Inc.
	  	12	  	Common	  	452,000
	4.	 	 Industrial Data Systems Corporation
	  	C0171	  	Common	  	864,199
	5.	 	 PalletOne, Inc.
	  	008	  	Common	  	350,000
	6.	 	 Strategic Holdings, Inc.
	  	1	  	Common	  	1,000
	7.	 	 Strategic Holdings, Inc.
	  	2	  	Common	  	2,985,408
	8.	 	 Strategic Holdings, Inc.
	  	8	  	Common	  	103,343
	9.	 	 Strategic Holdings, Inc.
	  	 	  	Preferred	  	3,822,157
	10.	 	 Doane Pet Care Enterprises, Inc.
	  	DPC0220	  	Common (Class A)	  	1,040,000
	11.	 	 Doane Pet Care Enterprises, Inc.
	  	DPC0221	  	Common (Class A)	  	80,951
	12.	 	 Doane Pet Care Enterprises, Inc.
	  	 	  	 	  	822,647
	13.	 	 CMC Investments, L.L.C.
	  	2	  	Membership Units	  	2,055
	14.	 	 Container Acquisition, Inc.
	  	 	  	Common	  	1,374,803
	15.	 	 Container Acquisition, Inc.
	  	11	  	Preferred	  	1,333
	16.	 	 Container Acquisition, Inc.
	  	12	  	Preferred	  	1,381
	17.	 	 Container Acquisition, Inc.
	  	13	  	Preferred	  	1,431
	18.	 	 Container Acquisition, Inc.
	  	14	  	Preferred	  	1,467
	19.	 	 Container Acquisition, Inc.
	  	15	  	Preferred	  	1,488
	20.	 	 Container Acquisition, Inc.
	  	16	  	Preferred	  	1,525
	21.	 	 Container Acquisition, Inc.
	  	17	  	Preferred	  	1,580
	22.	 	 Container Acquisition, Inc.
	  	18	  	Preferred	  	1,655
	23.	 	 Container Acquisition, Inc.
	  	19	  	Preferred	  	1,589
	24.	 	 Container Acquisition, Inc.
	  	2	  	Preferred	  	383
	25.	 	 Container Acquisition, Inc.
	  	20	  	Preferred	  	1,683
	26.	 	 Container Acquisition, Inc.
	  	21	  	Preferred	  	1,744

  

 Page 1 

									
	Issuer

	 	 	  	 Certificate
 Number

	  	Class of
Stock

	  	Number
of Shares

	27.	 	 Container Acquisition, Inc.
	  	22	  	Preferred	  	1,788
	28.	 	 Container Acquisition, Inc.
	  	22	  	Preferred	  	1,788
	29.	 	 Container Acquisition, Inc.
	  	23	  	Preferred	  	1,793
	30.	 	 Container Acquisition, Inc.
	  	24	  	Preferred	  	1,858
	31.	 	 Container Acquisition, Inc.
	  	25	  	Preferred	  	1,925
	32.	 	 Equicom
	  	 	  	Preferred	  	633,061
	33.	 	 Equicom, Inc.
	  	26	  	Preferred	  	15,000
	34.	 	 Equicom, Inc.
	  	29	  	Preferred	  	9,550
	35.	 	 Sovereign Business Forms, Inc.
	  	7	  	Preferred	  	990
	36.	 	 Sovereign Business Forms, Inc.
	  	17	  	Preferred	  	294
	37.	 	 Sovereign Business Forms, Inc.
	  	19	  	Preferred	  	302
	38.	 	 Sovereign Business Forms, Inc.
	  	22	  	Preferred	  	308
	39.	 	 Sovereign Business Forms, Inc.
	  	24	  	Preferred	  	316
	40.	 	 Sovereign Business Forms, Inc.
	  	26	  	Preferred	  	322
	41.	 	 Sovereign Business Forms, Inc.
	  	28	  	Preferred	  	329
	42.	 	 Sovereign Business Forms, Inc.
	  	30	  	Preferred	  	337
	43.	 	 Sovereign Business Forms, Inc.
	  	33	  	Preferred	  	345
	44.	 	 Sovereign Business Forms, Inc.
	  	37	  	Preferred	  	352
	45.	 	 Sovereign Business Forms, Inc.
	  	38	  	Preferred	  	361
	46.	 	 Sovereign Business Forms, Inc.
	  	41	  	Preferred	  	368
	47.	 	 Sovereign Business Forms, Inc.
	  	44	  	Preferred	  	377
	48.	 	 Sovereign Business Forms, Inc.
	  	46	  	Preferred	  	385
	49.	 	 Sovereign Business Forms, Inc.
	  	50	  	Preferred	  	394
	50.	 	 Sovereign Business Forms, Inc.
	  	53	  	Preferred	  	402
	51.	 	 Sovereign Business Forms, Inc.
	  	56	  	Preferred	  	412
	52.	 	 Sovereign Business Forms, Inc.
	  	57	  	Preferred	  	421
	53.	 	 Sovereign Business Forms, Inc.
	  	59	  	Preferred	  	430
	54.	 	 Sovereign Business Forms, Inc.
	  	62	  	Preferred	  	441
	55.	 	 Sovereign Business Forms, Inc.
	  	63	  	Preferred	  	450
	56.	 	 Sovereign Business Forms, Inc.
	  	66	  	Preferred	  	460

  

 Page 2 

									
	Issuer

	  	Certificate
Number

	  	Class of Stock

	  	Number of
Shares

	57.	 	 Sovereign Business Forms, Inc.
	  	 	  	 	  	48,933
	58.	 	 Sovereign Business Forms, Inc.
	  	 	  	 	  	576,964
	59.	 	 PalletOne, Inc.
	  	003	  	Preferred (Series A)	  	3,150,000
	60.	 	 PalletOne, Inc.
	  	6	  	Preferred (Series A)	  	315,000
	61.	 	 Turfgrass America, Inc.
	  	P2	  	Preferred (Series A)	  	1,136,041
	62.	 	 Turfgrass America, Inc.
	  	P51	  	Preferred (Series A)	  	195,350
	63.	 	 Turfgrass America, Inc.
	  	P56	  	Preferred (Series A)	  	175,835

  
 Other Assets 

 

	1.	Promissory Note dated April 1, 2001 in the original principal amount of $502,035.20, executed by TURFGRASS AMERICA, INC., a Nevada corporation, and payable to the Borrower.

  

	2.	Warrant to Purchase Shares of Common Stock dated effective April 1, 2001 issued by TURFGRASS AMERICA, INC., a Nevada corporation, for 250,412 shares of common stock to the Borrower.
Termination Date is April 1, 2010. 

  

	3.	Series A Warrant No. 1 to Purchase Common Stock of Container Acquisition, Inc. dated as of February 28, 1997 for 370,588 shares of common stock issued to Borrower and expiring June
30, 2003, as renewed by
                                        .

  

	4.	Promissory Note dated December 21, 2001 in the original principal amount of $4,740,606.60 executed by PETROCON ENGINEERING, INC. and payable to the order of Borrower.

  

	5.	Replacement Subordinated Promissory Note dated September 19, 2001 in the original principal amount of $459,545.38, executed by THE BRADSHAW GROUP, INC. and payable to the order of
Borrower. 

  

	6.	Senior Subordinated Promissory Note No. PN-5 due 2004 issued October 29, 2002 in the original principal amount of $1,303,698.00 executed by SPECTRUM MANAGEMENT L.L.C. and payable to
the order of Borrower. Maturity Date is November 12, 2004. 

  

	7.	Subordinated Promissory Note dated December 14, 1998 in the original principal amount of $6,750,000.00 executed by STRATEGIC HOLDINGS, INC. and payable to the order of Borrower.
Maturity Date is November 1, 2005. 

  

	8.	Warrant to Purchase Shares of Common Stock of STRATEGIC HOLDINGS, INC. dated December 14, 1998 for 2,219,237 shares of common stock issued to Borrower. 

  

 Page 3 

	9.	Subordinated Debenture dated September 9, 1999 in the original principal amount of $1,000,000 executed by The Drilltec Corporation, Drilltec Patents & Technologies Company,
Inc., Drilltec GP, L.L.C., Drilltec LP, L.L.C., Drilltec Technologies, L.P. and Drilltec Indonesia, Inc. and payable to the order of Borrower. Maturity Date is August 18, 2006. 

  

	10.	Promissory Note dated October 6, 1999 in the original principal amount of $3,000,000, executed by SOVEREIGN BUSINESS FORMS, INC. and payable to the order of The Board of Trustees of
Texas Growth Fund, as Trustee for the Texas Growth Fund – 1995 Trust, and Borrower, as renewed and extended by                     .

  

	11.	Warrant Modification Agreement dated as of                     , 2003 by
and between Sovereign Business Forms, Inc., and The Board of Trustees of the Texas Growth Fund, as Trustee for the Texas Growth Fund – 1995 Trust, and Borrower. [Series E Warrant No. 1 for 546,900 shares of common stock?]

  

	12.	Warrant Modification Agreement dated as of                     , 2003 by
and between Sovereign Business Forms, Inc. and Borrower. [Series C Warrant No. 2 issued for 25,070 shares of common stock?] 

  

	13.	Subordinated Promissory Note dated December 14, 1998 in the original principal amount of $6,750,000.00 executed by STRATEGIC HOLDINGS, INC. and payable to Borrower. Maturity Date is
November 1, 2005. 

  

	14.	Warrant to Purchase Shares of Common Stock of STRATEGIC HOLDINGS, INC. dated October 31, 1996 issued for 100,000 shares of common stock to Borrower. Exercise period expires August
31, 2005. 

  

	15.	Warrant to Purchase Shares of Common Stock of STRATEGIC HOLDINGS, INC. dated October 31, 1996 issued for 225,000 shares of common stock to Borrower. Exercise period expires August
31, 2005. 

  

	16.	Promissory Note dated                      in the original principal
amount of $800,000.00 executed by Sovereign Business Forms, Inc. and payable to Borrower. Maturity Date is                     .

  

 Page 4Revolving Promissory Note

 Exhibit 10(p) 
  
 [GRAPHIC APPEARS HERE] 
  
 REVOLVING PROMISSORY NOTE 
  

					
	 $6,500,000.00
	 	 	 	March 15, 2004

  
 For value received,
EQUUS II INCORPORATED, a Delaware corporation (“Borrower”, whether one or more) does hereby promise to pay to the order of THE FROST NATIONAL BANK (“Lender”), at P.O. Box 1600, San Antonio, Texas 78296, or at
such other address as Lender shall from time to time specify in writing, in lawful money of the United States of America, the sum of SIX MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($6,500,000.00), or so much thereof as from time to time may be
disbursed by Lender to Borrower under the terms of that certain Loan Agreement dated of even date herewith between Borrower and Lender (the “Loan Agreement”), and be outstanding, together with interest from date hereof on the
principal balance outstanding from time to time as hereinafter provided. Interest shall be computed on a per annum basis of a year of 360 days and for the actual number of days elapsed, unless such calculation would result in a rate greater, than
the highest rate permitted by applicable law, in which case interest shall be computed on a per annum basis of a year of 365 days or 366 days in a leap year, as the case may be. 
  
 1. Payment Terms. Interest only on amounts outstanding hereunder shall be due and payable quarterly as
it accrues, on the 15th day of each June, September, December and March during the term hereof, beginning June 15,
2004, and continuing regularly and quarterly thereafter until March 31, 2005, when the entire amount hereof, principal and interest then remaining unpaid, shall be then due and payable; interest being calculated on the unpaid principal each day
principal is outstanding and all payments made credited to any collection costs and late charges, to the discharge of the interest accrued and to the reduction of the principal, in such order as Lender shall determine. 
  
 2. Late Charge. If a payment is made 10 days or more
late, Borrower will be charged, in addition to interest, a delinquency charge of (i) 5% of the unpaid portion of the regularly scheduled payment, or (ii) $250.00, whichever is less. Additionally, upon maturity of this Note, if the outstanding
principal balance (plus all accrued but unpaid interest) is not paid within 10 days of the maturity date, Borrower will be charged a delinquency charge of (i) 5% of the sum of the outstanding principal balance (plus all accrued but unpaid interest),
or (ii) $250.00, whichever is less. Borrower agrees with Lender that the charges set forth herein are reasonable compensation to Lender for the handling of such late payments. 
  
 3. Interest Rate. Interest on the outstanding and unpaid principal balance hereof shall be computed at a per
annum rate equal to the lesser of (a) a rate equal to the Prime Rate of Lender, plus 50/100 percent (.50%) per annum, with said rate to be adjusted to reflect any change in said Prime Rate at the time of any such change or (b) the highest rate
permitted by applicable law, but in no event shall interest contracted for, charged or received hereunder plus any other charges in connection herewith which constitute interest exceed the maximum interest permitted by applicable law, said rate to
be effective prior to maturity (however such maturity is brought about). The “Prime Rate” shall mean the prime rate of interest charged by Lender as established from time to time. The Prime Rate is a reference rate and does not necessarily
represent the lowest or best rate actually charged to any customer. 

 4. Default Rate. Matured unpaid principal and interest shall bear interest from date
of maturity until paid at the highest rate permitted by applicable law, or if no such maximum rate is established by applicable law, at the rate stated above plus five percent (5%) per annum. 
  
 5. Revolving Line of Credit. Under the Loan
Agreement, Borrower may request advances and make payments hereunder from time to time, provided that it is understood and agreed that the aggregate principal amount outstanding from time to time hereunder shall not at any time exceed $6,500,000.00.
The unpaid balance of this Note shall increase and decrease with each new advance or payment hereunder, as the case may be. This Note shall not be deemed terminated or canceled prior to the date of its maturity, although the entire principal balance
hereof may from time to time be paid in full. Borrower may borrow, repay and re-borrow hereunder. All payments and prepayments of principal or interest on this Note shall be made in lawful money of the United States of America in immediately
available funds, at the address of Lender indicated above, or such other place as the holder of this Note shall designate in writing to Borrower. If any payment of principal or interest on this Note shall become due on a day which is not a Business
Day (as hereinafter defined), such payment shall be made on the next succeeding Business Day and any such extension of time shall be included in computing interest in connection with such payment. As used herein, the term “Business
Day” shall mean any day other than a Saturday, Sunday or any other day on which national banking associations are authorized to be closed. The books and records of Lender shall be prima facie evidence of all outstanding principal of
and accrued and unpaid interest on this Note. 
  
 6.
Prepayment. Borrower reserves the right to prepay, prior to maturity, all or any part of the principal of this Note without penalty. Any prepayments shall be applied first to accrued interest and then to principal. Borrower will
provide written notice to the holder of this Note of any such prepayment of all or any part of the principal at the time thereof. All payments and prepayments of principal or interest on this Note shall be made in lawful money of the United States
of America in immediately available funds, at the address of Lender indicated above, or such other place as the holder of this Note shall designate in writing to Borrower. All partial prepayments of principal shall be applied to the last
installments payable in their inverse order of maturity. 
  
 7.
Default. It is expressly provided that upon default in the punctual payment of this Note or any part hereof, principal or interest, as the same shall become due and payable, and such default continues for a period of five (5) days
after written notice to Borrower given in accordance with the provisions of this Note, or upon the occurrence of an event of default specified in any of the other Loan Documents (as defined below), and such default continues for a period of fifteen
(15) days after written notice to Borrower given in accordance with the provisions of this Note, the holder of this Note may, at its option, without further notice or demand, (i) declare the outstanding principal balance of and accrued but unpaid
interest on this Note at once due and payable, (ii) refuse to advance any additional amounts under this Note, (iii) foreclose all liens securing payment hereof, (iv) pursue any and all other rights, remedies and recourses available to the holder
hereof, including but not limited to any such rights, remedies or recourses under the Loan Documents, at law or in equity, or (v) pursue any combination of 
  

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 the foregoing; and in the event default is made in the prompt payment of this Note when due or declared due, and the same
is placed in the hands of an attorney for collection, or suit is brought on same, or the same is collected through probate, bankruptcy or other judicial proceedings, then the Borrower agrees and promises to pay all costs of collection, including
reasonable attorney’s fees. 
  
 8. No Usury Intended;
Usury Savings Clause. In no event shall interest contracted for, charged or received hereunder, plus any other charges in connection herewith which constitute interest, exceed the maximum interest permitted by applicable law. The
amounts of such interest or other charges previously paid to the holder of the Note in excess of the amounts permitted by applicable law shall be applied by the holder of the Note to reduce the principal of the indebtedness evidenced by the Note,
or, at the option of the holder of the Note, be refunded. To the extent permitted by applicable law, determination of the legal maximum amount of interest shall at all times be made by amortizing, prorating, allocating and spreading in equal parts
during the period of the full stated term of the loan and indebtedness, all interest at any time contracted for, charged or received from the Borrower hereof in connection with the loan and indebtedness evidenced hereby, so that the actual rate of
interest on account of such indebtedness is uniform throughout the term hereof. 
  
 9. Security. This Note has been executed and delivered pursuant the Loan Agreement, and is secured by, inter alia, by a Pledge and Security Agreement (the “Security
Agreement”) of even date herewith by and between Borrower and Lender, covering certain collateral as more particularly described therein. 
  
 This Note, the Loan Agreement, the Security Agreement and all other documents evidencing, securing, governing, guaranteeing and/or pertaining to this Note, including but
not limited to those documents described above, are hereinafter collectively referred to as the “Loan Documents.” The holder of this Note is entitled to the benefits and security provided in the Loan Documents. 
  
 10. Joint and Several Liability; Waiver. Each maker,
signer, surety and endorser hereof, as well as all heirs, successors and legal representatives of said parties, shall be directly and primarily, jointly and severally, liable for the payment of all indebtedness hereunder. Lender may release or
modify the obligations of any of the foregoing persons or entities, or guarantors hereof, in connection with this loan without affecting the obligations of the others. Except as specifically provided herein all such persons or entities expressly
waive presentment and demand for payment, notice of default, notice of intent to accelerate maturity, notice of acceleration of maturity, protest, notice of protest, notice of dishonor, and all other notices and demands for which waiver is not
prohibited by law, and diligence in the collection hereof; and agree to all renewals, extensions, indulgences, partial payments, releases or exchanges of collateral, or taking of additional collateral, with or without notice, before or after
maturity. No delay or omission of Lender in exercising any right hereunder shall be a waiver of such right or any other right under this Note. 
  
 11. Texas Finance Code. In no event shall Chapter 346 of the Texas Finance Code (which regulates certain revolving loan accounts and
revolving tri-party accounts) apply to this Note. To the extent that Chapter 303 of the Texas Finance Code is applicable to this Note, the “weekly ceiling” specified in such article is the applicable ceiling; provided that, if any
applicable law permits greater interest, the law permitting the greatest interest shall apply. 
  

 3 

 12. Governing Law, Venue. This Note is being executed and delivered, and is intended
to be performed in the State of Texas. Except to the extent that the laws of the United States may apply to the terms hereof, the substantive laws of the State of Texas shall govern the validity, construction, enforcement and interpretation of this
Note. In the event of a dispute involving this Note or any other instruments executed in connection herewith, the undersigned irrevocably agrees that venue for such dispute shall lie in any court of competent jurisdiction in Bexar County, Texas.

  
 13. Purpose of Loan. Borrower agrees that
no advances under this Note shall be used for personal, family or household purposes, and that all advances hereunder shall be used solely for business, commercial, investment, or other similar purposes. 
  
 14. Captions. The captions in this Note are inserted for
convenience only and are not to be used to limit the terms herein. 
  
 15. Financial Information. Borrower agrees to promptly furnish such financial information and statements, including financial statements in a format acceptable to Lender, lists of assets and liabilities, agings of
receivables and payables, inventory schedules, budgets, forecasts, tax returns, and other reports with respect to Borrower’s financial condition and business operations as Lender may request from time to time. This provision shall not alter the
obligation of Borrower to deliver to Lender any other financial statements or reports pursuant to the terms of any other loan documents executed in connection with this Note. 
  
 16. Notices. All notices, requests, demands and other communications required or permitted hereunder
shall be in writing, and shall be deemed to be given or delivered when actually received by the party to whom directed, or, if earlier and regardless of whether actually received, upon deposit in a regularly maintained receptacle for the United
States mail, registered or certified, postage fully prepaid, addressed to the party to whom directed at its address set forth below or at such other address as such party may have specified previously by notice actually received by the other party:

  

			
	If to Borrower:	  	 Equus II Incorporated
 2929 Allen Parkway, Suite
2500
 Houston, Texas 77019
 Attn: Nolan
Lehmann

		
	If to Lender:	  	 The Frost National Bank
 P.O. Box 1600
 San Antonio, Texas 78296
 Attn: Scott Baxter
 Loan Number: 3259421-9001

  

 4 

			
	BORROWER:
	
	 EQUUS II INCORPORATED,

	 a Delaware corporation

	
	 By:   /s/    Nolan Lehmann

	 Name:
	 	 Nolan Lehmann

	 Title:
	 	 President

  

 5

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