Document:

Joint Code of Ethics

 Exhibit 10(f) 
 EQUUS TOTAL RETURN, INC. 
 MOORE CLAYTON CAPITAL ADVISORS, INC. 
 JOINT CODE OF ETHICS 
 (Last revised
August 10, 2007) 
  

	1.	Applicability 

 This Code of Ethics (the “Code”) has been
adopted by the Board of Directors of Equus Total Return, Inc. ( the “Fund”), including a majority of the Independent Directors, of the Fund and Moore Clayton Capital Advisors, Inc. (“MCCA”) in order to satisfy the requirements of
Rule 17j-1 under the 1940 Act and Section 204A of the Advisers Act. 
 As it relates to Rule 17j-1 of the 1940 Act, the purpose of the Code is to
establish standards and procedures that are reasonably designed for the detection and prevention of activities by which persons having knowledge of the investments and investment intentions of the Fund may abuse their fiduciary duties to the Fund
and otherwise deal with the types of conflicts of interest situations to which Rule 17j-1 is addressed. As it relates to Section 204A of the Advisers Act, the purpose of this Code is to establish procedures that, taking into consideration the
nature of MCCA’s business, are reasonably designed to prevent the misuse of material non-public information in violation of the federal securities laws by persons associated with MCCA. 
  

	1.	Definitions 

 1.1. “Access Person”
means any (a) Board Member, (b) Advisory Person, (c) officer of the Fund, or (d) partner, officer or director of MCCA. A person does not become an Access Person solely by reason of (a) normally assisting in the preparation
of public reports or receiving public reports, but not receiving information about current recommendations or trading activity or (b) a single instance of obtaining knowledge of current recommendations or trading activity, or infrequently and
inadvertently obtaining such knowledge. 
 1.2. “Advisory Person” means any (a) employee of the Fund or MCCA who, in
connection with his or her regular functions or duties, makes, participates in, or obtains current information regarding the purchase or sale of any security by the Fund, or which functions relate to the making of any recommendation concerning any
security held or to be purchased or sold by the Fund, and (b) any natural person in a Control relationship to the Fund or MCCA who obtains current information concerning recommendations made to the Fund with regard to the purchase of sale of
any Security. 
 1.3 “Annual Certification” means an Annual Certification of Compliance with Code of Ethics, in the form
attached as Schedule F. 

 1.4 “Beneficial Ownership” has the meaning set forth in paragraph (a)(2) of Rule 16a-1
under the Securities Exchange Act of 1934, and for purposes of this Code includes any interest by which an Access Person or any Immediate Family Member of an Access Person can directly or indirectly derive monetary or other economic benefit from the
purchase, sale (or other acquisition or disposition), or ownership of a security, including any such interest that arises as a result of: a general partnership interest in a general or limited partnership, an interest in a trust, a right to
dividends that is separated or separate from the underlying security, a right to acquire equity securities through the exercise or conversion of a derivative security (whether or not presently exercisable), and a performance related advisory fee
(other than an asset based fee). 
 1.5 “Board Member” means each individual who serves as a director of the Fund.

 1.6 “Committee of Independent Directors” means a committee comprised of all of the directors of the Fund who are not
“interested persons” of the Fund as defined in Section 2(a)(19) of the 1940 Act acting as a committee of the whole. 
 1.7
“Compliance Officer” means the person designated by MCCA to serve as the chief compliance officer of MCCA. 
 1.8
“Control” has the meaning set forth in Section 2(a)(9) of the 1940 Act, and includes the power to exercise a controlling influence over the management or policies of a company, unless such power is solely the result of an
official position with the company. Control shall be presumed to exist where a person owns beneficially, either directly or through one or more companies, more than 25% of the voting securities of a company. 
 1.9 “Fund Employee” means any person who: (1) is an Access Person or (2) is a director, officer, or employee of MCCA and
provides services to the Fund or in the course of his or her duties obtains information regarding investment recommendations made to the Fund or the Fund’s investment transactions. 
 1.10 “Immediate Family Member” means a person who shares the same household as the Access Person and is related to the Access Person by
blood, marriage, or adoption. 
 1.11 “Independent Board Member” means each individual who serves as an individual director
of the Fund who is not an “interested person,” as defined in Section 2(a)(19) of the 1940 Act. 
 1.12 “Initial
Certification” means an Initial Certification of Compliance with Code of Ethics, in the form attached as Schedule E. 
  

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 1.13 “Initial Public Offering” means an offering of securities registered under the
Securities Act of 1933, the issuer of which, immediately before the registration was not subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934. 
 1.14 “Limited Offering” means an offering that is exempt from registration pursuant to Section 4(2) or Section 4(6) of the
Securities Act of 1933 or Rule 504, 505, or 506 thereunder. 
 1.15 “Security” has the meaning set forth in
Section 2(a)(36) of the 1940 Act and includes any and all stock, debt obligations, and similar instruments of whatever kind, including any right or warrant to purchase a security, or option to acquire or sell a security, a group or index of
securities. References to a security in this Code shall be deemed to refer to and include any warrant for, option in, or security immediately convertible into that security, and shall also include any financial instrument that has an investment
return or value that is based, in whole or in part, on that security (collectively “derivatives”). 
 A security is “being
considered for purchase or sale” when a recommendation to purchase or sell the security has been made or communicated and, with respect to the person making the recommendation, when such person seriously considers making such a recommendation.

 1.16 “Securities that are not eligible for purchase by the Fund” unless the Fund otherwise notifies any Access Person to
the contrary, include (a) any security issued by an investment company; (b) any security that is registered on a national securities exchange; (c) any security that has unlisted trading privileges on a national securities exchange;
(d) any OTC margin stock or bond as defined in Regulation T issued by the Board of Governors of the Federal Reserve System pursuant to the Securities Exchange Act of 1934 (“Regulation T”); (e) any other margin security as defined
in Regulation T; (f) the purchase and sale of commodities or commodities contracts; (g) any put, call, straddle, option, or privilege related to any of the foregoing and (h) any other security other than common or preferred stock or
notes, bonds or debentures convertible into common or preferred stock or notes, bonds, or debentures combined with warrants, options, or other rights to acquire common or preferred stock. 
 The Compliance Officer shall maintain a list (the “Ineligible Security List”) of securities that fall within the foregoing categories but are
being considered for purchase or sale by the Fund or are held by the Fund. The Ineligible Security List shall be provided to each Access Person. 
  

	2.	Statement of General Principles 

 The general fiduciary principles
that govern the trading activities by an Access Person are as follows: 
 2.1 The duty at all times to place the interests of the stockholders
of the Fund first. 
  

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 2.2 The requirement that all personal securities transactions be conducted in a manner that does not
interfere with the Fund’s portfolio transactions so as to avoid any actual or potential conflict of interest or any abuse of an individual’s position of trust and responsibility. 
 2.3 The fundamental standard that Access Persons should not take inappropriate or unfair advantage of their relationship with the Fund or MCCA.

 Covered Persons must adhere to these general principles as well as comply with the Code’s specific provisions. 
  

	3.	Prohibited Purchases and Sales. 

 3.1 Except as
permitted pursuant to Section 4 or 5 below, no Access Person shall purchase or sell, directly or indirectly, any security in which he or she has, or by reason of such transaction acquires, any direct or indirect beneficial ownership and which
he or she knows or should know at the time of such purchase or sale: (a) has been purchased or sold by the Fund within the last 15 calendar days or held by the Fund for less than 60 calendar days, (b) is currently being purchased or sold
by the Fund, or (c) is being, or within the most recent 15 calendar days has been, considered for purchase or sale by the Fund. These prohibitions shall continue until the time that MCCA or any such Access Person decides not to recommend such
purchase or sale, or if such recommendation is made, until the time that the Fund decides not to enter into, or completes, such recommended purchase or sale. 
 3.2 No Access Person shall recommend any securities transaction by the Fund without having disclosed his interest, if any, in such securities or the issuer of the securities, including without limitation: (a) his
or her direct or indirect beneficial ownership of any securities of any such issuer, (b) any contemplated transaction by such person in such securities, (c) any position with such issuer or its affiliates, or (d) any present or
proposed business relationship between such issuer or its affiliates and such person or any party in which such person has a significant interest. 
 3.3 No Access Person shall, directly or indirectly in connection with the purchase or sale of any securities held or to be acquired by the Fund: (a) employ any device, scheme, or artifice to defraud the Fund, (b) make to the Fund
any untrue statement of a material fact or omit to state to the Fund a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading, (c) engage in any act, practice, or

  

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course of business that operates or would operate as a fraud or deceit upon the Fund, or (d) engage in any manipulative practice with respect to the
Fund. 
 3.4 No Access Person shall: (a) purchase, directly or indirectly, or by reason of such transaction acquire, any direct or
indirect beneficial ownership of any securities of any securities in an Initial Public Offering or a Limited Offering eligible for purchase by the Fund without prior approval in accordance with this Code or (b) accept any gift or other thing of
more than de minimus value from any person or entity that does business with or on behalf of the Fund. 
  

	4.	Exempt Purchases and Sales. 

 The prohibitions in Section 3 of
this Code shall not apply to: 
  

	 	(a)	Purchases or sales effected in any account over which an Access Person has no direct or indirect influence or control; 

  

	 	(b)	Purchases or sales of securities that are not eligible for purchase by the Fund, except any such securities that are listed on the Ineligible Security List;

  

	 	(c)	Purchases or sales of securities that are U.S. Treasury obligations, commercial paper and high quality debt instruments (including repurchase agreements) with a stated maturity of
12 months or less, bankers’ acceptances, and bank certificates of deposit; 

  

	 	(d)	Purchases and redemptions of shares of registered open-end investment companies (mutual funds); 

  

	 	(e)	Purchases effected upon exercise of rights issued by an issuer pro rata to all holders of a class of its securities to the extent such rights were acquired from such issuer, and
sales of such rights to be acquired; 

  

	 	(f)	Involuntary (i.e., non-volitional) purchases and sales or securities; 

  

	 	(g)	Any securities transaction, or series of related transaction, involving 500 shares or less in the aggregate, if the issuer has a market capitalization (outstanding shares multiplied
by the current price per share) greater than $1 billion; 

  

	 	(h)	Purchases that are part of an automatic dividend reinvestment plan; 

  

	 	(g)	Joint investments permitted pursuant to an exemptive order issued by the Securities and Exchange Commission; or 

  

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	 	(h)	Purchases or sales for which the Access Person has received prior approval from the Compliance Officer in accordance with this Code. 

  

	5.	Prior Clearance of Transactions. 

 No Access Person other than
Independent Board Members (unless they have actual knowledge of the matters described in Paragraph 3.1) shall effect a purchase or sale directly or indirectly, of any security in which he has, or by reason of such transaction acquires, any direct or
indirect beneficial ownership, other than purchases or sales permitted under Section 4 of this Code, without obtaining prior written clearance from the Compliance Officer or a person designated by the Compliance Officer to pre-clear
transactions. The Compliance Officer and these designated persons are referred to as a “Clearing Officer.” A Clearing Officer seeking pre-clearance with respect to his or her own transaction shall obtain such clearance from another
Clearing Officer. 
 Any Access Person who effects a purchase or sale after obtaining such prior written clearance shall be deemed not to be in violation of
Section 3 of this Code by reason of such purchase or sale. Upon written request from an Access Person as provided in Paragraph 5.1 below, a Clearing Officer shall have the sole discretion to pre-approve a personal securities transaction, and
thereby exempt such transaction from the restrictions of this Code. The Clearing Officer shall make such determination in accordance with the following: 
 5.1 Prior approval shall be granted only if a purchase or sale of securities is consistent with the purposes of this Code and Section 17(j) of the 1940 Act. To illustrate, a purchase or sale shall be considered
consistent with those purposes if such purchase or sale is only remotely potentially harmful to the Fund or MCCA because such purchase or sale would be unlikely to affect a highly institutional market, or because such purchase or sale is clearly not
related economically to the securities held, purchased, or sold by the Fund. 
 5.2 Prior approval shall take into account, among other
factors: 
  

	 	(a)	Whether the investment opportunity should be reserved for the Fund and whether the opportunity is being offered to the Access Person by virtue of the Access Person’s position
with the Fund or MCCA; 

  

	 	(b)	Whether the amount or nature of the transaction or person making it is likely to affect the price or market for the security; 

  

	 	(c)	Whether the Access Person making the proposed purchase or sale is likely to benefit from purchases or sales being made or being considered by the Fund; 

  

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	 	(d)	Whether the security proposed to be purchased or sold is one that would qualify for purchase or sale by the Fund; 

  

	 	(e)	Whether the transaction is non-volitional on the part of the individual, such as receipt of a stock dividend or a sinking fund call; 

  

	 	(f)	Whether the chance of a conflict of interest is remote; and 

  

	 	(g)	Whether the transaction is likely to effect the Fund adversely. 

 5.3 Access Persons must submit in writing a completed and executed Request for Permission to Engage in a Personal Securities Transaction (a form of which is attached hereto as Schedule A), which shall set forth the details of the proposed
transaction. Approval of the transaction as described on such form shall be evidenced by the signature of the Clearing Officer thereon. A copy of all prior approval forms, with all required signatures, shall be retained by the Compliance Officer.

 5.4 If approval is given to the Access Person in accordance with this Code to engage in a securities transaction, the Access Person is
under an affirmative obligation to disclose that position if such Access Person plays a material role in the Fund’s subsequent investment decision regarding the same issuer. In such circumstances, an independent review of the Fund’s
investment decision to purchase securities of the issuer by investment personnel with no personal interest in the issuer shall be conducted. 
 5.5 Approval granted to the Covered Person in accordance with this Code is only effective for seven days from the date of such approval; provided, however, that a pre-clearance expires upon the Access Person receiving pre-clearance becoming
aware of facts or circumstances that would prevent a proposed trade from being pre-cleared were such facts or circumstances made known to a Clearing Officer. Accordingly, if an Access Person becomes aware of new or changed facts or circumstances
that give rise to a question as to whether pre-clearance could be obtained if a Clearing Officer was aware of such facts or circumstances, the Access Person shall be required to so advise a Clearing Officer and obtain a new pre-clearance before
proceeding with such transaction. 
  

	6.	Reporting. 

 6.1 Every Access Person must submit an
Initial Holdings Report, Quarterly Transactions Reports and Annual Holdings Reports on such dates as shall be determined by the Compliance Officer containing the information set forth below about each transaction, if any, by which the Access Person
acquires any direct or indirect beneficial ownership of a security; provided, however, that: 
  

	 	(a)	An Access Person shall not be required to include in such reports any transaction effected for any account over which such Access Person does not have any direct or indirect
influence or control; and 

  

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	 	(b)	Independent Board Members of the Fund shall not be required to submit an Initial Holdings Report or Annual Holdings Reports, and shall be required to submit a Quarterly Transaction
Report of a transaction only if such person, at the time of that transaction, knew, or in the ordinary course of fulfilling his official duties as a director of the Fund should have known, that during the 15-day period immediately preceding or after
the date of the transaction by such person, the security such person purchased or sold is or was purchased or sold by the Fund or was being considered for purchase or sale by the Fund or MCCA. 

 6.2 Each Access Person within ten days of the date that he or she becomes an Access Person shall furnish to the Compliance Officer an Initial Holdings
Report in the form attached as Schedule B containing the following information: (a) the title, number of shares, and principal amount of all securities that he or she beneficially owns, directly or indirectly, except securities specified in
Section 4(a) and (c) of this Code, (b) the name of any broker, dealer, or bank with whom the Access Person maintained an account in which any securities held, purchased, or sold (“personal securities account”) for the direct
or indirect benefit of the Access Person as of the date the person became an Access Person, and (c) the date the report is submitted by the Access Person. 
 Timely submission of an Initial Holdings Report, along with a copy of the most recent monthly statement for each personal securities account and copies of all confirmation of transactions effected after the date of
such statement, shall satisfy the requirements of this Section 6.2 regarding submission of an Initial Holdings Report. 
 6.3 An Access
Person must submit (a) no later than thirty days after the end of each calendar quarter to the Compliance Officer a report containing the name of any broker, dealer or bank with whom the Access Person established an account in which any
securities were held during the quarter for such person’s direct or indirect benefit, the date the account was established and the date the report is submitted, and (b ) a Quarterly Transactions Report in the form attached as Schedule C to
the Compliance Officer no later than thirty days after the end of each calendar quarter containing the following information with respect to any transaction during the quarter in a security in which the Access Person had any direct or indirect
beneficial ownership except purchases and sales specified in Section 4(a) and (c) of this Code: 
  

	 	(1)	The date of the transaction, the title, the interest rate and maturity date (if applicable) and the number of shares, and the principal amount of each security involved;

  

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	 	(2)	The nature of the transaction (i.e., purchase, sale or other acquisition or disposition); 

  

	 	(3)	The price at which the transaction was effected; 

  

	 	(4)	The name of the broker, dealer or bank with or through whom the transaction was effected; and 

  

	 	(5)	The date that the report is submitted by the Access Person. 

 An Access Person need not file a Quarterly Transaction Report for a calendar quarter if the Compliance Officer is being furnished with (a) confirmations and statements for all personal securities accounts of such Access Person,
(b) duplicate monthly brokerage statements for all personal securities accounts on all transactions required to be reported hereunder, or (c) the requisite information on all transactions required to be reported hereunder through a
transaction monitoring system, which may or may not be automated, in a manner acceptable to the Compliance Officer, provided that the Access Person has no reportable transactions other than those reflected in the confirmations and statements for
such accounts. 
 6.4 Every Access Person must submit an Annual Holdings Report in the form attached as Schedule D to the Compliance Officer,
which information must be current as of a date no more than forty-five days before the report is submitted containing the following information: 
  

	 	(a)	The title and the number of shares, and the principal amount of each security in which the Access Person had any direct or indirect beneficial ownership; 

 

	 	(b)	The name of any broker, dealer or bank with whom the Access Person maintains an account, provided that transaction effected in accounts as to which the Compliance Officer is being
furnished with confirmations and statements need not be included in the Quarterly Transaction Report, provided that the report includes a certification that there are not reportable transactions other than those set forth in the Quarterly
Transaction Report and in confirmations and statements for such accounts; and 

  

	 	(c)	The date that the report is submitted by the Access Person. 

  

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 Submission of the Annual Holdings Report, along with copies of the most recent monthly statement for each
personal securities account, shall satisfy the requirements of this Section 6.4 regarding submission of an Annual Holdings Report. 
 6.5
Any report may also contain a statement declaring that the reporting or recording of any such transaction shall not be construed as an admission that the Access Person making the report has any direct or indirect beneficial ownership in the security
to which the report relates. 
  

	7.	Administration and Procedural Matters  

 7.1 The
Compliance Officer shall: 
  

	 	(a)	Maintain a current list of the names of all Access Persons, with an appropriate description in each case of the titles or employment of such persons, including a notation of any
directorships held by Access Persons, and the date each such person became an Access Person. 

  

	 	(b)	On an annual basis, furnish a copy of this Code to each Access Person; 

  

	 	(c)	Notify each Access Person of his or her obligation to file reports as provided by this Code; 

  

	 	(d)	Obtain Initial and Annual Holdings Reports from Access Persons and review Initial and Annual Holdings Reports; 

  

	 	(e)	Report to the Board Members of the Fund the facts contained in any reports filed with the Compliance Officer pursuant to this Code when any such report indicates that a Access
Person purchased or sold a security held or to be acquired by the Fund; 

  

	 	(f)	Supervise the implementation of this Code by MCCA and the enforcement of the terms hereof by MCCA; 

  

	 	(g)	Determine whether any particular securities transaction should be exempted pursuant to the provisions of this Code; 

  

	 	(h)	Issue either personally or with the assistance of counsel as may be appropriate, any interpretation of this Code that may appear consistent with the objectives of Rule 17j-1 and
this Code; 

  

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	 	(i)	Conduct such inspections or investigations as shall reasonably be required to detect and report any apparent violations of this Code to the Board Members of the Fund;

  

	 	(j)	Review reports submitted pursuant to this Code; 

  

	 	(k)	Maintain and cause to be maintained in an easily accessible place, the following records: 

  

	 	(1)	A copy of any Code adopted pursuant to Rule 17j-1 which has been in effect during the past five years; 

  

	 	(2)	A record of any violation of any such Code and of any action taken as a result of such violation; 

  

	 	(3)	A copy of each report made by the Compliance Officer during the past five years; 

  

	 	(4)	A list of all persons who are, or within the past five years have been, required to make reports pursuant to Rule 17j-1, or who are or were responsible for reviewing these reports,
with an appropriate description of their title or employment; 

  

	 	(5)	A copy of each report made by an Access Person as required by Section 6 of the Code, including any information provided in lieu of the reports under Section 6 of the Code,
during the past five years; and 

  

	 	(6)	A copy of each report to the Board Members of the Fund required by Section 7.1(e) during the past five years; and. 

  

	 	(l)	Perform such other duties as are set forth in this Code. 

 7.2 This Code may not be amended or modified except in a written form that is specifically approved by the Board Members of the Fund, including a majority of the Independent Board Members, within six months after such amendment or
modification. 
 In connection with any such amendment or modification the Board Members must receive a certification from the Compliance
Officer certifying that procedures reasonably necessary to prevent Access Persons from violating the Code, as proposed to be amended or modified, have been adopted. 
 7.3 The Compliance Officer may delegate to one or more other officers of MCCA such responsibilities of the Compliance Officer as he or she may deem 

  

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appropriate; provided, that: (a) any such delegation shall beset forth in writing and retained as part of the records of the applicable Fund and MCCA
and (b) it shall be the responsibility of the Compliance Officer to supervise the performance by such persons of the responsibilities that have been delegated to them. 
  

	8.	Selective Disclosure of Non-Public Information 

 8.1
A business development company is subject to Regulation FD under the 1934 Act, or fair disclosure, which requires any issuer, or anyone acting on its behalf, which discloses any material nonpublic information regarding the issuer or its portfolio
securities, to any of a group of specified entities, to make public disclosure either simultaneously if the disclosure was intentional or promptly if the disclosure was non-intentional. Public disclosure means either filing a Form 8-K with the SEC
disclosing the information or using another method reasonably designed to “provide broad, non-exclusionary distribution of the information to the public.” Regulation FD defines “promptly” to mean no later than 24 hours or the
commencement of the next day’s trading on the New York Stock Exchange. The specified entities to whom nonpublic disclosure may have been made, whether intentionally or inadvertently, include broker-dealers, investment advisers, investment
companies, and stockholders. 
 8.2 The Regulation FD requirement to make public disclosure does not apply to a disclosure made: 

 

	 	•	 	 To a person who owes a duty of trust or confidence to the issuer (e.g., the Fund’s investment adviser, administrator or Fund counsel);

  

	 	•	 	 To a person who expressly agrees to maintain the information in confidence; 

  

	 	•	 	 To credit rating agencies, provided the information is provided solely for the purpose of developing a credit rating and the ratings are publicly available; or

  

	 	•	 	 In connection with a securities offering registered under the 1933 Act. 

 8.3 Unlike a mutual fund, the Fund is not required to describe its policies and procedures with respect to the disclosure of its portfolio securities in
its registration statement. If questions regarding whether disclosing particular information may be a violation of Regulation FD arise, Fund officers should consult with Fund legal counsel. 
  

	9.	Prohibition Against Insider Trading.  

 This Section is intended to
satisfy the requirements of Section 204A of the Advisers Act, which is applicable to MCCA and requires that MCCA establish and enforce procedures designed to prevent the misuse of material, non-public information by its associated 

  

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persons. It applies to all Fund Employees. Trading securities while in possession of material, non-public information, or improperly communicating that
information to others, may expose a Fund Employee to severe penalties. Criminal sanctions may include a fine of up to $1,000,000 and/or ten years imprisonment. The SEC can recover the profits gained or losses avoided through the violative trading, a
penalty of up to three times the illicit windfall, and an order permanently barring the Fund Employee from the securities industry. Finally, the Fund Employee may be sued by investors seeking to recover damages for insider trading violations.

 9.1 No Fund Employee may trade a security, either personally or on behalf of any other person or account (including any Fund), while in
possession of material, non-public information concerning that security or the issuer thereof, nor may any Fund Employee communicate material, non-public information to others in violation of the law. 
 9.2 Information is “material” where there is a substantial likelihood that a reasonable investor would consider it important in making his or
her investment decisions. Generally, this includes any information the disclosure of which will have a substantial effect on the price of a security. No simple test exists to determine when information is material; assessments of materiality involve
a highly fact specific inquiry. For this reason, Fund Employees should direct any questions about whether information is material to the Compliance Officer. Material information often relates to a company’s results and operations, including,
for example, dividend changes, earnings results, changes in previously released earnings estimates, significant merger or acquisition proposals or agreements, major litigation, liquidation problems, and extraordinary management developments.
Material information may also relate to the market for a company’s securities. Information about a significant order to purchase or sell Securities may, in some contexts, be material. Pre-publication information regarding reports in the
financial press may also be material. 
 9.3 Information is “public” when it has been disseminated broadly to investors in the
marketplace. For example, information is public after it has become available to the general public through a public filing with the SEC or some other government agency, the Dow Jones “tape” or The Wall Street Journal or some other
publication of general circulation, and after sufficient time has passed so that the information has been disseminated widely. 
 9.4 A Fund
Employee, before executing any trade for himself or herself, or others, including the Fund or other accounts managed by MCCA or by a stockholder of the Advisor, or any affiliate of the stockholder (“Client Accounts”), must determine
whether he or she has material, non-public information. A Fund Employee who believes he or she is in possession of material, non-public information must take the following steps: 
  

	 	(a)	Report the information and proposed trade immediately to the Compliance Officer. 

  

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	 	(b)	Do not purchase or sell the securities on behalf of anyone, including Client Accounts. 

  

	 	(c)	Do not communicate the information to any person, other than to the Compliance Officer. 

 After the Compliance Officer has reviewed the issue, MCCA will determine whether the information is material and non-public and, if so, what action the Advisor and the Fund Employee should take. Fund Employees must
consult with the Compliance Officer before taking any action. This degree of caution will protect Fund Employees and the Adviser. 
 9.5
Contacts with public companies will sometimes be a part of an Advisor’s research efforts. Persons providing investment advisory services to the Fund may make investment decisions on the basis of conclusions formed through such contacts and
analysis of publicly available information. Difficult legal issues arise, however, when, in the course of these contacts, a Fund Employee becomes aware of material, non-public information. This could happen, for example, if a company’s chief
financial officer prematurely discloses quarterly results to an analyst, or an investor relations representative makes selective disclosure of adverse news to a handful of investors. In such situations, MCCA must make a judgment as to its further
conduct. To protect yourself, clients and MCCA, you should contact the Compliance Officer immediately if you believe that you may have received material, non-public information. 
  

	10.	Sanctions. 

 Any violation of this Code shall be subject to the
imposition of such sanctions by the affected Fund and MCCA as may be deemed appropriate under the circumstances to achieve the purposes of Rule 17j-1 and this Code. Any sanctions to be imposed by the Fund shall be determined by the Committee of
Independent Directors of the Fund. Any sanctions to be imposed by MCCA shall be designated by MCCA. Sanctions may include, but are not limited to, suspension or termination of employment, a letter of censure and/or payment to the Fund of any profits
derived from securities transactions in violation of this Code. 
  

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	11.	Review of Reports. 

 The Compliance Officer shall be responsible for
reviewing all reports filed with the Fund or MCCA pursuant to Section 6 of this Code. Such officer shall indicate on each report the date of his review and shall sign each report to indicate that it has been reviewed. Such officer shall report
to the Committee of the Independent Directors of the Fund any violations of this Code that come to his or her attention in such review. 
  

	12.	Investment Advisers. 

 Prior to retaining the services of an
investment adviser or principal underwriter for the Fund, the Board of Directors of the Fund shall review the Code of Ethics adopted pursuant to paragraph (b)(1)(i) of Rule 17j-1 under the 1940 Act by such investment adviser or principal
underwriter, and shall receive a certification from such investment adviser or principal underwriter that it has adopted such procedures as are necessary to prevent Access Persons from violating such code. 
  

	13.	Periodic Review. 

 No less frequently than annually, the Compliance
Officer shall furnish the Board of Directors of the Fund a report: 
  

	 	(a)	Describing issues arising under this Code of Ethics since the last report to the Board, including but not limited to, information about material violations of the Code, sanctions
imposed in response to such violations, changes made to the Code or procedures, and any proposed or recommended changes to the Code or procedures, and 

  

	 	(b)	Certifying that the Fund and MCCA each have adopted such procedures as are reasonably necessary to prevent Access Persons from violating the Code. 

  

	14.	Confidentiality. 

 All information obtained from any Access Person
hereunder shall be kept in strict confidence, except that reports of securities transactions hereunder will be made available to the SEC or any other regulatory or self-regulatory organization only to the extent required by law or regulation.

  

	15.	Other Laws, Rules, and Statements of Policy. 

 Nothing contained in
this Code shall be interpreted as relieving any Access Person from acting in accordance with the provisions of any applicable law, rule or regulation or any other statement of policy or procedure governing the conduct of such person adopted by the
Fund or MCCA. 
  

 15 

	16.	Further Information. 

 If any person has any question with regard to
the applicability of the provisions of this Code generally or with regard to any securities transaction or transactions, he or she should consult the Compliance Officer. 
  

	17.	Certification by Access Persons. 

 All Access Persons of the Company
must submit a certificate (a form of which is attached as Schedule E) that they have read and understand this Code and recognize that as an Access Person they are subject to the terms of this Code. All Access Persons of the Fund or MCCA shall agree
to certify on an annual basis (a form of which is attached as Schedule F) that they have complied with the requirements of this Code and that they have disclosed or reported all personal securities transactions required to be disclosed or reported
pursuant to the requirements of this Code. 
  

 16Loan Agreement

 Exhibit 10(g) 
  

					
	 	 	LOAN AGREEMENT	 	 
			
		 	Between	 	
	 EQUUS TOTAL RETURN, INC.
	 	and	 	REGIONS BANK
	 f/k/a EQUUS II INCORPORATED
	 		 	3272 Westheimer, Suite #1
	 2727 Allen Parkway, Suite 1300
	 		 	Houston, Texas 77098
	 Houston, Texas 77019
	 		 	
		 	August 18, 2006	 	

 THIS LOAN AGREEMENT (the “Loan Agreement”) will serve to set forth the
terms of the financing transactions by and between EQUUS TOTAL RETURN, INC., formerly known as EQUUS II INCORPORATED, a Delaware corporation (“Borrower”), and REGIONS BANK, an Alabama state banking corporation
(“Lender”): 
 1. Credit Facility. Subject to the terms and conditions set forth in this Loan Agreement and the
other agreements, instruments and documents evidencing, securing, governing, guaranteeing and/or pertaining to the Loan, as hereinafter defined (collectively, together with the Loan Agreement, referred to hereinafter as the “Loan
Documents”), Lender hereby agrees to provide to Borrower the credit facility described below (the “Credit Facility”): 
 Borrowing Base Line of Credit. Subject to the terms and conditions set forth herein, Lender agrees to lend to Borrower, on a revolving basis from time to time during the period commencing on the date hereof and continuing through the
maturity date of the Note (as defined below), such amounts as Borrower may request hereunder; provided, however, the total principal amount outstanding at any time shall not exceed the lesser of (i) an amount equal to the
Borrowing Base (as such term is defined hereinbelow), or (ii) $10,000,000.00 (the “Borrowing Base Line of Credit”). If at any time the aggregate principal amount outstanding under the Borrowing Base Line of Credit shall exceed
an amount equal to the Borrowing Base, Borrower agrees to immediately repay to Lender such excess amount, plus all accrued but unpaid interest thereon. Subject to the terms and conditions hereof, Borrower may borrow, repay and reborrow hereunder.
The sums disbursed under the Borrowing Base Line of Credit (each of such disbursements being hereinafter called an “Advance”) shall be used for working capital and operating expenses. 
 Clean Down Period. During the period commencing on the date of this Loan Agreement and ending December 31, 2007, Borrower covenants and agrees
that there shall be a period of at least sixty (60) consecutive days during which (a) there are no Advances outstanding and (b) no Advances will be made. 
 As used in this Loan Agreement, the term “Borrowing Base” shall mean an amount equal to 20% of Borrower’s Eligible Portfolio Value (hereinafter defined). 
 As used herein the term “Eligible Portfolio Value” shall mean, at any time, the difference between Borrower’s Portfolio Value
(hereinafter defined) and Borrower’s Ineligible Investments (hereinafter defined); provided there shall be excluded from the calculation of Eligible Portfolio Value that portion of any investment in a single entity which exceeds twenty percent
(20%) of the aggregate Eligible Portfolio Value calculated without giving effect to such limitation; provided further, however, on a case by case basis the Borrower may request that for a particular investment in an entity the twenty percent
(20%) limit may be increased at closing or after Borrower receives a bona fide third party offer to purchase such investment in such entity and the Lender may approve such request at its sole and absolute discretion. The term “Portfolio
Value” shall mean the value, as reflected on the then most current Investment History and Portfolio Valuation Report (hereinafter defined) prepared and presented to Lender in accordance with the provisions of Section 9(c) of this Loan
Agreement, of the Collateral (hereinafter defined). The term “Ineligible Investments” means any portion of the Collateral which represents an investment by Borrower in a company or other entity which is in bankruptcy or which is in
default under any loan to such company or other entity and as to which loan (i) all cure periods have expired and (ii) no written waivers of such default have been issued by the lender under such loan. The sale or other disposition by
Borrower of any portion of the Collateral shall result in an immediate reduction in Eligible Portfolio Value, which reduction shall be equal to the value assigned to such sold or disposed of Collateral in the then most current Investment History and
Portfolio Valuation Report (hereinafter defined) prepared and presented to Lender in accordance with the provisions of Section 9(c) of this Loan Agreement. Borrower shall be permitted to increase or decrease the Eligible Portfolio Value, by the
addition or deletion of Collateral, provided that at the time Borrower elects to delete Collateral, (i) no Event of Default (hereinafter defined) exists and (ii) such deletion does not cause the then outstanding principal balance of the
Note to exceed the Borrowing Base, as the Borrowing Base will exist after the deletion of such Collateral. 
 Lender agrees, to the extent
Borrower is entitled to any release of Collateral under the terms of this Agreement or any other Loan Document, upon receipt of a request from Borrower, to promptly execute any written release of pledge required 

  

 1 

 
by The Frost National Bank, as custodian of the Collateral, as required pursuant to Section 4 of that certain Safekeeping Agreement (Corporate – No
Foreign Securities) dated as of March 15, 2004, as amended, between The Frost National Bank and Borrower. 
 All Advances under the
Credit Facility shall be collectively called the “Loan”. Each request for an Advance shall be evidenced by Borrower’s delivery to Lender of a Borrowing Request substantially in the form attached as Exhibit B hereto (the
“Borrowing Request”). Each continuation or conversion of the interest rate election made by Borrower with respect to Advances outstanding under the Note (as hereinafter defined) shall be evidenced by Borrower’s delivery to
Lender of a Conversion/Continuation Notice substantially in the form attached as Exhibit C hereto (the “Conversion/Continuation Notice”). 
 2. Promissory Note. The Credit Facility shall be evidenced by one promissory note (together with any renewals, extensions and increases thereof, the “Note”) duly executed by Borrower and
payable to the order of Lender, in substantially the form attached as Exhibit A hereto. Interest on the Note shall accrue at the rate set forth therein. The principal of and interest on the Note shall be due and payable in accordance with the terms
and conditions set forth in the Note and in this Loan Agreement. 
 3. Collateral. As collateral and security for the
indebtedness evidenced by the Note and any and all other indebtedness or obligations from time to time owing by Borrower to Lender in connection with any Loan Document, Borrower has granted to Lender, its successors and assigns, concurrently
herewith under the Pledge and Security Agreement dated as of the date hereof made by Borrower in favor of Lender (the “Pledge and Security Agreement”), a lien and security interest in and to the Collateral (as defined in the Pledge
and Security Agreement, the “Collateral”). Borrower agrees to execute such security agreements, assignments, and other agreements and documents as Lender shall reasonably deem appropriate and otherwise reasonably require from time
to time to more fully create and perfect Lender’s lien and security interests in the Collateral and other agreements and documents as Lender shall deem appropriate and otherwise reasonably require from time to time to more fully create and
perfect Lender’s lien and security interests in the Collateral. 
 4. Representations and Warranties. Borrower hereby
represents and warrants, and upon each request for an Advance under the Credit Facility further represents and warrants, to Lender as follows: 
 (a) Existence. Borrower is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, is duly qualified and in good standing under the laws of all other states
where it is doing business, and has all requisite power and authority to execute and deliver the Loan Documents. 
 (b)
Binding Obligations. The execution, delivery, and performance of this Loan Agreement and all of the other Loan Documents by Borrower have been duly authorized by all necessary action by Borrower, and constitute legal, valid and binding
obligations of Borrower, 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. 
 (c) No Consent. The execution, delivery and
performance of this Loan Agreement and the other Loan Documents, and the consummation of the transactions contemplated hereby and thereby, do not (i) conflict with, result in a violation of, or constitute a default under (A) any provision
of its articles or certificate of incorporation or bylaws, or any agreement or other instrument binding upon Borrower, or (B) any law, governmental regulation, court decree or order applicable to Borrower, or (ii) require the consent,
approval or authorization of any third party. 
 (d) Financial Condition. Each financial statement of Borrower supplied
to the Lender truly discloses and fairly presents Borrower’s financial condition as of the date of each such statement. There has been no material adverse change in such financial condition or results of operations of Borrower subsequent to the
date of the most recent financial statement supplied to Lender. 
 (e) Litigation. There are no actions, suits or
proceedings, pending or, to the knowledge of Borrower, threatened against or affecting Borrower or the properties of Borrower, before any court or governmental department, commission or board, which, if determined adversely to Borrower, would have a
material adverse effect on the financial condition, properties, or operations of Borrower. 
 (f) Taxes; Governmental
Charges. Borrower has filed all material federal, state and local tax reports and returns required by any law or regulation to be filed by it and has either duly paid all material taxes, duties and charges indicated due on the basis of such
returns and reports, or made adequate provision for the payment thereof, and the assessment of any material amount of additional taxes in excess of those paid and reported is not reasonably expected. 
 (g) Margin Regulations. If at any time any of the Collateral consists of “margin stock” (within the meaning of
Regulations T, U or X of the Board of Governors of the Federal Reserve System (collectively, the “Margin Regulations”)) (“Margin Stock”), the Advances do not violate the Margin Regulations. 
  

 2 

 5. Conditions Precedent to Advances and Fees. 
 (a) Conditions Precedent to Initial Advance. Lender’s obligation to make the initial Advance under this Loan Agreement
and the other Loan Documents shall be subject to the conditions precedent that, as of the date of such initial Advance (i) Borrower shall have executed and delivered to Lender the Loan Documents, (ii) Borrower shall have provided evidence
satisfactory to Lender that the execution and delivery of the Loan Documents by Borrower was duly authorized by Borrower’s board of directors and (iii) Borrower shall have requested and obtained from Borrower’s counsel an opinion
letter, addressed to Lender, covering, among other things, the organization, existence, and authorization of Borrower and its representatives, the due execution and delivery of the Loan Documents, the validity and enforceability of the Loan
Documents, and such other matters as Lender may reasonably request. 
 (b) Conditions Precedent to All Advances.
Lender’s obligation to make any Advance under this Loan Agreement and the other Loan Documents shall be subject to the conditions precedent that, as of the date of such Advance and after giving effect thereto (i) all representations and
warranties made to Lender in this Loan Agreement and the other Loan Documents shall be true and correct, as of and as if made on such date, (ii) no material adverse change in the financial condition of Borrower since the effective date of the
most recent financial statements furnished to Lender by Borrower shall have occurred and be continuing, (iii) no event has occurred and is continuing, or would result from the, requested Advance, which with notice or lapse of time, or both,
would constitute an Event of Default, (iv) Lender’s receipt of all Loan Documents appropriately executed by Borrower and all other proper parties and (v), in the event that at the time of the requested Advance any Collateral consists of
Margin Stock, the Borrower shall have delivered to Lender Federal Reserve Form U-1 (or any successor form), which shall contain statements that, in the reasonable judgment of the Lender, permit the requested Advance to be made in compliance with the
Margin Regulations. 
 (c) Unused Fees. Borrower acknowledges that Lender will be required to hold funds
available for Advances to Borrower under the terms of this Loan Agreement even if Borrower does not elect to make borrowings under the Credit Facility. In consideration of Lender’s holding the availability of such unborrowed funds Borrower
agrees to pay to Lender, monthly in arrears on the same date that interest is due and payable under the Note, an unused commitment fee in an amount equal to one-quarter of one percent (1/4%) per annum, computed on a per annum basis of a year of
360 days and for the actual number of days elapsed, calculated on a daily basis, of the amount of the Credit Facility which was not borrowed by Borrower during the previous quarter. 
 6. Affirmative Covenants. Until (i) the Note and all other obligations and liabilities of Borrower under this Loan Agreement and the
other Loan Documents are fully paid and satisfied, and (ii) the Lender has no further commitment to lend hereunder, Borrower agrees and covenants that it will, unless Lender shall otherwise consent in writing: 
 (a) Accounts and Records. Maintain its books and records in accordance with generally accepted accounting principles.

 (b) Right of Inspection. Permit Lender to visit its properties and installations and to examine, audit and
make and take away copies or reproductions of Borrower’s books and records, at all reasonable times. 
 (c) Right
to Additional Information. Furnish Lender with such additional information and statements, lists of assets and liabilities, tax returns, and other reports with respect to Borrower’s financial condition and business operations as Lender
may reasonably request from time to time. 
 (d) Compliance with Laws. Conduct its business in an orderly and
efficient manner consistent with good business practices, and perform and comply with all material statutes, rules, regulations and/or ordinances imposed by any governmental unit upon Borrower and its businesses, operations and properties (including
without limitation, all applicable environmental statutes, rules, regulations and ordinances). 
 (e) Taxes. Pay
and discharge when due all of its indebtedness and other material obligations, including without limitation, all material assessments, taxes, governmental charges, levies and liens, of every kind and nature, imposed upon Borrower or its properties,
income, or profits, prior to the date on which penalties would attach, and all material lawful claims that, if unpaid, might become a lien or charge upon any of Borrower’s properties, income, or profits; provided, however, Borrower will not be
required to pay and discharge any such assessment, tax, charge, levy, lien or claim so long as (i) the legality of the same shall be contested in good faith by appropriate judicial, administrative or other legal proceedings, and
(ii) Borrower shall have established on its books adequate reserves with respect to such contested assessment, tax, charge, levy, lien or claim in accordance with generally accepted accounting principles, consistently applied. 
 (f) Insurance. Maintain insurance, including but not limited to, fire insurance, comprehensive property damage, public
liability, worker’s compensation, business interruption and other insurance reasonably deemed necessary or otherwise reasonably required by Lender. 
  

 3 

 (g) Notice of Indebtedness. Promptly inform Lender of the creation,
incurrence or assumption by Borrower of any actual or contingent liabilities not permitted under this Loan Agreement. 
 (h)
Notice of Litigation. Promptly after the commencement thereof, notify Lender of all actions, suits and proceedings before any court or any governmental department, commission or board affecting Borrower or any of its properties.

 (i) Notice of Material Adverse Change. Promptly inform Lender of (i) any and all material adverse
changes in Borrower’s financial condition, and (ii) all claims made against Borrower which could materially affect the financial condition of Borrower. 
 (j) Additional Documentation. Execute and deliver, or cause to be executed and delivered, any and all other agreements,
instruments or documents which Lender may reasonably request in order to give effect to the transactions contemplated under this Loan Agreement and the other Loan Documents. 
 (k) Press Releases. Deliver to Lender, by facsimile or email, and simultaneously with their issuance, copies of all press
releases issued by Borrower. 
 7. Negative Covenants. Until (i) the Note and all other obligations and liabilities of
Borrower under this Loan Agreement and the other Loan Documents are fully paid and satisfied, and (ii) the Lender has no further commitment to lend hereunder, Borrower will not, without the prior written consent of Lender: 
 (a) Nature of Business. Make any material change in the nature of its business as carried on as of the date hereof.

 (b) Liquidations, Mergers, Consolidations. Liquidate, merge or consolidate with or into any other entity
unless the Borrower is the survivor of such merger or consolidation. 
 (c) Sale of Assets. Sell, transfer or
otherwise dispose of any of its assets or properties, other than in the ordinary course of business. 
 (d)
Liens. Create or incur any lien or encumbrance on any of its assets, other than (i) liens and security interests securing indebtedness and other obligations owing to Lender, (ii) liens for taxes, assessments or similar
charges that are (1) not yet due or (2) being contested in good faith by appropriate proceedings and for which Borrower has established adequate reserves, (iii) liens and security interests existing as of the date hereof which have
been disclosed to and approved by Lender in writing, (iv) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like liens arising in the ordinary course of business which are not overdue for a
period of more than 30 days or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable person or entity; (v) pledges or
deposits in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security legislation, other than any lien imposed by Employee Retirement Income Security Act of 1974, as amended;
(vi) deposits to secure the performance of bids, trade contracts and leases, statutory obligations, surety bonds (other than bonds related to judgments or litigation), performance bonds and other obligations of a like nature incurred in the
ordinary course of business; (vii) easements, rights-of-way, restrictions and other similar encumbrances affecting real property which, in the aggregate, are not substantial in amount, and which do not in any case materially detract from the
value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable person or entity; (viii) liens securing judgments for the payment of money not constituting an Event of Default under
Section 10(h) or securing appeal or other surety bonds related to such judgments; (x) liens in cash or cash equivalents securing RIC Borrowings (as hereinafter defined) permitted by Section 7(e)(iii); and (x) liens
securing indebtedness permitted under Section 7(e)(iv), provided that (A) such liens do not at any time encumber any property other than the property financed by such Indebtedness and (B) the indebtedness secured thereby does
not exceed the cost or fair market value, whichever is lower, of the property being acquired on the date of acquisition. 
 (e) Indebtedness. Create, incur or assume any indebtedness for borrowed money or issue or assume any other note, debenture, bond or other evidences of indebtedness, or guarantee any such indebtedness or such evidences of
indebtedness of others, other than (i) borrowings from Lender; (ii) borrowings outstanding on the date hereof and disclosed in writing to Lender; (iii) quarterly borrowings (“RIC Borrowings”) in such amounts as are
necessary for Borrower to maintain its status as a “Regulated Investment Company” under the provisions of the Internal Revenue Code of 1986, as amended, or any successor statute; provided however that each such RIC Borrowing shall be
repaid in full within ten (10) days after the date on which such RIC Borrowing is made; (iv) indebtedness in respect of capital leases, synthetic lease obligations and purchase money obligations for fixed or capital assets within the
limitations set forth in Section 7(d)(x), provided that the aggregate amount of all such Indebtedness at any one time outstanding shall not exceed $500,000; and (v) guaranties of any obligations permitted in clauses (i) through
(iv) above. 
 (f) Change in Management. Permit a change in the executive management of Borrower.

  

 4 

 (g) Transactions with Affiliates. Enter into any transaction, including,
without limitation, the purchase, sale or exchange of property or the rendering of any service, with any Affiliate (as hereinafter defined) of Borrower, except upon terms no less favorable to Borrower than would be obtained in a comparable
arm’s-length transaction with a person or entity not an Affiliate of Borrower. As used herein, the term “Affiliate” means any individual or entity directly or indirectly controlling, controlled by, or under common control with,
another individual or entity. 
 8. Financial Covenant. Until (i) the Note and all other obligations and liabilities of
Borrower under this Loan Agreement and the other Loan Documents are fully paid and satisfied, and (ii) the Lender has no further commitment to lend hereunder, Borrower will maintain, at all times, a ratio of (a) total liabilities as
reflected on the Borrower’s balance sheet in accordance with generally accepted accounting principles to (b) Net Asset Value of not greater than 1.1 to 1.0. 
 As used herein, the term “Net Asset Value” means, as of any date, Borrower’s total assets less Borrower’s total liabilities, which, in each case would be required to be reflected on a
balance sheet of Borrower in accordance with generally accepted accounting principles, except any of the foregoing that are Excluded Assets (as defined in the Pledge and Security Agreement). 
 9. Reporting Requirements. Until (i) the Note and all other obligations and liabilities of Borrower under this Loan Agreement and the
other Loan Documents are fully paid and satisfied, and (ii) the Lender has no further commitment to lend hereunder, Borrower will, unless Lender shall otherwise consent in writing, furnish to Lender: 
 (a) SEC Quarterly Reports. As soon as available, and in any event within forty-five (45) days after the end of each
fiscal quarter of each fiscal year of Borrower, Borrower’s Form 10-Q filed with the Securities and Exchange Commission for the preceding fiscal quarter pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. 
 (b) SEC Annual Reports. As soon as available, and in any event within ninety (90) days after the end of each fiscal
year of Borrower, Borrower’s Form 10-K filed with the Securities and Exchange Commission for the preceding fiscal year pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. 
 (c) History and Valuation. As soon as available and in any event within sixty (60) days after the end of each fiscal
quarter of each fiscal year of Borrower, an Investment History and Portfolio Valuation Report (herein so called and in form and substance substantially the same as historically prepared by Borrower) setting forth in detail reasonably satisfactory to
Lender the history and valuation of Borrower’s investment portfolio and reflecting that such Investment History and Portfolio Valuation has been approved by Borrower’s board of directors and Borrower’s auditors from an independent
public accounting firm of recognized standing reasonably acceptable to Lender. 
 (d) Compliance Certificate. A
certificate signed by the President or Chief Financial Officer of Borrower within forty-five (45) days after the end of each calendar month, stating that Borrower is in full compliance with all of its obligations under this Loan Agreement and
all other Loan Documents and is not in default of any term or provisions hereof or thereof, and demonstrating compliance with all financial ratios and covenants set forth in this Loan Agreement. 
 (e) Borrowing Base Report. A borrowing base report, reasonably satisfactory to Lender in form, substance and detail, signed
by the President or Chief Financial Officer of Borrower, within sixty (60) days after the end of each fiscal quarter of each fiscal year of Borrower. 
 10. Events of Default. Each of the following shall constitute an “Event of Default” under this Loan Agreement: 
 (a) The failure, refusal or neglect of Borrower to pay when due any part of the principal of, or interest on, the Note or any other
indebtedness or obligations owing to Lender by Borrower from time to time and the failure of Borrower to cure such default within 3 Business Days after written notice from Lender specifying such default. 
 (b) The failure of Borrower to timely and properly observe, keep or perform any covenant, agreement, warranty or condition required herein
or in any of the other Loan Documents (other than as described in clause (a) above) and the failure of Borrower to cure such default within 15 days after written notice from Lender specifying such default. 
 (c) Any representation contained herein or in any of the other Loan Documents made by Borrower is false or misleading in any material
respect. 
 (d) The occurrence of any event which permits the acceleration of the maturity of any indebtedness with a
principal amount in excess of $50,000 owing by Borrower to any third party under any agreement or understanding. 
 (e) If
Borrower: (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, 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 

  

 5 

 
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 Bankruptcy Code or any other present or future federal or state insolvency, bankruptcy or similar laws (all of the foregoing hereinafter collectively called “Applicable Bankruptcy Law”) or an involuntary petition for
relief is filed against such party under any Applicable 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
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 thirty (30) 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. 
 (f) The liquidation, dissolution, merger or consolidation of Borrower except as permitted under Section 7(b). 
 (g) The entry of any judgment against Borrower or the issuance or entry of any attachment or other lien against any of the property of
Borrower for an amount in excess of $100,000.00, if undischarged, unbonded or undismissed within thirty (30) days after such entry. 
 Nothing contained
in this Loan Agreement shall be construed to limit the events of default enumerated in any of the other Loan Documents and all such events of default shall be cumulative. 
 11. Remedies. Upon the occurrence of any one or more of the foregoing Events of Default, (a) the entire unpaid balance of principal of the Note, together with all accrued but unpaid interest
thereon, and all other indebtedness owing to Lender by Borrower at such time shall, at the option of Lender, become immediately due and payable without further notice, demand, presentation, notice of dishonor, notice of intent to accelerate, notice
of acceleration, protest or notice of protest of any kind, all of which are expressly waived by Borrower, and (b) Lender may, at its option, cease further Advances under the Note. All rights and remedies of Lender set forth in this Loan
Agreement and in any of the other Loan Documents may also be exercised by Lender, at its option to be exercised in its sole discretion, upon the occurrence of an Event of Default. 
 12. Rights Cumulative. All rights of Lender under the terms of this Loan Agreement shall be cumulative of, and in addition to, the rights
of Lender under any and all other agreements between Borrower and Lender (including, but not limited to, the other Loan Documents), and not in substitution or diminution of any rights now or hereafter held by Lender under the terms of any other
agreement. 
 13. Waiver and Agreement. Neither the failure nor any delay on the part of Lender to exercise any right, power or
privilege herein or under any of the other Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or privilege preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. No waiver of any provision in this Loan Agreement or in any of the other Loan Documents and no departure by Borrower therefrom shall be effective unless the same shall be in writing and signed by Lender, and then shall be
effective only in the specific instance and for the purpose for which given and to the extent specified in such writing. No modification or amendment to this Loan Agreement or to any of the other Loan Documents shall be valid or effective unless the
same is signed by the party against whom it is sought to be enforced. 
 14. Benefits. This Loan Agreement shall be binding
upon and inure to the benefit of Lender and Borrower, and their respective successors and assigns, provided, however, that Borrower may not, without the prior written consent of Lender, assign any rights, powers, duties or obligations under this
Loan Agreement or any of the other Loan Documents. 
 15. 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 and shall be deemed to have been received either, in the case of personal delivery, as of 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. 
 16. Construction. This Loan Agreement and the other Loan Documents have been executed
and delivered in the State of Texas, shall be governed by and construed in accordance with the laws of the State of Texas, and shall be performable by the parties hereto in the county in Texas where the Lender’s address set forth on the first
page hereof is located. 
 17. Invalid Provisions. If any provision of this Loan Agreement or any of the other Loan Documents
is held to be illegal, invalid or unenforceable under present or future laws, such provision shall be fully severable and the remaining 

  

 6 

 
provisions of this Loan Agreement or any of the other Loan Documents shall remain in full force and effect and shall not be affected by the illegal, invalid
or unenforceable provision or by its severance. 
 18. Expenses. Borrower shall pay all costs and expenses (including, without
limitation, reasonable attorneys’ fees) in connection with (i) the preparation, negotiation, execution and delivery of the Loan Documents, (ii) any action required in the course of administration of the indebtedness and obligations
evidenced by the Loan Documents, and (iii) any action in the enforcement of Lender’s rights upon the occurrence of Event of Default. 
 19. Participation of the Loan. Borrower agrees that Lender may, at its option, sell interests in the Loan and its rights under this Loan Agreement to a financial institution or institutions and, in connection with each such
sale, Lender may disclose any financial and other information available to Lender concerning Borrower to each prospective purchaser. 
 20.
Conflicts. In the event any term or provision hereof is inconsistent with or conflicts with any provision of the other Loan Documents, the terms and provisions contained in this Loan Agreement shall be controlling. 
 21. Counterparts. This Loan Agreement may be separately executed in any number of counterparts, each of which shall be an original, but all
of which, taken together, shall be deemed to constitute one and the same instrument. 
 22. Facsimile Documents and Signatures.
For purposes of negotiating and finalizing this Loan Agreement, if this document or any document executed in connection with it is transmitted by facsimile machine (“fax”), it shall be treated for all purposes as an original
document. Additionally, the signature of any party on this document transmitted by way of a facsimile machine shall be considered for all purposes as an original signature. Any such faxed document shall be considered to have the same binding legal
effect as an original document. At the request of any party, any faxed document shall be re-executed by each signatory party in an original form. 
 If the foregoing correctly sets forth our mutual agreement, please so acknowledge by signing and returning this Loan Agreement to the undersigned. 
 NOTICE TO COMPLY WITH STATE LAW 
 For the purpose of this Notice, the term “WRITTEN AGREEMENT”
shall include the document set forth above, together with each and every other document relating to and/or securing the same loan transaction, regardless of the date of execution. 
 THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. 
 THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
  

									
	BORROWER	 		 	LENDER:
			
	 EQUUS TOTAL RETURN, INC.,
 formerly known as
EQUUS II INCORPORATED,
 a Delaware corporation
	 		 	 REGIONS BANK,
 an Alabama state
banking
 corporation

					
	By:	 	/s/ Harry O. Nicodemus, IV	 		 	By:	 	/s/ Terry A. Pruden
		 	 Harry O. Nicodemus, IV
 Chief Financial
Officer
	 		 		 	 Terry A. Pruden
 Executive Vice
President

  

 7 

 Exhibit A 
 REVOLVING CREDIT NOTE 
  

					
	$10,000,000.00	  	Houston, Texas	  	August 18, 2006

 1. FOR VALUE RECEIVED, and as hereinafter provided EQUUS TOTAL RETURN, INC., formerly known as
EQUUS II INCORPORATED, a Delaware corporation (the “Borrower”), promises and agrees to pay unto the order of REGIONS BANK, an Alabama state banking corporation (the “Lender”), at its office located at 3272
Westheimer, Suite #1, Houston, Harris County, Texas 77098, or at such other address or addresses as Lender may from time to time designate in writing to Borrower, in immediately available funds in lawful currency of the United States of America
which at the time of payment is legal tender for the payment of public and private debts, the sum of up to TEN MILLION AND NO/100 DOLLARS ($10,000,000.00), or so much thereof as may be advanced pursuant to the hereinafter described Loan Agreement,
together with interest on the unpaid principal balance from time to time owing hereunder from the date of advance hereunder until maturity, and otherwise in strict accordance with the terms and provisions hereof. 
 2. As used herein, the following terms shall have the meanings assigned: 
 “Borrowing Date” means any Business Day on which Lender advances to Borrower a portion of the Loan hereunder. 

“Borrowing Notice” shall mean a notice in writing given by Borrower to Lender substantially in the form of Exhibit B
to the Loan Agreement requesting a Loan under the Loan Agreement. 
 “Business Day” means a day when Lender
is open for business, other than a Saturday or Sunday. 
 “Control Account Agreement” means that certain
Control Account Agreement of even date herewith among Borrower, Lender and The Frost National Bank. 
 “Conversion/Continuation Notice” shall mean a notice in writing given by Borrower to Lender substantially in the form of Exhibit C to the Loan Agreement specifying the amount of Loans to be converted, or continued at the
Libor Rate and the applicable Interest Period. 
 “Conversion Date” shall have the meaning specified in
Paragraph 4(b) below. 
 “Default Rate” means a per annum rate equal to the lesser of (a) Prime plus two
percent (2%), and (b) the Maximum Rate. 
 “Event of Default” means the occurrence of an Event of
Default (as defined in the Loan Agreement). 
 “Interest Period” means, as to any Libor Loan, the period
commencing on the date such Libor Loan is disbursed or converted to or continued as a Libor Loan and ending on the date one, three, or six months thereafter, as selected by the Borrower in its Borrowing Notice or Conversion/Continuation Notice, or
such other period that is twelve months or less requested by the Borrower and consented to by the Lender; provided that (i) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next
succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day; (ii) any Interest Period that begins on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and (iii) no Interest Period
shall extend beyond the Maturity Date. 
 “Libor” means, with respect to any Interest Period, that rate for
deposits in U.S. dollars for a period comparable to the term of such Interest Period which appears on Telerate Page 3750 as of 11:00 a.m., London, England time on the day (the “Pricing Date”) that is two LIBOR Business Days
preceding the first day of such Interest Period, as such rate is published on the Business Day next following the Pricing Date in the Money Market Section of the Wall Street Journal. If such rate cannot be so determined for any reason, Lender will
request the principal London office of at least two banks to provide a quotation of its rate for deposits in U.S. dollars for a period comparable to the applicable Interest Period and the rate for such Interest Period will be the arithmetic mean of
such quotations. 
 “LIBOR Business Day” means a Business Day on which dealings in U.S. dollar deposits are
carried out in the London interbank market. 
 “LIBOR Loan” means any Loan that bears interest at the Libor
Rate. 
  

 Exhibit A Page 1 

 “Libor Rate”
means an interest rate per annum (rounded upward to the nearest multiple of 1/1000th of one percent per annum and determined on a daily basis for
the actual number of days elapsed based on a 360 day year) which is equal to the sum of (a) Libor, plus (b) two hundred fifty basis points (250 bps). 
 “Loan Agreement” means that certain Loan Agreement executed by Borrower and Lender of even date herewith. 
 “Loan Documents” means this Note, the Loan Agreement, and other documents evidencing, securing and relating to the Loan.

 “Loan(s)” means the Loan(s) evidenced by this Note, from the date hereof to the Maturity Date, during
which period advances may be allowed up to the principal amount of this Note, bearing interest as herein set forth, and being payable in installments as herein set forth. All references to the Loan or Loans shall be references to the single
indebtedness evidenced by the Note. The Loan is a revolving loan. Any sums repaid may be reborrowed, subject to the limitations set forth in the Loan Agreement. 
 “Maturity Date” means December 31, 2007. 
 “Maximum Rate” means, with respect to the holder hereof, the maximum nonusurious interest rate, if any, that at any time,
or from time to time, may be under applicable law contracted for, taken, reserved, charged or received on the indebtedness evidenced by this Note. 
 “Pledge and Security Agreement” means that certain Pledge and Security Agreement of even date herewith from Borrower in favor of Lender. 
 “Prime” means the rate per annum published in the Money Rates section of The Wall Street Journal (Southwest
Edition) and identified therein as the highest “Prime Rate.” If The Wall Street Journal Prime Rate ceases to be made available by the publisher, or any successor to the publisher, then the Prime Rate shall mean the Prime Rate of
interest charged by the Lender as established from time to time. Without notice to the Borrower or any other person, the Prime Rate shall change automatically from time to time as and in the amount by which such rate shall fluctuate, with each such
change to be effective as of the date of each change in such rate. The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer of Lender. The Lender may make commercial loans or
other loans at rates of interest at, above or below the Prime Rate. 
 “Prime Rate” means an interest rate
per annum which is equal to (a) Prime, plus (b) zero percent (0.00%). 
 “Usury Laws” means
all applicable federal or state usury laws regarding the use, forbearance, or detention of money. 
 3. Interest shall accrue on the
outstanding principal balance of this Note, or any portion hereof, as follows: 
 (a) Commencing on the date hereof and
continuing until and including the Maturity Date at a rate equal to (i) the lesser of the Prime Rate or the Maximum Rate as to any portion of the Loan for which Borrower has elected the Prime Rate, and (ii) the lesser of the applicable
Libor Rate(s) or the Maximum Rate as to any portion(s) of the Loan for which Borrower has elected the Libor Rate. 
 (b) If at
any time and from time to time the rates of interest calculated pursuant to the Prime Rate or the Libor Rate would exceed the Maximum Rate, thereby causing the interest payable hereon to be limited to the Maximum Rate, then any subsequent reduction
in the Prime Rate or the Libor Rate shall not reduce the rate of interest hereon below the Maximum Rate until the total amount of interest accrued hereon from and after the date of the first advance hereunder equals the amount of interest which
would have accrued hereon if the rate specified in the applicable Prime Rate or Libor Rate above had at all times been in effect. 
 4.
Borrower shall elect either the Prime Rate or Libor Rate with respect to the outstanding balance of the Loan or any portion thereof as follows: 
 (a) Borrower shall, in accordance with this Paragraph 4, give Lender notice of the interest option selected with respect to each borrowing made pursuant to the Loan Agreement. If Borrower wishes to select the Libor
Rate to apply to a portion of the Loan, Borrower shall so specify in the Borrowing Notice given Lender, which Borrowing Notice must be received by Lender at least three (3) Libor Business Days prior to the applicable Borrowing Date. If the
required Borrowing Notice shall not have been timely received by Lender, Borrower shall be deemed to have selected the Prime Rate to be applicable to such portion of the Loan upon the applicable Borrowing Date. 
 (b) The date of conversion from one type of interest rate to another is called a “Conversion Date”. Borrower may convert
all or a portion of the Loans from the Prime Rate to the Libor Rate and vice versa. Such conversion shall be effected by Borrower by timely giving Lender a Conversion/Continuation Notice for conversion to the Libor Rate or the Prime Rate, as
applicable. The date of continuation of a Libor Loan to another Libor Loan at the end of an Interest Period is called a “Continuation Date”. Borrower may continue all or a portion of the Libor Loans from one Interest 

  

 Exhibit A Page 2 

 
Period to another. Such continuation shall be effected by Borrower by timely giving Lender a Conversion/Continuation Notice specifying such continuation.

 5. This Note and the Loan evidenced hereby shall be due and payable as follows: 
 (a) All accrued unpaid interest on the outstanding principal balance of this Note shall be due and payable in monthly installments as it
accrues, with the first installment due and payable on the date which is the 30th day of September 2006, and continuing monthly thereafter on the last day of each succeeding calendar month until the Maturity Date. 
 (b) The entire principal sum of this Note then remaining unpaid, together with all accrued, unpaid interest thereon, shall be due and
payable on the Maturity Date. 
 (c) Borrower is and shall be obligated to pay all principal, interest and any and all other
amounts which become payable under this Note or under any of the other Loan Documents absolutely and unconditionally and without any abatement, postponement, diminution or deduction whatsoever and without any reduction for counterclaim or setoff
whatsoever. 
 6. At any time and from time to time, Borrower on any Business Day may prepay the principal of the Loan then outstanding in
whole or in part without premium or penalty. All payments and prepayments of principal and/or interest to Lender shall be made by Borrower to Lender before 11:00 a.m. (Houston, Texas time), in federal or other immediately available funds at
Lender’s banking office specified in the first paragraph of this Note. Any payment or prepayment received by Lender after 11:00 a.m. (Houston, Texas time) shall be deemed to have been received by Lender on the next succeeding Business Day.
Should the principal of or interest on any Loan, or any expense or fee, become due and payable on a day other than a Business Day, the maturity thereof shall be extended to the next succeeding Business Day. 
 7. All payments hereunder, whether designated as payments of principal or interest, shall be applied, in such order as Lender shall in its sole
discretion determine, to unpaid and accrued interest, to the discharge of any expenses or damages for which the Lender may be entitled to receive reimbursement under the terms of this Note or under the terms of any document executed in connection
herewith, or to unpaid principal in the inverse order of maturity. Notwithstanding anything expressed or implied in this Note to the contrary, all past due principal and interest on this Note, whether due as the result of acceleration of maturity or
otherwise, shall bear interest from the date the payment thereof shall have become due until the same have been fully discharged by payment at the Default Rate. In addition, Lender may charge and collect a late fee of five percent (5.0%) of any
scheduled installment that is more than ten (10) days past due. 
 8. If an Event of Default shall occur and be continuing, then the
holder of this Note shall have the option, in addition to the remedies provided in the other Loan Documents or at law or in equity, to declare this Note due and payable, whereupon the entire unpaid principal balance of this Note and all interest
accrued thereon shall thereupon at once mature and become due and payable and shall bear interest from the date of such Event of Default until paid at the Default Rate, without grace, presentment for payment, demand, protest, notice of protest,
notice of nonpayment, notice of intent to accelerate, notice of acceleration, or any other notice of any kind, ALL OF WHICH ARE HEREBY EXPRESSLY WAIVED BY THE BORROWER. The time of payment of this Note is also subject to acceleration in the
event of the Event of Default. 
 9. This Note is secured by and is entitled to the benefit of, among other instruments: (a) the Pledge
and Security Agreement, (b) the Control Account Agreement, and (c) the other Loan Documents. 
 10. Time is of the essence in the
performance and payment of this Note. 
 11. The remedies of Lender as provided herein and in the Loan Documents shall be cumulative and
concurrent and may be pursued singly, successively, or together, at the sole discretion of Lender, and may be exercised as often as occasion therefor shall arise. No action, omission, or commission by Lender, including specifically, the failure to
exercise any right, remedy, or recourse, shall be deemed a waiver or release of the same. A waiver or release shall exist and be effective only as set forth in a written document executed by Lender, and then only to the extent specifically recited
therein. A waiver or a release with reference to any one event shall not be construed as continuing, or as a bar to, or as a waiver or release of, any subsequent right, remedy, or recourse as to any subsequent event. 
 12. THE BORROWER HEREBY EXPRESSLY WAIVES GRACE, AND ALL NOTICES, DEMANDS, PRESENTMENTS FOR PAYMENT, NOTICE OF NONPAYMENT, PROTEST AND NOTICE OF
PROTEST, NOTICE OF INTENT TO ACCELERATE, NOTICE OF ACCELERATION OF THE INDEBTEDNESS DUE HEREUNDER, AND DILIGENCE IN COLLECTING THIS NOTE OR ENFORCING ANY SECURITY RIGHTS OF THE LENDER UNDER ANY DOCUMENT SECURING THIS NOTE.  
  

 Exhibit A Page 3 

 13. If an Event of Default occurs and is continuing and this Note is placed in the hands of an attorney
for collection (whether or not suit is filed), or suit or legal proceedings are brought to collect this Note, the Borrower agrees to pay the holder hereof the costs and reasonable attorney’s fees incurred in the collection hereof. 

14. It is the intention of the parties hereto to comply with the Usury Laws; accordingly, it is agreed that notwithstanding any provisions to the
contrary in this Note, the Loan Documents, in no event shall the Loan Documents require the payment or permit the collection of interest in excess of the maximum amount permitted by such laws, and any subsequent revisions, repeals, or judicial
interpretations thereof to the extent that same are made applicable hereto. If any such excess of interest is contracted for, charged, or received under Loan Documents, or in the event the maturity of the indebtedness evidenced by this Note is
accelerated in whole or in part, or in the event that all or part of the principal or interest of this Note shall be prepaid, so that under any of such circumstances the amount of interest contracted for, charged or received the Loan Documents, on
the amount of principal actually outstanding from time to time under this Note shall exceed the maximum amount of interest permitted by the Usury Laws, then in any such event (a) the provisions of this paragraph shall govern and control,
(b) neither Borrower nor any other person or entity now or hereafter liable for the payment of this Note shall be obligated to pay the amount of such interest to the extent that it is in excess of the maximum amount of interest permitted by the
Usury Laws, (c) any such excess which may have been collected shall be either applied as a credit against the then unpaid principal amount of this Note or refunded to Borrower, at the holder’s option, and (d) the effective rate of
interest shall be automatically reduced to the maximum lawful contract rate allowed under the Usury Laws as now or hereafter construed by the courts having jurisdiction thereof. It is further agreed, without limiting the foregoing, that the rate of
interest contracted for, charged or received under this Note and any other Loan Documents shall be deemed not to exceed the maximum lawful rate if any method of calculation permitted by the Usury Laws including, but not limited to, amortization,
prorating, allocating and spreading interest over the full term of the loan results in a determination that the rate of interest so contracted for, charged or received does not exceed the maximum lawful rate. 
 15. Any check, draft, money order or other instrument given in payment of all or any portion hereof may be accepted by the holder hereof and handled in
collection in the customary manner, but the same shall not constitute payment hereunder or diminish any rights of the holder hereof except to the extent that actual cash proceeds of such instrument are unconditionally received by the holder and
applied to this indebtedness in the manner elsewhere herein provided. 
 16. It is further agreed that the Lender shall have a first lien on
all deposits and other sums at any time credited by or due from the Lender to the Borrower as collateral security for the payment of this Note, and the Lender, at its option, may at any time, without notice and without any liability, hold all or any
part of any such deposits or other sums until all sums owing on this Note have been paid in full and/or apply or set off all or any part of any such deposits or other sums credited by or due from the Lender to or against any sums due on this Note in
any manner and in any order of preference which the Lender, in its sole discretion, chooses. 
 17. The loan evidenced by this Note was
negotiated and consummated in the State of Texas and it is understood and agreed that the legality, enforceability and construction hereof shall be governed by Texas law and, to the extent applicable, by the laws of the United States of America. The
Borrower and the Lender expressly agree, pursuant to Section 346.004 of the Texas Finance Code, that Chapter 346 shall not apply to this Note or to any advance evidenced by this Note and that this Note and all such advances shall not be
governed by or subject to the provisions of Chapter 346 in any manner whatsoever. 
 18. The Lender reserves the right, exercisable in the
Lender’s sole discretion and without notice to the Borrower or any other person, to sell participations, to assign its interest or both, in all or any part of this Note or this debt or the debt evidenced hereby. 
 19. THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.  
  

 Exhibit A Page 4 

 Executed on the date of the acknowledgment to be effective as of the date first written above.

  

			
	BORROWER:
	
	 EQUUS TOTAL RETURN, INC.,
 formerly known as
 EQUUS II INCORPORATED,
 a Delaware corporation

		
	 By:
	 	 
		 	Harry O. Nicodemus, IV
		 	Chief Financial Officer

  

 Exhibit A Page 5 

 Exhibit B 
 Form of Borrowing Notice 
  

	TO:	Regions Bank 

	    	3272 Westheimer, Suite #1 

	    	Houston, Texas 77098 

	    	Attention: Terry A. Pruden 

 DATE:
            , 200__ 
 Ladies and Gentlemen: 
 The undersigned is an officer of Equus Total Return, Inc., a Delaware corporation (the “Borrower”), and is authorized to make and deliver this
certificate pursuant to that certain Loan Agreement dated as of August __, 2006, between the Borrower and Regions Bank (such Loan Agreement as the same may be amended, supplemented or modified from time to time, being hereinafter referred to as the
“Agreement”). All terms defined in the Agreement or the Note shall have the same meaning herein. 
 In accordance with the
Agreement, the Borrower hereby gives you notice irrevocably of the Advance request specified below: 
  

	I.	ADVANCE: 

  

							
	 Requested Amount: $__________ (not to exceed line (e) below)
	  	
			
	Advance date:__________	  		  	
				
		  		  	Type of Advance (check):	  	
				
		  		  	_____ Prime Rate	  	
				
		  		  	______ Libor Rate	  	
			
	Length of Interest Period for Libor Rate Advances (1, 2, 3 or 6 months or such longer period of 12 months or less with Lender’s consent):	  	_______months	  	
			
	Information	  		  	
			
	(a)	  	Outstanding principal amount of Advances prior to requested Advance	  	$__________
			
	(b)	  	Eligible Portfolio Value	  	$__________
			
	(c)	  	Borrowing Base (20% of line (b))	  	$__________
			
	(d)	  	Borrowing Base minus line (a)	  	$__________
			
	(e)	  	Net availability for Advances: [lesser of line (d) or line (c)]	  	$__________
			
	(f)	  	Amount of Requested Advance	  	$__________

 In connection with the foregoing and pursuant to the terms and provisions of the Agreement, the
undersigned hereby certifies that the following statements are true and correct: 
 1) The representations and warranties contained in
Section 4 of the Agreement and in each of the other Loan Documents are true and correct in all material respects on and as of the date hereof with the same force and effect as if made on and as of such date. 
 2) No material adverse change in the financial condition of Borrower since the effective date of the most recent financial statements furnished to Lender
by Borrower shall have occurred and be continuing. 
 3) No event has occurred and is continuing or would result from the requested Advance,
which with notice or lapse of time, or both, would constitute and Event of Default. 
  

 Exhibit B Page 1 

 4) The amount of the requested Advance, when added to the sum of all outstanding Advances, will not
exceed the lesser of (i) the Borrowing Base and (ii) $10,000,000. 
 5) If any Collateral consists of Margin Stock, the Borrower
has delivered to Lender contemporaneously with this Borrowing Notice a Federal Reserve Form U-1 (or any successor form) permitting the requested Advance to be made in compliance with the Margin Regulations. 
 6) All information supplied above is true, correct, and complete as of the date hereof. 
  

			
	BORROWER:
	
	EQUUS TOTAL RETURN, INC., a Delaware corporation
		
	By:	 	 
	Authorized Officer
	Name:	 	
	Title:	 	

 Dated as of:
                             
  

 Exhibit B Page 2 

 Exhibit C 
 Form of Conversion/Continuation Notice 
 Date:
                    ,              
  

	TO:	Regions Bank 

	    	3272 Westheimer, Suite #1 

	    	Houston, Texas 77098 

	    	Attention: Terry A. Pruden 

 DATE:
                , 200__ 
 Ladies and Gentlemen: 
 The undersigned is an officer of Equus Total Return, Inc., a Delaware corporation (the “Borrower”), and is authorized to make and deliver this
certificate pursuant to that certain Loan Agreement dated as of August __, 2006, between the Borrower and Regions Bank (such Loan Agreement as the same may be amended, supplemented or modified from time to time, being hereinafter referred to as the
“Agreement”). All terms defined in the Agreement or the Note shall have the same meaning herein. 
 The undersigned hereby
requests: 
  

	I.	CREDIT FACILITY  

  

							
	 1.
	  	Amount of [conversion] [continuation]: $__________
			
	 2.
	  	Existing rate:	  	Check applicable blank
				
		  	(a)	  	Prime Rate	  	_______________
				
		  	(b)	  	Libor Rate Advance with Interest Period of:	  	
				
		  		  	(i) one month	  	_______________
				
		  		  	(ii) two months	  	_______________
				
		  		  	(iii) three months	  	_______________
				
		  		  	(iv) six months	  	_______________
				
		  		  	(iv) up to 12 months	  	_______________ (with Lender’s consent)
		
	 3.
	  	If a Libor Rate Advance, date of the last day of the Interest Period for such Loan: _______________, 200_.
	
	The Advance described above is to be [converted] [continued] as follows:
		
	 4.
	  	Requested date of [conversion] [continuation]: _______________, 200_.
		
	 5.
	  	Requested type of Advance and applicable dollar amount:
			
		  	(a)	  	Prime Rate Loan for $__________
			
		  	(b)	  	Libor Rate Advance with Interest Period of:
				
		  		  	(i) one month for	  	$__________
				
		  		  	(ii) two months for	  	$__________
				
		  		  	(iii) three months for	  	$__________
				
		  		  	(iv) six months for	  	$__________
				
		  		  	(iv) up to 12 months	  	$__________(with Lender’s consent)

 The [conversion] [continuation] requested herein complies with the Agreement and Note. 

 

 Exhibit C Page 1 

			
	BORROWER:
	
	EQUUS TOTAL RETURN, INC., a Delaware corporation
		
	By:	 	 
	Authorized Officer
	Name:	 	
	Title:	 	

  

 Exhibit C Page 2

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