Document:

ex-10_1.htm

 

April 27, 2011

Mark A. Smith

Chief Executive Officer

Geospatial Holdings, Inc.

229 Howes Run Road

Sarver, Pennsylvania

16055 USA

 

Dear Mr. Smith,

 

This engagement letter (the “Agreement”) confirms that Geospatial Holdings, Inc. (the “Company” or “you”) has engaged Pace Financial Services, LLC (“PFS” or “we”), to act as exclusive financial advisor with respect to a transaction involving the sale of the equivalent of approximately $5,000,000 of Company common stock shares in a private placement offering (the “Transaction”) to be effected during the second quarter of 2011 (the “Transaction Period”).  A Transaction generally includes any transaction or series or combination of transactions, whereby a third party provides capital via direct corporate or project finance debt, equity-like or convertible debt investment in the Company, or directly or indirectly, the equity interests or assets of the Company are transferred to another party for consideration, including, but not limited to, a sale or exchange of equity interests or assets, merger, consolidation, tender or exchange offer, leveraged buy-out, recapitalization, the formation of a joint venture or partnership or any similar transaction. For clarity, the Transaction engaged under this Agreement is limited to the offering of common shares during the Transaction Period.1.Services.  As part of our engagement as exclusive financial advisor, we will, as appropriate:

 

	
  

	
(i)

	
Become familiar with the Company by obtaining and reviewing financial and other information from Company;

 

	
  

	
(ii)

	
Assist the Company in developing a strategy to effectuate the Transaction(s);

 

	
  

	
(iii)

	
Assist the Company in the preparation of a memorandum and other materials describing the Company’s business, contractual and financial structure, and other relevant information of interest to potential investors (“Investors”);

 

	
  

	
(iv)

	
Identify and review with the Company a list of qualified potential Investors;

 

	
  

	
(v)

	
Advise the Company on the Transaction process, including capital structuring and valuation of the Company;

 

	
  

	
(vi)

	
Contact potential Investors to seek interest in a Transaction with the Company;

 

	
  

	
(vii)

	
Respond to inquiries from prospective Investors;

 

  

  

  

 

 

	
  

	
(viii)

	
Assist in the preparation of a data room and coordinate the due diligence process of Investors;

 

	
  

	
(ix)

	
Arrange and prepare the Company’s management and key representatives for presentations to Investors;

 

	
  

	
(x)

	
Assist in evaluating and comparing offers;

 

	
  

	
(xi)

	
Assist the Company and its legal counsel in negotiating the terms and conditions of a Transaction; and

 

	
  

	
(x)

	
Upon request, meet with the Company’s Board of Directors to discuss the Transaction and its financial implications.

 

2.           Company Information.  In connection with PFS’s engagement, the Company will furnish PFS with all information concerning the Company which PFS reasonably deems appropriate, including information related to the Company’s current shareholders, and will provide PFS with access to the Company’s officers, directors, employees, accountants, counsel and other representatives (collectively, the “Representatives”). The Company represents that all information provided to PFS in connection with the services to be performed under this Agreement (the "Information") will be complete and correct in all material respects and will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading.  The Company agrees to advise PFS immediately of the occurrence of any event or any other change known to the Company that results in any of the Information containing an untrue statement of a material fact or omitting to state any material fact necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading. The Company hereby authorizes PFS to rely on the accuracy and completeness of any financial or other Information provided to PFS by the Company without independent verification.

3.           Compensation.  As compensation for the services provided hereunder, the Company agrees to pay PFS as follows:

 

A.           A fee linked to the Aggregate Consideration involved in a Transaction (a “Transaction Fee”) defined as follows.  The Transaction Fee shall be payable in Company common stock warrants equal to eight percent (8.0%) of the total number of new shares sold through this placement (excluding shares issued to the Company’s creditors as consideration for forgiveness of outstanding obligations, and specifically shares issued to  Reduct/Delta Networks, and Settlement Shares, as defined in the April 11, 2011 SEC 8K filing ), and which shall be exercisable at 125% of the price of the securities sold to investors via this offering, and that shall have a term of five (5) years.    If the financing instruments are non equity-linked debt or loan instruments, then the Transaction Fee shall be in the form of common stock warrants equal to eight percent (8.0%) of the value of the capital raised through the Transaction divided by the Company’s average public share price valuation over the first full trading day subsequent to the completion of the Transaction, exercisable at 125% of the Company’s average share price valuation over the first full trading day subsequent to the completion of the Transaction, and valid for a term of five (5) years.

 

  

  

  

 

B.    For each Transaction that occurs during the term of this Agreement or within twelve (12) months of its termination, the Company shall pay to PFS the Transaction Fee in accordance with Section 3.A. immediately upon each receipt of Aggregate Consideration (each a “Due Date”).  “Aggregate Consideration” shall mean the total proceeds and other consideration paid or received or to be paid or received in connection with a Transaction (which shall include amounts paid into an escrow account or amounts held back by a Purchaser to satisfy future obligations), including but not limited to: (i) cash; (ii) notes, securities, and other property; (iii) payments to be made in installments; (iv) contingent payments (whether or not related to future earnings or operations) including, without limitation, earn-outs or deferred performance-based payments); and (v) for asset transactions only, any amount of liabilities for borrowed money assumed by the Purchaser.

 

C.    PFS shall have the right to enter Finder’s Fee Agreements with parties (“Finders”) that refer names and contact information of potential investors in the Transaction.  The activities of such Finders, if engaged, will be limited to introducing prospective investors to PFS.

 

D.    Because PFS is a wholly-owned subsidiary of a company whose CEO is on the Company’s Board of Directors, the compensation and other terms set forth herein were negotiated on an arm’s-length basis and the Company undertook commercially reasonable efforts to ensure that the terms contained herein are industry standard.

 

4.           Expenses.  The Company shall reimburse PFS for all reasonable out-of-pocket expenses incurred, including travel-related expenses and the fees and expenses of legal counsel, if any, and any other advisor retained by PFS (who shall only be engaged with the prior approval of the Company), resulting from or arising out of this engagement.  Any such expenses which exceed $10,000 in the aggregate shall not be incurred without the Company’s prior consent.

 

5.           Confidentiality.  No advice rendered by PFS, whether formal or informal, may be disclosed, in whole or in part, or summarized, excerpted from or otherwise referred to without our prior written consent.  In addition, PFS may not be otherwise referred to without its prior written consent.  This Agreement shall be governed by that Confidentiality Agreement signed by the Company and PFS’ affiliate Pace Global Energy Services, LLC and dated February 3, 2010.

 

6.           Indemnity.  The Company agrees to indemnify, defend and hold PFS harmless to the fullest extent permitted by law, from and against any losses, claims, damages, liabilities and expenses in connection with any matter in any way relating to or referred to in the Agreement or arising out of the matters contemplated by the Agreement, except to the extent that it shall be determined by a court of competent jurisdiction in a judgment that has become final (in that it is no longer subject to appeal or other review) that such losses, claims, damages, liabilities and expenses resulted solely from the gross negligence or willful misconduct of PFS. In addition, in the event that PFS becomes involved in any capacity in any proceeding in connection with any matter in any way relating to or referred to in the Agreement or arising out of the matters contemplated by the Agreement, the Company will reimburse PFS for its reasonable legal fees and related expenses (including the cost of any investigation and preparation) as such expenses are incurred by PFS in connection therewith.

 

  

  

  

The Company will not settle any proceeding in respect of which indemnity may be sought hereunder, without PFS’ prior written consent. For purposes of this indemnification provision, all references to PFS shall also include its affiliates, each other person, if any, controlling PFS or any of its affiliates, their respective officers, current and former directors, employees and agents, and the successors and assigns of all of the foregoing persons. The foregoing indemnity and contribution agreement shall be in addition to any rights that any indemnified party may have at common law or otherwise.

7.           Limitation of Liability.  The Company agrees that neither PFS nor any of its affiliates, directors, agents, employees or controlling persons shall have any liability to the Company or any person asserting claims on behalf of or in right of the Company in connection with or as a result of either PFS’ engagement under the Agreement or any matter referred to in the Agreement, except to the extent that it shall be determined by a court of competent jurisdiction in a judgment that has become final (in that it is no longer subject to appeal or other review) that any losses, claims, damages, liabilities or expenses incurred by the Company resulted solely from the gross negligence or willful misconduct of PFS in performing the services that are the subject of the Agreement.  Further, PFS aggregate liability hereunder shall not exceed the amount collected by PFS from the Company for services rendered under this Agreement.

 

Neither party hereto shall be liable to the other party for any consequential, special, incidental, multiple, exemplary or punitive damages for performance or non-performance under this Agreement or for any actions undertaken in connection with or related to this Agreement, including, without limitation, damage claims based on causes of action for breach of contract, tort or any other theory of recovery.  For the avoidance of doubt, nor shall either party hereto be liable to the other party for any claim of lost profits, whether such claim of lost profits is categorized under this Agreement as indirect, direct or consequential damages or under any alternative theory of recovery.

 

8.           Term.  This Agreement shall be effective as of the date set forth above (the “Effective Date”) and shall remain in effect for 120 days from the Effective Date (the “Initial Term”).  The Agreement shall remain in force after the Initial Term for successive 30 day periods (each a “Renewal Term”), unless and until either PFS or Company has provided to the other party written notice of its election to not renew this Agreement at least 15 days prior to the end of the Initial Term or any Renewal Term.  In the event of termination of PFS’ engagement hereunder, PFS will continue to be entitled to its full Transaction Fee provided for herein if, within twelve (12) months of such termination, the Company closes on a Transaction; and provided, further, that any termination of PFS’ engagement hereunder shall not affect the Company’s obligations to pay other fees and expenses to the extent provided for herein, and to indemnify PFS and certain related persons and entities as provided for herein.  In the event of termination Pace shall be reimbursed for expenses incurred in accordance with Section 4 if a party exercises such right to terminate.

 

  

  

  

 

9.           Advertisement.  Upon the consummation of any Transaction, PFS may, at its own expense, place announcements on its website and in financial and other newspapers and periodicals (such as a customary “tombstone” advertisement, including the Company’s logo or other identifying marks) describing its role in the Transaction.  The content of any such announcement shall be subject to the Company’s prior approval, which approval shall not be unreasonably withheld. Furthermore, if requested by PFS, the Company will include in any press release announcing a Transaction, a mutually acceptable reference to PFS’s role as financial advisor to the Company.

 

10.           Disputes.  This Agreement and any claim, counterclaim or dispute of any kind or nature whatsoever arising out of or in any way relating to this agreement or the services rendered hereunder (“Claim”), directly or indirectly, shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia, and except as set forth below, no claim may be commenced, prosecuted or continued in any court other than the courts located in the Commonwealth of Virginia or in the United States District Court for the Eastern District of Virginia, which courts shall have exclusive jurisdiction over the adjudication of such matters, and the Company and PFS consent to the jurisdiction of such courts and personal service with respect thereto.  The Company hereby consents to personal jurisdiction, service and venue in any court in which any claim arising out of or in any way relating to this Agreement is brought by any third party against PFS or any indemnified party hereunder.  PFS AND THE COMPANY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT.  The Company agrees that a final judgment in any proceeding or claim arising out of or in any way relating to this Agreement brought in any such court shall be conclusive and binding upon the Company and may be enforced in any other courts of jurisdiction of which the Company is or may be subject, by suit upon such judgment. Should either party hereto prevail by a final unappealable judgment in any judicial or arbitral action to enforce any right under this Agreement, the non-prevailing party shall be liable to the prevailing party for the prevailing party’s reasonable attorneys’ fees.

 

11.           Assignment or Subcontract.  Neither party may assign, subcontract or transfer any right, duty or obligation under this Agreement without the prior written consent of the other party.  Notwithstanding the foregoing, Client hereby consents to PFS assigning or subcontracting this Agreement in whole or in part to a parent, subsidiary, affiliate or other entity that is under common control (each a “PFS Affiliate”).  The terms, conditions and obligations of this Agreement shall inure to the benefit of and be binding upon the Parties hereto and the respective successors and assigns thereof.

 

  

  

  

 

12.           Survival of Provisions.  All provisions of this Agreement, which are expressly or by implication to come into or continue in force and effect after the expiration or termination of this Agreement, shall remain in effect and be enforceable following such expiration or termination.

 

13.           Transaction Exclusion.  The issuance of Company’s common stock to any PFS Affiliate is not considered a Transaction for the purposes of this Agreement.

 

14.           Miscellaneous.  In connection with this engagement, PFS is acting as an independent contractor and not in any other capacity, with duties owing solely to the Company. Accordingly, nothing herein shall be construed to make the parties joint ventures or partners or to create any relationship of principal and agent.  This Agreement is made and entered into solely between and for the benefit of PFS and the Company and is not intended to convey any rights or benefits to any third party. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect pursuant to the terms hereof.  No waiver, alteration, or modification of any of the provisions hereof shall be binding unless in writing and signed by officers of both parties hereto.  This Agreement may be executed in multiple counterparts, each of which shall constitute an original, but all of which when taken together shall constitute one and the same agreement.

 

We are delighted to accept this engagement and look forward to working with you on this assignment.  Please confirm that the foregoing is in accordance with your understanding by signing and returning to us the enclosed duplicate of this agreement. The letter signed by you shall constitute a binding agreement between us as of the date executed by you.

	Very truly yours, 	 	Accepted and Agreed:
	 	 	 
	
Pace Financial Services, LLC 

	  	
Geospatial Holdings, Inc.

	  	  	  	  	  
	
Name:

	Daniel Blanchard	  	
Name:

	Mark Smith
	
Title:

	Managing Director 	  	
Title:

	Chief Executive Officer
	Date: 	 04/27/2011	 	Date:	 04/28/11
	Signature: 	 /s/ Daniel I. Blanchard	 	Signature:	/s/ Mark A SmithExhibit 10(e)  

 

 

 

 

PURCHASE AND SALE AGREEMENT

 

dated as of

April 21, 2011

 

between

 

EQUUS TOTAL RETURN, INC.

 

AND

 

KEKOVIA ENTERPRISES COMPANY LIMITED

 

 

 

 

 

 

     

     

    

PURCHASE AND SALE AGREEMENT

 

 

THIS PURCHASE AND SALE
AGREEMENT (this “Agreement”), dated as of April 21, 2011 by and between Equus Total Return, Inc., a Delaware
corporation (“Buyer”) and Kekovia Enterprises Company Limited a Cyprus corporation (“Seller”).
Capitalized terms used herein but not otherwise defined shall have the meanings set forth in Article I of this Agreement.

 

R E C I T A L S:

 

WHEREAS,
Seller is the holder of certain 4% five-year bonds with redeemable warrants attached, due May 30, 2012, issued by Orco
Germany pursuant to that certain Prospectus of Orco Germany, dated as of May 24, 2007,
that are listed on the Luxembourg Stock Exchange under ISIN XS0302623953 (the “Bonds”);
and 

 

WHEREAS, Buyer desires
to acquire a certain number of the Bonds from Seller and Seller has agreed to exchange such Bonds for Eight-Hundred Fifty Thousand
shares of Equus Restricted Common Stock (the “Equus Acquired Stock”) pursuant to the terms of this Agreement;

 

NOW, THEREFORE, the
parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

1.01. Definitions.
 The following terms, as used herein, have the following meanings:

 

“Action”
means any claim, action, suit, arbitration, inquiry, proceeding or investigation by or before any Governmental Authority.

 

“Agent”
means, with respect to any Person, any officer, director, employee, stockholder, controlling person (within the meaning of the
Securities Act), affiliate or authorized agent of such Person.

 

“Bonds”
shall have the meaning set forth in the recitals.

 

“Bond Value”
means an amount equal to 446.16 Euro.

“Business
Day” means any day that is not a Saturday or Sunday or a day on which the banking institutions in New York, New York
are required to be closed.

“Closing”
shall have the meaning set forth in Section 2.02.

 

“Closing Date”
means the date of the Closing.

 

 

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“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Commission”
means the U.S. Securities and Exchange Commission.

“Equus
Restricted Common Stock” means the common stock, par value $0.001 per share, of Buyer.

“Exchange”
shall have the meaning set forth in Section 2.01.

“Conversion
Rate” means the spot exchange rate applicable for converting one (1) U.S. Dollar into Euros which is 1 Euro= $1.433.

“Governmental
Authority” means any federal, state or local government or any court, tribunal, administrative agency or commission or
other governmental or other regulatory authority or agency, domestic, foreign or supranational.

 

“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security interest, restriction or encumbrance of any kind
in respect of such asset.

 

“Material Adverse
Effect” means a material adverse effect on the business, assets, financial condition or results of operations of Buyer.

 

“Orco Purchased
Bonds” means 5,704 Bonds which is equal to the quotient obtained by dividing (i) the product obtained by multiplying
(x) 850,000 times (y) the Per Share Value ($4.29), by (ii) the Bond Value (€)446.16; provided, however, fractions of a Bond
shall not be exchanged but shall instead be rounded up to the nearest whole Bond and any such fraction (the “Bond Fraction
Amount”) shall be paid in cash by Buyer to Seller as contemplated by Section 2.02 hereof, all of which is summarized
in Schedule A attached.

“Orco Germany”
means Orco Germany S.A., a public limited liability company (société anonyme), incorporated under the laws of the
Grand Duchy of Luxembourg, having its registered office at 48, boulevard Grande-Duchesse Charlotte, L-1330 Luxembourg and registered
with the Luxembourg companies and trade register under number B 102254.

“Per Share
Value” means an amount equal to the product of (i) $4.29 U.S. Dollars, times (ii) the Conversion Rate.

“Person”
means an individual, corporation, partnership, association, trust or other entity or organization, including a government or political
subdivision or an agency or instrumentality thereof.

 

“Securities Act”
means the Securities Act of 1933, as amended.

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ARTICLE II

 

PURCHASE AND SALE

 

2.01.
Purchase and Sale. Upon the terms and subject to the conditions herein, and in reliance upon the representations,
warranties, covenants and agreements made by the parties hereto, Buyer hereby agrees to purchase on the Closing Date from Seller,
and Seller, hereby agrees to sell, transfer and assign to Buyer the Orco Purchased Bonds, including all interest accrued and unpaid
or deferred thereon, free and clear of any and all Liens, in exchange for Buyer issuing to Seller on the Closing Date the Equus
Acquired Shares (the “Exchange”).

 

2.02.
Closing. The closing (the “Closing”) of the Exchange shall take place on the date hereof at
the offices of Goodwin|Procter LLP in New York, New York, or at such other place as Buyer and Seller shall mutually agree. On or
prior to the Closing:

 

(a)
Buyer shall deliver to Seller a certificate or electronic deposit for the Equus
Acquired Shares, registered in the name of Seller.

 

(b) Buyer shall
pay to Seller, by check delivered pursuant to the notice provisions set forth in Section 6.01 hereof, an amount in cash equal to
the product of (x) the Bond Fraction Amount, times (y) the Bond Value.

 

(c)
Seller shall cause the broker who holds Bonds for the benefit of Seller to transfer the Orco Purchased Bonds, without any
restrictions on transfer or resale thereof, to a broker designated in writing by Buyer not later than two (2) Business Days prior
to the Closing Date.

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES RELATING TO
BUYER

 

Buyer hereby represents
and warrants to Seller as of the Closing Date that:

 

3.01. Corporate Existence
and Power.  Buyer is a corporation duly incorporated, validly existing and in good standing under the laws of its jurisdiction
of incorporation, and has all requisite corporate power and authority to (i) carry on its business as now being conducted and (ii)
execute, deliver and perform its obligations under this Agreement. Buyer is duly qualified to do business and is in good standing
in all jurisdictions wherein such qualification is necessary and where failure to be so qualified would not have a Material Adverse
Effect.

 

3.02. Corporate Authorization.
The execution, delivery and performance by Buyer of this Agreement and the consummation by Buyer of the transactions contemplated
hereby and thereby, have been duly authorized by all necessary corporate action on the part of Buyer. This

 

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Agreement has been duly executed and delivered
by Buyer and constitutes a valid and binding agreement of Buyer, enforceable in accordance with its terms, subject as to enforceability
to general principles of equity and to bankruptcy, insolvency, moratorium and other similar laws affecting the enforcement of creditors’
rights generally.

 

3.03. Concerning
the Restricted Common Stock.  The Equus Acquired Shares have been duly authorized and on the Closing Date will be validly
issued, fully paid and nonassessable.

 

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES 

RELATING SELLER

 

Seller hereby represents
and warrants to, and agrees with, Buyer as of the Closing Date as follows:

 

4.01. Corporate Power
and Authorization. Seller is a corporation duly incorporated, validly existing and in good standing under the laws of its
jurisdiction of incorporation, and has all requisite corporate power and authority to execute, deliver and perform its obligations
under this Agreement. The execution, delivery and performance by Seller of this Agreement and the consummation by Seller of the
transactions contemplated hereby and thereby, have been duly authorized by all necessary corporate action on the part of Seller.
This Agreement has been duly executed and delivered by Seller and constitutes a valid and binding agreement of Seller, enforceable
in accordance with its terms, subject as to enforceability to general principles of equity and to bankruptcy, insolvency, moratorium
and other similar laws affecting the enforcement of creditors’ rights generally.

 

4.02. Investment
Representation. (a) Seller represents and warrants that:

 

(i)
it is acquiring the Equus Restricted Common Stock solely for its account and not with a view to or for resale in connection with
a distribution thereof;

 

(ii)
it has had the opportunity to ask questions of and receive complete answers from Agents of Buyer concerning the business, management
and financial condition of Buyer and the terms and conditions of the Equus Restricted Common Stock;

 

(iii)
it is able to bear the economic risk of its investment in the Equus Restricted Common Stock for an indefinite period of time;

 

(iv)
it can afford a complete loss of its investment in the Equus Restricted Common Stock;

 

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(v)
Seller has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks
of the investment in the Equus Restricted Common Stock; and

 

(viii)
Seller is an “accredited investor” within the meaning of Rule 501 under the Securities Act.

 

(b) Seller
acknowledges and agrees that:

 

(i)
the Equus Acquired Shares have not been registered under the Securities Act, or under the securities laws of any state or other
jurisdiction, and are being issued in reliance upon certain exemptions under such statutes;

 

(ii)
the Equus Acquired Shares may not be resold, transferred, pledged or otherwise disposed of except pursuant to an effective registration
statement under the Securities Act and any applicable state securities laws, or pursuant to a valid exemption from such registration
requirements, and Buyer shall have no obligation to record any proposed transfer of such shares on its stock tranfer records unless
the shares to be transferred have been registered under the Securities Act or the request for transfer is accompanied by an opinion
in form and substance satisfactory to Buyer that no such registration is required;

 

(iii)
Buyer shall have no obligation to register the Equus Acquired Shares pursuant to the Securities Act or the securities laws of
any state or to supply the information which may be necessary to sell such securities; and

 

(iv)
the certificate representing the Equus Acquired Shares will bear the following restrictive legend:

 

“The securities represented
hereby have not been registered under the Securities Act of 1933, as amended, and may not be sold, transferred or otherwise disposed
of except in accordance with the terms thereof and unless registered with the Securities and Exchange Commission of the United
States and the securities regulatory authorities of certain states or unless an exception from such registration is available.”

 

Buyer shall have no
obligation to remove such legend unless it is provided with an opinion of counsel reasonably satisfactory to Buyer that no such
legend is required.

 

4.03. Ownership.
Seller is the beneficial owner of the aggregate principal amount or accreted value, as the case may be, of the Purchased Orco
Bonds. There are no outstanding agreements, arrangements or understandings under which Seller or its nominee may be obligated
to sell, assign, transfer or otherwise dispose of any of the Purchased Orco Bonds, other than this Agreement.

 

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4.04. Liens.
The Purchased Orco Bonds are not subject to any Lien. The execution and delivery of, and the performance by the Seller of
its obligations under, this Agreement, will not result in the creation of any Lien upon the Purchased Orco Bonds.

 

ARTICLE V

 

CERTAIN COVENANTS AND AGREEMENTS OF THE PARTIES

 

5.01. Further
Assurances.  From time to time after the Closing, each of the parties hereto agrees to use its reasonable best
efforts to take or cause to be taken all action, to do or cause to be done, and to assist and cooperate with the other party
hereto in doing, all things necessary, proper or advisable under applicable laws and regulations to consummate and make
effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement, including, the
execution and delivery of such instruments, and the taking of such other actions as the other party hereto may reasonably
require in order to carry out the intent of the Agreement.

 

5.02. Publicity.
Except as expressly contemplated by this Article V, neither Buyer nor Seller shall, nor shall they permit their respective
Agents to, issue or cause the publication of any press release or make any other public statement, filing or announcement with
respect to this Agreement and the transactions contemplated hereby without the prior approval of the other party; provided, however,
that either party shall be entitled, without the prior approval of the other party, to make any press release or public disclosure
with respect to such transactions as is required by applicable law or the New York Stock Exchange. Buyer and Seller shall cooperate
in issuing press releases or otherwise making public statements with respect to this Agreement and the transactions contemplated
hereby, which cooperation shall include first consulting the other party hereto concerning the requirement for, and timing and
content of, such public announcement.

 

5.03. Buyer 8-K
Filing. Not more than four (4) Business Days following the Closing Date, Buyer shall file with the Commission on Form
8-K a current report describing the Exchange and certain transactions undertaken in connection with the transactions contemplated
by this Agreement.

 

5.04. Seller Schedule
13D Filing. Not more than ten (10) Business Days following the Closing Date, Seller shall file with the Commission a statement
on Schedule 13D describing the nature of its shareholdings in Buyer and any other items as may be required in connection with
such filing.

 

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ARTICLE VI

 

MISCELLANEOUS

 

6.01. Notices.
All notices, requests, demands or other communications that are required or may be given pursuant to the terms of this Agreement
shall be in writing and shall be deemed to have been duly given: (i) on the date of delivery, if personally delivered by hand,
(ii) upon the third day after such notice is deposited in the United States mail, if mailed by registered or certified mail,
postage prepaid, return receipt requested, (iii) upon the date scheduled for delivery after such notice is sent by a nationally
recognized overnight express courier or (iv) by fax upon written confirmation (including the automatic confirmation that is
received from the recipient’s fax machine) of receipt by the recipient of such notice:

 

	
        if to Buyer, to:

         

        Goodwin|Procter LLP

        The New York Times Building

        620 Eighth Avenue

        New York, NY 10018

        Attn: Martin Glass

        Facsimile: (212) 355-3333

         

         
	
        with a copy to:

         

         

	
        if to Seller to:

         

         

         
	
        with a copy to:

         

         

         

 

Such information may be
changed, from time to time, by means of a notice given in the manner provided in this Section 6.01.

 

6.02. Waivers; Remedies.
No delay on the part of any party in exercising any right, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any waiver on the part of any party of any right, power or privilege under this Agreement operate as a waiver
of any other right, power or privilege of such party under this Agreement, nor shall any single or partial exercise of any right,
power or privilege under this Agreement preclude any other further exercise thereof or the exercise of any other right, power or
privilege under this Agreement.

 

6.02. Amendment.
This Agreement may be modified or amended only by written agreement of the parties to this Agreement. 

 

6.04. Costs, Expenses
and Taxes. All costs and expenses, including any taxes, incurred in connection with this Agreement shall be paid by the
party incurring such cost or expense.

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6.05. Successors
and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns.

 

6.06. Survival of
Representations. The representations, warranties, covenants and agreements of Buyer and Seller contained in this Agreement
shall survive the Closing.

 

6.07. Governing Law.
This Agreement shall be construed in accordance with and governed by the laws of the State of New York, without
regard to the conflicts of law rules of such state. All actions and proceedings arising out of or relating to this Agreement shall
be heard and determined exclusively in any New York state or federal court sitting in The City of New York. The parties hereto
hereby: (a) submit to the exclusive jurisdiction of any state or federal court sitting in The City of New York for the purpose
of any Action arising out of or relating to this Agreement brought by any party hereto, and (b) irrevocably waive, and agree not
assert by way of motion, defense or otherwise, in any such Action, any claim that it is not subject personally to the jurisdiction
of the above-named courts, that is property is exempt or immune from attachment or execution, that the Action is brought in an
inconvenient forum, that the venue of the Action is improper, or that this Agreement or the transactions contemplated hereby may
not be enforced in or by any of the above-named courts.

 

6.08. Counterparts;
Effectiveness. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the
same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each
party hereto shall have received a counterpart hereof signed by the other parties hereto. A facsimile transmission of this Agreement
bearing a signature on behalf of a party hereto shall be legal and binding on such party.

 

6.09. Entire Agreement.
This Agreement constitute the entire agreement between the parties with respect to the subject matter hereof and supersede
all prior agreements, understandings and negotiations, both written and oral, between the parties with respect to the subject matter
hereof. No representation, inducement, promise, understanding, condition or warranty not set forth herein has been made or relied
upon by either party hereto. None of the provisions of this Agreement is intended to confer upon any Person other than the parties
hereto any rights or remedies hereunder.

 

6.10. Captions.
The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation
hereof.

 

 

    	8

    	 

    

IN WITNESS WHEREOF, the parties hereto have
duly executed this Agreement as of the day and year first above written.

 

 

BUYER:

 

EQUUS TOTAL RETURN, INC.

 

By: /s/ John A. Hardy

Name:John
A. Hardy

Title:Executive
Chairman

 

 

 

SELLER:

 

KEKOVIA ENTERPRISES COMPANY LIMITED.

C/O Gabriel Lahyani

Via Valadier 33

0193 – Rome / Italy

 

 

By: /s/ Gabriel Lahyani

Name: Gabriel Lahyani

Title: Managing Director

 

 

 

    	9

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