Document:

Joint Code of Ethics of Equus II Incorporated

 Exhibit 10(i) 
  
 EQUUS II INCORPORATED 
 EQUUS CAPITAL MANAGEMENT
CORPORATION 
  
 JOINT CODE OF ETHICS 
  

	1.	Applicability 

  
 This Code of Ethics (the “Code”) has been adopted by the Board of Directors, including a majority of the Directors who are not interested
persons, of Equus II Incorporated (“EQS” or the “Fund”) and Equus Capital Management Corporation (the “Adviser”) in order to satisfy the requirements of Rule 17j-1 under the Investment Company Act of 1940 (the
“1940 Act”) and Section 204A of the Investment Advisers Act of 1940 (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 the Adviser’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 the Adviser. 
  

	1.	Definitions 

  

	 	1.1.	“Access Person” means (a) the Adviser, (b) any Board Member or Advisory Person, and (c) any director, partner, or officer of the Fund or the Adviser who, with
respect to the Fund, makes any recommendation, participates in the determination of which recommendation will be made, or whose principal functions or duties relate to the determination of which recommendation will be made, or who, in connection
with his or her duties, obtains any information concerning recommendations of securities being made by the Adviser to the Fund. 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 the Adviser 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 the Adviser 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 an director of the Fund. 

  

	 	1.6	“Committee of Independent Directors” means a committee comprised of all of the directors 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 the Adviser to serve as the chief compliance officer of the Adviser. 

  

	 	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 the Adviser 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 director of a Fund who is not an “interested person,” as defined in Section 2(a)(19) of
the 1940 Act, of a Fund. 

  

	 	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) of 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”); (d) any other margin security as defined in Regulation T; (e) the purchase and sale of commodities or commodities
contracts; (f) any put, call, straddle, option, or privilege related to any of the foregoing and (f) 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. 
  

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	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. 

  

	 	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 the Adviser. 

  
 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 either Fund. These prohibitions shall continue until the time that
the Adviser 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 course of business that 

  

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operates or would operate as a fraud or deceit upon either 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 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 of 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 

  

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

  

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	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 either Fund or the Adviser 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 the Adviser; 

  

	 	(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; 

  

	 	(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 

  
  

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	 	(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 a 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 

  

	 	(b)	 Independent Board Members of a 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 or individual general partner of 

  

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such 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 the Adviser. 

  

	 	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 ten 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 ten 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;

  

	 	(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 

  

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	 	(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
30 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; and 

  

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

  
 Submission of the Annual Holdings Report, along with copies of the most recent monthly statement for each person’s 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. 

  

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

  

	 	(f)	supervise the implementation of this Code by the Adviser and the enforcement of the terms hereof by the Adviser; 

  

	 	(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; 

  

	 	(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; 

  

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	 	(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 a 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 the 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 the Adviser such responsibilities of the Compliance Officer as he or she may deem appropriate; provided, that:
(a) any such delegation shall be set forth in writing and retained as part of the records of the applicable Fund and the Adviser 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.	Prohibition Against Insider Trading. 

  
 This Section is intended to satisfy the requirements of Section 204A of the Advisers Act, which is applicable to the Adviser and requires that the Adviser
establish and enforce procedures designed to prevent the misuse of material, non-public information by its associated 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 a Fund Employee from the securities industry. Finally, a Fund Employee may be sued by investors seeking to recover damages for
insider trading violations. 
  

	 	8.1	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. 

  

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	 	8.2	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.

  

	 	8.3	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. 

  

	 	8.4	A Fund Employee, before executing any trade for himself or herself, or others, including a Fund or other accounts managed by the Adviser or by a stockholder of the Adviser, 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: 

  

	 	$	Report the information and proposed trade immediately to the Compliance Officer. 

  

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

  

	 	$	Do not communicate the information to any person, other than to the Compliance Officer. 

  
 After the Compliance Officer has reviewed the issue, the Adviser will determine whether the information is material and
non-public and, if so, what action the Adviser 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, clients and the Advisers.

  

	 	8.5	 Contacts with public companies will sometimes be a part of an Adviser’s research efforts. Persons providing investment advisory services to a Fund may make

  

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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, the Adviser must make a judgment as to its further conduct. To protect yourself, clients and the Adviser, you should
contact the Compliance Officer immediately if you believe that you may have received material, non-public information. 

  

	9.	Sanctions. 

  
 Any violation of this Code shall be subject to the imposition of such sanctions by the Fund and the Adviser 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 the Adviser shall be designated by
the Adviser. Sanctions may include, but are not limited to, suspension or termination of employment, a letter of censure and/or restitution of an amount equal to the difference between the price paid or received by the Fund and the more advantageous
price paid or received by the offending person. 
  

	10.	Review of Reports. 

  
 The Compliance Officer shall be responsible for reviewing all reports filed with the Fund or the Adviser 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 each Fund any violations of this Code that come to his
or her attention in such review. 
  

	11.	Investment Advisers. 

  
 Prior to retaining the services of an investment adviser or principal underwriter for the Fund, the Board of Directors of a 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. 
  

	12.	Periodic Review. 

  
 The Board of Directors (including a majority of the Independent Directors) of each Fund shall review and evaluate this Code and the Reports filed by
Access Persons at least once a year to determine that each Access Person is complying with the requirements of the Code and to determine that this Code contains such provisions as are reasonably necessary to prevent Access 

  

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Persons from engaging in any act, practice, or course of business prohibited by paragraph (a) of Rule 17j-1. 
  
 No less frequently than annually, the Compliance Officer shall furnish the
Board of Directors of each 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 the Adviser each have adopted such procedures as are reasonably necessary to prevent Access Persons from violating the Code. 

 

	13.	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. 
  

	14.	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 a Fund or the Adviser. 
  

	15.	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. As of the date hereof, the Compliance Officer is Hank Nicodemus or such person or persons to whom he shall delegate such duty from time to time. 
  

	16.	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 either Fund or the Adviser 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. 
  

 14 

 SCHEDULE A 
  
 EQUUS II INCORPORATED 
 EQUUS CAPITAL MANAGEMENT
CORPORATION 
  
 REQUEST FOR PERMISSION TO 
 ENGAGE IN PERSONAL SECURITIES TRANSACTION 
  
 To the Clearing Officer: 
  
 On each of the dates proposed below, I hereby request permission to effect a transaction in securities as indicated below on behalf of myself, my family
(spouse, minor children, or adults living in my household), trusts of which I am trustee of or other accounts in which I have a beneficial ownership interest or legal title. 
  
 (Use approximate dates and amounts of proposed transactions) 
  

													
	 Name of Security

	 	 Proposed Date of
Transaction

	 	 No. of Shares or
Principal Amount

	  	Dollar Amount
of Transaction

	  	Nature of
Transaction
(Purchase, Sale,
Other) 

	  	Broker/
Dealer or Bank

	  	Share Price

	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 

  

									
	 	 	 	 	 
					
	 	 	 	 	 	 	Name:	 	 
					
	 	 	 	 	 	 	Position with Company:	 	 
					
	Date:	 	 	 	 	 	Signature:	 	 
					
	Permission Granted	 	 	 	 	 	Permission Denied	 	 
					
	Date:	 	 	 	 	 	Signature:	 	 
	 	 	 	 	 	 	 	 	Clearing Officer

  

 15 

 SCHEDULE B 
  
 EQUUS II INCORPORATED 
 EQUUS CAPITAL MANAGEMENT
CORPORATION 
  
 INITIAL REPORT OF SECURITIES 
  
 To the Compliance Officer: 
  
 On the date indicated, the following are securities of which I, my family
(spouse, minor children, or adults living in my household) or trusts of which I am trustee, possessed direct or indirect “beneficial ownership.” If there were no such securities, I have so indicated by typing or printing “NONE.”
I certify that all my personal securities accounts are listed below. I further certify that, other than those securities listed below, I hold no securities in which I may be deemed to have beneficial ownership other than in the personal securities
accounts listed.* 
  

							
	 Name of Security

	 	 No. of Shares or Principal Amount

	 	 Broker/Dealer or Bank

	  	Account No.

	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 

  
 This report (i)
excludes transactions with respect to which I had no direct or indirect influence or control, (ii) any other transactions not required to be reported under the Code and (iii) is not an admission that I have or had any direct or indirect beneficial
ownership in the securities listed above. 
  

									
					
	Date:	 	 	 	 	 	Signature:	 	 
	 	 	 	 	 	 	 	 	Printed
					
	 	 	 	 	 	 	Name:	 	 
					
	 	 	 	 	 	 	Company:	 	 
					
	 	 	 	 	 	 	Position with Company:	 	 

 * Information may be provided by attaching the most
recent monthly statement for each account, along with confirmations of any transactions effected since the date of such statements. 
  
  

 16 

 SCHEDULE C 
  
 EQUUS II INCORPORATED 
 EQUUS CAPITAL MANAGEMENT
CORPORATION. 
  
 QUARTERLY REPORT OF SECURITIES TRANSACTIONS

  
 To the Compliance Officer: 
  
 I certify that this report, together with the confirmations and statements
for any personal securities accounts as to which I have arranged for the Compliance Officer to receive duplicate confirmations and statements, identifies all transactions, if any, during the calendar quarter which were effected in securities of
which I, my family (spouse, minor children, or adults living in my household), or trusts of which I am trustee, participated or acquired or disposed of, direct or indirect “beneficial ownership.” If no such transactions were effected, I
have so indicated by typing or printing “NONE.” Use reverse side if additional space is needed. 
  

													
	 Name of Security

	 	 Date

	 	 No. of Shares and
Principal Amount

	  	Dollar Amount
of Transaction

	  	Nature of
Transaction
(Purchase, Sale,
Other)

	  	Account

	  	Executing
Broker

	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 

  
 This report (i)
excludes transactions with respect to which I had no direct or indirect influence or control, (ii) any other transactions not required to be reported under the Code and (iii) is not an admission that I have or had any direct or indirect beneficial
ownership in the securities listed above. 
  

									
					
	Date:	 	 	 	 	 	Signature:	 	 
					
	 	 	 	 	 	 	Print Name:	 	 
					
	 	 	 	 	 	 	Company:	 	 
					
	 	 	 	 	 	 	Position with Company:	 	 

  

 17 

 SCHEDULE D 
  
 EQUUS II INCORPORATED 
 EQUUS CAPITAL MANAGEMENT
CORPORATION 
  
 ANNUAL REPORT OF SECURITIES 
  
 To the Compliance Officer: 
  
 On the date indicated, the following are securities of which I, my family
(spouse, minor children, or adults living in my household) or trusts of which I am trustee, possessed direct or indirect “beneficial ownership.” If there were no such securities, I have so indicated by typing or printing “NONE.”
I certify that all my personal securities accounts are listed below. I further certify that, other than those securities listed below, I hold no securities in which I may be deemed to have beneficial ownership other than in the personal securities
accounts listed.* 
  

							
	 Name of Security

	 	 No. of Shares or Principal Amount

	 	 Broker/Dealer or Bank

	  	Account No.

	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 

  
 This report (i)
excludes transactions with respect to which I had no direct or indirect influence or control, (ii) any other transactions not required to be reported under the Code and (iii) is not an admission that I have or had any direct or indirect beneficial
ownership in the securities listed above. 
  

									
					
	Date:	 	 	 	 	 	Signature:	 	 
					
	 	 	 	 	 	 	Printed Name:	 	 
					
	 	 	 	 	 	 	Company:	 	 
					
	 	 	 	 	 	 	Position with Company:	 	 

 * Information may be provided by attaching the most
recent monthly statement for each account, along with confirmations of any transactions effected since the date of such statements 
  
  

 18 

 SCHEDULE E 
  
 CERTIFICATION OF COMPLIANCE WITH CODE OF ETHICS 
  
 Attention: Compliance Officer 
  
 I certify that I have read and understand the Code of Ethics of Equus II Incorporated and Equus Capital Management Corporation (the “Code”), a
copy of which has been provided to me., I recognize that the provisions of the Code apply to me and agree to comply in all respects with the procedures described therein. 
  
 I hereby agree to certify on an annual basis that I have complied with the requirements of the Code and I have disclosed or
reported all personal securities transactions required to be disclosed or reported pursuant to the requirements of the Code. 
  
 I am a director of the following public and private companies:
                                        
                                        
                         
  

	
	 
	 
	 

  
 IN WITNESS WHEREOF,
the undersigned has caused this Certification to be executed and delivered as of the date hereof. 
  

			
	
	 
	 Name:
	 	 
	 Title:
	 	 

  
 Dated:
                                        
                     
  

 19 

 SCHEDULE F 
  
 ANNUAL CERTIFICATION OF COMPLIANCE WITH CODE OF ETHICS 
  

	Attention:	Compliance Officer 

  
 I certify that I have read and understand the Code of Ethics of Equus II Incorporated and Equus Capital Management Corporation (the “Code”), a
copy of which has been provided to me., I recognize that the provisions of the Code apply to me and agree to comply in all respects with the procedures described therein. 
  
 I certify that I have complied in all respects with the requirements of the Code as in effect during the past year. I also
certify that all transactions during the past year that were required to be reported by me pursuant to the Code have been reported in Quarterly Transaction Reports that I have filed or in confirmations and statements for my personal securities
accounts that have been sent to you. 
  
 I am a director of the
following public and private companies:
                                        
                                        
                     
  

	
	 
	 
	 

  
 IN WITNESS WHEREOF,
the undersigned has caused this Certification to be executed and delivered as of the date hereof. 
  

			
	
	 
	 Name:
	 	 
	 Title:
	 	 

  
 Dated:Option Agreement, dated as of June 14, 2004

 Exhibit 10.5 
  
 eMERGE INTERACTIVE, INC. 
 STOCK OPTION GRANT 
  
 eMerge Interactive, Inc., a Delaware corporation (the “Company”), hereby grants to the grantee named below (“Grantee”) an option (this “Option”) to purchase the total number of shares shown below of Class A
Common Stock of the Company (the “Shares”) at the exercise price per share set forth below, subject to all of the terms and conditions on the reverse side of this Stock Option Grant Certificate and the 1999 Equity Compensation Plan, as
amended and restated (the “Plan”). Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to them in the Plan. The terms and conditions set forth on the reverse side hereof and the terms and
conditions of the Plan are incorporated herein by reference. This Stock Option Grant Certificate shall constitute the “Agreement” for this Option as such term is used in the Plan. 
  

			
	 Grant Date:
	  	June 16, 2004
		
	 Type of Option:
	  	Incentive Stock Option
		
	 Shares Subject to Option:
	  	200,000
		
	 Exercise Price Per Share:
	  	$1.8450
		
	 Term of Option:
	  	10 years

  
 Shares subject to
issuance under this Option Grant shall be eligible for exercise according to the following vesting schedule: 
  

				
	 May 18, 2004 to October 1, 2004
	  	25	%
	 May 19, 2005 to May 18, 2006
	  	50	%
	 May 19, 2006 to May 18, 2007
	  	75	%
	 May 19, 2007 to May 18, 2008
	  	100	%

  
 In witness whereof,
this Stock Option Grant Certificate has been executed by the Company by a duly authorized officer as of the date specified hereon. 
  

			
	eMerge Interactive, Inc.
		
	 By
	 	/s/    DAVID C. WARREN        
	 	 	David C. Warren, President/CEO

  
 Grantee hereby
acknowledges receipt of a copy of the Plan, represents that Grantee has read and understands the terms and provisions of the Plan, and accepts this Option subject to all the terms and conditions of the Plan and this Stock Option Grant Certificate.
Grantee acknowledges that the grant and exercise of this Option, and the sale of Shares obtained through the exercise of this Option, may have tax implications that could result in adverse tax consequences to the Grantee and that Grantee is not
relying on the Company for any tax, financial or legal advice and will consult a tax adviser prior to such exercise or disposition. 
  

	
	
	/s/    ROBERT E. DRURY        
	 Employee’s Name

  
 This Option is
designated an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). If the aggregate fair market value of the stock on the date of the grant with respect to which incentive stock options
are exercisable for the first time by the Grantee during any calendar year, under the Plan or any other stock option plan of the Company or a parent or subsidiary, exceeds $100,000, then the Option, as to the excess, shall be treated as a
nonqualified stock option that does not meet the requirements of Section 422. If and to the extent that the Option fails to qualify as an incentive stock option under the Code, the Option shall remain outstanding according to its terms as a
nonqualified stock option. 
  

 By accepting an incentive stock option under the Plan, Grantee agrees to notify the Company in writing
immediately after he or she makes a disqualifying disposition (as described in the Code and regulations thereunder) of any stock acquired pursuant to the exercise of incentive stock options granted under the Plan. A disqualifying disposition is
generally any disposition occurring within two years of the date the incentive stock option was granted or within one year of the date the incentive stock option was exercised, whichever period ends later. 
  
 1. Option Expiration. The Option shall automatically terminate upon the happening of
the first of the following events: 
  
 (a) The expiration of the
90-day period after the Grantee ceases to be employed by the Company (as defined in the Plan), if the termination is for any reason other than disability (as defined in the Plan), death or cause (as defined in the Plan); 
  
 (b) The expiration of the one-year period after the Grantee ceases to be
employed by the Company on account of the Grantee’s disability; 
  
 (c) The expiration of the one-year period after the Grantee ceases to be employed by the Company, if the Grantee dies while employed by the Company or within 90 days after the Grantee ceases to be so employed or provide such services on
account of a termination described in subparagraph (a) above; or 
  
 (d) The date on which the Grantee ceases to be employed by the Company for cause. 
  
 Notwithstanding the foregoing, in no event may the Option be exercised after the expiration of the Term of Option specified on the reverse side. Any portion of the Option that is not vested at the time the Grantee
ceases to be employed by the Company shall immediately terminate. 
  
 In the event a Grantee ceases to be employed by the Company for cause, the Grantee shall automatically forfeit all shares underlying any exercised portion of an Option for which the Company has not yet delivered the share certificates upon
refund by the Company of the exercise price paid by the Grantee for such shares. 
  
 2. Exercise Procedures. 
  
 (a) Subject to the
provisions of this Stock Option Grant Certificate and the Plan, the Grantee may exercise part or all of the vested Option by giving the Company written notice of intent to exercise in the manner provided in Paragraph 11 below, specifying the number
of Shares as to which the Option is to be exercised. On the delivery date, the Grantee shall pay the exercise price (i) in cash, (ii) by delivering Shares of the Company (duly endorsed for transfer or accompanied by stock powers signed in blank)
which shall be valued at their fair market value on the date of delivery, or (iii) by such other method as the Committee may approve, including, after the Company becomes a Reporting Company, payment through a broker in accordance with procedures
permitted by Regulation T of the Federal Reserve Board. The Board may impose from time to time such limitations as it deems appropriate on the use of Shares of the Company to exercise the Option. 
  
 (b) The obligation of the Company to deliver Shares upon exercise of the
Option shall be subject to all applicable laws, rules, and regulations and such approvals by governmental agencies as may be deemed appropriate by the Board, including such actions as Company counsel shall deem necessary or appropriate to comply
with relevant securities laws and regulations. The Company may require that the Grantee (or other person exercising the Option after the Grantee’s death) represent that the Grantee is purchasing Shares for the Grantee’s own account and not
with a view to or for sale in connection with any distribution of the Shares, or such other representation as the Board deems appropriate. All obligations of the Company under this Stock Option Grant Certificate shall be subject to the rights of the
Company as set forth in the Plan to withhold amounts required to be withheld for any taxes, if applicable. Subject to Committee approval, the Grantee may elect to satisfy any income tax withholding obligation of the Company with respect to the
Option by having Shares withheld up to an amount that does not exceed the maximum marginal tax rate for federal (including FICA), state and local tax liabilities. 
  
 3. Change of Control. The provisions of the Plan applicable to a Change of Control shall apply to the Option, and, in the event of a
Change of Control, the Board may take such actions as it deems appropriate pursuant to the Plan. 
  
 4. Restrictions on Exercise. Only the Grantee may exercise the Option during the Grantee’s lifetime. After the Grantee’s death, the Option shall be exercisable (subject to the limitations specified in
the Plan) solely by the legal representatives of the Grantee, or by the person who acquires the right to exercise the Option by will or by the laws of descent and distribution, to the extent that the Option is exercisable pursuant to this Stock
Option Grant Certificate. Notwithstanding the foregoing, the Committee, in its sole discretion, may determine that a Grantee may transfer nonqualified stock options to family members or other persons or entities upon such terms as the Committee may
approve. 
  

 2 

 5. Grant Subject to Plan Provisions. This grant is made pursuant to the Plan, the terms of which are incorporated
herein by reference, and in all respects shall be interpreted in accordance with the Plan. The grant and exercise of the Option are subject to the provisions of the Plan and to interpretations, regulations and determinations concerning the Plan
established from time to time by the Committee in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (i) rights and obligations with respect to withholding taxes, (ii) the registration, qualification
or listing of the Shares, (iii) capital or other changes of the Company, and (iv) other requirements of applicable law. Shares issued upon exercise of the Option shall, prior to a public offering of the Company’s common stock, be subject to (i)
the Company’s right of first refusal, as set forth in the Plan, to purchase the Shares if the Grantee receives an offer from a third party, and (ii) the Company’s right otherwise to purchase the Shares upon terms set forth in the Plan. The
Committee shall have the authority to interpret and construe the Option pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder. 
  
 6. No Employment Rights. The grant of the Option shall not confer upon the Grantee any right to be retained by or in the employ of
the Company and shall not interfere in any way with the right of the Company to terminate the Grantee’s employment or service at any time. The right of the Company to terminate at will the Grantee’s employment or service at any time for
any reason is specifically reserved. No policies, procedures or statements of any nature by or on behalf of the Company (whether written or oral, and whether or not contained in any formal employee manual or handbook) shall be construed to modify
this Grant Letter or to create express or implied obligations to the Grantee of any nature. 
  
 7. No Stockholder Rights. Neither the Grantee, nor any person entitled to exercise the Grantee’s rights in the event of the Grantee’s death, shall have any of the rights and privileges of a
stockholder with respect to the Shares subject to the Option until certificates for Shares have been issued upon the exercise of the Option. 
  
 8. No Disclosure. The Grantee acknowledges that the Company has no duty to disclose to the Grantee any material information regarding the business of the Company
or affecting the value of the Shares before or at the time of a termination of the Grantee’s employment, including without limitation any plans regarding a public offering or merger involving the Company. 
  
 9. Assignment and Transfers. The rights and interests of the Grantee under this Stock
Option Grant Certificate may not be sold, assigned, encumbered or otherwise transferred except, in the event of the death of the Grantee, by will or by the laws of descent and distribution. In the event of any attempt by the Grantee to alienate,
assign, pledge, hypothecate, or otherwise dispose of the Option or any right hereunder, except as provided for in this Stock Option Grant Certificate, or in the event of the levy or any attachment, execution or similar process upon the rights or
interests hereby conferred, the Company may terminate the Option by notice to the Grantee, and the Option and all rights hereunder shall thereupon become null and void. The rights and protections of the Company hereunder shall extend to any
successors or assigns of the Company and to the Company’s parents, subsidiaries, and affiliates. This Stock Option Grant Certificate may be assigned by the Company without the Grantee’s consent. 
  
 10. Applicable Law. The validity, construction, interpretation and effect of this
instrument shall be governed by and determined in accordance with the laws of the State of Delaware. 
  
 11. Notice. Any notice to the Company provided for in this instrument shall be addressed to the Company in care of the Chief Financial Officer at the Company’s headquarters and any notice to the Grantee
shall be addressed to such Grantee at the current address shown on the payroll of the Company, or to such other address as the Grantee may designate to the Company in writing. Any notice shall be delivered by hand, sent by telecopy or enclosed in a
properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service. 
  

 3

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