CAPITAL SOUTHWEST CORP

The Borrower will not permit Stockholders’ Equity as of the last day of any fiscal quarter of the Borrower to be less than the sum of (x) 687,996,400, plus (y) 50% of the aggregate net proceeds of all sales of Equity Interests by the Borrower and its Subsidiaries after the Restatement Effective Date

The Borrower will not permit the Consolidated Asset Coverage Ratio to be less than 150% at any time.

The Borrower will not permit the Senior Coverage Ratio to be less than 2.00 to 1.00 at any time.

The Borrower will not permit the Consolidated Interest Coverage Ratio to be less than 2.00 to 1.00 as of the last day of any fiscal quarter of the Borrower.

Springing: Applies during any period when Adjusted Covered Debt Balance is greater than 90% of the Adjusted Borrowing Base; up to 30 Business Days grace.

The Borrower will not permit the aggregate Value of the Eligible Portfolio Investments that can be converted to Cash in fewer than 10 Business Days without more than a 5% change in price to be less than 10% of the Covered Debt Amount for more than 30 Business Days during any period when the Adjusted Covered Debt Balance is greater than 90% of the Adjusted Borrowing Base.

The Borrower will not permit the Obligors’ Net Worth to be less than $384,526,500.