8001 Franklin Farms Drive, Suite 208 Richmond, VA 23229 Phone: 804.288.6080 | Fax: 804.288.6082 www.redmondassetman

1. 8001 Franklin Farms Drive, Suite 208 Richmond, VA 23229 Phone: 804.288.6080 |Fax: 804.288.6082 www.redmondassetmanagement.com

2. Firm Overview Redmond Asset Management (RAM) seeks to deliver top-notch client service and above average investment returns by purchasing publically traded stocks that we believe offer superior risk adjusted long term opportunities for growth of capital. • Founded by Scott Redmond in December 2005. • As of June 30, 2013 RAM had firm assets of approximately $170 million. • Located in Richmond, Virginia.

3. Organizational Chart Full bios found on pages 25-26

5. Markel Corporation • On July 1, 2013 Markel Corporation (ticker MKL) became our largest client1 • Tom Gayner, Co-President and CIO, has long been a friend to RAM; now is squarely in our corner. We feel our resources have expanded meaningfully • It is not exactly a bad thing that our largest client is, in our opinion, a far superior investor AND has a vested interest in our success • Markel Corp. does not have an equity stake in RAM, but will benefit from our growth • Classic Win/Win, in our opinion 1 It is not known whether the listed client approves or disapproves of Redmond Asset Management, LLC or the advisory services provided.

6. Return History1,2,3 1 Past performance is not indicative of future performance. Client investment returns will be reduced by the advisory fees and other expenses it may incur. Advisory fees are negotiable. 2 GIPS Compliant Presentation found on page 28. 3 Returns are shown in U.S. Dollars.

7. Annualized Returns1,2,3 1 Past performance is not indicative of future performance. Client investment returns will be reduced by the advisory fees and other expenses it may incur. Advisory fees are negotiable. 2 GIPS Compliant Presentation found on page 28. 3 Returns are shown in U.S. dollars.

8. Firm Ownership and Compensation Scott Redmond founded the firm, owns 100% of the firm, and serves as the benevolent dictator Meritocratic Compensation (don’t bother asking for the formulas) • The source of revenue is the source of compensation • Analysts are evaluated on long term performance of recommendations vs. the benchmark and the proprietary screen • Portfolio Managers are evaluated vs. Analyst Recommendations • Analysts and Portfolio Managers may earn a portion of New Business/Client Retention revenues Succession Plan • Key Person Insurance exists for Scott Redmond and Jeremy Kirkland • Should Scott Redmond die • Chief Legal Counsel becomes interim CEO • Resources are in place for an orderly transfer of ownership and responsibilities

9. Core Investment Beliefs Components of Persistent Long Term Alpha • High Active Share • Low to Moderate Tracking Error • Low Turnover • No Factor Bets • Investing is More Art Than Science (More UC Berkley than Caltech)

10. Science Behind Our Beliefs • “Research shows that funds with high active share and moderate tracking error deliver excess returns on average.”1 • Active Share2 • “Active Share significantly predicts fund performance relative to the benchmark.”2 • “We also find strong evidence of performance persistence for funds with highest Active Share.”2 • “Active Share has greatest predictive power for returns among small-cap funds.”2 • Proprietary Analysis by RAM 1Michael J. Mauboussin, “Mauboussin on Strategy”, February 24, 2012 http://www.petajisto.net/media/20120224lm.pdf. 2K. J. MartijnCremers and AnttiPetajisto, “How Active Is Your Fund Manager? A New Measure That Predicts Performance,” March 31, 2009 http://www.petajisto.net/research.html

11. Manage to High Active Share and Low/Moderate Tracking Error Portfolios • NO FACTOR BETS • Ownership of Industry Dominant or Distinguished Companies • Diversify by business, not by GICS Sector Code • Reduced Systematic Risk • Long term exposure to “Antifragile*” Companies *The term “antifragile” was introduced by NassimTaleb

12. Stock Selection • Overwhelmingly RAM seeks ownership of • Industry Dominant Companies • Distinguished Companies • Stocks usually originate from a Proprietary Screen, but may come from other sources • Up to 5% of the portfolio is allocated to immature or speculative companies • The Process is 90% fundamental and 10% quantitative

13. Equity Investment Philosophy • Find long term investments in Great Growth Companies through Bottom-Up Stock Picking • Great Growth Companies exhibit the following: • Outstanding Management and Corporate Culture • Industry or Niche Dominance • High or Rapidly Growing RAM Margins* • Disciplined use/reinvestment of cash • We believe our stocks could outperform the stock market over the long run because: • Cash generation creates wealth for the company • Prudent reinvestment of that cash increases company wealth even more! • Eventually, an increase in company wealth may translate into proportionately higher stock prices *a proprietary calculation

14. RAM Margin • Proprietary Calculation Adjusted Cash Flow – Adjusted Cost of Capital Adjusted Invested Capital • What It Means To Us Consistently positive RAM Margins may indicate: • A well run company • Operating in a Niche, or • Dominating an industry Rapidly rising RAM Margins may indicate: • Change in competitive landscape • Past investments starting to pay off

15. Typical Investment Process • Fundamental Analysis • Growth Prospects • Competitive Advantage • Corporate Culture • Return Expectations • Earnings Based • Cash Flow Based • Portfolio Considerations • Sector Weight • Liquidity • Four Screens • RAM Margin • Fundamental Growth • Relative Strength of Stock Price • Earnings Estimate Revisions 50-70 Stock Portfolio 2000 Company Universe 200 Candidate Companies

16. Equity Sell Disciplines • Fundamental • Loss of confidence in management • Results in complete sale • Fundamental deterioration • We usually scale out as evidence of deteriorating fundamentals builds • Price Related • Overvaluation • We usually scale out as the stock becomes overvalued • Monitor holdings for absolute and relative performance • We do not use price targets

17. Portfolio Construction Broad Ensemble of Industry Dominant or Distinguished Companies (50-70 stocks) • Drivers (3%-7% weight per stock) • Deep knowledge of and strong conviction in the company • Compelling risk return of the stock • Core Positions (1.25%-3% weight per stock) • Solid Companies • Stocks have attractive risk return potential • Incubators (<1.25% weight per stock) • General inclination toward the stock • Immature or speculative companies

18. Portfolio Diversification Simple yet comprehensive approach • Business • Unique, distinguished ,or dominant companies will rarely compete for the same dollar of revenue • For example, in Dec 2011 our top four financial holdings represented 20% of the portfolio and included a debt collector, a BDC, a bank, and a specialty insurer • GICS sector codes are irrelevant • Growth Rate • Wide range of short and long term projected growth rates • Boring businesses hit inflection points, exciting businesses keep momentum., and “Steady Eddies” plod along • Stock Chart • Wide range of general stock chart patterns • Stocks do not normally move together • Valuation • Wide range of valuations • Some are not as expensive as they appear, some are very cheap, and others are fairly priced and you get the growth rate of earnings

19. Ownership Mentality • True long term investors • Know what we own and why we own it • Opportunity to know companies well over time

20. Our Primary Short Run Risks To Relative Performance • Low and Increasing Market Dispersion* • Speculative Bubble • Junk Rally * We would like to acknowledge the influence of the Antti Petajisto, “Active Share and Mutual Fund Performance”, December 2010 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1685942

21. General View of Risk • To RAM Risk Is A Function Of1: • The amount of money you stand to lose • The likelihood of the loss occurring • Greatest Source of Risk Is Ourselves • To RAM Risk Is Not1: • Price Volatility • Beta, Correlation, Tracking Error etc… 1We would like to acknowledge the influence of the greater works of Seth Klarman

22. Managing Risk • Simplified Investment Process1: • Accentuates roll of skill versus luck in long run outcomes1 • Anchored to Core Beliefs • Limit AUM • Wider spectrum of investable ideas • Soft Close at $300M • Hard Close at <$500M • Check Lists1 • Prior to Purchase • Monitoring Existing Holdings • Maintain a log of various thoughts1 • oddly the most valuable log is “if we are wrong it will probably unfold like…”1 • Active Introspection of Behavioral Biases and Cognitive Errors1 1We would like to acknowledge the influence of the greater works of Michael Mauboussin

23. Adaptation of Heisenberg Uncertainty Principal • In our words: Measurement Perturbs • Werner Heisenberg concluded you cannot simultaneously precisely know both the location and speed of a particle, because to measure one perturbs the other • Too frequently measuring the performance of a long term strategy perturbs the investment process… if you are human! • We believe in the science behind our art • We grind through process, aware of performance

24. Fee Structure1 1 Fees are negotiable

25. Investment Team

26. Operations Team

27. Third-Party Relationships and Services

28. Redmond Asset Management, LLC (referred to as RAM) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. RAM has been independently verified for the periods 1 January 2007 through 31 December 2012. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Small Cap composite has been examined for the periods 1 January 2007 through 31 December 2012. The verification and performance examination reports are available upon request. • Notes: • 1 Redmond Asset Management, LLC is an independent, SEC registered investment management firm located in Richmond, VA and is not affiliated with any parent organization. RAM was founded in 2005 and registered with the SEC on 12/22/2005. The company offers investment management services for equity, balanced and fixed income portfolios to corporate, institutional, and individual investors. The firm is wholly owned by the founding principal, R. Scott Redmond, CFA. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. • 2 The Small Cap Composite includes all discretionary portfolios that are managed according to RAM's Small Cap investment strategy. The strategy uses a bottom-up stock selection approach to identify fifty to seventy small capitalization companies with high quality management teams, industry and/or niche dominance, with historical and continuing high returns on invested capital and reinvested cash. The firm defines small cap companies as those with market capitalizations less than $2 billion, or those companies with market capitalizations no larger than the most recently reported market capitalization of the largest constituent of the Russell 2000 Index. There is no account minimum restriction for the composite. • 3 The performance benchmark for the composite is the total return of the Russell 2000® Index, as reported by Russell Investments. The composite returns may be significantly more or less volatile than the benchmark returns. • 4 Valuations are computed and performance is reported in U.S. dollars. • 5 Composite Gross Returns are presented before management and custodial fees but after all trading expenses. Composite Net-of-Fees Returns are presented after all custodial fees, trading expenses and management fees. Net-of-fee returns are calculated using actual management fees, which are accrued on a quarterly basis. Composite and benchmark returns are presented gross of withholding taxes except for foreign tax withholding on ADR securities. The standard fee schedule for the composite is 1.00% on the first $50 million. Fees are negotiable. • 6 This composite was created in June 2009. A list of composite descriptions is available upon request. • 7 R. Scott Redmond, CFA has served as the lead portfolio manager of the small cap strategy since inception. In July 2012, RAM hired Tom Robertson, CFA who now serves as an analyst for the Small Cap strategy and manages our new Growth at a Reasonable Price “GARP” strategy. RAM’s total firm assets increased significantly because many of Tom’s existing clients transferred with him. • 8 The three-year annualized standard deviation measures the variability of the composite gross returns and the benchmark returns over the preceding 36-month period. The three-year annualized standard deviation is not presented for 2007 and 2008 because the composite did not yet have 36 monthly returns as of that date. • 9 RAM has adopted a significant cash flow policy for the Small Cap Core Composite. When an external cash flow exceeds 10% of an account's value, that cash flow is segregated into a temporary account until the funds are invested according to the composite strategy or disbursed.

29. Appendix: Current Business Overview

30. Disclaimers • Past performance is no guarantee of future results. • Information provided in this brochure is for educational and illustrative purposes only and should not be construed as individualized investment advice. We recognize that each client’s investment needs and goals are different, and that the investments or strategies discussed herein may not be suitable for all investors. Any opinions or estimates contained in this brochure constitute the judgment of Redmond Asset Management, LLC (RAM) as of this date (June 30, 2013) and are subject to change without notice.