Clarke Inc.

Clarke is an investment company. Our objective is to maximize shareholder value. While not the perfect metric, we believe that Clarke’s book value per share, together with the dividends paid to shareholders, is an appropriate measure of our success in maximizing shareholder value over time. We attempt to maximize shareholder value by allocating capital to investments that we believe will generate high returns and reallocating capital over time as needed. To do this, Clarke seeks to identify investments that are undervalued, out of favour or distressed and in need of positive change. Our investment focus is on the following asset classes: Engaged investments in public companies Full or partial ownership of businesses Value-add real estate Clarke expects to be an active and engaged participant in the businesses and real estate in which it invests. OPERATING PRINCIPLES The following are our core operating principles: 1. We dislike dilution. We issue equity sparingly and only when we believe the benefit significantly outweighs the cost. 2. We do not believe in growing our assets for the sake of getting bigger. 3. We prefer reinvesting our capital than distributing it. 4. We like to repurchase our shares when we can do so at a discount to our estimate of intrinsic value. 5. We measure everything on a per share basis. 6. We eat our own cooking. Management and board members own a significant amount of stock in Clarke.