9th annual Spring value investing congress

April 3, 2014 Las Vegas, NV The Road Less Traveled

Tim Eriksen, Eriksen Capital Management

www.ValueInvestingCongress.com

ERIKSEN CAPITAL MANAGEMENT CEDAR CREEK PARTNERS LLC

An emerging manager focused on small and micro-cap stocks

Tim Eriksen APRIL 2014

Eriksen Capital Management - Disclaimer

NOT AN OFFER TO BUY OR SELL SECURITIES - Please note that this presentation does not constitute an offer of interests of Cedar Creek Partners, LLC. Such an offer will only be made by means of a Private Placement Memorandum to be prepared and furnished to the prospective investor at a later date. The statements in this letter are preliminary and subject to change and are qualified in their entirety by the terms of such Private Placement Memorandum. In the event of any inconsistency between this letter and the Private Placement Memorandum, the Memorandum shall control. All persons wishing to invest in Cedar Creek Partners, LLC must receive, read, and understand the Memorandum and execute the accompanying Subscription Agreements. The information contained in this presentation is confidential, has been prepared solely for the information of the persons to whom it has been delivered and should not be reproduced, distributed (except to the professional advisors of the recipient, for the purpose of rendering professional advice to the recipient) or used for any other purpose. RISK FACTORS - An investment in Cedar Creek Partners, LLC may involve substantial risks, including the risk of loss. All of these risks are described in greater detail in the Private Placement Memorandum. TAX RISKS - An investment in Cedar Creek Partners, LLC involves tax liability which will depend upon the limited partners individual circumstances. Prospective investors should read the Private Placement Memorandum and consult their own tax advisors with respect to the tax consequences arising from investment. OTHER - The foregoing list of risk factors does not purport to be a complete examination of risks involved in the offering. Potential investors should read the entire Memorandum before deciding to invest in the partnership. PAST PERFORMANCE MAY NOT BE INDICATIVE OF FUTURE PERFORMANCE, AND YOUR INVESTMENT RETURNS MAY VARY CONSIDERABLY FROM THOSE PRODUCED IN THE PAST. FURTHER, YOUR INDIVIDUAL RESULTS MAY VARY FROM THE FUND RESULTS DEPENDING UPON THE TIMING OF YOUR INVESTMENT.

Eriksen Capital Management Overview

Founded firm in 2005. Based in Lynden, WA Started Cedar Creek Partners fund in January 2006.
In 2010-11 Sold 25% of management firm to a group led

by Zeke Ashton of Centaur Capital.

Education: M.B.A. Texas A&M University 97; B.A. The Masters College 91
Experience: Walkers Manual Inc. 04-06 - Covered unlisted, MicroCap and Community Bank stocks. Peter Kiewit & Sons 99-04 - Administrative Engineer on $600 MM Benicia-Martinez Bridge.

Tim Eriksen

Eriksen Capital Management Fund Performance

Average Annual Return Since Inception
20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00%

18.1%

7.6%

7.9%

8.0%

6.8%

2.00%
0.00% Cedar Creek DJIA Nasdaq Russell 2000 S&P 500
Average Annual Return Since Inception

Inception January 15, 2006. Through February 28, 2014. Net of fees and expenses.
Nasdaq excludes dividends due to immateriality. S&P 500 returns measured by S&P 500 Depository Receipt Trust (SPDR) ticker:SPY. See Appendix A for additional information.

Eriksen Capital Management Fund Performance

Value of $100,000 invested at Inception versus Indices
Cedar Creek $450,000 S&P500 (SPY) Russell 2000

$400,000
$350,000 $300,000

$386,482

$250,000
$200,000 $150,000 $186,322 $170,741

$100,000
$50,000 $7/1/06

7/1/07

7/1/09

7/1/08

1/1/08

1/1/10

1/1/06

1/1/07

1/1/13

1/1/09

7/1/10

Inception January 15, 2006. Through February 28, 2014. Net of fees and expenses.
S&P 500 returns measured by S&P 500 Depository Receipt Trust (SPDR) ticker: SPY. See Appendix A for additional information.

7/1/12

7/1/13

1/1/14

1/1/12

1/1/11

7/1/11

Eriksen Capital Management - Philosophy

Apply the typical bottom-up, concentrated value approach of looking for a

discount to intrinsic value to the neglected areas of the market

Emphasis on free cash flow and earnings capacity Ideal company is growing its intrinsic value, has pricing power, minimal capital

requirements, high margins, sales growth, capable management

Ideally the company has a near term catalyst enabling us to capture the current discount

Believe excessive diversification leads to mediocre results

Typically start trimming before fair value is reached because we do not want a less attractively priced to stock to comprise a significantly greater percentage of the portfolio.

Eriksen Capital Management - Approach

The Road Less Traveled
Two roads diverged in a wood, and I I took the one less traveled by, And that has made all the difference. Robert Frost, The Road Not Taken

Eriksen Capital Management - Approach

The Road Less Traveled
Two roads diverged in a wood, and I I took the one less traveled by, And that has made all the difference. Robert Frost, The Road Not Taken
To outperform the market you have be different. We focus on areas of the market that are ignored by large Wall Street institutions. We believe that meaningful outperformance can be gained by being a smaller player and finding niches that are too small for institutional behemoths spin offs, forced sales, micro caps, unlisted stocks, etc.

Eriksen Capital Management - The Road Less Traveled

Why Do We Focus on Micro-Caps? Opportunity to Materially Outperform
Warren Buffetts First Decade
Year 1954 1955 1956 1957 1957 1958 1961 1962 1963 Investment Rockwood & Co. (cocoa beans) Union Street Railway Dempster Mill Commonwealth Trust National American Fire Ins Sanborn Map Dempster Mill (control) Berkshire Hathaway American Express
Market cap in millions

Mkt Cap 6.0 0.6 1.0 1.0 2.0 4.7 1.7 12.8 178.4

Adj. Infl. 54.0 5.4 8.2 8.5 17.0 37.6 13.4 102.4 1,338.3

Adjusting for inflation, Warren Buffett spent his first decade focused on what we today would call nano-caps (the smallest micro caps).

Eriksen Capital Management - The Road Less Traveled

Why Do We Focus on Micro-Caps? Opportunity to Materially Outperform
Warren Buffetts Second Decade
Year 1966 1967 1967 1968 1969 1971 1973 Investment Hochschild-Kohn (100%) Associated Cotton Shops (100%) National Indemnity (100%) Blue Chip Stamps Illinois Bank and Trust Co. (98%) See's Candies (100%) Washington Post Mkt Cap 12.0 12.0 8.6 8.5 5.5 35.0 80.0 Adj Infl 84.0 84.0 60.2 59.3 97.7 210.0 418.8

Market cap in millions

Adjusting for inflation, Warren Buffett spent his second decade focused on small caps and acquisition of micro caps.

Eriksen Capital Management - The Road Less Traveled

UK based drilling operator. 48.7% owned by Awilhelmsen AS. Owns and operates two mid-water semi-submersible (< 3,000 ft.)

drilling units: WilHunter and WilPhoenix

Rigs were acquired in 2010 from Transocean following its merger

with GlobalSantaFe. In order to gain approval for the deal, Transocean was obligated by the UK Office of Fair Trading to reduce its exposure to UK waters (North Sea). In other words = a forced sale.
Shares trade on Oslo Stock Exchange (AWDR) and otc (AWLCF)

Eriksen Capital Management - The Road Less Traveled

August 2008: Transocean agrees to sell the two rigs to Northern Offshore

for $750 million. October 2008 Northern Offshore terminated the deal
January 2010: Acquired two rigs for $205 million. $165 million of seller

provided credit (9%) and $50 million of equity (which also provided $10 million of working capital). Awilcos Purchase Price: RIG 10 Loss on Sale: RIGs 09 Impairment: RIGs 08 Impairment: Transoceans 07 Carrying Value: Awilco Purchase Price $205 million $ 15 million $279 million $ 97 million ~$596 million 34%

Eriksen Capital Management - The Road Less Traveled

October 2010: $65 million private placement (NOK 24 / ~$4 USD).

Trades on Norwegian otc market.

May 2011: Total upgrades of $94 million completed. Rigs redelivered. June 2011: $17.5 million private placement (NOK 31 / ~$5 USD). Lists

on Oslo exchange.
January 2013: starts trading in US otc market May 2013: Pays first quarterly dividend of $1.00 per share March 2014: Announced intent to issue $125 million bonds to repay

existing debt of $95 million and use the remaining balance for general corporate purposes.

Eriksen Capital Management - The Road Less Traveled

Price Shares Mkt Cap Cash Debt EV EBITDA EPS ttm Div Yield

$ $ $ $ $ $ $ $

20.30 30.0 609.6 52.3 98.1 655.4 159.4 4.07 4.40 21.7%

Chart: Yahoo! Finance Note: Limited liquidity Average Daily Volume: AWLCF 45,421 shares AWDR 70,578 shares

Figures in millions, except per share items.

Eriksen Capital Management - The Road Less Traveled

In millions Contract Revenues Total Revenue Rig Operating Provision Debts G&A Depreciation Operating Expense Operating Profit Net Financial Profit Before Tax Tax Net Profit EPS Shares Dividend $ $

Mar-12 19.5 22.6 13.8 2.5 2.9 4.4 23.6 (1.0) (3.6) (4.6) 0.6 (4.1) (0.14) $ 30.0 - $

Jun-12 32.1 32.5 14.9 0.7 3.0 4.5 23.3 9.3 (3.5) 5.8 (0.6) 5.2 0.17 $ 30.0 - $

Sep-12 43.4 44.4 13.4 3.0 3.5 4.4 24.6 19.8 (3.6) 16.2 (1.8) 14.4 0.48 $ 30.0 $

Dec-12 51.8 52.8 14.4 3.6 1.7 4.2 24.4 28.4 (3.6) 24.8 (1.8) 22.9 0.76 $ 30.0 - $

Mar-13 52.3 53.4 13.6 5.4 4.4 23.8 29.5 (2.5) 27.0 (2.3) 24.7 0.82 $ 30.0 - $

Jun-13 58.7 59.5 13.2 5.5 4.4 25.3 34.2 (2.3) 32.0 (2.6) 29.4 0.98 $ 30.0 1.00 $

Sep-13 61.4 62.3 13.5 4.3 4.4 20.3 41.9 (2.3) 39.6 (3.0) 36.6 1.22 $ 30.0 1.00 $

Dec-13 60.7 61.4 16.3 5.7 4.4 25.3 36.1 (2.2) 33.9 (2.3) 31.6 1.05 30.0 1.10

Eriksen Capital Management - The Road Less Traveled

Source: Awilco Investor Presentation Pareto Conference Sep 2012, p. 6

Eriksen Capital Management - The Road Less Traveled

WilPhoenix (previously known as Arctic II) Built: 1982 Upgraded: 2011 3rd Generation
Friede & Goldman L-907 Enhanced Pacesetter

1,250 ft water depth / 25,000 ft drilling depth

Was sitting idle at time of acquisition Sent to Remontowa yard in Poland in April 2010 for significant

upgrade: increased variable deck load, four new lifeboats, new sewage plant, engine overhaul, new SCR system, improved mud mix and solids control systems, increased main deck, new accommodations for 110 persons, etc.

Redelivered in May 2011

Eriksen Capital Management - The Road Less Traveled

WilPhoenixleaving the Remontowa shipyard in Gdansk, Poland.

Eriksen Capital Management - The Road Less Traveled

WilPhoenix-

Eriksen Capital Management - The Road Less Traveled

WilHunter (previously known as Arctic IV) Built: 1983 Upgraded: 1999 and 2011 3rd Generation Friede & Goldman L-907 Enhanced Pacesetter 1,500 ft water depth / 25,000 ft drilling depth Was contracted out to Transocean at time of acquisition Sent to Remontowa yard in Poland in November 2010 for classification renewal. In Dec. 2010 an accommodation upgrade, increased office space, and a dedicated heli-lobby was added to the project scope. Redelivered in May 2011

Eriksen Capital Management - The Road Less Traveled

WilHunterLeaving the Remontowa shipyard in Gdansk, Poland.

Eriksen Capital Management - The Road Less Traveled

WilHunter-

Eriksen Capital Management - The Road Less Traveled

WilHunter and WilPhoenix are 3rd generation rigs

Generation
First Second Third Fourth Fifth Sixth

Water Depth
about 600 ft about 1,000 ft about 1,500 ft about 3,000 ft about 7,500 ft about 10,000 ft 200 m 300 m 500 m 1000 m 2500 m 3000 m

Dates
Early 1960s 19691974 Early 1980s 1990s 19982004 20052010

Eriksen Capital Management - The Road Less Traveled

In deeper waters, drill ships are subject to significant heave, pitch, and yaw motions in large waves. Semi-submersibles were developed to provide more stable drilling platforms. A semi submersible obtains its buoyancy from ballasted, watertight, pontoons located below the ocean surface and wave action. The operating deck is located above the tops of the passing waves. Structural columns connect the pontoons and operating deck.*

Comparison of semi-submersible (left) and drill ship (right)

* Source: http://www.oceanstaroec.com/fame/2000/semisubmersible.htm

Eriksen Capital Management - The Road Less Traveled

Per the 2010 PP, both rigs will compete with any mid-water

semi in the UK market.

Per the 2011 Listing Prospectus, The company believes that

its rigs, following the upgrade and maintenance, are among the better rigs available in the UK mid-water drilling market. end of 2015/early 2016. Projected cost of $20 million per rig. Replace BOP (Blowout Preventer) at total cost of $45 million. BOPs are typically the #1 cause of semi sub rig downtime.

The rigs are scheduled for SPS (Special Periodic Surveys) at

Rig remaining fatigue life (post SPS) = 15 years (2030/2031)

Eriksen Capital Management - The Road Less Traveled

Source: Awilco Investor Presentation Q4 2013, p. 15

Eriksen Capital Management - The Road Less Traveled

Source: Awilco Investor Presentation Senior Secured Bond March 2014, p. 25

Eriksen Capital Management - The Road Less Traveled

Source: Awilco Investor Q4 2013, p. 14

Eriksen Capital Management - The Road Less Traveled

Source: Awilco Investor Presentation Q4 2013, p. 16

Eriksen Capital Management - The Road Less Traveled

Note: JW McLean and Sedco 704 are 1974 builds.

Source: Awilco Investor Presentation Senior Secured Bond March 2014, p. 27

Eriksen Capital Management - The Road Less Traveled

Source: Awilco Investor Presentation Senior Secured Bond March 2014, p. 16

Eriksen Capital Management - The Road Less Traveled

Source: Awilco Investor Presentation Senior Secured Bond March 2014, p. 18

Eriksen Capital Management - The Road Less Traveled

Risks: Existing contracts could be terminated. Decline in oil/gas prices Supply/Demand change result in rig being idle Since Awilco has only 2 rigs, downtime materially affects revenue and income. Political risk regulation and taxation Operating risk accident, equipment breakdown, terrorist attack, etc.

Eriksen Capital Management - The Road Less Traveled

Symbol Awilco North Atlantic

Price

Mkt Cap 609 2,010 6,660 8,250 12,350 14,870

EV 655 4,374 7,057 13,692 16,950 22,166

EPS ttm $ 4.07 $ 1.03 $ 3.95 $ 3.05 $ 6.07 $ 3.87

Div $ 4.40 $ 0.92 $ 3.50 $ 1.50 $ 3.00 $ 2.24

Yield 21.7% 10.4% 7.3% 4.6% 5.7% 5.4%

PE 5.0 8.6 12.1 10.6 8.7 10.6

Debt/Eq 8% 118% 6% 66% 37% 49%

AWLCF $ 20.30 NADL $ 8.85 $ 47.92 $ 32.47 $ 52.89 $ 41.19

Diamond Offshore DO Noble Ensco Transocean NE ESV RIG

Market Cap and EV in millions. Source: Yahoo! Finance, SEC Filings

Eriksen Capital Management - The Road Less Traveled

Price Shares Mkt Cap Cash Debt EV EBITDA EPS ttm Div Yield

$ $ $ $ $ $ $ $

20.30 30.0 609.6 52.3 98.1 655.4 159.4 4.07 4.40 21.7%

Chart: Yahoo! Finance Note: Limited liquidity Average Daily Volume: AWLCF 45,421 shares AWDR 70,578 shares

Figures in millions, except per share items.

Eriksen Capital Management - The Road Less Traveled

QUESTIONS?

Eriksen Capital Management - The Road Less Traveled

Current Fund Portfolio (Top 10)

Rank 1 2 3 4 5 6 7 8 9 10 Company Company A (otc) Company B (otc) Peerless Systems (net-net) Awilco Hallador Energy AIG Company C (otc) Company D (otc) Company E (otc) Starz $ $ $ $ $ $ $ $ $ $ Price 11.75 35.25 3.75 20.30 8.57 49.72 248.00 39.00 18.25 32.15 % Fund 10.1% 7.9% 7.3% 6.8% 5.9% 3.7% 3.6% 3.6% 3.5% 3.2% Mkt Cap fwd PE 70 36 11 610 245 70,610 178 251 479 3,600 9 10 20 5 10 11 10 9 12 14

As of 3/28/14. OTC/Pink Sheet stocks priced at bid. Market cap in millions. Top 10 based on valuing position in AIG via LEAPs at market and not on a look through basis

Eriksen Capital Management - The Road Less Traveled

Cedar Creek Partners

Management Fees: 1.25% Incentive Fees: 20% High Water Mark: Yes Hurdle: none Minimum Investment: $50,000 (increasing to $100,000 on 7/1/14) Lock Up: 1 Year Withdrawals: Monthly Audit Benson & Neff Legal Richardson & Associates Administrative Unkar Systems Prime Broker BTIG Custodian Goldman Sachs Independent Party Tom Vance, Vance & Blair LLP

* Fee schedule effective 11/09.

Eriksen Capital Management - The Road Less Traveled

If you have any interest in Cedar Creek Partners
Contact Information: Tim Eriksen Eriksen Capital Management 567 Wildrose Cir. Lynden, WA 98264 Tel: 360-393-3019 tim@eriksencapital.com

Eriksen Capital Management - The Road Less Traveled

Appendix A
The S&P 500 Returns are reported using the S&P 500 Depository Receipt Trust (SPDR) which trades under the ticker symbol SPY, as reported on Yahoo! Finance. Reinvested dividends are included in these figures. A spreadsheet showing SPY performance versus the Cedar Creek Partners Fund is available upon request. Current year results for Cedar Creek Partners are unaudited. Nasdaq results exclude dividends due to their immateriality.

Past results are no guarantee of future results and no representation is made that an investor will or is likely to achieve results similar to those shown. All investments involve risk including the loss of principal.
Fund trade history available upon request.