|  Twelve Largest Investments – March 31, 2010 |   Exhibit 13.1 |
|---------------------------------------------------------|--------------------------|

| The RectorSeal Corporation |   $120,200,000 |
|----------------------------|--------------------------|

| Lifemark Group |   $71,000,000 |
|----------------|-------------------------|

| Encore Wire Corporation |   $67,431,375 |
|-------------------------|-------------------------|

| The Whitmore Manufacturing Company |  $47,500,000 |
|------------------------------------|-------------------|

----

| Alamo Group Inc. | $42,454,500 |
|------------------|-------------|

| Heelys, Inc.  | $19,845,870 |
|--------------------|-------------|

| Media Recovery, Inc. | $13,400,000 |
|----------------------|-------------|

| All Components, Inc. | $12,276,650 |
|----------------------|-------------|

----

| Hologic, Inc. | $11,726,155 |
|---------------|-------------|

| Texas Capital Bancshares, Inc. | $9,288,774 |
|--------------------------------|------------|

| Extreme International, Inc. | $8,525,000 |
|-----------------------------|------------|

| Balco, Inc. |  $8,000,000 |
|-------------|------------------|

----

| Company                                                                                     |  Equity (a)             |   |  Investment (b)                                                                                                                                                                                                                                                                            |                   | Cost   |                    | Value (c) |
|---------------------------------------------------------------------------------------------|------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|--------|-------------------------|-----------|
| ¥ALAMO GROUP INC.                                                                      | 22.0%                        |   | 2,830,300 shares common stock (acquired 4-1-73                                                                                                                                                                                                                                                  |                   |   |                    |
| Seguin, Texas                                                                               |                         |   | thru 5-25-07)                                                                                                                                                                                                                                                                                   | $  2,190,937 |   | $  42,454,500 |
| Tractor-mounted mowing and mobile excavation                                                |                         |   |                                                                                                                                                                                                                                                                                            |                   |   |                    |
| equipment for governmental, industrial and agricultural                                     |                         |   |                                                                                                                                                                                                                                                                                            |                   |   |                    |
| markets; street-sweeping equipment for municipalities.                                      |                         |   |                                                                                                                                                                                                                                                                                            |                   |   |                    |
| ALL COMPONENTS, INC.                                                                        | 80.4%                        |   | 8.25%  subordinated note, $6,000,000 principal due                                                                                                                                                                                                                                    |                   |   |                    |
| Pflugerville, Texas                                                                         |                         |   | 2012 (acquired 6-27-07)                                             | 6,000,000              |   | 6,454,925               |
| Electronics contract manufacturing; distribution and production                             |                         |   | 150,000 shares Series A Convertible Preferred Stock, con-                                                                                                                                                                                                                                       |                   |   |                    |
| of memory and other components for computer manufacturers,                                  |                         |   | vertible into 600,000 shares of common stock at $0.25                                                                                                                                                                                                                                           |                   |   |                    |
| retailers and value-added resellers.                                                        |                         |   | per share (acquired 9-16-94)                                                                                                                                                                                                                                                                    | 150,000                |   | 5,821,725               |
|                                                                                        |                         |   | Warrants to purchase 350,000 shares of common stock at                                                                                                                                                                                                                                          |                   |   |                    |
|                                                                                        |                         |   | $11.00 per share, expiring 2017 (acquired 6-27-07)                                                                                                                                                                                                                                              | –                |   | –                 |
|                                                                                        |                         |   |                                                                                                                                                                                                                                                                                            | 6,150,000              |   | 12,276,650              |
| ATLANTIC CAPITAL BANCSHARES, INC.                                                           |     1.9% |   | 300,000 shares common stock (acquired 4-10-07)                                                                                                                                                                                                                                                  | 3,000,000              |   | 3,150,000               |
| Atlanta, Georgia                                                                            |                         |   |                                                                                                                                                                                                                                                                                            |                   |   |                    |
| Holding company of Atlantic Capital Bank,    a full service commercial bank. |                         |   |                                                                                                                                                                                                                                                                                            |                   |   |                    |
| ¥ BALCO, INC.                                                                          | 90.9%                        |   | 445,000 shares common stock and 60,920 shares Class B                                                                                                                                                                                                                                           |                   |   |                    |
| Wichita, Kansas                                                                             |                         |   | non-voting common stock (acquired 10-25-83 and 5-30-02)                                                                                                                                                                                                                                         | 624,920                |   | 8,000,000               |
| Specialty architectural products used in the construction and                               |                         |   |                                                                                                                                                                                                                                                                                            |                   |   |                    |
| remodeling of commercial and institutional buildings.                                       |                         |   |                                                                                                                                                                                                                                                                                            |                   |   |                    |
| BOXX TECHNOLOGIES, INC.                                                                     |   15.2%                 |   | 3,125,354 shares Series B Convertible Preferred Stock,                                                                                                                                                                                                                                          |                   |   |                    |
| Austin, Texas                                                                               |                         |   | convertible into 3,125,354 shares of common stock at                                                                                                                                                                                                                                            |                   |   |                    |
| Workstations for computer graphic imaging and design.                                       |                         |   | $0.50 per share (acquired 8-20-99 thru 8-8-01)                                                                                                                                                                                                                                                  | 1,500,000              |   | 2                       |
| ¥ CMI HOLDING COMPANY, INC.                                                            | 22.4%                        |   | 10% convertible promissory note, due 2013 (acquired 2-23-10)                                                                                                                                                                                                                                    | 650,000                |   | 1,300,000               |
| Richardson, Texas                                                                           |                         |   | 1,631,516 shares Series C-1 Convertible Preferred                                                                                                                                                                                                                                               |                   |   |                    |
| Owns Chase Medical, which develops and sells devices used                                   |                         |   | Stock, convertible into 1,631,516 shares of common                                                                                                                                                                                                                                              |                   |   |                    |
| in cardiac surgery to relieve congestive heart failure; develops                            |                         |   | stock at $2.15 per share (acquired 7-10-09)                                                                                                                                                                                                                                                     | 2,863,347              |   | 2,857,759               |
| and supports cardiac imaging systems.                                                       |                         |   | 2,327,658 shares Series A Convertible Preferred Stock,                                                                                                                                                                                                                                          |                   |   |                    |
|                                                                                        |                         |   | convertible into 2,327,658 shares of common stock at                                                                                                                                                                                                                                            |                   |   |                    |
|                                                                                        |                         |   | $1.72 per share (acquired 8-21-02 and 6-4-03)                                                                                                                                                                                                                                                   | 4,000,000              |   | 2                       |
|                                                                                        |                         |   | Warrants to purchase 109,012 shares of common stock at                                                                                                                                                                                                                                          |                   |   |                    |
|                                                                                        |                         |   | $1.72 per share, expiring 2012 (acquired 4-7-04)                                                                                                                                                                          |  –          |   |  –           |
|                                                                                        |                         |   | Warrants to purchase 636,151 shares of Series A-1 Convertible                                                                                                                                                                                                                                   |                   |   |                    |
|                                                                                        |                         |   | Preferred Stock at $1.72 per share expiring 2017 and                                                                                                                                                                                                                                            |                   |   |                    |
|                                                                                        |                         |   | 2019 (acquired 7-2-07 and 6-9-09)                                                                                     |  –          |   |  –           |
|                                                                                        |                         |   | Warrant to purchase 90,698 shares of Series D or D-1                                                                                                                                                                                                                                            |                   |   |                    |
|                                                                                        |                         |   | Convertible Preferred Stock at $1.72 per share expiring                                                                                                                                                                                                                                         |                   |   |                    |
|                                                                                        |                         |   | 2017 (acquired 2-23-10)                                                  |  –          |   |  –           |
|                                                                                        |                         |   |                                                                                                                                                                                                                                                                                            | 7,513,347              |   | 4,157,761               |
| †Publicly-owned company; ¥ Control investment                                    |                         |   | ‡Unrestricted securities as defined in Note (b)                                                                                                                                                                                                                                           |                   |   |                    |

----

| Company                                                                                                        |  Equity (a) |   |  Investment (b)                                                                                                                                                                                                                                                                                                                                                                     |                        |  Cost |                              |  Value (c) |
|--------------------------------------------------------------------------------------------------------------------------|------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|------------|-----------------------------------|-----------------|
| CINATRA CLEAN TECHNOLOGIES, INC.                                                                                         | 59.2%            |   | 10% subordinated secured promissory note, $6,200,000                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| Houston, Texas                                                                                                           |             |   | principal due 2013 (acquired 7-14-08 thru 3-23-10)                                                                                                                                                                                                                                                                                                                                       | $  6,000,300      |       | $   3,815,235      |
| Cleans above ground oil storage tanks with a patented,                                                                   |             |   | 1,128,649 shares Series A Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                   |                        |       |                              |
| automated system.                                                                                                        |             |   | convertible into 1,128,649 shares of common stock at $1.00                                                                                                                                                                                                                                                                                                                               |                        |       |                              |
|                                                                                                                     |             |   | per share (acquired 7-14-08 and 11-19-08)                                                                                                                                                                                                                                                                                                                                                |    1,128,649 |       |     1,128,649 |
|                                                                                                                     |             |   |                                                                                                                                                                                                                                                                                                                                                                                     | 7,128,949                   |       | 4,943,884                         |
| †ENCORE WIRE CORPORATION                                                                                           | 17.3%            |   | 4,086,750 shares common stock (acquired 7-16-92 thru                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| McKinney, Texas                                                                                                          |             |   | 10-7-98)                                                                                                                                                                                                                                                                                                                                                                                 | 5,800,000                   |       | 67,431,375                        |
| Electric wire and cable for residential, commercial and                                                                  |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| industrial construction use.                                                                                             |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| EXTREME INTERNATIONAL, INC.                                                                                              | 53.6%            |   | 13,035 shares Series A common stock (acquired 9-26-08                                                                                                                                                                                                                                                                                                                                    |                        |       |                              |
| Sugar Land, Texas                                                                                                        |             |   | and 12-18-08)                                                                                                                                                                                                                                                                                                                                                                            | 325,875                     |       | 600,000                           |
| Owns  Bill  Young  Productions, Texas  Video  and  Post, and |             |   | 39,359.18 shares Series C Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                   |                        |       |                              |
| Extreme Communications, which produce radio and television                                                               |             |   | convertible into 157,437.72 shares of common stock at                                                                                                                                                                                                                                                                                                                                    |                        |       |                              |
| commercials and corporate communications videos.                                                                         |             |   | $25.00 per share (acquired 9-30-03)                                                                                                                                                                                                                                                                                                                                                      | 2,625,000                   |       | 7,236,000                         |
|                                                                                                                     |             |   | 3,750 shares 8% Series A Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                    |                        |       |                              |
|                                                                                                                     |             |   | convertible into 15,000 shares of common stock at $25.00                                                                                                                                                                                                                                                                                                                                 |                        |       |                              |
|                                                                                                                     |             |   | per share (acquired 9-30-03)                                                           | 375,000                     |       | 689,000                           |
|                                                                                                                     |             |   |                                                                                                                                                                                                                                                                                                                                                                                     | 3,325,875                   |       | 8,525,000                         |
| ¥ HEELYS, INC.                                                                                                      | 31.1%            |   | 9,317,310 shares common stock (acquired 5-26-00)                                                                                                                                                                                                                                                                                                                                         | 102,490                     |       | 19,845,870                        |
| Carrollton, Texas                                                                                                        |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| Heelys stealth skate shoes, equipment and apparel sold                                                                   |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| through sporting goods chains,  department stores and                                                          |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
|     footware retailers.                                                                              |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| †HOLOGIC, INC.                                                                                                     | <1%           |   | ‡632,820 shares common stock (acquired 8-27-99)                                                                                                                                                                                                                                                                                                                                    | 220,000                     |       | 11,726,155                        |
| Bedford, Massachusetts                                                                                                   |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| Medical instruments including bone densitometers,                                                                        |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| mammography devices and digital radiography systems.                                                                     |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| iMEMORIES, INC.                                                                                                          | 26.2%            |   | 17,391,304 shares Series B Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                  |                        |       |                              |
| Scottsdale, AZ                                                                                                           |             |   | convertible into 17,391,304 shares of common stock at                                                                                                                                                                                                                                                                                                                                    |                        |       |                              |
| Enables online video and photo sharing and DVD creation                                                                  |             |   | $0.23 per share (acquired 7-10-09)                                                                                                                                                                                                                                                                                                                                                       | 4,000,000                   |       | 4,000,000                         |
| for home movies recorded in analog and new digital format.                                                               |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
|                                                                                                                     |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| KBI BIOPHARMA, INC.                                                                                                      | 14.8%            |   | 7,142,857 shares Series B-2 Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                 |                        |       |                              |
| Durham, NC                                                                                                               |             |   | convertible into 7,142,857 shares of common stock at                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| Provides fully-integrated, outsourced drug development                                                                   |             |   | $0.70 per share (acquired 9-08-09)                                                                                                                                                                                                                                                                                                                                                       | 5,000,000                   |       | 5,000,000                         |
| and bio-manufacturing services.                                                                                          |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| †Publicly-owned company; ¥ Control investment                                                                 |             |   | ‡Unrestricted securities as defined in Note (b)                                                                                                                                                                                                                                                                                                                          |                        |       |                              |

----

| Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  Equity (a) |   |  Investment (b)                                              |        | Cost   |         | Value (c)   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|--------|-------------------------------------------------------------------|-------------|------------------|--------------|-----------------------|
| ¥ LIFEMARK GROUP                                                                                     |   100.0%    |   | 1,449,026 shares common stock (acquired 7-16-69)                  | $ 4,510,400 |             | $ 71,000,000 |
| Hayward, California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |             |   |                                                              |        |             |         |
| Cemeteries, mausoleums and mortuaries located in                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |             |   |                                                              |        |             |         |
| northern California.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |             |   |                                                              |        |             |         |
| ¥ MEDIA RECOVERY, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 97.5%            |   | 800,000 shares Series A Convertible Preferred Stock,              |        |             |         |
| Dallas, Texas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |             |   | convertible into 800,000 shares of common stock at                |        |             |         |
| Computer datacenter and office automation supplies and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |             |   | $1.00 per share (acquired 11-4-97)                                | 800,000     |             | 2,200,000    |
| accessories; impact, tilt monitoring and temperature sensing devices                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |             |   | 4,000,002 shares common stock (acquired 11-4-97)                  | 4,615,000   |             | 11,200,000   |
| to detect mishandled shipments; dunnage for protecting shipments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |             |   |                                                              | 5,415,000   |             | 13,400,000   |
| PALLETONE, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 8.4%             |   | 12.3% senior subordinated notes, $2,000,000                       |        |             |         |
| Bartow, Florida                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |             |   | principal due 2012 (acquired 9-25-06)                        | 1,553,150   |             | 2,000,000    |
| Manufacturer of wooden pallets and pressure-treated                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |             |   | 150,000 shares common stock (acquired 10-18-01)                   | 150,000     |             | 2            |
| lumber.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |             |   | Warrant to purchase 15,294 shares of common stock                 |        |             |         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |             |   | at $1.00 per share, expiring 2011 (acquired 2-17-06)              | 45,746      |             | –      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |             |   |                                                              | 1,748,896   |             | 2,000,002    |
| ¥ PALM HARBOR HOMES, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 30.5%            |   | 7,855,121 shares common stock (acquired 1-3-85                    |        |             |         |
| Dallas, Texas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |             |   | thru 7-31-95)                                                     | 10,931,955  |             | 6,833,955    |
| Integrated manufacturing, retailing, financing and insuring                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |             |   | Warrant to purchase 286,625 shares of common                      |        |             |         |
| of manufactured housing and modular homes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |             |   | stock at $3.14 per share, expiring 2019 (acquired                 |        |             |         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |             |   | 4-24-09)                                                          | –     |             | –      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |             |   |                                                              | 10,931,955  |             | 6,833,955    |
| ¥ THE RECTORSEAL CORPORATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   100.0%    |   | 27,907 shares common stock (acquired 1-5-73 and                   |        |             |         |
| Houston, Texas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |             |   | 3-31-73)                                                          | 52,600      |             | 120,200,000  |
| Specialty chemicals for plumbing, HVAC, electrical,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |             |   |                                                              |        |             |         |
| construction, industrial, oil field and automotive applications;                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |             |   |                                                              |        |             |         |
| smoke containment systems for building fires; also owns                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |             |   |                                                              |        |             |         |
| 20% of The Whitmore Manufacturing Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |             |   |                                                              |        |             |         |
| TCI  HOLDINGS, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | –          |   | 21 shares 12% Series C Cumulative Compounding                     |        |             |         |
| Denver, Colorado                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |             |   | Preferred stock (acquired 1-30-90)                                | –     |             | 677,250      |
| Cable television systems and microwave relay systems.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |             |   |                                                              |        |             |         |
| †TEXAS CAPITAL BANCSHARES, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 1.6%             |   | ‡489,656 shares common stock (acquired 5-1-00)              | 3,550,006   |             | 9,288,774    |
| Dallas, Texas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |             |   |                                                              |        |             |         |
| Regional bank holding company with banking operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |             |   |                                                              |        |             |         |
| in six Texas cities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |             |   |                                                              |        |             |         |
| †Publicly-owned company; ¥ Control investment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |             |   | ‡Unrestricted securities as defined in Note (b)   |        |             |         |

----

| Company                                                               |  Equity (a) |   |  Investment (b)                                                    |         |  Cost |         |  Value (c) |
|----------------------------------------------------------------------------|------------------|--------|-------------------------------------------------------------------------|--------------|------------|--------------|-----------------|
| TRAX HOLDINGS, INC.                                                        | 31.1%            |   | 1,061,279 shares Series A Convertible Preferred Stock,                  |         |       |         |
| Scottsdale, Arizona                                                        |             |   | convertible into 1,061,279 common stock at $4.71                   |         |       |         |
| Provides a comprehensive set of solutions to improve                       |             |   | per share (acquired 12-8-08 and 2-17-09)                                | $5,000,000   |       | $5,687,669   |
|     the transportation validation, accounting, payment      |             |   |                                                                    |         |       |         |
| and information management process.                                   |             |   |                                                                    |         |       |         |
| VIA HOLDINGS, INC.                                                         | 28.1%            |   | 9,118 shares Series B Preferred Stock (acquired 9-19-05)                | 4,559,000    |       | 2            |
| Sparks, Nevada                                                             |             |   | 1,118 shares Series C Preferred Stock (acquired 11-1-07)                | 281,523      |       | 2            |
| Designer, manufacturer and distributor of high-quality                     |             |   |                                                                    | 4,840,523    |       | 4            |
| office  seating.                                                 |             |   |                                                                    |         |       |         |
| WELLOGIX, INC.                                                             | 19.6%            |   | 4,788,371 shares Series A-1 Convertible Participating                   |         |       |         |
|    Houston, Texas                                           |             |   | Preferred Stock, convertible into 4,788,371 shares                      |         |       |         |
| Developer and supporter of software used by the oil and gas                |             |   | of common stock at $1.0441 per share (acquired                          |         |       |         |
| industry.                                                                  |             |   | 8-19-05 thru 6-15-08)                                                   | 5,000,000    |       | 2            |
| ¥ THE WHITMORE MANUFACTURING COMPANY                                  | 80.0%            |   | 80 shares common stock (acquired 8-31-79)                               | 1,600,000    |       | 47,500,000   |
| Rockwall, Texas                                                            |             |   |                                                                    |         |       |         |
| Specialized surface mining, railroad and industrial                        |             |   |                                                                    |         |       |         |
|     lubricants;coatings for automobiles and primary metals; |             |   |                                                                    |         |       |         |
|     fluid contamination control devices.                    |             |   |                                                                    |         |       |         |
| MISCELLANEOUS                                                              |   –   |   | Ballast Point Ventures II, L.P. – 2.6% limited partnership        |         |       |         |
|                                                                       |             |   | interest (acquired 8-4-08 thru 11-3-09)                                 | 675,000      |       | 675,000      |
|                                                                       |   –   |   | BankCap Partners Fund I, L.P. – 6.0% limited partnership          |         |       |         |
|                                                                       |             |   | interest (acquired 7-14-06  thru 6-18-09)                     | 5,513,837    |       | 5,179,842    |
|                                                                       |   –   |   | CapitalSouth Partners Fund III, L.P. – 2.0% limited partnership   |         |       |         |
|                                                                       |             |   | interest (acquired 1-22-08 and 2-12-09)                                 | 831,256      |       | 831,256      |
|                                                                       |   –   |   | Diamond State Ventures, L.P. – 1.8% limited partnership           |         |       |         |
|                                                                       |             |   | interest (acquired 10-12-99 thru 8-26-05)                               | 76,000       |       | 186,852      |
|                                                                       |   –   |   | ¥ Discovery Alliance, LLC – 90.0% limited liability company  |         |       |         |
|                                                                       |             |   | (acquired 9-12-08 thru 3-12-10)                                         | 750,000      |       | 750,000      |
|                                                                       |   –   |   | Essex Capital Corporation – 10% unsecured promissory              |         |       |         |
|                                                                       |             |   | note due 8-19-11 (acquired 8-16-09)                                     | –      |       | 1,000,000    |
|                                                                       |   –   |   | First Capital Group of Texas III, L.P. – 3.0% limited partnership |         |       |         |
|                                                                       |             |   | interest (acquired 12-26-00 thru 8-12-05)                               | 778,895      |       | 451,208      |
|                                                                       |   100.0%    |   | ¥ Humac Company – 1,041,000 shares common stock              |         |       |         |
|                                                                       |             |   | (acquired 1-31-75 and 12-31-75)                                         | –      |       | 163,000      |
|                                                                       |   –   |   | STARTech Seed Fund I – 12.1% limited partnership                  |         |       |         |
|                                                                       |             |   |   interest (acquired 4-17-98 thru 1-5-00)                     | 178,066      |       | 1            |
|                                                                       |   –   |   | STARTech Seed Fund II – 3.2% limited partnership                  |         |       |         |
|                                                                       |             |   | interest (acquired 4-28-00 thru 2-23-05)                                | 950,000      |       | 1            |
|                                                                       |   –   |   | Sterling Group Partners I, L.P. – 1.6% limited partnership        |         |       |         |
|                                                                       |             |   | interest (acquired 4-20-01 thru 1-24-05)                                | 1,064,042    |       | 607,044      |
| TOTAL INVESTMENTS                                                          |             |   |                                                                    | $100,022,994 |       | $477,943,057 |
| †Publicly-owned company; ¥ Control investment                   |             |   | ‡Unrestricted securities as defined in Note (b)         |         |       |         |

----

| Company                                                          |  Equity (a)             |   |  Investment (b)                                                                                                                                                                                                                     |                   | Cost   |              | Value (c) |
|------------------------------------------------------------------|------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|--------|-------------------|-----------|
| ¥ ALAMO GROUP INC.                                     | 26.0%                        |   | 2,830,300 shares common stock (acquired 4-1-73                                                                                                                                                                                           |                   |   |              |
| Seguin, Texas                                                    |                         |   | thru 5-25-07)                                                                                                                                                                                                                            | $  2,190,937 |   | $ 22,642,400 |
| Tractor-mounted mowing and mobile excavation                     |                         |   |                                                                                                                                                                                                                                     |                   |   |              |
| equipment for governmental, industrial and agricultural          |                         |   |                                                                                                                                                                                                                                     |                   |   |              |
| markets; street-sweeping equipment for municipalities.           |                         |   |                                                                                                                                                                                                                                     |                   |   |              |
| ALL COMPONENTS, INC.                                             | 80.0%                        |   | 8.25%  subordinated note, due 2012 (acquired 6-27-07)                                                                                                                                                                | 6,000,000              |   | 3,000,000         |
| Austin, Texas                                                    |                         |   | 150,000 shares Series A Convertible Preferred                                                                                                                                                                                       |                   |   |              |
| Electronics contract manufacturing; distribution and production  |                         |   | Stock,  convertible into 600,000 shares of common                                                                                                                                                                                   |                   |   |              |
| of memory and other components for computer manufacturers,       |                         |   | stock at $0.25 per share (acquired 9-16-94)                                                                                                                                                                                              | 150,000                |   | 1                 |
| retailers and value-added resellers.                             |                         |   | Warrants to purchase 350,000 shares of common stock at                                                                                                                                                                              |                   |   |              |
|                                                             |                         |   | $11.00 per share, expiring 2017 (acquired 6-27-07)                                                                                                                                                                                       | –                |   | –           |
|                                                             |                         |   |                                                                                                                                                                                                                                     | 6,150,000              |   | 3,000,001         |
| ATLANTIC CAPITAL BANCSHARES, INC.                                |     2.0% |   | 300,000 shares common stock (acquired 4-10-07)                                                                                                                                                                                           | 3,000,000              |   | 3,000,000         |
| Atlanta, Georgia                                                 |                         |   |                                                                                                                                                                                                                                     |                   |   |              |
| Holding company of Atlantic Capital Bank          |                         |   |                                                                                                                                                                                                                                     |                   |   |              |
|     a full service commercial bank.          |                         |   |                                                                                                                                                                                                                                     |                   |   |              |
| ¥ BALCO, INC.                                               | 90.9%                        |   | 445,000 shares common stock and 60,920 shares Class B                                                                                                                                                                                    |                   |   |              |
| Wichita, Kansas                                                  |                         |   | non-voting common stock (acquired 10-25-83 and 5-30-02)                                                                                                                                                                                  | 624,920                |   | 6,600,000         |
| Specialty architectural products used in the construction and    |                         |   |                                                                                                                                                                                                                                     |                   |   |              |
| remodeling of commercial and institutional buildings.            |                         |   |                                                                                                                                                                                                                                     |                   |   |              |
| BOXX TECHNOLOGIES, INC.                                          |   15.2%                 |   | 3,125,354 shares Series B Convertible Preferred Stock,                                                                                                                                                                                   |                   |   |              |
| Austin, Texas                                                    |                         |   | convertible into 3,125,354 shares of common stock at                                                                                                                                                                                     |                   |   |              |
| Workstations for computer graphic imaging and design.            |                         |   | $0.50 per share (acquired 8-20-99 thru 8-8-01)                                                                                                                                                                                           | 1,500,000              |   | 2                 |
| ¥ CMI HOLDING COMPANY, INC.                                 | 15.3%                        |   | 10% convertiblesubordinated note, due 2009                                                                                                                                                                                               |                   |   |              |
| Richardson, Texas                                                |                         |   |      (acquired 7-2-07 thru 10-9-07)                                                                                                                                                                             | 2,363,347              |   | 1,000,000         |
| Owns Chase Medical, which develops and sells devices used        |                         |   | 2,327,658 shares Series A Convertible Preferred Stock,                                                                                                                                                                                   |                   |   |              |
| in cardiac surgery to relieve congestive heart failure; develops |                         |   | convertible into 2,327,658 shares of common stock at                                                                                                                                                                                     |                   |   |              |
| and supports cardiac imaging systems.                            |                         |   | $1.72 per share (acquired 8-21-02 and 6-4-03)                                                                                                                                                                                            | 4,000,000              |   | 2                 |
|                                                             |                         |   | Warrants to purchase 109,012 shares of common stock at                                                                                                                                                                                   |                   |   |              |
|                                                             |                         |   | $1.72 per share, expiring 2012 (acquired 4-7-04)                                                                                                                                                                                         |  –          |   |  –     |
|                                                             |                         |   | Warrants to purchase 431,982 shares of Series A-1 Convertible                                                                                                                                                                            |                   |   |              |
|                                                             |                         |   | Preferred Stock at $1.72 per share expiring 2017                                                                                                                                                                                         |                   |   |              |
|                                                             |                         |   | (acquired 7-2-07 and 6-9-09)                                   |  –          |   |  –     |
|                                                             |                         |   |                                                                                                                                                                                                                                     | 6,363,347              |   | 1,000,002         |
| †Publicly-owned company; ¥ Control investment         |                         |   | ‡Unrestricted securities as defined in Note (b)                                                                                                                                                                                    |                   |   |

----

| Company                                                                                                        |  Equity (a) |   |  Investment (b)                                                                                                                                                                                                                                                                                                                                                                     |                        |  Cost |                              |  Value (c) |
|--------------------------------------------------------------------------------------------------------------------------|------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|------------|-----------------------------------|-----------------|
| CINATRA CLEAN TECHNOLOGIES, INC.                                                                                         | 59.2%            |   | 10% subordinated secured promissory note, (acquired 7-14-08                                                                                                                                                                                                                                                                                                                              |                        |       |                              |
| Houston, Texas                                                                                                           |             |   | thru 12-08-08)                                                                                                                                                                                                                                                                                                                                                                           | $  4,263,000      |       | $   4,263,000      |
| Cleans above ground oil storage tanks with a patented,                                                                   |             |   | 1,128,649 shares Series A Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                   |                        |       |                              |
| automated system.                                                                                                        |             |   | convertible into 1,128,649 shares of common stock at $1.00                                                                                                                                                                                                                                                                                                                               |                        |       |                              |
|                                                                                                                     |             |   | per share (acquired 7-14-08 and 11-19-08)                                                                                                                                                                                                                                                                                                                                                |    1,128,649 |       |     1,128,649 |
|                                                                                                                     |             |   |                                                                                                                                                                                                                                                                                                                                                                                     | 5,391,649                   |       | 5,391,649                         |
| ¥ DENNIS TOOL COMPANY                                                                                               | 67.4%            |   | 20,725 shares 5% Convertible Preferred Stock, convertible                                                                                                                                                                                                                                                                                                                                |                        |       |                              |
|    Houston, Texas                                                                                              |             |   | into 20,725 shares of common stock at $48.25 per                                                                                                                                                                                                                                                                                                                                         |                        |       |                              |
|    Polycrystalline diamond compacts (PDCs) used in oil field drill                                             |             |   | share (acquired 8-10-98)                                                                                                                                                                                                                                                                                                                                                                 |  999,981               |       |  999,981                     |
|    bits and in mining and industrial applications.                                                             |             |   | 140,137 shares common stock (acquired 3-7-94 and 8-10-98)                                                                                                                                                                                                                                                                                                                                |  2,329,963             |       | 2,868,000                         |
|                                                                                                                     |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |  3,329,944             |       |  3,867,981                   |
| †ENCORE WIRE CORPORATION                                                                                           | 17.2%            |   | 4,086,750 shares common stock (acquired 7-16-92 thru                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| McKinney, Texas                                                                                                          |             |   | 10-7-98)                                                                                                                                                                                                                                                                                                                                                                                 | 5,800,000                   |       | 65,388,000                        |
| Electric wire and cable for residential, commercial and                                                                  |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| industrial construction use.                                                                                             |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| EXTREME INTERNATIONAL, INC.                                                                                              | 53.6%            |   | 13,035 shares Series A common stock (acquired 9-26-08                                                                                                                                                                                                                                                                                                                                    |                        |       |                              |
| Sugar Land, Texas                                                                                                        |             |   | and 12-18-08)                                                                                                                                                                                                                                                                                                                                                                            | 325,875                     |       | 463,850                           |
| Owns  Bill  Young  Productions, Texas  Video  and  Post, and |             |   | 39,359.18 shares Series C Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                   |                        |       |                              |
| Extreme Communications, which produce radio and television                                                               |             |   | convertible into 157,437.72 shares of common stock at                                                                                                                                                                                                                                                                                                                                    |                        |       |                              |
| commercials and corporate communications videos.                                                                         |             |   | $25.00 per share (acquired 9-30-03)                                                                                                                                                                                                                                                                                                                                                      | 2,625,000                   |       | 5,602,376                         |
|                                                                                                                     |             |   | 3,750 shares 8% Series A Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                    |                        |       |                              |
|                                                                                                                     |             |   | convertible into 15,000 shares of common stock at $25.00                                                                                                                                                                                                                                                                                                                                 |                        |       |                              |
|                                                                                                                     |             |   | per share (acquired 9-30-03)                                                           | 375,000                     |       | 533,774                           |
|                                                                                                                     |             |   |                                                                                                                                                                                                                                                                                                                                                                                     | 3,325,875                   |       | 6,600,000                         |
| ¥ HEELYS, INC.                                                                                                      | 31.1%            |   | 9,317,310 shares common stock (acquired 5-26-00)                                                                                                                                                                                                                                                                                                                                         | 102,490                     |       | 13,975,965                        |
| Carrollton, Texas                                                                                                        |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| Heelys stealth skate shoes, equipment and apparel sold                                                                   |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| through sporting goods chains,  department stores and                                                          |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
|     footware retailers.                                                                                   |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| †HOLOGIC, INC.                                                                                                     | <1%           |   | ‡632,820 shares common stock (acquired 8-27-99)                                                                                                                                                                                                                                                                                                                                    | 220,000                     |       | 8,277,286                         |
| Bedford, Massachusetts                                                                                                   |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| Medical instruments including bone densitometers,                                                                        |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| mammography devices and digital radiography systems.                                                                     |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| ¥ LIFEMARK GROUP                                                                                               | 100.0%           |   | 1,449,026 shares common stock (acquired 7-16-69)                                                                                                                                                                                                                                                                                                                                         |   4,510,400            |       |   71,000,000                 |
|     Hayward, California                                                                              |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
|     Cemeteries, mausoleums and mortuaries located in                                                      |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
|     northern California.                                                                                  |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
|                                                                                                                     |             |   |                                                                                                                                                                                                                                                                                                                                                                                     |                        |       |                              |
| †Publicly-owned company; ¥ Control investment                                                                 |             |   | ‡Unrestricted securities as defined in Note (b)                                                                                                                                                                                                                                                                                                                          |                        |

----

| Company                                                            |  Equity (a) |   |  Investment (b)                                               |                  | Cost   |                    | Value (c)   |
|------------------------------------------------------------------------------|------------------|--------|--------------------------------------------------------------------|-----------------------|------------------|-------------------------|-----------------------|
| ¥ MEDIA RECOVERY, INC.                                                  | 97.1%            |   | 800,000 shares Series A Convertible Preferred Stock,               |                  |             |                    |
| Dallas, Texas                                                                |             |   | convertible into 800,000 shares of common stock at                 |                  |             |                    |
| Computer datacenter and office automation supplies and                       |             |   | $1.00 per share (acquired 11-4-97)                                 | $   800,000 |             | $   2,500,000 |
| accessories; impact, tilt monitoring and temperature sensing devices         |             |   | 4,000,002 shares common stock (acquired 11-4-97)                   | 4,615,000             |             | 12,300,000              |
| to detect mishandled shipments; dunnage for protecting shipments.            |             |   |                                                               | 5,415,000             |             | 14,800,000              |
| PALLETONE, INC.                                                              | 8.5%             |   | 12.3% senior subordinated notes  due 2012                     |                  |             |                    |
| Bartow, Florida                                                              |             |   | (acquired 9-25-06)                                            | 1,553,150             |             | 2                       |
| Manufacturer of wooden pallets and pressure-treated                          |             |   | 150,000 shares common stock (acquired 10-18-01)                    | 150,000               |             | 2                       |
| lumber.                                                                      |             |   | Warrant to purchase 15,294 shares of common stock                  |                  |             |                    |
|                                                                         |             |   | at $1.00 per share, expiring 2011 (acquired 2-17-06)               | 45,746                |             | –                 |
|                                                                         |             |   |                                                               | 1,748,896             |             | 4                       |
| ¥ PALM HARBOR HOMES, INC.                                               | 31.5%            |   | 7,855,121 shares common stock (acquired 1-3-85                     |                  |             |                    |
| Dallas, Texas                                                                |             |   | thru 7-31-95)                                                      | 10,931,955            |             | 9,818,902               |
| Integrated manufacturing, retailing, financing and insuring                  |             |   |                                                               |                  |             |                    |
| of manufactured housing and modular homes.                                   |             |   |                                                               |                  |             |                    |
| ¥ THE RECTORSEAL CORPORATION                                       |   100.0%    |   | 27,907 shares common stock (acquired 1-5-73 and                    |                  |             |                    |
| Houston, Texas                                                               |             |   | 3-31-73)                                                           | 52,600                |             | 107,200,000             |
| Specialty chemicals for plumbing, HVAC, electrical,                          |             |   |                                                               |                  |             |                    |
| construction, industrial, oil field and automotive applications;             |             |   |                                                               |                  |             |                    |
| smoke containment systems for building fires; also owns                      |             |   |                                                               |                  |             |                    |
| 20% of The Whitmore Manufacturing Company.                                   |             |   |                                                               |                  |             |                    |
| TCI  HOLDINGS, INC.                                                | –          |   | 21 shares 12% Series C Cumulative Compounding                      |                  |             |                    |
| Denver, Colorado                                                             |             |   | Preferred stock (acquired 1-30-90)                                 | –               |             | 677,250                 |
| Cable television systems and microwave relay systems.                        |             |   |                                                               |                  |             |                    |
| †TEXAS CAPITAL BANCSHARES, INC.                                        | 1.6%             |   | ‡489,656 shares common stock (acquired 5-1-00)               | 3,550,006             |             | 5,508,630               |
| Dallas, Texas                                                                |             |   |                                                               |                  |             |                    |
| Regional bank holding company with banking operations                        |             |   |                                                               |                  |             |                    |
| in six Texas cities.                                                         |             |   |                                                               |                  |             |                    |
| TRAX HOLDINGS, INC.                                                          | 32.5%            |   | 1,061,279 shares Series A Convertible Preferred Stock, convertible |                  |             |                    |
|    Scottsdale, Arizona                                             |             |   | into 1,061,279 common stock at $4.71 per share                     |                  |             |                    |
|    Provides a comprehensive set of solutions to improve the trans- |             |   | (acquired 12-8-08 and 2-17-09)                                     | 5,000,000        |             | 5,000,000          |
|    portation validation, accounting, payment and information       |             |   |                                                               |                  |             |                    |
|    management process.                                             |             |   |                                                               |                  |             |                    |
| VIA HOLDINGS, INC.                                                           | 28.1%            |   | 9,118 shares Series B Preferred Stock (acquired 9-19-05)           | 4,559,000        |             |  2                 |
|    Sparks, Nevada                                                  |             |   | 1,118 shares Series C Preferred Stock (acquired 11-1-07)           | 281,523          |             |  2                 |
|    Designer, manufacturer and distributor of high-quality office   |             |   |                                                               | 4,840,523        |             |  4                 |
|    seating.                                                        |             |   |                                                               |                  |             |                    |
| †Publicly-owned company; ¥ Control investment                     |             |   | ‡Unrestricted securities as defined in Note (b)    |                  |

----

| Company                                                               |  Equity (a) |   |  Investment (b)                                                    |                    |  Cost |                                                                                                |  Value (c) |
|----------------------------------------------------------------------------|------------------|--------|-------------------------------------------------------------------------|-------------------------|------------|-----------------------------------------------------------------------------------------------------|-----------------|
| WELLOGIX, INC.                                                             | 19.9%            |   | 4,788,371 shares Series A-1 Convertible Participating                   |                    |       |                                                                                                |
|    Houston, Texas                                           |             |   | Preferred Stock, convertible into 4,788,371 shares                      |                    |       |                                                                                                |
| Developer and supporter of software used by the oil and gas                |             |   | of common stock at $1.0441 per share (acquired                          |                    |       |                                                                                                |
| industry.                                                                  |             |   | 8-19-05 thru 6-15-08)                                                   | $   5,000,000 |       | $                 2 |
| ¥ THE WHITMORE MANUFACTURING COMPANY                                  | 80.0%            |   | 80 shares common stock (acquired 8-31-79)                               | 1,600,000               |       | 36,000,000                                                                                          |
| Rockwall, Texas                                                            |             |   |                                                                    |                    |       |                                                                                                |
| Specialized surface mining, railroad and industrial                        |             |   |                                                                    |                    |       |                                                                                                |
|     lubricants;coatings for automobiles and primary metals; |             |   |                                                                    |                    |       |                                                                                                |
|     fluid contamination control devices.                    |             |   |                                                                    |                    |       |                                                                                                |
| MISCELLANEOUS                                                              |   –   |   | Ballast Point Ventures II, L.P. – 2.6% limited partnership        |                    |       |                                                                                                |
|                                                                       |             |   | interest (acquired 8-4-08 thru 10-24-08)                                | 375,000                 |       | 375,000                                                                                             |
|                                                                       |   –   |   | BankCap Partners Fund I, L.P. – 6.0% limited partnership          |                    |       |                                                                                                |
|                                                                       |             |   | interest (acquired 7-14-06  thru 10-10-08)                    | 3,766,681               |       | 3,766,681                                                                                           |
|                                                                       |   –   |   | CapitalSouth Partners Fund III, L.P. – 2.8% limited partnership   |                    |       |                                                                                                |
|                                                                       |             |   | interest (acquired 1-22-08 and 2-12-09)                                 | 831,256                 |       | 831,256                                                                                             |
|                                                                       |   –   |   | Diamond State Ventures, L.P. – 1.9% limited partnership           |                    |       |                                                                                                |
|                                                                       |             |   | interest (acquired 10-12-99 thru 8-26-05)                               | 111,000                 |       | 111,000                                                                                             |
|                                                                       |   –   |   | ¥ Discovery Alliance, LLC – 90.0% limited liability company  |                    |       |                                                                                                |
|                                                                       |             |   | (acquired 9-12-08 thru 3-1-09)                                          | 450,000                 |       | 450,000                                                                                             |
|                                                                       |   –   |   | First Capital Group of Texas III, L.P. – 3.0% limited partnership |                    |       |                                                                                                |
|                                                                       |             |   | interest (acquired 12-26-00 thru 8-12-05)                               | 964,604                 |       | 840,260                                                                                             |
|                                                                       |   100.0%    |   | ¥ Humac Company – 1,041,000 shares common stock              |                    |       |                                                                                                |
|                                                                       |             |   | (acquired 1-31-75 and 12-31-75)                                         | –                 |       | 133,000                                                                                             |
|                                                                       |   –   |   | STARTech Seed Fund I – 12.1% limited partnership                  |                    |       |                                                                                                |
|                                                                       |             |   |   interest (acquired 4-17-98 thru 1-5-00)                     | 178,066                 |       | 1                                                                                                   |
|                                                                       |   –   |   | STARTech Seed Fund II – 3.2% limited partnership                  |                    |       |                                                                                                |
|                                                                       |             |   | interest (acquired 4-28-00 thru 2-23-05)                                | 950,000                 |       | 1                                                                                                   |
|                                                                       |   –   |   | Sterling Group Partners I, L.P. – 1.7% limited partnership        |                    |       |                                                                                                |
|                                                                       |             |   | interest (acquired 4-20-01 thru 1-24-05)                                | 1,064,042               |       | 379,746                                                                                             |
| TOTAL INVESTMENTS                                                          |             |   |                                                                    | $89,339,191             |       | $396,635,023                                                                                        |
| †Publicly-owned company; ¥ Control investment                   |             |   | ‡Unrestricted securities as defined in Note (b)         |                    |       |                                                                                                |

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                      |   | Amount |                                                 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------|
| Ballast Point Ventures II, L.P.                                                               |   |   |    $      300,000 |   |
| BankCap Partners Fund I, L.P.                                                                 |   |   | 1,747,156                                            |   |
| Cinatra Clean Technologies, Inc..                                                             |   |   | 1,737,300                                            |   |
| CMI Holding Company, Inc.                                                                     |   |   | 1,150,000                                            |   |
| Discovery Alliance, LLC                                                                       |   |   | 300,000                                              |   |
| iMemories, Inc.                                                                               |   |   | 4,000,000                                            |   |
| KBI Biopharma, Inc.                                                                           |   |   | 5,000,000                                            |   |
| Palm Harbor Homes, Inc.                                                                       |   |   | 3,000,000                                            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | $17,234,456                                          |   |

|                                                                                                                                                                                                                                                                                                                                                             |   |       |          |   | Amount               |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|---------------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                             |   | Cost  |          |   | Received   |   |
| Dennis Tool Company                                                                |   |       | $3,329,944    |   |                 |   | $4,763,416 |   |
| Diamond State Ventures                                                             |   |       | 35,000        |   |                 |   | 35,000 |   |
| Essex Capital Corporation                                                          |   |       | -             |   |                 |   | 206,522 |   |
| First Capital Group of Texas                                                       |   |       |  185,709 |   |                 |   |  185,709 |   |
|                                                                                                                                                                                                                                                                                                                                                             |   |       |          |   |                 |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                             |   |       | $3,550,653    |   |                 |   | $5,190,647 |   |
|                                                                                                                                                                                                                                                                                                                                                             |   |       |          |   |                 |   |   |   |
| Repayments Received                                                                |   |       |          |   |                 |   | $3,000,000 |   |

----

|                                                                                                                                                                                                                                             |   |     |         |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------------|--------|--------|--------|
|                                                                                                                                                                                                                                             |   | March 31 |         |
| Assets                                                                                                                                                                                                                                           |   | 2010     |         |   | 2009   |   |
|                                                                                                                                                                                                                                             |   |     |         |   |   |   |
| Investments at market or fair value                                                                                                                                                                                                              |   |     |         |   |   |   |
| Companies more than 25% owned                                                                                                                                                                                                                    |   |     |         |   |   |   |
| (Cost: 2010 – $26,178,302,                                                                                                                                                                                                                 |   |     |         |   |   |   |
| 2009 - $29,208,246)                                                                                                                                                                                                                              |   |     | $330,147,325 |   |   |   | $286,488,248 |   |
| Companies 5% to 25% owned                                                                                                                                                                                                                        |   |     |         |   |   |   |   |   |
| (Cost: 2010 – $21,562,243,                                                                                                                                                                                                                 |   |     |         |   |   |   |   |   |
| 2009 - $20,412,243)                                                                                                                                                                                                                              |   |     | 73,589,142   |   |   |   | 66,388,010 |   |
| Companies less than 5% owned                                                                                                                                                                                                                     |   |     |         |   |   |   |   |   |
| (Cost: 2010 – $52,282,449,                                                                                                                                                                                                                 |   |     |         |   |   |   |   |   |
| 2009 - $39,718,702)                                                                                                                                                                                                                              |   |     | 74,206,590   |   |   |   | 43,758,765 |   |
|                                                                                                                                                                                                                                             |   |     |         |   |   |   |   |   |
| Total investments                                                                                                                                                                                                                                |   |     |         |   |   |   |   |   |
| (Cost: 2010 – $100,022,994,                                                                                                                                                                                                                |   |     |         |   |   |   |   |   |
| 2009 – $89,339,191)                                                                                                                                                                                                                        |   |     | 477,943,057  |   |   |   | 396,635,023 |   |
| Cash and cash equivalents                                                                                                                                                                                                                        |   |     | 4,093,508    |   |   |   | 14,721,730 |   |
| Receivables                                                                                                                                                                                                                                      |   |     |         |   |   |   |   |   |
| Dividends and interest                                                                                                                                                                                                                           |   |     | 1,012,782    |   |   |   | 498,506 |   |
| Affiliates                                                                                                                                                                                                                                       |   |     | 864,943      |   |   |   | 16,706 |   |
| Pension assets                                                                                                                                                                                                                                   |   |     | 7,068,957    |   |   |   | 5,468,861 |   |
| Other assets                                                                                                                                                                                                                                     |   |     | 191,338      |   |   |   | 202,313 |   |
|                                                                                                                                                                                                                                             |   |     |         |   |   |   |   |   |
| Total assets                                       |   |     | $491,174,585 |   |   |   | $417,543,139 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |                                                          |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | March 31 |                                                          |
| Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2010     |                                                          |   | 2009   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |                                                          |   |   |   |
| Other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |     | $    1,070,540                                 |   |   |   | $       253,294 |   |
| Pension liability                                                                                                                                                                               |   |     | 1,082,941                                                     |   |   |   | 934,427 |   |
| Deferred income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |     | 2,095,518                                                     |   |   |   | 1,092,427 |   |
|                     Total liabilities                                                       |   |     | 4,248,999                                                     |   |   |   | 2,280,148 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |                                                          |   |   |   |   |   |
| Net Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |     |                                                          |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |                                                          |   |   |   |   |   |
| Common stock, $1 par value: authorized,                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |     |                                                          |   |   |   |   |   |
| 5,000,000 shares; issued, 4,326,516                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |     |                                                          |   |   |   |   |   |
| shares at March 31, 2010 and                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |     |                                                          |   |   |   |   |   |
| March 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |     | 4,326,516                                                     |   |   |   | 4,326,516 |   |
| Additional capital                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |     | 126,554,546                                                   |   |   |   | 124,571,029 |   |
| Undistributed net investment income                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |     | 2,061,109                                                     |   |   |   | 2,963,640 |   |
| Undistributed net realized gain on                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |     |                                                          |   |   |   |   |   |
| Investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     | -                                                             |   |   |   | 42,622 |   |
| Unrealized appreciation of investments                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |     | 377,920,063                                                   |   |   |   | 307,295,832 |   |
| Treasury stock – at cost 584,878 shares                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |     |                                                          |   |   |   |   |   |
|     at March 31, 2010 and March 31,2009                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     | (23,936,648                                                   | )      |   |   | (23,936,648 | ) |
| Total net assets                                                                                                                                                                                |   |     | 486,925,586                                                   |   |   |   | 415,262,991 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |                                                          |   |   |   |   |   |
| Total liabilities and net assets                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |     | $491,174,585                                                  |   |   |   | $417,543,139 |   |
| Net assets value per share                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |     |                                                          |   |   |   |   |   |
| (on the 3,741,638 shares outstanding)                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |     | $         130.14 |   |   |   | $         110.98 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Years Ended March 31  |              |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|-------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2010                       |              |   | 2009 |   |   | 2008 |   |
| Investment income (see note 9):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                       |              |   |   |   |   |   |   |
| Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                       | $  1,044,867 |   |   |   | $      1,375,215 |   |   |   | $     2,255,550 |   |
| Dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                       | 3,788,680         |   |   |   | 11,533,878 |   |   |   | 3,656,833 |   |
| Management and directors’ fees                                                                                                                                                                |   |                       | 1,275,759         |   |   |   | 1,076,039 |   |   |   |  882,300 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       | 6,109,306         |   |   |   | 13,985,132 |   |   |   | 6,794,683 |   |
| Operating expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                       |              |   |   |   |   |   |   |   |   |   |
| Salaries                                                                                                                                                                                            |   |                       | 2,839,070         |   |   |   | 2,294,187 |   |   |   | 1,619,008 |   |
| Net pension benefit                                                                                                                                                                                 |   |                       | (369,108          | ) |   |   | (253,229 | ) |   |   | (327,345 | ) |
| Stock option expense                                                                                                                                                                                |   |                       | 675,210           |   |   |   | 503,645 |   |   |   | 263,664 |   |
| Professional fees                                                                                                                                                                                   |   |                       | 551,112           |   |   |   | 689,425 |   |   |   | 798,172 |   |
| Other operating expenses                                                                                                                                                                            |   |                       | 207,224           |   |   |   | 431,473 |   |   |   | 614,824 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       | 3,903,508         |   |   |   | 3,665,501 |   |   |   | 2,968,323 |   |
| Income before income taxes                                                                                                                                                                     |   |                       | 2,205,798         |   |   |   | 10,319,631 |   |   |   | 3,826,360 |   |
| Income tax expense                                                                                                                                                                             |   |                       | 115,017           |   |   |   | 136,176 |   |   |   | 111,160 |   |
| Net investment income                                                                                                                                                                          |   |                       | $  2,090,781 |   |   |   | $    10,183,455 |   |   |   | $     3,715,200 |   |
| Proceeds from disposition of investments                                                                                                                                                       |   |                       | $  5,190,647 |   |   |   | $    20,697,647 |   |   |   | $     1,433,891 |   |
| Cost of investments sold                                                                                                                                                                       |   |                       | 3,550,653         |   |   |   | 4,718,381 |   |   |   | 1,193,867 |   |
| Net realized gain on investments before income taxes                                                                                                                                           |   |                       | 1,639,994         |   |   |   | 15,979,266 |   |   |   | 240,024 |   |
| Income tax expense                                                                                                                                                                             |   |                       |  814,503     |   |   |   | 5,222,964 |   |   |   |  - |   |
| Net realized gain on investments                                                                                                                                                               |   |                       | 825,491           |   |   |   | 10,756,302 |   |   |   | 240,024 |   |
| Net increase (decrease) in unrealized appreciation of investments                                                                                                                              |   |                       | 70,624,231        |   |   |   | (159,247,203 | ) |   |   | $(142,969,698 | ) |
| Net realized and unrealized gain (loss) on investments                                                                                                                                         |   |                       | $71,449,722       |   |   |   | $(148,490,901 | ) |   |   | $(142,729,674 | ) |
| Increase (decrease) in net assets from operations                                                                                                                                              |   |                       | $73,540,503       |   |   |   | $(138,307,446 | ) |   |   | $(139,014,474 | ) |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Years Ended March 31 |                          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|-------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2010                 |                          |   | 2009 |   |   | 2008 |   |
| Operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 |                          |   |   |   |   |   |   |
| Net investment income                                                                                                                                                                          |   |                 | $    2,090,781 |   |   |   | $   10,183,455 |   |   |   | $     3,715,200 |   |
| Net realized gain on investments                                                                                                                                                               |   |                 | 825,491                       |   |   |   | 10,756,302 |   |   |   | 240,024 |   |
| Net increase (decrease) in unrealized appreciation of investments                                                                                                                              |   |                 | 70,624,231                    |   |   |   | (159,247,203 | ) |   |   | (142,969,698 | ) |
|   Increase (decrease) in net assets from operations                                                                                                                                       |   |                 | 73,540,503                    |   |   |   | (138,307,446 | ) |   |   | (139,014,474 | ) |
| Distributions from:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 |                          |   |   |   |   |   |   |   |   |   |
|   Undistributed net investment income                                                                                                                                                     |   |                 | (2,993,310                    | ) |   |   | (12,256,745 | ) |   |   | (2,333,291 | ) |
|   Net realized gains deemed distribution to shareholders                                                                                                                                  |   |                 | (868,114                      | ) |   |   | (8,646,560 | ) |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 |                          |   |   |   |   |   |   |   |   |   |
| Capital share transactions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 |                          |   |   |   |   |   |   |   |   |   |
|   Allocated increase in share value for deemed distribution                                                                                                                               |   |                 | 868,114                       |   |   |   | 8,646,560 |   |   |   | - |   |
|   Exercise of employee stock options                                                                                                                                                      |   |                 | -                             |   |   |   | - |   |   |   | 231,390 |   |
|   Change in pension plan funded status, net of tax                                                                                                                                        |   |                 | 440,192                       |   |   |   | (1,473,329 | ) |   |   | (1,178,764 | ) |
| Stock option expense                                                                                                                                                                           |   |                 | 675,210                       |   |   |   | 503,645 |   |   |   | 263,664 |   |
|  Treasury stock                                                                                                                                                                      |   |                 | -                             |   |   |   | (16,903,346 | ) |   |   | - |   |
| Increase (decrease) in net assets                                                                                                                                                              |   |                 | 71,662,595                    |   |   |   | (168,437,221 | ) |   |   | (142,031,475 | ) |
| Net assets, beginning of year                                                                                                                                                             |   |                 | 415,262,991                   |   |   |   | 583,700,212 |   |   |   | 725,731,689 |   |
| Net assets, end of year                                                                                                                                                                   |   |                 | $486,925,586                  |   |   |   | $ 415,262,991 |   |   |   | $ 583,700,214 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Years Ended March 31 |                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|-----------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2010                 |                                                                                                      |   | 2009 |   |   | 2008 |   |
| Cash flows from operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |                                                                                                      |   |   |   |   |   |   |
| Increase (decrease) in net assets from operations                                                                                                             |   |                 | $ 73,540,503                                                                                              |   |   |   | $(138,307,446 | ) |   |   | $(139,014,474 | ) |
| Adjustments to reconcile increase (decrease) in net assets from operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 |                                                                                                      |   |   |   |   |   |   |   |   |   |
| to net cash provided by (used in) operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 |                                                                                                      |   |   |   |   |   |   |   |   |   |
|  Proceeds from disposition of investments                                                                                                                     |   |                 | 5,190,647                                                                                                 |   |   |   | 20,697,647 |   |   |   | 1,433,891 |   |
|   Proceeds from repayment of debt securities                                                                                                        |   |                 | 3,000,000                                                                                                 |   |   |   | - |   |   |   |  - |   |
| Purchases of securities                                                                                                                                            |   |                 | (17,234,456                                                                                               | ) |   |   | (13,030,107 | ) |   |   | (10,733,536 | ) |
| Maturities of securities                                                                                                                                           |   |                 | -                                                                                                         |   |   |   | - |   |   |   | 154,500 |   |
| Depreciation and amortization                                                                                                                                      |   |                 | 33,130                                                                                                    |   |   |   | 40,478 |   |   |   | 32,756 |   |
| Net pension benefit                                                                                                                                                |   |                 | (369,108                                                                                                  | ) |   |   | (253,229 | ) |   |   | (327,345 | ) |
|  Net realized (gain) loss on investments before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                 | (825,491                                                                                                  | ) |   |   | (10,756,302 | ) |   |   | (240,024 | ) |
| Net (increase) decrease in unrealized appreciation of investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                 | (70,624,231                                                                                               | ) |   |   | 159,247,203 |   |   |   | 142,969,698 |   |
| Stock option expense                                                                                                                                               |   |                 | 675,210                                                                                                   |   |   |   | 503,645 |   |   |   | 263,664 |   |
|   Increase in dividend and interest receivable                                                                                                      |   |                 | (514,278                                                                                                  | ) |   |   | (364,160 | ) |   |   | 190,275 |   |
| (Increase) decrease in receivables from affiliates                                                                                                                 |   |                 | (617,026                                                                                                  | ) |   |   | 5,270 |   |   |   | (8,705 | ) |
| Increase in other assets                                                                                                                                           |   |                 | (22,155                                                                                                   | ) |   |   | (33,358 | ) |   |   | (80,195 | ) |
| Increase (decrease) in other liabilities                                                                                                                           |   |                 | 817,246                                                                                                   |   |   |   | 7,620 |   |   |   | (33,281 | ) |
| Decrease in accrued pension cost                                                                                                                                   |   |                 | -                                                                                                         |   |   |   | (68,934 | ) |   |   | (135,768 | ) |
| Increase in deferred income taxes                                                                                                                                  |   |                 | 129,600                                                                                                   |   |   |   |  88,700 |   |   |   | 114,000 |   |
| Net cash provided by (used in) operating activities                                                                                                           |   |                 | (6,820,409                                                                                                | ) |   |   |   17,777,027 |   |   |   | (5,414,544 | ) |
| Cash flows from financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |                                                                                                      |   |   |   |   |   |   |   |   |   |
| Distributions from undistributed net investment income                                                                                                        |   |                 | (2,993,310                                                                                                | ) |   |   | (12,256,745 | ) |   |   | (2,333,291 | ) |
| Proceeds from exercise of employee stock options                                                                                                              |   |                 | -                                                                                                         |   |   |   | - |   |   |   | 231,390 |   |
| Purchase of treasury stock                                                                                                                                    |   |                 | -                                                                                                         |   |   |   | (16,903,346 | ) |   |   | - |   |
| Payment of federal income tax for deemed capital gains distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                 | (814,503                                                                                                  | ) |   |   | (5,222,964 | ) |   |   | - |   |
| Net cash used in financing activities                                                                                                                         |   |                 | (3,807,813                                                                                                | ) |   |   | (34,383,055 | ) |   |   | (2,101,901 | ) |
| Net (decrease) in cash and cash equivalents                                                                                                                   |   |                 | (10,628,222                                                                                               | ) |   |   | (16,606,028 | ) |   |   | (7,516,445 | ) |
| Cash and cash equivalents at beginning of year                                                                                                                |   |                 | 14,721,730                                                                                                |   |   |   | 31,327,758 |   |   |   | 38,844,203 |   |
| Cash and cash equivalents at end of year                                                                                                                      |   |                 | $   4,093,508                                                                                   |   |   |   | $   14,721,730 |   |   |   | $   31,327,758 |   |
| Supplemental disclosure of cash flow information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                 |                                                                                                      |   |   |   |   |   |   |   |   |   |
| Cash paid during the year for: Interest                                                                                                                       |   |                 | $                  - |   |   |   | $                    - |   |   |   | $                    - |   |
| Income taxes                                                                                                                                                                                                                                                                                                                       |   |                 | $                  - |   |   |   | $            3,756 |   |   |   | $                    - |   |

----

----

----

----

----

----

| ·   | Level 1: Investments whose values are based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.  We use Level 1 inputs for publicly traded unrestricted securities for which we do not have a controlling interest.  Such investments are valued at the closing price for listed securities and at the lower of the closing bid price or the closing sale price for securities traded on the NASDAQ on the valuation date. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 2: Investments whose values are based on data other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.  We did not value any of our investments using level 2 inputs as of March 31, 2010. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3: Investments whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.  These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the investment. We use Level 3 inputs for measuring the fair value of substantially all of our investments.  See “Notes to Consolidated Schedule of Investments” (c) on page 17 for the investment policy used to determine the fair value of these investments. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   |   |         |   | Fair Value Measurementsat 3/31/2010 Using                              |   |
|-----------------------------------------|--------|--------|--------------|--------|------------------------------------------------------------------------|--------|
|      Asset Category |   | Total  |         |   | Quoted Prices in Active Markets for Identical Assets Level 1 |   |   | Significant Other Observable Inputs Level 2 |   |   | Significant Unobservable InputsLevel 3 |   |
| Debt                                    |   |   | $  14.6 |   |                                                                   |   | $     - |   |   |   | $- |   |   |   | $  14.6 |   |
| Partnership Interests                   |   |   | 8.6          |   |                                                                   |   | - |   |   |   | - |   |   |   | 8.6 |   |
| Preferred Equity                        |   |   | 35.3         |   |                                                                   |   | - |   |   |   | - |   |   |   | 35.3 |   |
| Common Equity                           |   |   | 419.4        |   |                                                                   |   | 21.0 |   |   |   | - |   |   |   | 398.4 |   |
| Total Investments                       |   |   | $477.9       |   |                                                                   |   | $21.0 |   |   |   | $- |   |   |   | $456.9 |   |

|                                    |   |   |                    |   | Fair Value Measurementsat 3/31/2009 Using                              |   |
|-----------------------------------------|--------|--------|-------------------------|--------|------------------------------------------------------------------------|--------|
|      Asset Category |   | Total  |                    |   | Quoted Prices in Active Markets for Identical Assets Level 1 |   |   | Significant Other Observable Inputs Level 2 |   |   | Significant Unobservable InputsLevel 3 |   |
| Debt                                    |   |   | $    8.3 |   |                                                                   |   | $- |   |   |   | $- |   |   |   | $    8.3 |   |
| Partnership Interests                   |   |   | 6.8                     |   |                                                                   |   | - |   |   |   | - |   |   |   | 6.8 |   |
| Preferred Equity                        |   |   | 16.4                    |   |                                                                   |   | - |   |   |   | - |   |   |   | 16.4 |   |
| Common Equity                           |   |   | 365.2                   |   |                                                                   |   | 13.8 |   |   |   | - |   |   |   | 351.4 |   |
| Total Investments                       |   |   | $396.7                  |   |                                                                   |   | $13.8 |   |   |   | $- |   |   |   | $382.9 |   |

----

|      Asset Category                  |   | Fair Value 3/31/09 |                    |   | NetUnrealized Appreciation (Depreciation) |   |        | Net NewInvestments (Divestitures) |   |   | Conversion of Security from Debt to Equity |   |   | Fair Value3/31/10 |                        |
|----------------------------------------------------------|--------|--------------------|-------------------------|--------|-------------------------------------------|--------|-------------|-----------------------------------|--------|--------|-------------------------------------------------|--------|--------|-------------------|-----------------------------|
|   Debt                                         |   |               | $    8.3 |   |                                      |   | $  4.9 |                              |   |   | $  2.7                                     |   |   |              | $(1.3                       | ) |   |   | $  14.6 |   |
|   Partnership    Interests |   |               | 6.8                     |   |                                      |   | (0.2        | )                                 |   |   | 2.1                                             |   |   |              | -                           |   |   |   | 8.6 |   |
|   Preferred    Equity      |   |               | 16.4                    |   |                                      |   | 9.4         |                              |   |   | 8.2                                             |   |   |              | 1.3                         |   |   |   | 35.3 |   |
|   Common     Equity   |   |               | 351.4                   |   |                                      |   | 49.3        |                              |   |   | (2.3                                            | )      |   |              | -                           |   |   |   | 398.4 |   |
|   Total    Investments     |   |               | $382.9                  |   |                                      |   | $63.4       |                              |   |   | $10.7                                           |   |   |              | $     - |   |   |   | $456.9 |   |

|      Asset Category                  |   | Fair Value 3/31/08 |                    |   | NetUnrealized Appreciation (Depreciation) |   |                     | Net NewInvestments (Divestitures) |   |   | Conversion of Security from Debt to Equity |   |   | Fair Value3/31/09 |   |
|----------------------------------------------------------|--------|--------------------|-------------------------|--------|-------------------------------------------|--------|--------------------------|-----------------------------------|--------|--------|--------------------------------------------|--------|--------|-------------------|--------|
|   Debt                                         |   |               | $    9.0 |   |                                      |   | $    (5.0 | )                                 |   |   | $  4.3                                |   |   |              | $-     |   |   |   | $    8.3 |   |
|   Partnership    Interests |   |               | 5.3                     |   |                                      |   | (0.9                     | )                                 |   |   | 2.3                                        |   |   |              | -      |   |   |   | 6.8 |   |
|   Preferred    Equity      |   |               | 21.8                    |   |                                      |   | (11.5                    | )                                 |   |   | 6.1                                        |   |   |              | -      |   |   |   | 16.4 |   |
| Common     Equity               |   |               | 458.3                   |   |                                      |   | (107.2                   | )                                 |   |   | 0.3                                        |   |   |              | -      |   |   |   | 351.4 |   |
|   Equity     Warrants |   |               | 0.4                     |   |                                      |   | (0.4                     | )                                 |   |   | -                                          |   |   |              | -      |   |   |   | - |   |
|   Total    Investments     |   |               | $494.8                  |   |                                      |   | $(124.9                  | )                                 |   |   | $13.0                                      |   |   |              | $-     |   |   |   | $382.9 |   |

----

| Net Realized Gains On Transaction In          |   | For the Tax Year Ended December 31, |                  |
|-----------------------------------------------|--------|-------------------------------------|-----------------------|
|     Investment Securities of   |   | 2009                                |                  |   | 2008 |   |
| Unaffiliated issuers                          |   |                                | $   206,522 |   |   |   | $15,936,644 |   |
| Affiliated issuers                            |   |                                | 1,433,472             |   |   |   | - |   |
| Investments other than securities             |   |                                | -                     |   |   |   | - |   |
| Net realized gain on investments before taxes |   |                                | $1,639,994            |   |   |   | $15,936,644 |   |
| Income tax expense                            |   |                                | 814,503               |   |   |   | 5,222,964 |   |
| Net realized gain on investments              |   |                                | $825,491              |   |   |   | $10,713,680 |   |
| Net realized gains (for tax purposes)         |   |                                | $2,327,150            |   |   |   | $14,922,751 |   |

----

|                                   |   |   |                   |   |   |   |  Black-Scholes Pricing Model Assumptions |   |
|----------------------------------------|--------|--------|------------------------|--------|--------|--------|-----------------------------------------------|--------|
|                                   |   |   |  Weighted         |   |   |   |   Expected                          |   |   |   |  Risk-Free |   |   |   |   |   |   |   |  Expected |   |
|      Date of       |   |   |   Average    |   |   |   |  Dividend                                |   |   |   |   Interest |   |   |   |  Expected |   |   |   |   Life |   |
|    Issuance   |   |   |   Fair Value |   |   |   |   Yield                             |   |   |   |   Rate |   |   |   |  Volatility |   |   |   |   (in years) |   |
|                              |   |   |                   |   |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 22, 2010                         |   |   | $32.56                 |   |   |   | 0.84                                          | %      |   |   | 2.43 | % |   |   | 37.8 | % |   |   | 5 |   |
| October 19, 2009                       |   |   | $25.36                 |   |   |   | 1.04                                          | %      |   |   | 2.36 | % |   |   | 37.6 | % |   |   | 5 |   |
|                                   |   |   |                   |   |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1999 Plan                              |   |   |                   |   |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| July 30, 2008                          |   |   | $29.93                 |   |   |   | 0.62                                          | %      |   |   | 3.36 | % |   |   | 20.2 | % |   |   | 5 |   |
| July 21, 2008                          |   |   | $27.35                 |   |   |   | 0.67                                          | %      |   |   | 3.41 | % |   |   | 20.2 | % |   |   | 5 |   |
| July 16, 2007                          |   |   | $41.78                 |   |   |   | 0.39                                          | %      |   |   | 4.95 | % |   |   | 19.9 | % |   |   | 5 |   |
| July 17, 2006                          |   |   | $33.05                 |   |   |   | 0.61                                          | %      |   |   | 5.04 | % |   |   | 21.2 | % |   |   | 7 |   |
| May 15, 2006                           |   |   | $31.28                 |   |   |   | 0.64                                          | %      |   |   | 5.08 | % |   |   | 21.1 | % |   |   | 7 |   |

|                               |   |   |  Number    |   |   |   | Weighted Average                                          |   |
|------------------------------------|--------|--------|-----------------|--------|--------|--------|-----------------------------------------------------------|--------|
|                               |   |   |  of shares |   |   |   |   Exercise Price                                |   |
| 2009 Plan                          |   |   |            |   |   |   |                                                      |   |
| Balance at March 31, 2009          |   |   | -               |   |   |   | $          - |   |
| Granted                            |   |   | 58,750          |   |   |   | 83.23                                                     |   |
| Exercised                          |   |   | -               |   |   |   | -                                                         |   |
| Canceled                           |   |   | -               |   |   |   | -                                                         |   |
| Balance at March 31, 2010          |   |   | 58,750          |   |   |   | $  83.23                                             |   |
|                               |   |   |            |   |   |   |                                                      |   |
| 1999 Plan                          |   |   |            |   |   |   |                                                      |   |
| Balance at March 31, 2008          |   |   | 70,400          |   |   |   | $110.00                                                   |   |
| Granted                            |   |   | 37,500          |   |   |   | 123.72                                                    |   |
| Exercised                          |   |   | -               |   |   |   | -                                                         |   |
| Canceled                           |   |   | -               |   |   |   | -                                                         |   |
| Balance at March 31, 2009          |   |   | 107,900         |   |   |   | $114.78                                                   |   |
| Granted                            |   |   | -               |   |   |   | -                                                         |   |
| Exercised                          |   |   | -               |   |   |   | -                                                         |   |
| Canceled                           |   |   | -               |   |   |   | -                                                         |   |
| Balance at March 31, 2010          |   |   | 107,900         |   |   |   | $114.78                                                   |   |
| Combined Balance at March 31, 2010 |   |   | 166,650         |   |   |   | $103.65                                                   |   |
|                               |   |   |            |   |   |   |                                                      |   |

----

|                                                   | Weighted Average Aggregate Intrinsic  |   |   |        |   |
|--------------------------------------------------------|--------------------------------------------|--------|--------|-------------|--------|
|                                                   |  Remaining Contractual Term           |   |   |  Value |   |
| March 31, 2010                               |                                       |   |   |        |   |
|         Outstanding | 4.1 years                                  |   |   | $4,889,443  |   |
| Exercisable                                            | 3.4 years                                  |   |   | $1,158,499  |   |

|                                          |   |  Years Ended March 31  |                  |
|-----------------------------------------------|--------|----------------------------------|-----------------------|
|                                          |   |  2010                       |                  |   | 2009   |   |   | 2008   |   |
| Net pension benefit                           |   |                             |                  |   |   |   |   |   |   |
| Service cost-benefits earned during           |   |                             |                  |   |   |   |   |   |   |
| the year                                      |   |                             | $   116,746 |   |   |   |  $     67,340 |   |   |   | $     67,514 |   |
| Interest cost on projected benefit obligation |   |                             | 191,936               |   |   |   | 290,310 |   |   |   | 222,895 |   |
| Expected return on assets                     |   |                             | (735,366              | ) |   |   | (732,837 | ) |   |   | (673,366 | ) |
| Net amortization                              |   |                             | 9,006                 |   |   |   | 3,725 |   |   |   | 3,725 |   |
| Net pension benefit from qualified plan       |   |                             | $  (417,678      | ) |   |   | $  (371,462 | ) |   |   | $  (379,232 | ) |
|                                          |   |                             |                  |   |   |   |   |   |   |   |   |   |
|                                          |   |                             |                  |   |   |   |   |   |   |   |   |   |
| Change in benefit obligation                  |   |                             |                  |   |   |   |   |   |   |   |   |   |
| Benefit obligation at beginning               |   |                             |                  |   |   |   |   |   |   |   |   |   |
| of  year                            |   |                             | $2,914,813            |   |   |   | $3,699,285 |   |   |   | $3,965,100 |   |
| Service cost                                  |   |                             | 116,746               |   |   |   | 67,340 |   |   |   | 67,514 |   |
| Interest cost                            |   |                             | 191,936               |   |   |   | 290,310 |   |   |   | 222,895 |   |
| Actuarial gain (loss)                         |   |                             | 295,379               |   |   |   | (916,874 | ) |   |   | (160,840 | ) |
| Benefits paid                                 |   |                             | (68,131               | ) |   |   | (259,810 | ) |   |   | (395,384 | ) |
| Plan change                              |   |                             |  -               |   |   |   |  34,262 |   |   |   |  - |   |
| Benefit obligation at end of year        |   |                             |  $3,450,443      |   |   |   |  $2,914,513 |   |   |   |  $3,699,285 |   |

----

|                                   |   |  Years Ended March 31 |              |
|----------------------------------------|--------|----------------------------|-------------------|
| Change in plan assets        |   |  2010                 |              |   | 2009 |   |   | 2008 |   |
| Fair value of plan assets at beginning |   |                       |              |   |   |   |   |   |   |
| of  year                     |   |                       | $  8,383,373 |   |   |   | $11,120,337 |   |   |   | $12,973,292 |   |
| Actual return on plan assets           |   |                       | 2,204,158         |   |   |   | (2,477,154 | ) |   |   | (1,457,571 | ) |
| Benefits paid                          |   |                       | (68,131           | ) |   |   | (259,810 | ) |   |   | (395,384 | ) |
| Fair value of plan assets at end of    |   |                       |              |   |   |   |   |   |   |   |   |   |
| year                                   |   |                       | $10,519,400       |   |   |   | $  8,383,373 |   |   |   | $11,120,337 |   |

| Funded status and  amounts recognized in our consolidated |   |  Years Ended March 31 |        |
|---------------------------------------------------------------------|--------|----------------------------|-------------|
| statements of assets and liabilities                                |   |  2010                 |        |   |  2009 |   |
| Actuarial present value of benefit obligations:                     |   |                       |        |   |   |   |
| Accumulated benefit obligation                                      |   |                       | $(3,076,629 | ) |   |   | $(2,630,743 | ) |
| Projected benefit obligation for service rendered to                |   |                       |        |   |   |   |   |   |
| date                                                                |   |                       | $(3,450,443 | ) |   |   | $(2,914,513 | ) |
| Plan assets at fair value*                                          |   |                       | 10,519,400  |   |   |   | 8,383,373 |   |
| Funded status                                                       |   |                       | 7,068,957   |   |   |   | 5,468,860 |   |
| Unrecognized net (gain) loss from past experience                   |   |                       |        |   |   |   |   |   |
| different from that assumed and effects of                          |   |                       |        |   |   |   |   |   |
| changes in assumptions                                              |   |                       | 1,328,748   |   |   |   | 2,502,161 |   |
| Unrecognized prior service costs                                    |   |                       | 150,710     |   |   |   | 159,716 |   |
| Additional asset, FAS 158                                           |   |                       | (1,479,458  | ) |   |   | (2,661,877 | ) |
| Prepaid pension cost included in pension assets                     |   |                       | $ 7,068,957 |   |   |   | $ 5,468,860 |   |

|   | *Primarily equities and bonds including approximately 25,000 shares of CSC Common Stock. |
|--------|------------------------------------------------------------------------------------------|

|                                               |   |   |  Years Ended March 31  |   |
|----------------------------------------------------|--------|--------|----------------------------------|--------|
| Net pension benefit                                |   |   |  2010                       |   |   |   |  2009 |   |   |   |  2008 |   |
| Service cost-benefits earned during           |   |   |                             |   |   |   |   |   |   |   |   |   |
|      the  year  |   |   | $     26,847      |   |   |   | $  10,986 |   |   |   | $     10,483 |   |
| Interest cost on projected benefit obligation      |   |   | 60,334                           |   |   |   | 104,777 |   |   |   | 57,588 |   |
| Net amortization                                   |   |   | (38,605                          | )      |   |   | 2,470 |   |   |   | (16,186 | ) |
| Net pension benefit from qualified plan            |   |   | $48,576                          |   |   |   | $118,233 |   |   |   | $     51,885 |   |

|                              |   |  Years Ended March 31 |                  |
|-----------------------------------|--------|----------------------------|-----------------------|
|                              |   | 2010             |                  |   | 2009 |   |   | 2008 |   |
| Change in benefit obligation      |   |                       |                  |   |   |   |   |   |   |
| Benefit obligation at beginning   |   |                       |                  |   |   |   |   |   |   |
| of  year                |   |                       | $   934,427 |   |   |   | $942,122 |   |   |   | $1,178,891 |   |
| Service cost                      |   |                       | 26,847                |   |   |   | 10,986 |   |   |   | 10,483 |   |
| Interest cost                     |   |                       | 60,334                |   |   |   | 104,777 |   |   |   | 57,588 |   |
| Actuarial gain (loss)             |   |                       | 61,332                |   |   |   | (74,613 | ) |   |   | (169,072 | ) |
| Benefits paid                     |   |                       | -                     |   |   |   | (68,934 | ) |   |   | (135,768 | ) |
| Plan change                       |   |                       | -                     |   |   |   | 20,089 |   |   |   | - |   |
| Benefit obligation at end of year |   |                       | $1,082,941            |   |   |   | $934,427 |   |   |   | $   942,122 |   |

|                                                 |   |   |  March 31         |   |
|------------------------------------------------------|--------|--------|------------------------|--------|
|                                                 |   |   |  2010             |   |   |   | 2009   |   |
| Amounts recognized in our consolidated               |   |   |                   |   |   |   |   |   |
| statements of assets and liabilities                 |   |   |                   |   |   |   |   |   |
| Projected benefit obligation                         |   |   | $(1,082,941            | )      |   |   | $  (934,427 | ) |
| Unrecognized net (gain) loss from past experience    |   |   |                   |   |   |   |   |   |
| different from that assumed and effects of           |   |   |                   |   |   |   |   |   |
| changes in assumptions                               |   |   | $   (347,741 | )      |   |   | $(431,432$ | ) |
| Unrecognized prior service costs                     |   |   | (171,034               | )      |   |   | (187,280 | ) |
| Additional asset, FAS 158                            |   |   | 518,775                |   |   |   | 618,712 |   |
| Prepaid pension cost included in pension liabilities |   |   | $(1,082,941            | )      |   |   | $  (934,427 | ) |

|                           |   |   |  Years Ended March 31 |   |
|--------------------------------|--------|--------|----------------------------|--------|
|                           |   |   |  2010                 |   |   |   | 2009 |   |   |   | 2008 |   |
|                           |   |   |                       |   |   |   |   |   |   |   |   |   |
| Discount rate                  |   |   | 6.00                       | %      |   |   | 6.5 | % |   |   | 6.25 | % |
| Rate of compensation increases |   |   | 5.0                        | %      |   |   | 5.0 | % |   |   | 5.0 | % |

----

|                           |   |   |  Years Ended March 31 |   |
|--------------------------------|--------|--------|----------------------------|--------|
|                           |   |   | 2010                       |   |   |   | 2009 |   |   |   | 2008 |   |
|                           |   |   |                       |   |   |   |   |   |   |   |   |   |
| Discount rate                  |   |   | 6.5                        | %      |   |   | 6.25 | % |   |   | 6.0 | % |
| Expected return on plan assets |   |   | 6.5                        | %      |   |   | 6.5 | % |   |   | 6.5 | % |
| Rate of compensation increases |   |   | 5.0                        | %      |   |   | 5.0 | % |   |   | 5.0 | % |

|             |   |  Years Ended March 31  |   |
|------------------|--------|----------------------------------|--------|
|             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    2016-  |   |
| (In Thousands)   |   |    2011           |   |   |     2012 |   |   | 2013 |   |   | 2014 |   |   |     2015 |   |   |  2020 |   |
| Qualified Plan   |   |                             | $60    |   |   |     $207 |   |   |   | $199 |   |   |   | $191 |   |   |   | $184 |   |   |   | $1,034 |   |
| Restoration Plan |   |                             | $18    |   |   |   | $  93 |   |   |   | $  89 |   |   |   | $  85 |   |   |   | $  82 |   |   |   | $   367 |   |

|                      |   |  Percentage of plan assets |   |
|---------------------------|--------|---------------------------------|--------|
|                      |   |  at March 31               |   |
| Asset Category            |   | 2010                            |   |   | 2009 |   |
| Equity securities         |   |                            | 74.2   | % |   |   | 67.7 | % |
| Fixed income securities   |   |                            | 16.5   | % |   |   | 19.2 | % |
| Cash and cash equivalents |   |                            | 9.3    | % |   |   | 13.1 | % |
|                      |   |                            | 100.0  | % |   |   | 100.0 | % |

|                                                                              |   |   |                   |   | Fair Value Measurementsat Reporting Date Using                        |   |
|-----------------------------------------------------------------------------------|--------|--------|------------------------|--------|-----------------------------------------------------------------------|--------|
|             Asset Category |   | Total  |                   |   | QuotedPrices in Active Markets for Identical Assets Level 1 |   |   | Significant Other Observable Inputs Level 2 |   |   | Significant Unobservable InputsLevel 3 |   |
|   Equity securities (a)                                                 |   |   | $  7.8            |   |                                                                  |   | $6.4 |   |   |   | $1.4 |   |   |   | $- |   |
|   Fixed income securities (b)                                           |   |   |    1.7       |   |                                                                  |   | - |   |   |   | 1.7 |   |   |   | - |   |
|  Cash and cash equivalents                                                   |   |   |     1.0 |   |                                                                  |   | 1.0 |   |   |   |  - |   |   |   | - |   |
|   Total                                                                 |   |   | $10.5                  |   |                                                                  |   | $7.4 |   |   |   | $3.1 |   |   |   | $- |   |

----

|                                                                                                                                   |   |   | Investment  Income   |   |   |   | Realized Gain  |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------|--------|--------|--------|---------------------|--------|
|                                                                                                                                   |   |   |                                     |   |   |   |                |   |   |   |   |   |   |   | (Loss) on  |   |
| Years Ended                                                                                                                  |   |   |                                     |   |   |   |                |   |   |   |   |   |   |   | Investments  |   |
| March 31                                                                                                                          |   |   |                                     |   |   |   |                |   |   |   | Other  |   |   |   | Before Income  |   |
| 2010                                                                                                                    |   |   |  Interest                           |   |   |   | Dividends           |   |   |   |   Income |   |   |   | Taxes |   |
| Companies more than                                                                                                                    |   |   |                                     |   |   |   |                |   |   |   |   |   |   |   |   |   |
| 25% owned                                                                                                                              |   |   | $     14,473         |   |   |   | $3,359,942          |   |   |   | $1,055,900 |   |   |   | $1,433,472 |   |
| Companies 5% to 25%                                                                                                                    |   |   |                                     |   |   |   |                |   |   |   |   |   |   |   |   |   |
| owned                                                                                                                                  |   |   | 1,500                                    |   |   |   | 326,940             |   |   |   | 13,000 |   |   |   | – |   |
| Companies less than                                                                                                                    |   |   |                                     |   |   |   |                |   |   |   |   |   |   |   |   |   |
| 5% owned                      |   |   | 1,009,276                                |   |   |   | 101,798             |   |   |   | 206,522 |   |   |   | 206,522 |   |
| Other sources, including                                                                                                               |   |   |                                     |   |   |   |                |   |   |   |   |   |   |   |   |   |
|  temporary investments                                                                                                            |   |   | 19,618                                   |   |   |   | –             |   |   |   | 337 |   |   |   | - |   |
|                                                                                                                                   |   |   | $1,044,867                               |   |   |   | $3,788,680          |   |   |   | $1,275,759 |   |   |   | $1,639,994 |   |

|                                                                                                                                   |   |   | Investment  Income                                                 |   |   |   | Realized Gain  |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------|--------|--------|--------|---------------------|--------|
|                                                                                                                                   |   |   |                                                                              |   |   |   |                |   |   |   |   |   |   |   | (Loss) on  |   |
| Years Ended                                                                                                                  |   |   |                                                                              |   |   |   |                |   |   |   |   |   |   |   | Investments  |   |
| March 31                                                                                                                          |   |   |                                                                              |   |   |   |                |   |   |   | Other  |   |   |   | Before Income  |   |
| 2009                                                                                                                         |   |   |  Interest                                                                    |   |   |   | Dividends           |   |   |   |   Income |   |   |   | Taxes |   |
| Companies more than                                                                                                                    |   |   |                                                                              |   |   |   |                |   |   |   |   |   |   |   |   |   |
| 25% owned                                                                                                                              |   |   | $             – |   |   |   | $10,946,581         |   |   |   | $1,055,000 |   |   |   | $                – |   |
| Companies 5% to 25%                                                                                                                    |   |   |                                                                              |   |   |   |                |   |   |   |   |   |   |   |   |   |
| owned                                                                                                                                  |   |   | 249,417                                                                           |   |   |   | 326,940             |   |   |   |  20,750 |   |   |   | – |   |
| Companies less than                                                                                                                    |   |   |                                                                              |   |   |   |                |   |   |   |   |   |   |   |   |   |
| 5% owned                      |   |   | 743,937                                                                           |   |   |   | 260,357             |   |   |   | 9 |   |   |   | 15,979,266 |   |
| Other sources, including                                                                                                               |   |   |                                                                              |   |   |   |                |   |   |   |   |   |   |   |   |   |
|  temporary investments                                                                                                            |   |   | 381,861                                                                           |   |   |   | –             |   |   |   | 337 |   |   |   | - |   |
|                                                                                                                                   |   |   | $1,375,215                                                                        |   |   |   | $11,533,878         |   |   |   | $1,076,039 |   |   |   | $15,979,266 |   |

|                                                                                                                                   |   |   | Investment  Income                                                  |   |   |   | Realized Gain  |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------|--------|--------|--------|---------------------|--------|
|                                                                                                                                   |   |   |                                                                                    |   |   |   |                |   |   |   |   |   |   |   | (Loss) on  |   |
| Years Ended                                                                                                                  |   |   |                                                                                    |   |   |   |                |   |   |   |   |   |   |   | Investments  |   |
| March 31                                                                                                                          |   |   |                                                                                    |   |   |   |                |   |   |   | Other  |   |   |   | Before Income  |   |
| 2008                                                                                                                         |   |   |  Interest                                                                          |   |   |   | Dividends           |   |   |   |   Income |   |   |   | Taxes |   |
| Companies more than                                                                                                                    |   |   |                                                                                    |   |   |   |                |   |   |   |   |   |   |   |   |   |
| 25% owned                                                                                                                              |   |   | $              – |   |   |   | $2,979,631          |   |   |   | $839,800 |   |   |   | $           – |   |
| Companies 5% to 25%                                                                                                                    |   |   |                                                                                    |   |   |   |                |   |   |   |   |   |   |   |   |   |
| owned                                                                                                                                  |   |   | 364 ,762                                                                           |   |   |   | 326,940             |   |   |   | 42,500 |   |   |   | – |   |
| Companies less than                                                                                                                    |   |   |                                                                                    |   |   |   |                |   |   |   |   |   |   |   |   |   |
| 5% owned                      |   |   | 469,066                                                                                 |   |   |   | 350,262             |   |   |   | – |   |   |   |  240,024 |   |
| Other sources, including                                                                                                               |   |   |                                                                                    |   |   |   |                |   |   |   |   |   |   |   |   |   |
|  temporary investments                                                                                                            |   |   | 1,421,722                                                                               |   |   |   | –             |   |   |   | – |   |   |   | – |   |
|                                                                                                                                   |   |   | $2,255,550                                                                              |   |   |   | $3,656,833          |   |   |   | $882,300 |   |   |   | $240,024 |   |

----

| Portfolio Company/Type of Investment (1)                                                                                                                                                                                                                                                                                                                                                                                      | Amount of Interest, Fees or Dividends Credited in Income (2)      |   | Fair Value atMarch 31,2009                                          |   | GrossAdditions (3)                                                 |   | GrossReductions (4)                                                                                                       |   | Fair Value at March 31,2010                                    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|
| Control Investments                                                                                                                                                                                                                                                                                                                                                                                                           |                                                              |   |                                                                |   |                                                               |   |                                                                                                                      |   |                                                                |
| THE RECTORSEAL CORPORATION27,907 shares of common stock                                                                                                                                                                                                                                                                                                                                                                       | $ 2,477,870                                                       |   | $ 107,200,000                                                       |   | $ 13,000,000                                                       |   | $               -                              |   | $ 120,200,000                                                       |
| LIFEMARK GROUP1,449,026 shares of common stock                                                                                                                                                                                                                                                                                                                                                                                | 500,000                                                           |   | 71,000,000                                                          |   | -                                                                  |   | -                                                                                                                         |   | 71,000,000                                                          |
| THE WHITMORE MANUFACTURING COMPANY80 shares of common stock                                                            | 649,467                                                           |   | 36,000,000                                                          |   | 11,500,000                                                         |   | -                                                                                                                         |   | 47,500,000                                                          |
| ALAMO GROUP INC.2,830,300 shares of common stock                                                                                                                                                                                                                                                                                                                                                                              | 717,872                                                           |   | 22,642,400                                                          |   | 19,812,100                                                         |   |                -                               |   | 42,454,500                                                          |
| HEELYS, INC.9,317,310 shares of common stock                                                                                                                                                                                                                                                                                                                                                                                  | -                                                                 |   | 13,975,965                                                          |   | 5,869,905                                                          |   | -                                                                                                                         |   | 19,845,870                                                          |
| MEDIA RECOVERY, INC800,000 shares Series A Convertible Preferred Stock, convertible into 800,000 shares of common stock at $1.00                                                                                                                                                                                                                                                                                              | -                                                                 |   | 2,500,000                                                           |   | -                                                                  |   | (300,000)                                                                                                                 |   | 2,200,000                                                           |
| 4,000,002 shares common stock                                                                                                                                                                                                                                                                                                                                                                                                 | -                                                                 |   | 12,300,000                                                          |   | -                                                                  |   | (1,100,000)                                                                                                               |   | 11,200,000                                                          |
| PALM HARBOR HOMES, INC.7,855,121 shares common stock                                                                                                                                                                                                                                                                                                                                                                          | 46,972                                                            |   | 9,818,902                                                           |   | 3,000,000                                                          |   | (5,984,947)                                                                                                               |   | 6,833,955                                                           |
| BALCO, INC.445,000 shares common stock and 60,920 shares Class B non-voting common stock                                                                                                                                                                                                                                                                                                                                      | -                                                                 |   | 6,600,000                                                           |   | 1,400,000                                                          |   | -                                                                                                                         |   | 8,000,000                                                           |
| DENNIS TOOL COMPANY20,725 shares 5% Convertible Preferred Stock, convertible into 20,725 shares of common stock at $48.25 per share                                                                                                                                                                                                                                                                                           | -                                                                 |   | 999,981                                                             |   | -                                                                  |   | (999,981)                                                                                                                 |   | -                                                                   |
| 140,137 shares common stock                                                                                                                                                                                                                                                                                                                                                                                                   | 33,333                                                            |   | 2,868,000                                                           |   | -                                                                  |   | (2,868,000)                                                                                                               |   | -                                                                   |
| DISCOVERY ALLIANCE, LLC90.0% limited liability company                                                                                                                                                                                                                                                                                                                                                                        | -                                                                 |   | 450,000                                                             |   | 300,000                                                            |   | -                                                                                                                         |   | 750,000                                                             |
| HUMAC COMPANY1,041,000 shares of common stock                                                                                                                                                                                                                                                                                                                                                                                 |           4,800 |   |           133,000 |   |           30,000 |   |                     - |   |           163,000 |
| Total Control Investments                                                                                                                                                                                                                                                                                                                                                                                                     |  $ 4,430,314                                                 |   | $ 286,488,248                                                       |   | $ 54,912,005                                                       |   | $ (11,252,928)                                                                                                            |   | $ 330,147,325                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                              |   |                                                                |   |                                                               |   |                                                                                                                      |   |                                                                |
| Affiliated Investments                                                                                                                                                                                                                                                                                                                                                                                                        |                                                              |   |                                                                |   |                                                               |   |                                                                                                                      |   |                                                                |
| ENCORE WIRE CORPORATION4,086,750 shares of common stock                                                                                                                                                                                                                                                                                                                                                                       | $    339,940                                       |   | $   65,388,000                                            |   | $   2,043,375                                            |   | $                    -     |   | $   67,431,375                                            |

----

| Portfolio Company/Type of Investment (1)                                                                                                           | Amount of Interest, Fees or Dividends Credited in Income (2)                                       |   | Fair Value atMarch 31,2009                                                                                                |   | GrossAdditions (3)                                                                                                  |   | GrossReductions (4)                                                                                                             |   | Fair Value atMarch 31,2010                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|
| Affiliated Investments (continued)                                                                                                                 |                                                                                                    |   |                                                                                                                      |   |                                                                                                                |   |                                                                                                                            |   |                                                                                                                            |
| CMI HOLDING COMPANY, INC.10% Convertible Promissory Note, due 2009                                                                                 | $1,500                                                                                                  |   | $1,000,000                                                                                                                |   | $               -                        |   | $(1,000,000)                                                                                                                    |   | $               -                                    |
| 10% Convertible Promissory Note, due 2013                                                                                                          | -                                                                                                       |   | -                                                                                                                         |   | 1,300,000                                                                                                           |   |                                                                                                                            |   | 1,300,000                                                                                                                       |
| 1,631,516 shares Series C-1 Convertible Preferred Stock, convertible into 1,631,516 shares of common stock at $2.15 per share                      | -                                                                                                       |   | 2                                                                                                                         |   | 2,857,759                                                                                                           |   | -                                                                                                                               |   | 2,857,761                                                                                                                       |
| 2,327,658 shares Series C-1 Convertible Preferred Stock, convertible into 2,327,658 shares of common stock at $1.72 per share                      | -                                                                                                       |   | -                                                                                                                         |   | -                                                                                                                   |   | -                                                                                                                               |   | -                                                                                                                               |
| Warrants to purchase 109,012 shares of common stock at $1.72 per share, expiring 2012                                                              | -                                                                                                       |   | -                                                                                                                         |   | -                                                                                                                   |   | -                                                                                                                               |   | -                                                                                                                               |
| Warrants to purchase 636,151 shares of Series A-1 Convertible Preferred Stock at $1.72 per share expiring 2017 and 2019                            | -                                                                                                       |   | -                                                                                                                         |   |                                                                                                                |   | -                                                                                                                               |   | -                                                                                                                               |
| Warrants to purchase 90,698 shares of Series D or D-1 Convertible Preferred Stock at $1.72 per share expiring 2017                                 | -                                                                                                       |   | -                                                                                                                         |   | -                                                                                                                   |   | -                                                                                                                               |   | -                                                                                                                               |
| PALLETONE, INC.12.3% Senior Subordinated Notes, $2,000,000 due 2012                                                                                | -                                                                                                       |   | 2                                                                                                                         |   | 1,999,998                                                                                                           |   | -                                                                                                                               |   | 2,000,000                                                                                                                       |
| 150,000 shares of common stock                                                                                                                     | -                                                                                                       |   | 2                                                                                                                         |   | -                                                                                                                   |   | -                                                                                                                               |   | 2                                                                                                                               |
| Warrant to purchase 15,294 shares of common stock at $1.00 per share, expiring 2011                                                                | -                                                                                                       |   | -                                                                                                                         |   | -                                                                                                                   |   | -                                                                                                                               |   | -                                                                                                                               |
| BOXX TECHNOLOGIES, INC.3,125,354 shares Series B Convertible Preferred Stock, convertible into 3,125,354 shares of common stock at $0.50 per share | -                                                                                                       |   | 2                                                                                                                         |   | -                                                                                                                   |   | -                                                                                                                               |   | 2                                                                                                                               |
| WELLOGIX, INC.4,788,371 shares Series A-1 Convertible Preferred Stock, convertible into 4,788,371 shares of common stock at $1.0441 per share      |                  - |   |                     2 |   |                    - |   |                      - |   |                      2 |
| Total Affiliated Investments                                                                                                                       | $   341,440                                                                              |   | $  66,388,010                                                                                                        |   | $  8,201,132                                                                                              |   | $  (1,000,000)                                                                                                             |   | $  73,589,142                                                                                                         |
| Total Control & Affiliated Investments                                                                                                         | $4,771,754                                                                                              |   | $352,876,258                                                                                                              |   | $63,113,137                                                                                                         |   | $(12,252,928)                                                                                                                   |   | $403,736,467                                                                                                                    |

----

----

|                                                              |   |   | Years Ended March    |   |
|-------------------------------------------------------------------|--------|--------|--------------------------------|--------|
|                                                              |   |   | 2010                           |   |   |   |  2009 |   |   |   | 2008 |   |   |   | 2007 |   |   |   | 2006 |   |
| Per Share Data                                                    |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment income                                                 |   |   |  $    1.63 |   |   |   | $    3.74 |   |   |   | $    1.75 |   |   |   | $    1.79 |   |   |   | $    1.25 |   |
| Operating expenses                                                |   |   | (1.04                          | )      |   |   | (.98 | ) |   |   | (.76 | ) |   |   | (.57 | ) |   |   | (.51 | ) |
| Interest expense                                                  |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | (.12 | ) |   |   | (.11 | ) |
| Income taxes                                                      |   |   | (.03                           | )      |   |   | (.04 | ) |   |   | (.03 | ) |   |   | (.01 | ) |   |   | (.01 | ) |
| Net investment income                                             |   |   | .56                            |   |   |   | 2.72 |   |   |   | .96 |   |   |   | 1.09 |   |   |   | .62 |   |
| Distributions from undistributed net investment income            |   |   | (.80                           | )      |   |   | (3.28 | ) |   |   | (.60 | ) |   |   | (.60 | ) |   |   | (.60 | ) |
| Net realized gain (loss) net of tax                               |   |   | .22                            |   |   |   | 2.87 |   |   |   | .06 |   |   |   | 3.85 |   |   |   | 4.00 |   |
| Net increase (decrease) in unrealized appreciation of investments |   |   | 18.88                          |   |   |   | (42.56 | ) |   |   | (36.76 | ) |   |   | 38.00 |   |   |   | 32.22 |   |
| Treasury stock repurchase *                                       |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise of employee stock options **                             |   |   | -                              |   |   |   | - |   |   |   | (.09 | ) |   |   | (.49 | ) |   |   | (.04 | ) |
| Stock option expense                                              |   |   | .18                            |   |   |   | .13 |   |   |   | .07 |   |   |   | .04 |   |   |   | - |   |
| Net change in pension plan funded status                          |   |   | .12                            |   |   |   | (.39 | ) |   |   | (.30 | ) |   |   | - |   |   |   | - |   |
| Treasury Stock                                                    |   |   | -                              |   |   |   | 1.40 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Adjustment to initially apply FASB No                             |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | .30 |   |   |   | - |   |
|                                                              |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase (decrease) in net asset value                            |   |   | 19.16                          |   |   |   | (39.11 | ) |   |   | (36.66 | ) |   |   | 42.19 |   |   |   | 36.20 |   |
| Net asset value                                                   |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning of year                                                 |   |   | 110.98                         |   |   |   | 150.09 |   |   |   | 186.75 |   |   |   | 144.56 |   |   |   | 108.36 |   |
| End of year                                                       |   |   | $130.14                        |   |   |   | $110.98 |   |   |   | $150.09 |   |   |   | $186.75 |   |   |   | $144.56 |   |
|                                                              |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios and Supplemental Data                                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of operating expenses to average net assets                 |   |   | .87                            | %      |   |   | .71 | % |   |   | .46 | % |   |   | .36 | % |   |   | .42 | % |
| Ratio of net investment income to average net assets              |   |   | .47                            | %      |   |   | 1.96 | % |   |   | .58 | % |   |   | .68 | % |   |   | .51 | % |
| Portfolio turnover rate                                           |   |   | 1.16                           | %      |   |   | 2.51 | % |   |   | .22 | % |   |   | .13 | % |   |   | 2.36 | % |
|                                                              |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net asset value total return                                      |   |   | 18.5                           | %      |   |   | (22.56 | )% |   |   | (19.27 | )% |   |   | 29.85 | % |   |   | 34.31 | % |
| Shares outstanding at end of period (000s omitted)                |   |   | 3,741                          |   |   |   | 3,741 |   |   |   | 3,889 |   |   |   | 3,886 |   |   |   | 3,860 |   |

----

----

| ● | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                        |
| ● | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and |
|    |                                                                                                                                                                                                                                                                                                                                        |
| ● | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.                                                                                                                          |

----

----

----

|   | Results of Operations |
|--------|-----------------------|

|                               |   |   | Years Ended March 31  |   |
|------------------------------------|--------|--------|-----------------------|--------|
|                               |   |   |  2010            |   |   |   | 2009 |   |   |   | 2008  |   |
| Alamo Group Inc.                   |   |   | $   679,272 |   |   |   | $     679,272 |   |   |   | $   678,732 |   |
| Balco, Inc.                        |   |   | -                     |   |   |   | - |   |   |   | 224,400 |   |
| Dennis Tool Company                |   |   | 33,333                |   |   |   | 49,499 |   |   |   | 62,499 |   |
| Encore Wire Corporation            |   |   | 326,940               |   |   |   | 326,940 |   |   |   | 326,940 |   |
| Heelys, Inc.                       |   |   | -                     |   |   |   | 9,317,310 |   |   |   | - |   |
| Kimberly–Clark Corporation   |   |   | -                     |   |   |   | 89,529 |   |   |   | 167,481 |   |
| Lifemark Group                     |   |   | -                     |   |   |   | - |   |   |   | 571,333 |   |
| PalletOne, Inc.                    |   |   | -                     |   |   |   | - |   |   |   | - |   |
| The RectorSeal Corporation         |   |   | 2,117,870             |   |   |   | 720,000 |   |   |   | 1,154,133 |   |
| Sprint Nextel Corporation          |   |   | -                     |   |   |   | - |   |   |   | 6,750 |   |
| TCI Holdings, Inc.                 |   |   | 81,270                |   |   |   | 81,270 |   |   |   | 81,270 |   |
| The Whitmore Manufacturing Company |   |   | 529,467               |   |   |   | 180,000 |   |   |   | 288,533 |   |
| Other                              |   |   | 20,528                |   |   |   | 89,558 |   |   |   | 94,762 |   |
|                               |   |   | $3,788,680            |   |   |   | $11,533,878 |   |   |   | $3,656,833 |   |

----

|                       |   |   |  Years Ended March 31  |   |
|----------------------------|--------|--------|----------------------------------|--------|
|                       |   |   |  2010                       |   |   |   | 2009 |   |   |   | 2008 |   |
| Alamo Group Inc.           |   |   | $19,812,100                      |   |   |   | $(22,642,400 | ) |   |   | $    (2,803,090 | ) |
| All Components, Inc.       |   |   | 9,276,649                        |   |   |   | (9,600,000 | ) |   |   | 5,600,000 |   |
| Encore Wire Corporation    |   |   | 2,043,375                        |   |   |   | 14,303,625 |   |   |   | (18,390,625 | ) |
| Heelys, Inc.               |   |   | 5,869,905                        |   |   |   | (20,963,948 | ) |   |   | (160,724,088 | ) |
| The Whitmore Manufacturing |   |   |                             |   |   |   |   |   |   |   |   |   |
|   Company        |   |   | 11,500,000                       |   |   |   | (2,000,000 | ) |   |   | 12,000,000 |   |
| Lifemark Group             |   |   | -                                |   |   |   | - |   |   |   | 31,000,000 |   |
| Media Recovery, Inc.       |   |   | (1,400,000                       | )      |   |   | (22,700,000 | ) |   |   | (7,500,000 | ) |
| Palm Harbor Homes, Inc.    |   |   | (2,984,947                       | )      |   |   | (21,601,583 | ) |   |   | (39,275,516 | ) |
| The RectorSeal Corporation |   |   | 13,000,000                       |   |   |   | (37,000,000 | ) |   |   | 46,200,000 |   |

----

|                        |   | Payments Due By Period ($ in Thousands) |   |
|-----------------------------|--------|-----------------------------------------|--------|
|                        |   |                                    |   |   |   |   |   |    2-3  |   |   |    More Than  |   |
| Contractual Obligations     |   |    Total                      |   |   |    1 Year |   |   |    Years |   |   |    3 Years |   |
| Operating lease obligations |   |                                    | $312   |   |   |   | $101 |   |   |   | $202 |   |   |   | $9 |   |
| Total                       |   |                                    | $312   |   |   |   | $101 |   |   |   | $202 |   |   |   | $9 |   |

----

----

|                                         |   |   | 2001          |   |   |   | 2002          |   |   |   | 2003          |   |   |   | 2004                |   |   |   | 2005               |   |   |   | 2006          |   |   |   | 2007          |   |   |   | 2008          |   |   |   | 2009          |   |   |   | 2010                            |   |
|----------------------------------------------|--------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------|---------------------|--------|--------|--------|--------------------|--------|--------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------|---------------------------------|--------|
| Financial Position (as of March 31)     |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                |   |   |   |               |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |          |   |   |
| Investments at cost                          |   |   | $87,602       |   |   |   | $82,194       |   |   |   | $91,462       |   |   |   | $97,283             |   |   |   | $84,546            |   |   |   | $88,597       |   |   |   | $71,642       |   |   |   | $81,027       |   |   |   | $89,339       |   |   |   | $100,023                        |   |
| Unrealized appreciation                      |   |   | 228,316       |   |   |   |  265,287 |   |   |   | 195,598       |   |   |   | 309,666             |   |   |   | 337,476            |   |   |   | 461,831       |   |   |   | 609,513       |   |   |   | 466,544       |   |   |   |  307,296 |   |   |   | 377,920                         |   |
| Investments at market or                     |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                |   |   |   |               |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                            |   |
| fair value                                   |   |   | 315,918       |   |   |   | 347,481       |   |   |   | 287,060       |   |   |   | 406,949             |   |   |   | 422,022            |   |   |   | 550,428       |   |   |   | 681,155       |   |   |   | 547,571       |   |   |   | 396,635       |   |   |   | 477,943                         |   |
| Total assets                                 |   |   | 322,668       |   |   |   | 357,183       |   |   |   | 298,490       |   |   |   | 423,979             |   |   |   | 434,384            |   |   |   | 569,368       |   |   |   | 729,507       |   |   |   | 586,685       |   |   |   | 417,543       |   |   |   | 491,175                         |   |
| Notes payable *                              |   |   | 16,000        |   |   |   | 14,000        |   |   |   | 23,000        |   |   |   | 20,500              |   |   |   | 13,000             |   |   |   | 8,000         |   |   |   | -             |   |   |   | -             |   |   |   | -             |   |   |   | -                               |   |
| Net assets                                   |   |   | 303,436       |   |   |   | 339,891       |   |   |   | 272,211       |   |   |   | 400,157             |   |   |   | 417,947            |   |   |   | 558,036       |   |   |   | 725,732       |   |   |   | 583,700       |   |   |   | 415,263       |   |   |   | 486,926                         |   |
| Shares outstanding                           |   |   | 3,815         |   |   |   | 3,829         |   |   |   | 3,829         |   |   |   | 3,857               |   |   |   | 3,857              |   |   |   | 3,860         |   |   |   | 3,886         |   |   |   | 3,889         |   |   |   | 3,741         |   |   |   | 3,741                           |   |
| Changes in Net Assets (years ended March 31) |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                |   |   |   |               |   |   |   |          |   |   |   |          |   |   |   |          |   |   |
| Net investment income                        |   |   | $  1,723 |   |   |   | $  2,042 |   |   |   | $  2,299 |   |   |   |  $  2,587 |   |   |   | $  2,406 |   |   |   | $  2,389 |   |   |   | $  4,233 |   |   |   | $  3,715 |   |   |   | $10,183       |   |   |   | $     2,091 |   |
| Net realized gain (loss)                     |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                |   |   |   |               |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                            |   |
| on investments                               |   |   | (5,126        | )      |   |   | (762          | )      |   |   | 2,007         |   |   |   | 12,603              |   |   |   | (10,112            | )      |   |   | 15,451        |   |   |   | 14,966        |   |   |   | 240           |   |   |   | 10,756        |   |   |   | 826                             |   |
| Net increase (decrease) in                   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                |   |   |   |               |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                            |   |
| unrealized appreciation                      |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                |   |   |   |               |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                            |   |
| before distributions                         |   |   | (10,311       | )      |   |   | 36,971        |   |   |   | (69,689       | )      |   |   | 114,068             |   |   |   | 27,810             |   |   |   | 124,355       |   |   |   | 147,682       |   |   |   | (142,969      | )      |   |   | (159,246      | )      |   |   | 70,624                          |   |
| Increase (decrease) in net                   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                |   |   |   |               |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                            |   |
| assets from operations                       |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                |   |   |   |               |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                            |   |
| before distributions                         |   |   | (13,714       | )      |   |   | 38,251        |   |   |   | (65,383       | )      |   |   | 129,258             |   |   |   | 20,104             |   |   |   | 142,195       |   |   |   | 166,881       |   |   |   | (139,014      | )      |   |   | (138,307      | )      |   |   | 73,541                          |   |
| Cash dividends paid                          |   |   | (2,289        | )      |   |   | (2,295        | )      |   |   | (2,297        | )      |   |   | (2,309              | )      |   |   | (2,314             | )      |   |   | (2,314        | )      |   |   | (2,323        | )      |   |   | (2,333        | )      |   |   | (12,257       | )      |   |   | (2,993                          | )      |
| Employee stock options                       |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                |   |   |   |               |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                            |   |
| exercised                                    |   |   |          |   |   |   | -             |   |   |   | 499           |   |   |   | -                   |   |   |   | 997                |   |   |   | -             |   |   |   | 208           |   |   |   | 1,795         |   |   |   | 231           |   |   |   | -                               |   |
| Stock option expense                         |   |   | -             |   |   |   | -             |   |   |   | -             |   |   |   | -                   |   |   |   | -                  |   |   |   | -             |   |   |   | 169           |   |   |   | 263           |   |   |   | 503           |   |   |   | 675                             |   |
| Change in pension plan                       |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                |   |   |   |               |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                            |   |
| funded status                                |   |   | -             |   |   |   | -             |   |   |   | -             |   |   |   | -                   |   |   |   | -                  |   |   |   | -             |   |   |   | -             |   |   |   | (1,178        | )      |   |   | (1,473        | )      |   |   | 440                             |   |
| Treasury stock                               |   |   | -             |   |   |   | -             |   |   |   | -             |   |   |   | -                   |   |   |   | -                  |   |   |   | -             |   |   |   | -             |   |   |   | -             |   |   |   | (16,903       | )      |   |   | -                               |   |
| Adjustment to initially apply FASB           |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                |   |   |   |               |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |
| Statement No. 158 net of tax                 |   |   | -             |   |   |   | -             |   |   |   | -             |   |   |   | -                   |   |   |   | -                  |   |   |   | -             |   |   |   | 1,173         |   |   |   | -             |   |   |   | -             |   |   |   |  -                         |   |
| Increase (decrease) in net assets            |   |   | (16,003       | )      |   |   | 36,455        |   |   |   | (67,680       | )      |   |   | 127,946             |   |   |   | 17,790             |   |   |   | 140,089       |   |   |   | 167,695       |   |   |   | (142,031      | )      |   |   | (168,437      | )      |   |   | 71,663                          |   |
| Per Share Data (as of March 31)              |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                |   |   |   |               |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |
| Net assets                                   |   |   | $  79.54 |   |   |   | $  88.77 |   |   |   | $  71.09 |   |   |   | $103.75             |   |   |   | $ 108.36           |   |   |   | $144.56       |   |   |   | $186.75       |   |   |   | $150.09       |   |   |   | $110.98       |   |   |   | $  130.14                  |   |
| Closing market price                         |   |   | 65.00         |   |   |   | 68.75         |   |   |   | 48.15         |   |   |   | 75.47               |   |   |   | 79.10              |   |   |   | 95.50         |   |   |   | 153.67        |   |   |   | 123.72        |   |   |   | 76.39         |   |   |   | 90.88                           |   |
|                                         |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                |   |   |   |               |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |          |   |   |   |                            |   |
| Cash dividends paid                          |   |   | .60           |   |   |   | .60           |   |   |   | .60           |   |   |   | .60                 |   |   |   | .60                |   |   |   | .60           |   |   |   | .60           |   |   |   | .60           |   |   |   | 3.26          |   |   |   | .80                             |   |

| ·   | Excludes quarter-end borrowing which is repaid on the first business day after year end. |
|--------------------|------------------------------------------------------------------------------------------|

----

| Quarter Ended      |   | High   |    |   | Low    |   |
|--------------------|--------|--------|---------|--------|--------|--------|
| March 31, 2010     |   |   | $96.04  |   |   |   | $78.51 |   |
| December 31, 2009  |   |   | 79.95   |   |   |   | 71.72 |   |
| September 30, 2009 |   |   | 82.90   |   |   |   | 69.60 |   |
| June 30, 2009      |   |   | 84.21   |   |   |   | 67.60 |   |
|               |   |   |    |   |   |   |   |   |
| Quarter Ended      |   | High   |    |   | Low    |   |
| March 31, 2009     |   |   | $109.66 |   |   |   | $53.57 |   |
| December 31, 2008  |   |   | 141.50  |   |   |   | 60.52 |   |
| September 30, 2008 |   |   | 146.81  |   |   |   | 102.02 |   |
| June 30, 2008      |   |   | 128.99  |   |   |   | 103.67 |   |

| Payment Date      |   | Cash Dividend |   |
|-------------------|--------|---------------|--------|
| May 30, 2008      |   |          | $0.40  |   |
| October 31, 2008  |   |          | 0.30   |   |
| November 28, 2008 |   |          | 0.40   |   |
| December 26, 2008 |   |          | 2.16   |   |
| May 29, 2009      |   |          | 0.40   |   |
| November 30, 2009 |   |          | 0.40   |   |

----