Kornitzer Capital Management Inc

Item 5 – Fees and Compensation

Separately Managed Accounts

You compensate us for our services by a fee equal to a percentage of assets under management,
which varies according to the type of investments under management. Following is the percentage
fee calculated against the type of investment (fees may vary depending on the type of investment
approach being directed, the amount of assets, and the level of client service required):

                       Type of Investment                    Annual Fee

                    Equities and Fixed Income                   1.00%

                 Municipal and Investment Grade                 0.25%

                            US Treasury                         0.10%

You pay our fees on a quarterly basis in advance. We deduct our fees directly from your accounts
based on our agreement with you authorizing us to debit fees directly from your accounts held at
the custodian and according to certain defined procedures. Fees are pro-rated for any period less
than a full quarter based on the number of days in the quarter your accounts are under our
management. Upon termination of our agreement during a quarter, we issue a refund of the pro-
rated fee credited back into your accounts. In limited circumstances, our fees may be negotiable
depending on the size of the account and the investment style.

In addition to our fees, you pay fees and charges associated with the maintenance of your accounts,
including without limitation, brokerage commissions, mark-ups and mark-downs on securities
transactions, transaction fees, exchange fees, custodial fees, transfer taxes, wire transfer fees, and
any other account costs or expenses incurred by you in connection with your accounts. Please
refer to Item 12 – Brokerage Practices below for a further discussion of our brokerage transaction
policies.

We apply our fee against all assets in an account, including cash balances invested in money
market funds and short-term investment funds. You pay fees and charges for funds held in money
market funds and short-term investment funds in addition to our advisory fees.

We may invest a portion of your assets in one or more of the Buffalo Funds, for which we act as
the investment adviser, instead of directly in a particular security. For that portion of your funds
placed in a Buffalo Fund, we waive our management fee and exclude the value of the Buffalo Fund
in computing our management fee. The fees, charges, expenses, and other costs of the Buffalo
Fund in which you are invested are deducted at the fund level. Further reference is made to the

Buffalo Funds Prospectus and Statement of Additional Information at www.buffalofunds.com that
sets forth such fees, charges, and expenses.

Strategy Accounts

Fees for our strategy accounts vary based on the particular strategy specified by the client. The
manner of computing and applying the fee remains the same as our separately managed accounts
and according to the agreement entered into with you. Currently, the range of fees for strategy
accounts is 0.60% to 1.10%. Strategy accounts have tiered fee structures with reduced fees for
assets over $100 million. Fees may be negotiable depending on the type of strategy being directed,
the amount of assets, and the level of client service required.

Mutual Funds

Our management fees for investment advisory services to the Buffalo Funds range from 0.75% to
1.30% of the net asset value under management, depending on the investment strategy of the
particular fund. From these fees, we provide or obtain and pay the cost of all management,
supervisory, and administrative services required in the normal operation of the Buffalo Funds.
The Buffalo Funds Prospectus and Statement of Additional Information contain disclosures
relating to the Funds and are available at www.buffalofunds.com.

Great Plains Trust Company

If your funds are held by Great Plains Trust Company (GPTC) in an individual trust or retirement
plan, you pay a fee to GPTC that is a percentage of the assets held, depending on the type of
account and the type of investments under management, of which we receive management fees
ranging between 50% and 90% of the fee received by GPTC.

Item 7 – Types of Clients

Our clients include the following: individuals; pension and profit sharing plans; trusts; foundations
and endowments; corporations and other business entities; state, municipal, and other
governmental entities; various types of financial and other institutions; and investment companies.

For our separately managed accounts, our minimum account size is $500,000. For strategy
accounts, the minimum account size is $25,000,000. The minimum account size may vary from
time to time depending on our level of business activity being experienced and the type of account.
We may also waive the minimum account requirement under certain circumstances.

The Buffalo Funds and GPTC establish their own minimum account sizes. You may obtain
additional information about the Buffalo Funds and GPTC at www.buffalofunds.com and
www.greatplainstrust.com, respectively.