Ruane Cunniff & Goldfarb LP

Item 5.        Fees and Compensation

The Adviser charges each separately managed client account an investment advisory fee based on the
market value of the account’s assets under management. For managed account clients, the Adviser
typically charges an advisory fee at an annual rate of 1.0%. The fee is payable in quarterly installments
in advance on the first day of each calendar quarter and is based on the market value of the assets under
management in the account as of the close of business on the preceding business day. The fee will be
prorated for any partial quarter during which the account is established.

A managed account client may terminate the investment management agreement with the Adviser at any
time. Upon termination of an account during a quarter, advisory fees will be prorated and any prepaid,
unearned advisory fees will be promptly refunded.

The Adviser reserves the right to determine the annual advisory fee rate and/or the manner of payment
with any managed account client or prospective managed account client. As a result, fees may be
negotiable under certain circumstances or for certain managed account clients. The Adviser bills
managed account clients and deducts the fee automatically from their accounts when agreed upon with
the clients.

For Sequoia Fund, Inc. (“Sequoia”), the registered investment company for which the Adviser provides
advisory services, the Adviser receives an advisory fee at an annual rate of 1.0%, which is based on the
average daily net asset values of Sequoia. The fee is accrued daily and paid monthly. For Hyperion
Capital, the Adviser receives a negotiated fee for providing non-discretionary sub-advisory services
calculated based on Hyperion Capital’s assets under management.

In addition to paying advisory fees, clients are subject to other expenses such as brokerage commissions
and costs associated with foreign exchange transactions, among others. Client assets may be invested in
money market mutual funds or other registered or unregistered investment companies, private funds or
other investment entities. In these cases, the client bears its pro rata share of the investment management
fee and other fees of the fund in which the assets are invested. The management and other fees of the
fund in which assets are invested are described in the fund’s legal documentation, and are in addition to
the advisory fee paid to the Adviser. Please refer to Item 12 of this Firm Brochure for a discussion of
the Adviser’s brokerage practices.

Item 7.        Types of Clients

The Adviser’s clients consist of individuals, an investment company, pension and profit-sharing plans,
trusts, estates, and charitable organizations, corporations and other business entities. There are no
minimum investment requirements for opening or maintaining a managed account. With respect to
Sequoia, any initial and additional investment minimums are disclosed in its offering documents.