Legal Proceedings

   On January 8, 2016, Stanley H. Epstein, Harriet P. Epstein,
and SEP IRA A/C Peter Christopher Gardener, derivatively and on
behalf of the Corporation, filed a suit against Ruane, Cunniff &
Goldfarb Inc., Robert D. Goldfarb, David Poppe, Robert L.
Swiggett and Roger Lowenstein (collectively, the "Defendants")
in the Supreme Court of the State of New York, County of New
York. The Corporation is also named in the suit as a Nominal
Defendant. On May 9, 2016, the plaintiffs filed an amended
complaint, adding Edward Lazarus as an additional Defendant. The
amended complaint asserts derivative claims in connection with
certain of the Corporation's investments against the Defendants
for breach of fiduciary duty, aiding and abetting breach of
fiduciary duty, breach of contract and gross negligence. The
case is Epstein v. Ruane, Cunniff & Goldfarb Inc. et al.,
650100/2016, Supreme Court of the State of New York, County of
New York (Manhattan).

   On March 14, 2016, Clive Cooper, individually and as a
representative of a class, on behalf of DST Systems, Inc. 401(k)
Profit Sharing Plan, filed a suit in the Southern District of
New York against Ruane, Cunniff & Goldfarb, Inc., DST Systems,
Inc., The Advisory Committee of the DST Systems, Inc. 401(K)
Profit Sharing Plan, the Compensation Committee of the Board of
Directors of DST Systems, Inc., Jerome H. Bailey, Lynn Dorsey
Bleil, Lowell L. Bryan, Gary D. Forsee, Gregg Wm. Givens,
Charles Haldeman, Jr., Samuel G. Liss and John Does 1-20. The
complaint asserts claims for breach of fiduciary duty and
violation of ERISA's prohibited transaction rules, co-fiduciary
breach, and breach of trust in connection with certain
investments made on behalf of the Plan. The case is Cooper v.
DST Systems, Inc. et al., 1:16cv1900, U.S. District Court for
the Southern District of New York. The plaintiffs in the action
have dismissed without prejudice all claims against all of the
defendants other than Ruane, Cunniff & Goldfarb Inc., which is
now the only defendant in the case.

   Ruane, Cunniff & Goldfarb Inc. believes that the foregoing
lawsuits are without merit and intends to defend itself
vigorously against the allegations in them.