Gallatin & Company LLC

Fees and Compensation

                                                                                                          Form ADV Part 2A, Item 5

Gallatin & Company, LLC is compensated for its investment advisory services by client fees. Fees are
negotiable and are determined on a case by case basis. Typically, and absent special circumstances, annual
fees are based in a range from 0.0% to 2.0% of assets under management. In some instances, a client may
pay a predetermined fee rather than a fee based on a percentage of assets under management.

Clients are billed on a quarterly basis for fees incurred. The majority of clients have elected to pay their fees by
having their fees deducted from their brokerage account but in some instances remittances are made by the
client to the firm.

Clients may pay commission charges relating to the purchase and sale of securities and may incur fees by
financial institutions relating to other charges such as custodial, remittance, or similar fees. Additional
information concerning brokerage fees can be found on page 11. Mutual funds and some exchange traded
funds often charge a fee for their investment management services and may also have charges relating to
purchase and sales of the fund in addition to possible brokerage charges. Such fees are discussed in the fund’s
prospectus and are in addition to the client fees charged by Gallatin & Company, LLC.

Gallatin & Company, LLC does not require nor does it ask that clients pay fees in advance.

Gallatin & Company, LLC and its related persons do not, and will not, accept compensation for the sale of
securities or other investment products, including asset-based sales charges or service fees from the sale of
mutual funds.

                                                                    ©2010 National Compliance Services 800-800-3204

                   Performance-Based Fees and Side-By-Side Management

                                                                                                        Form ADV Part 2A, Item 6

Gallatin & Company, LLC and those persons employed at the firm are not permitted to accept performance-
based fees which are fees typically based on a share of capital gains or on capital appreciation of the assets of
a client.

                                                                  ©2010 National Compliance Services 800-800-3204

Types of Clients

                                                                                                       Form ADV Part 2A, Item 7

Gallatin & Company, LLC provides investment advice to individuals, charitable organizations, institutions,
trusts, estates, and pension plans. The firm will customarily not accept new clients with assets to be managed
below $100,000 and prefers that new clients have at least $500,000 in assets available for investment
management.

                                                                 ©2010 National Compliance Services 800-800-3204

                 Methods of Analysis, Investment Strategies and Risk of Loss

                                                                                                          Form ADV Part 2A, Item 8

Gallatin & Company, LLC primarily employs fundamental security analysis to formulate investment advice and
manage assets for the firm’s clients. Our investment recommendations are made after research on the
continuing operations and outlook for a company. Our research sources include annual reports, prospectuses,
filings with the Securities and Exchange Commission, financial periodicals, and corporate rating services. We
also use research materials prepared by outside sources. Our primary investment strategy is one of investing in
securities with favorable investment potential for good total return (capital appreciation plus current income)
over the long term. It should be noted that even with extensive research on a particular security there are risk
factors that can affect any investment recommendation. These include, but are not limited to; favorable
expectations for the security might not be realized, unforeseen negative factors might affect a category of
securities, the economy could decline, securities markets could decline, and potential natural disasters could
affect markets. Other risks to be considered are interest rate risk, inflationary risks, currency risks, and
reinvestment risk. Clients should realize there is the risk for possible principal loss in any investment or
investments.

The firm’s primary investment strategy is to invest in securities with the potential for favorable total return based
on fundamental analysis. Among the risks to the client that are involved in this strategy are that favorable
expectations in terms of the security might not be realized and that the security price declines. The client is also
subject to the overall risk of market declines. This strategy focuses on long term investment and does not
involve frequent trading of securities. Investment strategy is formulated for a client after consultation concerning
objectives, income needs, tax considerations, and related matters. Each client’s investment portfolio is created
specifically for the particular client with risk considerations in mind. The firm does not employ model portfolios
and investment portfolios are individualized to the particular client. They are not designed to be speculative in
nature.

Gallatin & Company, LLC often uses investment vehicles such as closed end funds, exchange traded funds,
and mutual funds for clients. Risk in this type of investment vehicle may be reduced in that the client is
investing in a group of securities rather than an individual security. While this type of investing spreads risk
among a number of companies rather than just a single company, market risks are not eliminated.

                                                                    ©2010 National Compliance Services 800-800-3204