Harbor Advisors LLC

Item 5 Fees and Compensation
Portfolio Management Services
We charge either a fixed fee or an asset based fee for our portfolio management services; both of
which are negotiable depending on the market value of your assets under our management, the type
and complexity of the asset management services provided, as well as the level of administration
requested either directly or assumed by the client. Assets in each of your account(s) are included in
the fee assessment unless specifically identified in writing for exclusion.

Our annual fixed fee varies up to $1,000,000 and is billed and payable quarterly in advance. Our
annual asset based fee varies between 0.50% and 2.00% of the market value of your assets under our
management. The asset based fee is billed and payable, quarterly in advance, based on the balance
at end of billing period of the previous quarter. The agreed upon fee will be included in the advisory
agreement you enter into with our advisory firm.

If the portfolio management agreement is executed at any time other than the first day of a calendar
quarter, our fees will apply on a pro rata basis, which means that the advisory fee is payable in
proportion to the number of days in the quarter for which you are a client. Our advisory fee is
negotiable, depending on individual client circumstances.

We encourage you to reconcile our invoices with the statement(s) you receive from the qualified
custodian. If you find any inconsistent information between our invoice and the statement(s) you
receive from the qualified custodian call our main office number located on the cover page of this
brochure.

You may terminate the portfolio management agreement upon 30 days written notice. You will incur a
pro rata charge for services rendered prior to the termination of the portfolio management agreement,
which means you will incur advisory fees only in proportion to the number of days in the quarter for
which you are a client. If you have pre-paid advisory fees that we have not yet earned, you will receive
a prorated refund of those fees.

Investment Consulting Services
We charge either a fixed fee or an asset based fee for our investment consulting services; both of
which are negotiable depending on the market value of your assets under our advisement, the type
and complexity of the advisory services provided, as well as the level of administration requested
either directly or assumed by the client.

Our annual fixed fee is varies up to $500,000 and is billed and payable quarterly in advance. Our
annual asset based fee varies between 0.50% and 2.00% of the market value of your assets under our
advisement. The asset based fee is billed and payable, quarterly in advance, based on the balance at
end of billing period of the previous quarter.

If our services are retained in the middle of a quarter, the fee for such quarter will be calculated on a
pro rata basis, based upon the number of days remaining in the quarter.

You may terminate the investment consulting services agreement upon 30 days written notice to our
firm. You will incur a pro rata charge for services rendered prior to the termination of the agreement,
which means you will incur advisory fees only in proportion to the number of days in the quarter for
which you are a client. If you have pre-paid advisory fees that we have not yet earned, you will receive
a prorated refund of those fees.

Financial Consulting Services
We charge an hourly fee of $350 for financial consulting services. The hourly fee is negotiable
depending on the scope and complexity of the services rendered. Our consulting fee is payable upon
completion of the agreed upon consulting services.

You may terminate the financial consulting agreement upon written notice to our firm. Since the
financial consulting fees are payable in arrears, you will be responsible for a prorated fee based on
services performed prior to termination of the financial consulting agreement.

Family Office and Wealth Planning Services
We charge an annual fixed fee for Family Office and Wealth Planning Services, which is negotiable,
depending on the market value of your assets under our management, the complexity of your holdings,
financial situation, objectives and the nature and extent of planning and analysis required.

Our annual fixed fee varies up to $500,000 and is billed and payable quarterly in advance, as
invoiced. If our services are retained in the middle of a quarter, the fee for such quarter will be
calculated on a pro rata basis, based upon the number of days remaining in the quarter.

You may terminate the family office and wealth planning services agreement upon 30 days written
notice to our firm. You will incur a pro rata charge for services rendered prior to the termination of the
agreement, which means you will incur advisory fees only in proportion to the number of days in the
quarter for which you are a client.

Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds or exchange
traded funds (described in each fund's prospectus) to their shareholders. These fees will generally
include a management fee and other fund expenses. You will also incur transaction charges and/or
brokerage fees when purchasing or selling securities. These charges and fees are typically imposed by
the broker-dealer or custodian through whom your account transactions are executed. We do not
share in any portion of the brokerage fees/transaction charges imposed by the broker-dealer or
custodian. To fully understand the total cost you will incur, you should review all the fees charged by
mutual funds, exchange traded funds, our firm, and others. For information on our brokerage practices,
...

Item 7 Types of Clients
We offer investment advisory services to high net worth individuals.

In general, we do not require a minimum dollar amount to open and maintain an advisory account;
however, we have the right to terminate your Account if it falls below a minimum size which, in our sole
opinion, is too small to manage effectively.