Harbor Asset Planning Inc

Item 5 – Fees and Compensation

Clients receiving Investment Management Services will pay an annual fee equal to one
percent (1%) of the market value of the assets being managed, with a minimum fee of
$6,000 per year. For clients with margin accounts, the fee will be based on the net asset
value of the assets being managed. This fee will be paid quarterly, in arrears, based upon
the market value of the assets on the last business day of the previous quarter. Harbor
Asset may, at its sole discretion, charge a lower or flat investment management fee based
upon such criteria as anticipated future assets to be invested, financial planning or other
related services to be provided or limited financial resources of the client.

Clients receiving Financial Planning Services will be charged either a flat annual fee or an
hourly fee, depending on the scope of the services to be provided. Harbor Asset’s hourly
fee ranges from $300 to $350 per hour. The flat fee ranges from $6,000 to $25,000 per year
and is based on the complexity of the Client’s situation, amount of assets, and the amount of
time necessary to complete the required work. All fees except for the minimum fee are

                                 Harbor Asset Planning, Inc.

                               www.harborassetplanning.com
subject to negotiation. The amount to be charged will be clearly stated in the Financial
Planning Agreement. Clients receiving both Investment Management and Financial
Planning Services will pay only one fee. Harbor Asset will invoice the client at the end of
each calendar quarter. In the event a client's circumstances change, or the scope of the
engagement becomes broader or narrower than anticipated, a revised fee will be
negotiated and the Financial Planning Agreement amended in writing. Either Harbor Asset
or the client may terminate the Financial Planning Agreement by giving thirty days advance
written notice to the other party. Upon termination, any fees paid in advance will be
prorated to the date of termination and any excess fees will be refunded to the client.

Harbor Asset’s fees are exclusive of brokerage transaction fees, and other related costs
and expenses which shall be incurred by the client. Clients may incur certain charges
imposed by custodians, brokers, third party investment and other third parties, such as
fees charged by managers, custodial fees, deferred sales charges, transfer taxes, wire
transfer and electronic fund fees, and other fees and taxes on brokerage accounts and
securities transactions. Harbor Asset’s custodian, Fidelity Institutional, currently charges
an account fee of $15 per account per quarter, and clients who enroll in electronic
delivery of account documents will not pay any transaction fees to buy or sell stocks,
exchange traded funds or bonds. Clients will not pay transaction fees to buy or sell
mutual funds that are included in Fidelity’s network of No Transaction Fee Funds. The
transaction fee to buy or sell mutual funds that are not part of Fidelity’s no Transaction Fee
Funds program is $30. Clients who are not enrolled in electronic delivery will pay $4.95 to
buy or sell stocks or exchange traded funds. These transaction fees are not paid to, or set
by, Harbor Asset, and are subject to change without notice.

Mutual funds and exchange traded funds also charge internal management fees, which are
disclosed in a fund’s prospectus. Such charges, fees and commissions are exclusive of and
in addition to Harbor Asset’s fee, and Harbor Asset shall not receive any portion of these
commissions, fees, and costs.

Clients will execute a separate Custodial Agreement with Harbor Asset’s custodian,
Fidelity Institutional. Both the Investment Management Agreement and the Custodial
Agreement may authorize the custodian to debit the client's account for the amount of
Harbor Asset's Investment Management fee and to directly remit that fee to Harbor Asset
in accordance with applicable regulatory procedures. The custodian charges brokerage
commissions and/or transaction fees for effecting certain securities transactions, and
these transaction fees and commissions will be paid by the client. In addition to the
Investment Management Fee and the commissions and transaction fees described above,
the client will also incur, relative to all mutual fund and exchange traded fund purchases,
charges imposed at the fund level, such as management fees and other fund expenses.

                                 Harbor Asset Planning, Inc.

                               www.harborassetplanning.com

Item 12 further describes the factors that Harbor Asset considers in selecting or
recommending broker-dealers for client transactions and determining the reasonableness
of their compensation.

Item 7 – Types of Clients

Harbor Asset provides portfolio management services to individuals, retirement
plans, trusts and estates.