Harborview Advisors LLC

Item 5: Fees and Compensation
Harborview Advisors provides investment management services for a fee based upon assets under
management. Additionally, certain of Harborview Advisors’ Supervised Persons, in their individual
capacities, may offer securities brokerage services and insurance products under a separate commission
arrangement.

Investment Management Fees
Harborview Advisors provides investment management services for an annual fee based on the amount of
assets under the Firm’s management. The fee varies based on the following fee schedule:

                PORTFOLIO VALUE                           ANNUAL FEE
                Up to $99,999                             2.00%
                $100,000 - $249,999                       1.50%
                $250,000 - $499,999                       1.25%
                $500,000 - $2,500,000                     1.00%
                Above $2,500,000                          Negotiable

The annual fee is prorated and charged quarterly, in advance, based upon the market value of the assets being
managed by Harborview Advisors on the last day of the previous billing period.

If assets are deposited into or withdrawn from an account after the inception of a billing period, the fee
payable with respect to such assets is adjusted to reflect the change in portfolio value. For the initial period
of an engagement, the fee is calculated on a pro rata basis. In the event the Agreement is terminated, the fee

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ADV Part 2A – Disclosure Brochure

for the final billing period is prorated through the effective date of the termination and the unearned portion
is refunded to the client, as appropriate.

Fee Discretion
Harborview Advisors, in its sole discretion, may negotiate to charge a lesser fee based upon certain criteria,
such as anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be
managed, related accounts, account composition, pre-existing client relationship, account retention and pro
bono activities. In addition, Harborview Advisors may aggregate the portfolios of family members to take
advantage of lower fee breakpoints.

Additional Fees and Expenses
In addition to the advisory fees paid to Harborview Advisors, clients may also incur certain charges imposed
by other third parties, such as broker-dealers, custodians, trust companies, banks and other financial
institutions (collectively “Financial Institutions”). These additional charges may include securities brokerage
commissions, transaction fees, custodial fees, fees charged by the Independent Managers, charges imposed
directly by a mutual fund or ETF in a client’s account, as disclosed in the fund’s prospectus (e.g., fund
management fees and other fund expenses), deferred sales charges, odd-lot differentials, transfer taxes, wire
transfer and electronic fund fees and other fees and taxes on brokerage accounts and securities transactions.
The Firm’s brokerage practices are described at length in Item 12, below.

Fee Debit
Clients generally provide Harborview Advisors with the authority to directly debit their accounts for payment
of the Firm’s investment advisory fees. The Financial Institutions that act as qualified custodian for client
accounts have agreed to send statements to clients not less than quarterly detailing all account transactions,
including any amounts paid to Harborview Advisors. Harborview Advisors also sends clients an itemized
summary detailing the advisory fees deducted from their accounts. Harborview Advisors encourages our
clients to review statements from their qualified custodian and the summary of advisory fees provided by
Harborview Advisors.

Account Additions and Withdrawals
Clients may make additions to and withdrawals from their account at any time, subject to Harborview
Advisors’ right to terminate an account. Additions may be in cash or securities provided that the Firm reserves
the right to liquidate any transferred securities or decline to accept particular securities into a client’s account.
Clients may withdraw account assets on notice to Harborview Advisors, subject to the usual and customary
securities settlement procedures. However, Harborview Advisors designs its portfolios as long-term
investments and the withdrawal of assets may impair the achievement of a client’s investment objectives.
Harborview Advisors may consult with its clients about the options and implications of transferring securities.
Clients are advised that when transferred securities are liquidated, they may be subject to transaction fees,
fees assessed at the mutual fund level (i.e., contingent deferred sales charge) and/or tax ramifications.

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ADV Part 2A – Disclosure Brochure

Commissions or Sales Charges for Recommendations of Securities
Clients can engage certain persons associated with Harborview Advisors (but not Harborview Advisors) to
render securities brokerage services under a separate commission-based arrangement. Clients are under no
obligation to engage such persons and may choose brokers or agents not affiliated with Harborview Advisors.

Under this arrangement, the Firm’s Supervised Persons, in their individual capacities as registered
representatives of Kovack Securities, Inc. (“Kovack Securities”), may provide securities brokerage services and
implement securities transactions under a separate commission based arrangement. Supervised Persons may
be entitled to a portion of the brokerage commissions paid to Kovack Securities, as well as a share of any
ongoing distribution or service (trail) fees from the sale of mutual funds or variable products. Harborview
Advisors may also recommend no-load or load-waived funds, where no sales charges are assessed. Prior to
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Item 7: Types of Clients
Harborview Advisors provides its services to individuals, high net worth individuals, pension and profit-sharing
plans, trusts, estates, charitable organizations, corporations and other business entities.

No Minimum Account Requirements
Harborview Advisors does not impose a stated minimum fee or minimum portfolio value for starting and
maintaining an investment management relationship.

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ADV Part 2A – Disclosure Brochure