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EXHIBIT 99.g(1)
STATE STREET BANK AND TRUST COMPANY
- HARBOR GROWTH FUND
- HARBOR INTERNATIONAL FUND
- HARBOR CAPITAL APPRECIATION FUND
- HARBOR VALUE FUND
- HARBOR BOND FUND
- HARBOR MONEY MARKET FUND
- HARBOR SHORT DURATION FUND
- HARBOR INTERNATIONAL GROWTH FUND
- HARBOR INTERNATIONAL II FUND
- HARBOR SMALL CAP GROWTH FUND
- HARBOR MID CAP GROWTH FUND
EFFECTIVE NOVEMBER 1, 2000
I. PORTFOLIO AND FUND ACCOUNTING
Includes: Maintaining multicurrency investment ledgers, and providing
position and income reports. Maintaining general ledger and capital
stock accounts in compliance with GAAP (FAS 52). Preparing daily trial
balances. Calculating net asset values daily. Providing selected
general ledger reports. Securities yield or market value quotations
will be provided to State Street by the fund or via State Street's
pricing service (See Section III). (The fee is calculated using basis
points per portfolio per annum: 1 basis point = 0.01%).
<TABLE>
<CAPTION>
All Funds (complex-wide)
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<S> <C>
First $1 Billion 1.00 basis point
Thereafter .50 basis point
</TABLE>
New Fund Minimum - charged on portfolios added on or after November 1,
2000 with total net assets less than $100 million. New portfolios with
assets greater than $100 million will be charged at the complex-wide
annual fees.
$2,000/month
Fund minimums on all new funds will be phased in over a period of one
year.
<TABLE>
<S> <C>
Months 0-6 Waived
Months 7-12 $1,000/month/portfolio
Thereafter $2,000/month/portfolio
</TABLE>
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II. GLOBAL CUSTODY
Includes: Maintaining custody of fund assets. Settling portfolio
purchases and sales. Reporting buy and sell fails. Determining and
collecting portfolio income. Making cash disbursements and reporting
cash transactions. Monitoring corporate actions. Withholding foreign
taxes. Filing foreign tax reclaims.
<TABLE>
<CAPTION>
ASSETS TRANSACTIONS ASSETS TRANSACTIONS
(BASIS POINTS) ($) (BASIS ($)
POINTS)
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<S> <C> <C> <C> <C> <C>
Argentina 30.00 75.00 Jordan 25.00 125.00
Austria 7.00 25.00 Kenya 35.00 100.00
Australia 4.00 30.00 Korea 7.00 30.00
Bahrain 45.00 125.00 Lebanon 45.00 125.00
Bangladesh 35.00 100.00 Malaysia 10.00 60.00
Belgium 10.00 50.00 Mauritius 45.00 125.00
Bermuda 12.00 100.00 Mexico 10.00 25.00
Bolivia 12.00 25.00 Morocco 35.00 100.00
Botswana 35.00 100.00 Namibia 35.00 60.00
Brazil 27.50 75.00 New Zealand 5.00 30.00
Bulgaria 20.00 100.00 Netherlands 8.00 30.00
Canada 5.00 25.00 Norway 8.00 50.00
Cedel 12.00 25.00 Oman 45.00 125.00
Chile 18.00 75.00 Pakistan 25.00 100.00
China 18.00 100.00 Peru 30.00 100.00
Columbia 35.00 100.00 Philippines 15.00 50.00
Croatia 35.00 100.00 Poland 25.00 75.00
Cyprus 45.00 100.00 Portugal 15.00 75.00
Czech Republic 18.00 60.00 Romania 18.00 75.00
Denmark 4.00 75.00 Russia 25.00 100.00
Ecuador 18.00 75.00 S. Africa 5.00 25.00
Egypt 18.00 75.00 Singapore 12.00 75.00
Estonia 45.00 50.00 Slovak Republic 25.00 75.00
Euroclear 3.00 25.00 Slovenia 45.00 100.00
Finland 12.00 60.00 Spain 15.00 30.00
France 5.00 30.00 Sri Lanka 25.00 100.00
Germany 5.00 25.00 Swaziland 45.00 75.00
Ghana 35.00 100.00 Sweden 8.00 30.00
Greece 18.00 75.00 Switzerland 5.00 30.00
Hong Kong 15.00 60.00 Taiwan 18.00 40.00
Hungary 35.00 100.00 Thailand 5.00 35.00
India 45.00 125.00 Tunisia 45.00 125.00
Indonesia 10.00 50.00 Turkey 12.00 45.00
Ireland 7.00 45.00 U.K. 4.00 30.00
Israel 18.00 50.00 Uruguay 40.00 75.00
Italy 5.00 30.00 Venezuela 35.00 125.00
Ivory Coast 45.00 125.00 Zambia 45.00 100.00
Jamaica 45.00 100.00 Zimbabwe 35.00 100.00
Japan 3.00 25.00
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</TABLE>
* Excludes: agent, depository and local auditing fees
** Transaction charge waived if brokerage provided by National
Securities Company.
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<TABLE>
<CAPTION>
UNITED STATES - for each line item processed
<S> <C>
State Street Bank Repos $ 7.00
DTC or Fed Book Entry Buy/Sell $ 12.00
New York Physical $ 25.00
PTC Buy/Sell $ 20.00
All other trades $ 16.00
Maturity Collections $ 8.00
Option charge for each option written or closing contract, per issue, $ 25.00
per broker
Option expiration/Option exercised $ 15.00
Interest Rate Futures -- no security movement $ 8.00
Monitoring for calls and processing coupons -- $ 5.00
for each coupon issue held -- monthly charge
Holdings charge per security per month $ 5.00
Principal reduction payments per paydown $ 10.00
Dividend charges (for items held at the request of $ 50.00
traders over record date in street form)
</TABLE>
III. PRICING SERVICE
<TABLE>
<S> <C>
Monthly Base Fee per Portfolio $ 375.00
Monthly Quote Charge: (based on the average
number of positions in portfolio)
- Foreign Equities and Bonds via Extel Ltd. $ 6.00
- Listed Equities, OTC Equities, and Bonds $ 6.00
- Merrill & Muller $ 11.00
</TABLE>
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IV. SPECIAL SERVICES
Fees for activities of non-recurring nature such as consolidations or
reorganizations, extraordinary security shipments and the preparation
of special reports will be subject to negotiation. Fees for automated
pricing, standardized yield calculation, and other special items will
be negotiated separately.
V. FUND ADMINISTRATION REPORTS
State Street's State Tax Report for Massachusetts and South Carolina
will be provided annually for all funds with capital gain distributions
at no additional charge.
State Street's Dividend Received Deduction Report will be provided
annually for all domestic equity funds at no additional charge.
VI. OUT-OF-POCKET EXPENSES
A billing for the recovery of applicable out-of-pocket expenses will be
made as of the end of each month. Out-of-pocket expenses include, but
are not limited to the following:
Telephone/Telexes
Wire Charges ($5.25 per wire in and $5.00 out)
Postage and Insurance
Courier Service
Duplicating
Legal Fees
Transfer Fees
Sub-Custodian Out-of-Pocket Charges (e.g. stamp duties, registration,
etc.)
Price Waterhouse Audit Letter (SAS70)
Federal Reserve Fee for Return Check Items Over $2,500 -- $5.25 each
GNMA Transfer - $15.00 Each
HARBOR FUND STATE STREET BANK & TRUST CO.
By: /s/ Constance L. Souders By: /s/ Stephanie A. Childs
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Title: Vice President Title: Vice President
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Date: 11/1/00 Date: 11/1/00
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