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Harley Marine’s new headquarters in Seattle, the Harley and Lela Franco Maritime Center, was recently highlighted in GreenSource – the Magazine of Sustainable Design for it’s environmentally friendly design. The building is LEED-Gold certified and was recently recognized by NAOIP as Office Development of the Year. The new building features solar power energy, a rainwater collection system, sustainable building materials, a leading-edge ventilation system, and electric car charging stations, among other great environmentally friendly aspects that have won the building such prestigious recognition. Employees are also offered access to a gym, bike storage and showers to promote a healthy living style. The building has quickly become the “gem of the harbor” in Puget Sound. To read the full article, click http://greensource.construction.com/features/solutions/2013/12/1312-by-land-and-by-sea.asp. HARLEY MARINE SERVICES SOUNDINGS Photo by: Captain Gregg Howell

HARLEY MARINE SERVICES SOUNDINGS0&CultureCode=en-US 5 February 2014 Harley Marine Services A Full Service Marine Transportation Company 1 By: Victoria Hall-Clinton, HSQE Coordinator

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Page 1: HARLEY MARINE SERVICES SOUNDINGS0&CultureCode=en-US 5 February 2014 Harley Marine Services A Full Service Marine Transportation Company 1 By: Victoria Hall-Clinton, HSQE Coordinator

Harley Marine’s new headquarters in Seattle, the Harley and Lela Franco Maritime Center, was recently

highlighted in GreenSource – the Magazine of Sustainable Design for it’s environmentally friendly design.

The building is LEED-Gold certified and was

recently recognized by NAOIP as Office

Development of the Year.

The new building features solar power energy,

a rainwater collection system, sustainable

building materials, a leading-edge ventilation

system, and electric car charging stations,

among other great environmentally friendly

aspects that have won the building such

prestigious recognition. Employees are also

offered access to a gym, bike storage and

showers to promote a healthy living style. The

building has quickly become the “gem of the

harbor” in Puget Sound.

To read the full article, click http://greensource.construction.com/features/solutions/2013/12/1312-by-land-and-by-sea.asp.

HARLEY MARINE SERVICES

SOUNDINGS Photo by: Captain Gregg Howell

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As Harley Marine Services continues to grow, opportunities to enter new markets and business developments emerge. Right now, the most exciting project Harley Marine has embarked upon is building articulated tugs and barges (ATB) to service a long-time, loyal customer. An articulated tug and barge combines the benefits of traditional towing methods and that of a small tanker. With an articulated unit, the stern of the barge is built with a specially designed notch so that a bow of a tugboat can easily fit in place with a connection system. The combined unit provides better maneuverability and steering capabilities while allowing safer and more efficient transportation. Compared to a traditional towed barge, an ATB has higher average speeds and can connect and disconnect at departures and arrivals faster. Additionally, both pieces can function independently like a traditional tug and barge. After a market study and extensive research, Harley Marine Services has partnered with Zidell Marine Corporation of Portland, Oregon and Conrad Industries of Morgan City, Louisiana to build the first ATB in the fleet. The barge portion of the ATB unit is a double hull barge with an overall hull length of 422' 3", a molded beam of 76' 8" and a depth amidships of 27' 10". She will have a carrying capacity of 80,000 barrels and will be paired with a 4,070 horsepower twin-screw tug. The tug will have an overall length of 116', a molded beam of 36' and a depth of 16' 9". The barge will be named DR. ROBERT J. BEALL, after a remarkable doctor and President & CEO of the Cystic Fibrosis Foundation. Dr. Beall is committed to finding a cure for cystic fibrosis and has been a leader in the fight for 30 plus years. And the tug will be named EMERY ZIDELL, who founded Zidell Marine Corporation

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and is father to Jay Zidell, current president of the company. Emery was a dear friend and role model for Harley and Lela Franco and supporter of Harley Marine Services. Emery was a generous, philanthropic man and included the Cystic Fibrosis Foundation in his charitable giving. Harley Marine is honored to name these vessels after such significant stewards of the community, this ATB will shine bright in the fleet. The ATB will allow Harley Marine to provide better coastal petroleum transportation services by expediting delivery and will provide better reliability in adverse weather conditions. The purpose-built ATB will not only provide faster delivery speeds, but will allow Harley Marine to utilize less fuel on coastal deliveries, reducing the company’s overall carbon footprint. Utilizing an ATB for longer voyages gives the vessel crew safe and secure access to the barge and cargo tanks during transportation. The ATB will be built with the most technically and environmental friendly equipment available so that Harley Marine can continue to provide a safe, responsible, reliable and efficient service to its customers. Harley Marine expects the ATB to enter service at the end of 2014 and will join the Olympic Tug & Barge fleet based in Seattle, Washington. "We are eager to take delivery of our first ATB," states Harley Franco, Chairman and CEO of Harley Marine Services. "Starting a new delivery method proves our willingness to adapt to a changing market and provide our customers with a service tailored to meet their growing needs." As a leader in the industry, Harley Marine Services considers all new business opportunities and will work to provide the best available marine transportation while protecting the environment. Future plans may include building more ATB's to meet the growing demand of coastal petroleum transportation services.

HARLEY MARINE SERVICES EXPANDS FLEET DIVERSIFICATION BY BUILDING ATB

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HMS WELLNESS February is American Heart Month & Vision Awareness Month

Healthy Living, Healthy Vision

Take Care of Yourself!

Good health is an important part of good vision. The healthier you are, the better chance you have of avoiding risks to your eyes. You can lower your risk of eye disease and vision loss if you: Avoid Smoking Quitting smoking can have many good effects on your health. Avoiding smoking can also protect the health of your eyes. By quitting smoking, you can help to possibly reduce your risk of developing several different types of eye diseases. Quitting smoking may reduce your risk of developing:

• Age-related Macular Degeneration

• Cataracts

• Glaucoma

Quitting smoking will also reduce your risk of developing diabetic retinopathy if you are diabetic. Eat Healthy Foods Lifelong good nutrition may lower your risk of some eye diseases. By eating a healthy, balanced diet, you will have a better chance of staying healthy and keeping your eyes healthy. A lifetime diet rich in certain dark green vegetables, such as spinach and kale, may reduce your risk of getting AMD. By eating healthy foods, you will lower your risk of developing other diseases, such as diabetes, which can lead to diabetic eye disease. Diabetes is also a risk factor for developing glaucoma.

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Stay Active Staying active is part of a healthy lifestyle that can improve your overall health. Exercising regularly can reduce your risk of developing problems that can lead to eye disease. Control Your Blood Pressure Controlling your blood pressure is not just a good idea for your heart. It is also a good idea for protecting your eyesight. High blood pressure can increase your risk for glaucoma. It may also increase your risk for diabetic retinopathy if you have diabetes. Protect Your Eyes from the Sun You already know that you need to wear sunscreen to protect your skin from ultraviolet (UV) rays when you are outdoors. But do you know that you also need to wear protective sunglasses to protect your eyes from those same UV rays? Source: http://www.preventblindness.org/healthy-living-healthy-vision

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HMS WELLNESS February is American Heart Month & Vision Awareness Month Eat Better Why Eat Better? A healthy diet is one of your best weapons for fighting cardiovascular disease. When you eat a heart-healthy diet (foods low in saturated and trans fat, cholesterol, sodium and added sugars, and foods high in whole grain fiber, lean protein, and a variety of colorful fruits and vegetables) you improve your chances for feeling good and staying healthy– for life! However, an alarmingly high number of us are not making healthy food choices. Recent studies show that more than 90% of us fail to consistently eat a heart-healthy diet. Our poor eating habits mean more of us have risk factors for heart disease, stroke, diabetes and obesity. How Does Better Eating Affect My Health? Let’s face it, you can’t build a healthy body on a diet of hamburgers and french fries. If you are frequently skipping out on veggies, fruit, low-fat dairy, fiber-rich whole grains, and lean meats including fish, your body is missing the basic building blocks for a healthy life. Healthy foods are the fuel our bodies use to make new cells and create the energy we need to thrive and fight diseases. What Can I Do to Eat Better? Stock your kitchen with healthy food Healthy eating requires planning, but a little bit of thought goes a long way toward a better life. Buy less junk and more produce. The American Heart Association recommends that you eat a wide variety of nutritious foods daily from each of the basic food groups. To get the nutrients you need, choose foods like vegetables, fruits, fiber-rich whole-grain breads and cereals and fat-free or low-fat dairy products most often. Check out our heart-healthy recipes and nutrition information. Track what you eat! For a few days, keep a journal or use an online food tracker. This habit helps you see where you need to improve your choices. Eat vegetables and fruits. They are high in vitamins, minerals and fiber — and they’re low in calories. Eating a variety of deeply colored fruits and vegetables may help you control

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your weight and your blood pressure. Eat unrefined fiber-rich whole-grain foods. A diet rich in fiber can help promote weight loss because fiber keeps you feeling fuller longer so you eat less. It can also help lower your blood cholesterol. Eat fish at least twice a week. Recent research shows that eating (2) 3.5 oz. servings of oily fish per week containing omega-3 fatty acids (salmon, trout, and herring) may help lower your risk of death from coronary artery disease. For additional protein, choose skinless lean meats and poultry and prepare them without adding saturated and trans fat. Select fat-free, 1 percent fat, and low-fat dairy products. Cut back on saturated and trans fats, cholesterol and added sugars. Cut down on foods containing partially hydrogenated vegetable oils to reduce trans fat in your diet. Aim to eat less than 300 milligrams of cholesterol each day. Choose and prepare foods with little or no salt. Aim to eat less than 1500 milligrams of sodium per day. Limiting sugary drinks to no more than 36 oz. per week is a great way to reduce added sugars in your diet. Savor new flavors! It may take a bit of adjustment to learn to enjoy a heart-healthy diet, but those who make the switch can find plenty of nutritious choices that are every bit as tasty. Many switchers will tell you that greasy fast-food choices no longer seem appealing. Source: http://mylifecheck.heart.org/Multitab.aspx?NavID=10&CultureCode=en-US

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By: Victoria Hall-Clinton, HSQE Coordinator

Strolling through the average supermarket,

shoppers find literally hundreds (if not

thousands) of items to make their lives easier.

Individually wrapped snack cakes, plastic

baggies to store sandwiches for lunch,

unbreakable soda bottles, and disposable razors,

diapers, and shampoo bottles. Unless

specifically requested, even the bags we use to

carry home our goods are often plastic.

To humans, these are items of comfort, if not

necessity. But to marine animals, they can be a

floating minefield. Did you know that over 2

million plastic bottles are used every 5 minutes

in the U.S.? As little as 10% of these plastic

bottles are recycled while the rest end up in

landfills or in our oceans. Not to mention, 14

billion pounds of trash are dumped into the

ocean each year and in the North Pacific there is a

garbage patch twice the size of Texas where 100

million marine mammals and turtles are killed

each year by plastic in the ocean. Not only is our

marine life being affected, but an estimated 70%

of North Pacific sea birds eat too much plastic

trash and starve to death. Many don’t realize the

negative aspect that these containers have on our

environment.

What can you do to help? It’s simple, try and

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reduce the amount of plastic water bottles you

purchase. A great alternative is a reusable water

bottle filled with filtered tap water. If each person in

the U.S. replaced their disposable bottled water with

a reusable container filled with tap water, billions of

plastic receptacles would be kept out of the ocean.

Not only will this help save the ocean but it will also

help save you money.

ENVIRONMENTAL AWARENESS

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Harley Marine Services A Full Service Marine Transportation Company

MENTORING SPOTLIGHT Research on why people have become masterful in a niche – professions, trades, sports, science and the arts, highlights the importance of having mentors. Talk to any great software engineer, project manager, athlete or artist and they will tell you that their mentor(s) made the difference. We’ve all heard the quote that “great scientists stand on the shoulders of those who preceded them.” Mentor/mentee partnerships were the earliest forms of learning and professional development. Today having multiple mentors is a necessity because so much is changing around us. No one person can coach others in all the domains of a complex workplace. Mentors — who may be older or younger than you — are those who know more about a certain area of expertise than you do. Mentoring is a learning and development partnership between a professional with in-depth experience and knowledge in a specific area and a protégé seeking learning and coaching in the same area.

Finding a mentor is up to you. Look around and determine the different people in your region you might turn to for extra coaching and support. Once you find someone you think can help, look for ways you can help him/her as well. Mentor/mentee partnerships work best when they are two-way streets. Listen generously to what mentors need. You will find it easier to ask them for what you need.

Harley Marine Gulf TUG CHAMPION in Peoria, Illinois on the Illinois River Picture taken by Mike Cook (HMG mechanic).

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Harley Marine Services A Full Service Marine Transportation Company

SAFETY INCENTIVE PROGRAM

Winning Tip: By: Joseph Miranda, OTB When going to connect or disconnect any cargo hose or loading arm, be sure you are aware of the particulars of the cargo being transferred. Petroleum products can have many harmful vapors in them, such as H2S and/or benzene. When any harmful vapors are even suspected, be sure to wear your company provided 3M respirator with the correct 6000 series acid gas cartridge. If you do not currently have a respirator or do not know which cartridge to use for your application, then please contact your supervisor and remedy the situation immediately. On December 24, 2013 a fleet directive was issued that all barge personnel are to be clean-shaven to a point that your 3M respirator will make a tight seal. It is also smart to have SCBA’s available for the times when the vapors prove to be beyond the safety threshold and is required by some terminals.

Winning Article: By: Joseph Miranda, OTB

Practical Safety Drills

Many times when safety drills are conducted they are done at the galley table as a discussion of “what if’s”. Although these discussions bring to light some of the situations we might face, they do little to gauge how we would respond in an actual emergency. Practical drills, which simulate an emergency, will let the crew know where crewmembers need work and where they are strong. For instance, by holding an unannounced fire drill, you can see where some people react in such a way that would be harmful or beneficial to the situation and work with that individual to improve the response. One such fire drill could consist of a flashing red light (like a bicycle light) placed in a likely fire area with a sign that describes the fire. Other signs in the area could close off certain exits and entrances. The person who finds the red flashing light will then have to respond as if it was a real fire. When the alarm sounds you can then gauge how the crew responds as a unit to diffuse or minimize the danger. In a real response you want to know that everyone involved will not panic and work to keep themselves, crewmembers and the vessel safe. And, in that order. Another reason to repeat these drills is that repetition will help the response be automatic. If you have reached beside the galley fridge for the fire extinguisher 7 times while drilling then it will be automatic to look by the galley fridge when the range catches fire. A person will become familiar and comfortable with the location of the response equipment aboard his vessel.

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Harley Marine Services A Full Service Marine Transportation Company

SAFETY INCENTIVE PROGRAM

WE STILL NEED WINNERS FOR NEW YORK AND THE GULF!

The Safety Incentive Program contest is still in place. We are still looking for a winner in New York and in Houston. You can join our other port winners below and receive your very own work vest. Congratulations to:

• Alaska – Mitchell Hetterle • Seattle - Joe Hoats

• Portland - Andrew Butterfield

• Northern California – Eric Chisman

• Southern California – Neal Maresca

Details on how you can win are provided below. CONTEST DETAILS The first person in each location to submit a Safety Meeting, JSA, Tip, and Article will receive a work vest pictured below.

You can also get the PFD by redeeming 350 SIP Points through the website – http://www.donsgroupattire.com/harley/login.php If you have questions regarding your points, or the program please email [email protected]. Thank You & Stay Safe

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SAFETY SPOTLIGHT

How did SOCAL manage to have ZERO

Injuries, Illnesses, Incidents or Spills

for the entire month of December?

Doug Houghton, General Manager - The whole culture has really changed over the past several years. Andre Nault has done a great job of eliminating hazards and getting all of us engaged in thinking Safety at all times. Kelly Moore is constantly communicating Safety and educating the barge crews. Mike Castagnola and the engineers are doing a great job of reducing mechanical issues. Mike Golden and all the captains are constantly discussing ways to run their vessels incident free. One advantage we have is a real seasoned complement of crew both on the barges and the tugs. We have held all employees accountable to follow policies and procedures. The biggest factor that I think has changed our trend is a high moral and a sense of teamwork. The SoCal Team - Tankermen, Engineers, Captains, Shore-side Personnel and Management - all have a sense of pride to be part of the Harley Marine team. I hope we can continue on this path and make 2014 our safest year ever. Kelly Moore, Manager Petroleum Barge Operations - I feel that the whole SoCal Team comes together as one unit to tackle all of the challenges that we are faced with. With the great attitudes and hard work of the entire Team (management and fleet), all working towards the common goal, this has directly resulted in our safety record. We have built relationships and have trust within the fleet.

I think we’ve overcome obstacles, the crews have bought into our safety culture from boots on the ground, Management - Engineering, Operations, Safety, getting out in the fleet and they know that we’re their advocate. Captain Michael Golden, Port Captain - First, I think part of this is that the whole SoCal team is getting better at what they all do. There is better communication and planning to prevent people from being in a rush. All safety meetings and drills that are generated from the boats through the Wheelhouse Management System are reviewed and replied to. The seriousness, repercussions and final outcome of accidents and injuries to our company have become more aware to the employees from the management team. There is in-depth follow-up and conclusion of accidents/injuries. We review the Safety Stand Downs and Monthly Safety packets, which include reviews of company-wide lessons learned, near misses and accidents/injuries. Maintenance and repair issues are getting done to keep equipment safe and operable to standard. My feeling is that the existing employees have all been doing a great job at increasing the bar to a higher standard. It is a combined effort throughout the SoCal Team.

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Harley Marine Services A Full Service Marine Transportation Company

California Maritime Academy Career Fair Special thanks to General Manager Greg Zeligman and Marketing Coordinator Alison Allali of Starlight Marine Services for representing Harley Marine at the California Maritime Academy Career Fair. If you are interested in joining the Harley Marine Services family of companies with a fulfilling career, please visit our website for updated openings and application instructions. http://www.harleymarine.com/careers.asp

M/V FURY of Harley Marine Gulf

Winter Weather in New York In this photo, HMNY crews are repositioning the barges to a safe location prior to a storm rolling through the area. Keep up the great work Harley Marine NY!

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Harley Marine Services A Full Service Marine Transportation Company

THUMBS UP

• Thumbs Up to Starlight Marine employees, Jonah Petrick, Richard Sheldon, Mo Allali, Chris Royeton, Ryan Tom, Bob Mather and Brandon Erickson for doing a great job on the Z-4 after her time in the shipyard. Thanks to all of you! ~ Greg Zeligman, General Manager

• Thumbs Up to Captain Travis McGrath and Port Engineer Kevin Treadwell for their hard work and excellent seamanship skills this past month. They were both involved in a special project that took great attention to detail and teamwork. We appreciate your "can-do" attitude and team spirit ~ Captain Scott Manley, Director of Marine Operations

Ava Marie Hellman Birthday: January 5th Weight: 5lbs. 10oz. Proud Parents: Scott Hellman and his fiancé, Jeannine Riggio. Ava is their second child and Scott is a dispatcher at Harley Marine NY.  

Emma Grace Hall Birthday: October 15th Weight: 7lbs. 4oz. Length: 20” Proud Parents: Joshua and Sarah Hall pictured with their son, Derek (4) and daughter, Leslie (6). Joshua is a Pilot at Harley Marine Gulf.    

Please join in welcoming two of the newest additions to the Harley Marine Family!

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Harley Marine Services A Full Service Marine Transportation Company

December Birthdays FEBRUARY BIRTHDAYS

Harley Marine Gulf Mark Harris 2/3 Alvis Kavanaugh 2/3 Harley Marine NY Scott Hellmann 2/1 Erick Ocasio 2/2 Thomas Powell 2/3 Brian Kelly 2/5 Michael Parks 2/8 Steven Donoghe 2/19 Harley Marine Services Kimberly Cartagena 2/11 Megan Smith 2/11 Leah Nelson 2/13 Katherine Horton 2/26 Peter Cho 2/28 Millennium Maritime Phillip Ruan 2/5 Olympic Tug & Barge James Davison 2/3 William Elton 2/3 Joel Russell 2/5 Norman Marx 2/6 David Ponce 2/6 Haldor Dahl 2/7 Brandon Cloud 2/8 Stephen Moore 2/12 Johnny Parckys 2/12 Ryan Obermire 2/13 Andrzej Borowski 2/15 James Berge 2/16 Wayne Allen 2/17 Neil Billingsley 2/17 Marc Blodgett 2/17 Steven Carleton 2/20 John Lennon 2/20 Ahmet Gumusyazici 2/21 Timothy Roseberg 2/22 Robert Harmeling 2/27 Dennis Pinfold 2/28 Starlight Marine Services Tom Larsen 2/5 Richard Sheldon 2/19 Chad Thomas 2/24 Timothy Whitehouse 2/27 Westoil Marine Services Mark Abercrombie 2/7 Brent Ralph 2/8

Harley Marine Services, Inc. 2014 Payroll Schedule

Pay Period End Date Pay Date

12/31/2013 1/8/2014

1/15/2014 1/23/2014

1/31/2014 2/7/2014

2/15/2014 2/24/2014

2/28/2014 3/7/2014

3/15/2014 3/21/2014

3/31/2014 4/7/2014

4/15/2014 4/22/2014

4/30/2014 5/7/2014

5/15/2014 5/22/2014

5/31/2014 6/6/2014

6/15/2014 6/20/2014

6/30/2014 7/8/2014

7/15/2014 7/22/2014

7/31/2014 8/7/2014

8/15/2014 8/22/2014

8/31/2014 9/8/2014

9/15/2014 9/22/2014

9/30/2014 10/7/2014

10/15/2014 10/22/2014

10/31/2014 11/7/2014

11/15/2014 11/21/2014

11/30/2014 12/5/2014

12/15/2014 12/22/2014

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February Employment

Anniversaries Harley Marine Gulf Dearl Richey – 2 years Daniel Davila – 1 year Chris Gonyer – 1 year Joshua Miller – 1 year Clayton Williams – 1 year Harley Marine NY John Curtin – 6 years Michael Parks – 3 years Harley Marine Services Stephanie Gullickson – 9 years Nancy Xiong Moua – 4 years Brenna Fitzsimmons-Perrey – 4 years Heather Clopton – 1 year Megan Smith – 1 year Millennium Maritime Josiah Layfield – 7 years Louis Mungaray – 7 years Olympic Tug & Barge Larry Gladsjo – 20 years Adam Goodfellow – 17 years James Heckathorn – 8 years Thomas Hoats – 8 years Joseph Allnoch – 6 years Timothy Brown – 6 years Andrew Pugh – 6 years Luke Beck – 2 years Marc Blodgett – 2 years Darin Masterson – 2 years Timothy McCormick – 2 years Matthew Stotts – 2 years Donald Voip – 2 years Garrett Linrothe – 1 year Gary Ward – 1 year Pacific Coast Maritime Chris Iszler – 17 years Tully McConnell – 2 years Starlight Marine Services Urban Alexander – 13 years Douglas Anderson – 8 years Jason Vogel – 8 years Timothy Whitehouse – 5 years Patrick Nohr-Forrester – 2 years Mohamed Allali – 1 year Brandon Erickson – 1 year Westoil Marine Services Salvatore Manzella – 14 years Rosanna Chavez – 8 years

Follow Harley Marine Services on Facebook to stay up to date on the latest news and current events. Invite your family and friends too! Link to the Harley Marine page: https://www.facebook.com/pages/Harley-Marine-Services-Inc/415352788583181

Harley Marine Gulf employees, Deck Tankerman Shawn Rodenkirch and Captain Randy Meshell onboard the

LIGHTNING at Beans Fleeting in Port Arthur, Texas.

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Retirement Planning – Fourth Quarter 2013 Market Commentary Heading into last year, investors viewed 2013 with caution – if not downright pessimism. Europe was still struggling with its government spending and debt troubles. China, whose meteoric rise had accounted for much of the world’s growth over the preceding decade, was slumping. The US recovery continued to be hampered by skeptical employers who were reluctant to hire and a Congress that only added to the uncertainty. In spite of it all, both domestic and international investment markets generated strong gains for the year 2013. Domestic equity markets not only reached all-time highs, they blew right past them. The S&P 500 Index (the benchmark for large company stock performance) had its best year since 1997, while the Russell 2000 Index (the benchmark for small company stock performance) enjoyed the fourth best year in its history – up close to 40%. Many stock performance indices were up over 30% for the year. Such strong performance in the face of a relatively weak economy has many people wondering how this can happen. One major factor, and one of the oldest truisms on Wall Street is “Don’t fight the Fed!” With the Federal Reserve keeping interest rates low in order to encourage borrowing, support housing, and stimulate investment – investors needed to buy stocks in order to generate any reasonable return on investment. Skeptics who focused on the potential downside risks of “easy money” missed out on an incredible year. The key questions now are whether the real economy can now catch up to investment markets, and whether investment markets can keep their gains while the Fed decreases the stimulus program. Another important factor and lesson for retirement plan investors, is that markets are very unpredictable in the short term. Few pundits predicted the banner year that we experienced in 2013. More often than not, basing investment strategy on short-term factors is a losing proposition. This is why we always recommend a well-diversified, long-term approach. It’s a lesson that is easy to forget when seemingly obvious troubles lurk on the horizon. Investment Market Results Domestic stocks ended the year on a tear. The S&P 500 index gained 10.5% for the quarter, and 32.4% for the year. International markets also did well for both the quarter and year, although they could not keep up with a hot US market. The MSCI EAFE (Europe Asia Far East) Index returned 5.75% for the quarter and 23.29% for the year. Bond/fixed income investments lost value as the Fed began reducing stimulus in December. For the year, treasury bonds were down 2.7% and corporate bonds decreased by 1.5%. Only high-yield bonds (aka junk bonds) had a positive return for the year, up 7.4%.

These materials are produced by Kibble & Prentice/USI Insurance Services for educational purposes only. Certain information contained in these materials is considered proprietary information created by Kibble & Prentice/USI. Such information shall not be used in any way, directly or indirectly, detrimental to Kibble & Prentice/USI and/or their affiliates. Neither Kibble & Prentice/USI nor any of its respective representatives or advisors has made or makes any representation or warranty, expressed or implied, as to the accuracy or completeness of these materials. Neither Kibble & Prentice/USI nor their respective representatives or advisors shall have any liability resulting from the use of these Materials or any errors or omission therein.

Administrative Questions

If you have questions regarding your quarterly

statement, participant website, or plan provisions,

please contact your plan administrator:

Moran Knobel

www.moranknobel.com 425-451-9389

1-800-451-9389

Investment Questions

If you have questions or need guidance with the

fund options in your retirement plan, please

contact your plan education specialist:

Kibble & Prentice Melody Prescott 1-206-676-7421

[email protected]

Plan Eligibility

You are eligible to enter your retirement plan if you are a non-union employee, age 18 or older, and have completed 3 months of

service.

Note: Union members, non-resident aliens and ferry workers of Pacific Coast Maritime, Inc. are excluded from the company 401(k) plan.

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Letter of recommendation from State of Washington Department of Ecology for Ivan Larson – the January Employee of the Month!

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Harley Marine Services A Full Service Marine Transportation Company

Harley Marine Services A Full Service Maritime Company

www.harleymarine.com

Editor: Stephanie Gullickson [email protected]

January Employee of the Month Starlight Marine Services Andrew Jebananthan Starlight Marine Services would like to recognize Andrew Jebananthan as the January Employee of the Month. Andrew was nominated as Employee of the Month by his peers for his hard work and dedication to Starlight Marine and the crews he has been working with. He is presently working on the Royal Melbourne/Bernie Briere and wants to become the next PIC onboard. Andrew comes to work with a positive can-do or will-learn attitude. Thanks Andrew for all you do at SMS and congratulations! Olympic Tug & Barge Ivan Larson Olympic Tug & Barge would like to recognize Shoreside Tankerman Ivan Larson as the January Employee of the Month. Ivan has been employed with Olympic Tug & Barge since July of 2009. He worked his way up from Deckhand to Deckhand Tankerman and transferred to a Shoreside Tankerman position in April 2012. Ivan is always professional, upbeat, and always carries a positive attitude. He shows great situational awareness and has become a valuable asset to our Shore Side Tankerman group. We would like to thank you Ivan for all your hard work and dedication.

January New Hires Harley Marine Gulf Billy Briscoe – Pilot Joseph Drummonds – Pilot Terry Kay – Pilot Marshall Martin – Pilot Michael Mayfield – Regional Marine Safety Advisor Cameron Shaw – Pilot James Thomas – Deckhand Tankerman David Turner – Deckhand Tankerman

Harley Marine Services Kim Chandler-McDaniel – Payroll Manager Laura Gregorini – HR Manager

Millennium Maritime Robin Houghton – Billing Specialist

Olympic Tug & Barge Evan Davis-Hadaway – Yard Ed Garrison – Mate Gary Truman – Deckhand Tankerman Scott Van Dusen - Mate Carl Webster – Dock Henry Wunder – Mate

Pacific Terminal Services Gene Kusaka – Terminal Supervisor

Starlight Marine Services Shane Smith – Captain