Morse Asset Management Inc

Item 5:          Fees and Compensation
 For the investment advisory services provided to individual and institutional clients of MAM, MAM is paid a fee
 based on a percentage of assets under management. Fees are generally charged quarterly in advance and are usually
 deducted directly from the client's custodial account. In a few cases clients may be charged fees monthly in advance.
 Investment advisory services begin on the effective date specified in the investment management agreement, with
 the fees for the first period charged on a pro-rata basis. Fee arrangements may also be negotiated in certain
 circumstances. MAM reserves the right to charge a minimum annual fee for an account.

 The following are the maximum fees charged to individual and institutional clients:

          1.25% per annum on the 1st $10 million;

          1.00% per annum on the next $10 million to $20 million;

          0.75% per annum over $20 million

 Fees are calculated and paid in accordance with the fee schedule outlined in the client's investment advisory
 agreement.

 MAM or the client may terminate the investment management agreement at any time upon written notice to the
 other party, subject to the terms of the agreement. Clients must pay for investment advisory services rendered
 through the effective date of termination of the agreement. If the client has paid fees in advance, a pro-rata refund
 of the fees shall be paid by MAM.

 Other types of fees or expenses paid by a client include brokerage commissions, custody fees and expenses of third
 party mutual funds. Clients have the option to purchase or sell securities through custodians or brokers other than
 those brokers selected by MAM.

 Brokerage Practices are discussed in Item 12 of this brochure.

Item 7:       Types of Clients

 MAM provides advisory and investment supervision to charitable organizations, foundations, endowments,
 pension and profit sharing plans, trusts, estates, individuals and high net worth individuals.

 The minimum dollar amount of assets ordinarily required for the establishment of a separate account is
 $1,000,000. However, MAM may waive investment minimums at its discretion.