Morbank is a full service, commercial mortgage company. We lend first mortgages to developers on a short term basis. The mortgage interest rates range from 12% - 15%. Currently, our average loan to value ratio in our portfolio is below 60%. After we have analyzed the loan opportunity and deem it to be satisfactory, we present it to the appropriate approval authority for each of our funds for their review and acceptance. Thereafter, we administer the mortgage from instructing the solicitor to prepare mortgage documentation, through monthly collection and distribution of mortgage payments, until the discharge of the mortgage at the successful completion of the term. As part of our mortgage administration, we provide monthly reports to all Investors reviewing the status of their investment. An Investor has two mortgage investment options as summarized below. The Mortgage Pool is also eligible for RRSP, RRIF, and RESP investments allowing for increased investor opportunities. Investors can participate in a mortgage pool through a mortgage investment corporation (MIC). Investors become shareholders in the MIC and all funds invested are used for 1st mortgage investments. The fund diversifies its risk by participating in many mortgage loans. The MIC has directors and an approval committee that makes the final decision for accepting loan opportunities on behalf of all shareholders. Morbank Financial is contracted to manage the MIC including mortgage administration, bookkeeping and corporate management. By participating in a MIC, Investor's funds are not specific to any single mortgage therefore they share in the corporation's revenues as soon as investment funds are received. Also, due to the size of the pool, and the number of mortgages invested in, yields paid to shareholders are stabilized from period to period. The MIC has liquidity which allows the Investor the opportunity to request a redemption of their share investment at any time. Investor's also have the option to receive a cash distribution of their portion of the revenues quarterly, or to reinvest their income by receiving additional shares thereby compounding their investment quarterly. The major benefit of the diversification through a MIC is risk reduction. The yield to Investors will vary from quarter to quarter, however, we expect the fund will payout a yield of at least 10% per annum. The minimum investment amount to participate in the mortgage pool is $10,000. John Tiberio : President john@morbank.ca Judy Christianson : Assistant Vice President judy@morbank.ca Phone: (403) 205-4110 Fax: (403) 264-9270 Toll Free: 1-877-969-9899 #106, 5 Richard Way SW Calgary, AB T3E 7M8 Additional information: Please call Morbank Financial Inc. at 403-205-4110 or e-mail us and we will mail you an information package.