E-Delivery

At year end, the Manager held $2,095 (2013 - $nil) in trust on behalf of the Fund from the payment of interest made by a third party borrower in which the Fund holds a syndicated mortgage interest. Subsequent to year-end, the Manager disbursed the proceeds to the Fund in accordance with the terms of its normal mortgage servicing operations. As a result of the restructuring that occurred during the fiscal year ended February 28, 2013, the following transactions occurred between the Fund and Manager: • e Fund incurred $nil (2013 - $7,373) in share issue costs to the Manager for subscriptions to the Fund's preferred shares that occurred prior to June 1, 2012. After June 1, 2012 the Fund does not pay share issue costs in respect of the distribution of Class A and Class B preferred shares. • e Fund received a repayment of $nil (2013 - $99,421) from the Manager during the Year to offset the Fund's unamortized share issue cost balance at June 1, 2012. is repayment was in respect of share issue costs that were previously paid to the Manager under the terms of the Fund's structure prior to June 1, 2012. • e Fund made a repayment of unearned income to the Manager of $nil (2013 - $16,100). is repayment was in respect of structural changes to the Fund that occurred on January 21, 2013. • e Fund earned $nil (2013 - $30,599) in lender fees from the Manager during the Year. e Fund does not earn lender fees subsequent to the structural changes that occurred on January 21, 2013. Other Related Party Transactions As at February 28, 2013, the Fund was co-invested as a syndicate with one non-independent director who is also an officer and common shareholder of the Fund in a mortgage loan secured by real estate that is owned by a third party. e Fund's share in the mortgage investment was $475,000. As at February 28, 2014, the Fund has no such co-investments with related parties. In respect of the services provided by the Fund's independent directors and members of the independent lending review committee during the Year, the Fund incurred $11,561 (2013 - $9,552) in remuneration expenses, of which $1,675 (2013 - $1,900) remains payable at year end. As at year end, related parties, including certain directors that are not independent of management, voting shareholders, and their immediate families and related corporations, held 128,145 (2013 – 150,984) Class A preferred shares, with a total dollar value of $1,281,455 (2013 - $1,509,843). Independent directors held 25,326 (2013 – 3,160) of Class A preferred shares, with a total dollar value of $253,261 (2013 – 31,605) as of February 28, 2014. e above related party transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. At the end of fiscal 2014, management held 128,145 Class A preferred shares, with a total dollar value of $ 1,281,455 25

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