The Permanent Mortgage Investment Corporation ( The Issuer ) and The Permanent Investment Corporation have entered into a Management Services Agreement under which the Manager will administer the Issuer’s business affairs on a day to day basis. The Manager and the Issuer are related companies. Richard Moran currently controls the Manager (Rick Moran is the President holding 50% of the Shares) and is its sole director. He is also the founder and promoter, and is director of the Issuer.

The Manager’s responsibilities include but are not limited to the following services:

To serve as the Issuer’s mortgage investment advisor and consultant, conduct necessary investigations and provide research, reports, studies and other data in connection with mortgage investments generally and mortgage investment policies;

To make recommendations and present to the Issuer opportunities for mortgage investment by the Issuer;

To invest, reinvest and manage the mortgage investments of the Issuer in accordance with the Investment Objectives and the Investment Policies (as such terms are defined in the Mortgage Management Agreement);

To make decisions as to the purchase and sale of mortgage investments of the Issuer and decisions as to the execution of portfolio transactions on behalf of the Issuer;

To furnish the Issuer with advice and recommendations with respect to holding, financing, maintaining, improving or disposing of the real property secured by the mortgages held by the Issuer;

To maintain proper books, accounts and records concerning the mortgages held by the Issuer;

To provide or cause to be provided to the Issuer, in electronic form, a quarterly statement of the mortgage investments held by the Issuer within ten business days following each quarter-end, or such other reports as the Issuer may reasonably request;

To establish, build and subsequently maintain a loss contingency fund of up to 1.5% of the value of the mortgage assets of the Issuer; make available to the Issuer, on a basis agreed between the Issuer and the Manager, the Manager’s expertise relating to the matters affecting the Issuer;

To perform any and all other acts as may be in its judgement necessary or appropriate to the management of the mortgage investments and business of the Issuer, without obtaining prior approval or direction from the Issuer. The Manager shall be entitled to engage third parties in connection with the performance of any of the foregoing responsibilities but shall be responsible for monitoring the performance of any such third party and the Manager shall remain responsible for the performance of such services.