Distributions

Distribution per unit in US cents
Period	1Q	2Q	3Q	4Q	Full Year
2007		2.30*	2.23	2.42	6.95
2008	2.59	2.80	3.05	3.08	11.52
2009	2.45	2.45	1.50	1.50	7.90
2010	1.50	0.95	0.95	0.95	4.35
2011	0.95	0.95	0.95	0.10	2.95
2012	0.10	-	-	-	0.10
2013	-	-	-	-	-
2014	-	-	-	-	-
2015	-	-	-	-	-
2016	-	-	-	-	-
2017	-	-	-	-	-
2018	-	-	-	-	-
2019	-	-	-	1.50	1.50
2020	1.50	-	1.50	-	3.00
2021	2.00	-	1.50	-	3.50
2022	-	1.60	-	-	1.60
2023	-	-	-	1.50	1.50
2024	-	-	-	-	-

* This was the actual distribution for the period 19 March 2007 to 30 June 2007.

Distribution Policy

FSL Trust makes distributions to its Unitholders out of its net distributable amount, which consists of net lease income and after-tax interest income less management fees, financing costs, other trust expenses (excluding depreciation, impairment loss and amortisation of debt up-front fees), credit facility repayments, plus previously reserved amounts, less any additional amount to be set aside to meet upcoming payment obligations of the Trust, but before deduction of any Incentive Fees payable to the Trustee-Manager.

In the event that there are net taxable income and/or proceeds arising from any sale of vessels, and only if such income and/or proceeds are surplus to the business requirements and needs of FSL Trust and its taxability or otherwise confirmed by the IRAS, the Trustee-Manager may also, in its discretion, distribute such income and/or proceeds.

The form, frequency and amount of future distributions (if any), will depend on earnings, financial position, results of operations and if relevant, net income and/or proceeds arising from sale of any vessel, as well as expected working capital requirements and capital expenditure, contractual restrictions, provisions of applicable law and other factors which the Trustee-Manager may deem relevant.

Distributions will be declared in US dollars. For holders of Units that are held through CDP, the distributions will be paid in the Singapore dollar equivalent of the US dollar distribution declared, unless the Unitholder elects to receive the distributions in US dollars, by submitting to the CDP a "Distribution Election Notice" by the closing date for election which will be specified in the "Distribution Election Notice.". The "Distribution Election Notice" will be sent to each Unitholder holding Units through the CDP, who is eligible to receive the relevant distributions. For the distributions to be paid in Singapore Dollars, the Trustee-Manager will make the necessary arrangements to convert the distributions in US dollars into Singapore dollars (taking into account the cost of exchange) at the prevailing market exchange rate. Neither the CDP, the Trustee-Manager nor FSL Trust will be liable for any loss howsoever arising, from the conversion of the distributions payable to Unitholders from US dollars into Singapore dollars. Save for approved depository agents (acting as nominees of their individual customers), each Unitholder may elect to receive distributions in either Singapore dollars or US dollars and shall not be able to elect to receive distributions partially in US dollars and partially in Singapore dollars.

The distributions will be calculated as at 31 March, 30 June, 30 September and 31 December and will be paid within 90 days after taking into account of regulatory requirements.

Unitholders should note that all the foregoing statements merely represent the Trustee-Manager's current intention and shall not constitute legally binding statements in respect of FSL Trust's future distributions, which remain subject to modification in the Directors' sole and absolute discretion.

No inference should or can be made from any of the foregoing statements as to FSL Trust's actual future profitability or its ability to make distributions in the future. The actual performance of the Trust is subject to significant business, economic, financial, regulatory and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from expectations.