The Fund intends to make monthly cash distributions of its distributable cash to the maximum extent possible to Unitholders. The amount of cash available for distribution will be equal to the interest and principal repayments on the AOT Notes (Armtec Operating Trust) owned by the Fund and the distributions (if any) on or in respect of the AOT Units (Armtec Operating Trust) owned by the Fund less: (i) administrative expenses and other obligations of the Fund; (ii) amounts that may be paid by the Fund in connection with any cash redemptions or repurchases of Units; (iii) satisfaction of its debt service obligations (principal and interest) on indebtedness, if any; and (iv) any amount that the Trustees may reasonably consider to be necessary to provide for the payment of any costs or expenses, including any tax liability of the Fund, that have been or are reasonably expected to be incurred in the activities and operations of the Fund (to the extent that such costs or expenses have not otherwise been taken into account in the calculation of the available distributable cash of the Fund) and for reasonable reserves.

The Trustees have increased monthly distributions by 7% to $0.15 per unit effective January 2008. For a summary of the Fund's distributions, see"Distribution History".

On December 12, 2007 the Fund announced that it declared a special distribution of $0.17 per unit to the unitholders of record on December 31, 2007. The distribution was paid on January 25, 2008 and was in addition to the normal monthly distribution of $0.14 for December 2007.