FSL – Westcomb

Proposes distribution reinvestment scheme

• First Ship Lease Trust (“FSL Trust”) proposed the adoption of the First Ship Lease Trust Distribution Reinvestment Scheme (the “Scheme”).

• The proposed Scheme, if adopted, will enable Unitholders to elect to receive their distributions in the form of new units (“New Units”) in lieu of cash. Unitholders will have the flexibility to elect for part of their distribution to be received in the form of New Units with the remaining distribution to be paid in cash. Unitholders who do not choose to participate in the Scheme will continue to receive their distribution in cash.

• The Scheme enables Unitholders to acquire additional units in FSL Trust and thus increase their unitholding incrementally without incurring brokerage or other transaction costs. With the issue of New Units in lieu of cash, the capital base of FSL Trust will be enlarged incrementally and this is expected to enhance the trading liquidity of the units in the long run.

• The cash retained, which would otherwise have been paid as distribution, could be deployed to fund the continuing growth and expansion of FSL Trust.