2242749 Ont Ltd. AIIFF

RE:RE:RE:RE:RE:RE:Another thought

[HRc60to65]

The propososed transaction is for : •Amendment to Armtec's credit facility with Brookfield (the "Term Facility") in order to extend the maturity date of the interim facility to May 11, 2015, and provide a new short-term facility of $20 million (the "Incremental Facility"). •Commitment from Brookfield for its affiliate, Trisura Guarantee Insurance Co. to provide the company with up to $150 million of bonding on a cost to complete basis. Brookfield will indirectly, through a new entity ("Newco") acquire all of Armtec's assets in exchange for Brookfield's indebtedness on the terms described below (the "Brookfield Transaction"). Pursuant to the terms of the Brookfield Transaction, Newco would assume Armtec's obligations to its trade creditors and employees. Brookfield loan to ARF is 110M$ +20M$ (new short tem facility) as shown above. 20M$ new short tem facility, can be used to refund CIBC loan. 150M$ are in performance bonds needed by ARF to bid on a very large contract may be 300 M$. The cost of the performance bond will be 5 to 10 M$. That new contract to be awarded alone, will propulsed upward the ARF value to 500 M$. Brookfiled purchassing price will be 42M$ (85M$ payable +130M$ Brookfield - 173M$ recevailble)