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incipal Terms," or in the Appendix "Glossary". GENERAL RISKS Risks of General Economic Conditions The ability of the Issuer to make payments on a Facility and distributions on the Preferred Shares may depend on the financial condition of the economy. The business, financial condition or results of oper

rforming assets are likely to increase, and the value and collectability of the Issuer's assets is likely to decrease. A decrease in market value of the Collateral Obligations also would adversely affect the Sale Proceeds that could be obtained upon the sale of the Collateral Obligations and could ultimately affect the abi

lders will not have any rights under the applicable Facility documentation except to the extent provided therein. Remedies pursued by the holders of Facility, following an acceleration or otherwise, could have a material adverse effect upon the Preferred Shares, particularly if the Collateral Obligations

stment in the Assets. Therefore, the Preferred Shares will be subject to greater volatility and will be significantly affected by the performance of the Collateral Obligations, including any non-payment or other defaults, recoveries and gains and losses on sales of the Issuer's Assets, as well as by prepayments and the av

ase and oversee the Collateral Obligations and to generally administer affairs of the Issuer subject to the restrictions set forth in the applicable Facility documentation and the Portfolio Advisory Agreement. Preferred Shareholders will not have an opportunity to evaluate for themselves the relevant eco

therwise be made in the absence of such Incentive Advisory Fee as the payment of such fee will be dependent to a large extent on the yield earned on the Collateral Obligations. Even though the Confidential 108 February 2018 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0088785 CONFIDENTIAL SDNY_GM_00234969

t the value of Collateral Obligations in the secondary market. Under the terms and conditions set forth in the applicable Facility documentation, a Facility may bear interest at rate other than LIBOR, which could create a divergence between the interest rates borne by the Collateral Obligations and the

e Facility documentation, a Facility may bear interest at rate other than LIBOR, which could create a divergence between the interest rates borne by the Collateral Obligations and the applicable Facility and could adversely impact distributions on the Preferred Shares. Interest Rate Risks The aggregate outstanding princi

dditional Preferred Shares could have a dilutive effect upon the existing Preferred Shares. Uncertainties Concerning LIBOR The Interest Rate on the Facility and the interest rate on most of the Collateral Obligations will be based upon LIBOR and therefore may fluctuate from one interest accrual period to

lutive effect upon the existing Preferred Shares. Uncertainties Concerning LIBOR The Interest Rate on the Facility and the interest rate on most of the Collateral Obligations will be based upon LIBOR and therefore may fluctuate from one interest accrual period to another due to changes in LIBOR. During certain periods, LI

pital LLC "Collateral Quality Test" is one of the tests relating to the credit characteristics of the Collateral Obligations and, with respect to a Facility has the meaning set forth the Initial Facility Agreement. -Collateral Reports" has the meaning specified in the Initial Facility Agreement. ["Colle

RIN II • 094 Alpha Group Capital LLC "Collateral Quality Test" is one of the tests relating to the credit characteristics of the Collateral Obligations and, with respect to a Facility has the meaning set forth the Initial Facility Agreement. -Collateral Reports" has the meaning specified in the Ini