From: Vahe Stepanian Sent: 4/19/2018 5:53:03 PM To: Paul Barrett CC: Stewart Oldfield Subject: RE: RIN follow up Attachments: RIN II PPM 094 Alpha Group Capital LLC.PDF Paul- Apologies for the delayed response — had a bit of a crazy day here. Answers to your questions: Are the loans on completed infrastructure projects or more like construction loans? o The RIN team is focused on investing in loans secured by operational infrastructure projects. RIN II will have concentration limitations that require 85% of the portfolio to be comprised of loans secured by operating assets. For reference, there are 3 loans currently in RIN l's portfolio that are either (i) greenfield construction or (ii) have a large brownfield expansion underway and comprise —12% of RIN l's portfolio as of today. Although these loans have do have some construction risk, we believe that these risks have been well mitigated as described in the table below. Loan Nature of Construction Construction Risk Mitigants Cheniere Energy (SPLNG,CCTP) Assets includes operational pipeline, 4 operational LNG terminals, and 1 re- • Lump-sum, fixed-price, turnkey EPC Contracts for the gasification/storage terminal. 1 construction with Bechtel, a premier additional LNG terminal under engineering, construction and project construction and another under management companies consideration. • The EPC Contracts include liquidated-damage provisions requiring performing within 95% of design specifications and 18-month defect liability provisions and are guaranteed by Bechtel Global (entity that includes Bechtel's oil, gas, chemicals, power & communications businesses) • Project uses proven and leading liquefaction tech (ConocoPhillips Optimized Cascade Process) • Bechtel has built one-third of the world's liquefaction plants, is currently ahead of the guaranteed construction schedule for the first four trains of (with the first two trains complete), and previously built the Sponsor's existing regasification facilities at the Sabine Pass LNG terminal on time and within budget. Bechtel has never been called to pay delay or performance Liquidated Damages Elba The project is an expansion of an • Fixed price, lump sum, date- existing facility — infrastructure certain EPC Contract with delay CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0088664 SDNY_GM_00234848 EFTA01386802