RIN II •094 Alpha Group Capital LLC Certain Risk Factors An investment in the Preferred Shares involves a substantial degree of risk and should be considered only by a prospective investor whose financial resources are sufficient to enable it to assume such risk (and the possible loss of some or all of its investment) and who has no immediate need for liquidity in its investment. Each prospective investor should carefully evaluate the following risk factors associated with an investment in the Preferred Shares and should make its own assessment of the risks and rewards of an investment in the Preferred Shares. Capitalized terms used but not defined in this Section 12 have the meanings specified in Section 11, "Summary of Principal 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 operations of the Obligors on the Collateral Obligations, and in turn the market value and future performance of any Collateral Obligation acquired by the Issuer may be adversely affected by current and future economic conditions. Delinquencies, non-accruals and credit losses generally increase during economic slowdowns or recessions. To the extent that economic and business conditions deteriorate, non- performing 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 ability of the Issuer to pay in full or redeem a Facility, as well as the ability of the Issuer to make any distributions in respect of the Preferred Shares. Certain of the Collateral Obligations may be issued by Obligo