The Projections do not assume that the Company will make any future material acquisitions, even though the Company expects fo use the proceeds of the sale of the Units, among other purposes, for acquisitions, which will likely affect actual performance and cause it to differ from the Projections. The Projections assume the success of the Company's operating strategy, although no assurance can be given that the Company's strategy will be effective or that the anticipated benefits from the strategy will be realized in the periods for which the Projections have been prepared. The assumptions described herein are those that the Company believes are most significant to the Projections; however, not all assumptions used in preparing the Projections have been set forth herein. The Projections, in general, assume that: (i) the Company will not be negatively or positively impacted by any material legal proceedings; (ii} there will be no material change in any of the Company's existing contracts or leases; (ili) there will be no change in generally accepted accounting principles in the U.S. that will have a material effect on the financial results of ihe Company; (iv} there will be no labor disputes, natural disasters, acts of terrorism, epidemics (such as avian flu) or other disturbances that would materially affect the operations or revenues of the Company; and (v) that worldwide economic conditions and economic conditions in the U.S. remain generally favorable and consistent with those prevailing on the date of this Memorandum. The Projections are based upon a number of assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies which are beyond the control of KLC, and upon assumptions with respect to future business decisions which are subject fo change. Accordingly, the Projections are only an estimate, and actual results will vary from the Proje