The Projections do not assume that the Company will make any future material acquisitions, even thou

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 to change. Accordingly, the Projections are only an estimate, and actual results will vary from the Projections, and these variations may be material. Consequently, the inclusion of the Projections herein should not be regarded as a representation of the Company, its advisors, the Agents, or any other person of results that will actually be achieved. Projections are necessarily specuiative in nature, and it is usually the case that one or more of the assumptions in projections do not materialize. Prospective purchasers of the Units are cautioned not to place undue reliance on the Projections. The limited 412 projections contained in this Memorandum were received from k12 management and were not prepared by the Company or its management. The Company does not intend to update or otherwise revise the Projections to reflect circumstances existing after the date hereof or to reflect the occurrence of unanticipated events, even in the event that any or all of the underlying assumptions do not come to fruition. Furthermore, the Company does not intend to updaie or revise the Projections to reflect changes in general economic or industry conditions. 6.4. Risks Related to Investing in the Units 6.4.1. There will be significant unallocated net proceeds from the offering lf there are additional closings after the initial closing of the offering, after repayment of KUE’s debt, a significant amount of the anticipated net proceeds from the offering of the Units may not have been designated for specific uses. Therefore, the Company's management will have broad discretion within the business scope of the Company with respect to the use of the net proceeds of the offering. There can be no assurance that the uses of proceeds will benefit the Company or investors. 6.4.2 Investors will only have limited rights to receive ongoing information about the Company Other than as expressly provided in the Limited Partnership Agreement of KUE (the “Limited Partnership Agreement"), the Company does not expect fo provide ongoing detailed information regarding its business, financial condition or results of operations to Investors. The Limited Parinership Agreement provides that Investors shall receive yearly audited financial statements of the Company, as well as semi- 56 HOUSE_OVERSIGHT_024489