b'then Class B gets a meager 30% of whatever is left, if anything. The model below, with a Class B catchup, is the preferred model, for this reason.Preferred Return With a 70/30 Split and a Class B Catchup Below is a description of how the asset manager can preserve its rights to distributions from operations using a Class B catchup as an alternative to the straight split or preferred return scenario described above. This is the option that we recommend our clients use.Distributions From Operations (Cash Flow) Cashderivedfromoperationsoftheproperty(cashflow),willbe disbursed in the following order until exhausted: Distributable cash generated from property operations will generally be split 70/30 between Class A and Class B members, respectively, but it will be distributed in such a manner that the Class A members will be paid all of the distributable cash until they have received a non-compounded, cumulative annualized return of 8% (the preferred return), determined quarterly and calculated against the Class A unreturned capital contributions; then Class B will receive an annual, non-compounding, cumulative catchup distribution of 3.43% (the Class B catchup distribution), determined quarterly, calculated against the unreturned capital contributions of the Class A members; note that this is equivalent to a 70/30 split between Class A and Class B, as illustrated below: 70/30 = 8/x; 70x = 240; x = 3.43 211'