b'Any remaining distributable cash from company operations will be split 70/30, with 70% paid to Class A and 30% paid to Class B.Analysis In the preferred return with Class B catchup scenario, from cash flow:1.Class A would receive an annual return of $800,000 ($200,000/quarter); plus 2.Class B would be entitled to $343k, but since there isnt enough to pay it, Class B would receive the remaining $200,000, with a deficiency of $143,000. Anyarrearages(deficiencies)ineitherClassApreferredreturnsor Class B catchup distributions (meaning that either class didnt receive the annual return they were entitled to for the year) will be deferred and made up from future cash flow or a capital transaction, at the asset managers option. Class B would be entitled to a look-back on a capital transaction, andcouldmakeupthe$143,000deficiencyfromYear1,plusany subsequent deficiencies from later years.Distributions From Capital TransactionsOnrefinanceordispositionoftheproperty,ordissolutionofthe company (after payment of expenses and liabilities), cash will be disbursed in the following order until exhausted: First, to repay the unreturned capital contributions of Class A members; then To make up arrearages in Class A preferred returns; then 212'