XYZ company is the General Partner (GP) and sponsor of a discretionary real estate fund that acquires and operates commercial real estate. The fund’s Limited Partners (LPs) include limited partner 1 and limited partner 2. Capital contributions to the fund were made as follows: LP 1 – 55% of committed capital LP 2 – 40% of committed capital GP – 5% of committed capital (in addition to its role as GP) The fund has now fully liquidated its portfolio and will distribute $265,000,000 in net proceeds on June 30, 2025. Distributable cash shall be distributed by the Fund in the following order of priority: 1. First, to the investors pro rata in proportion to their respective percentage interests until investors have received an 8% IRR; 2. Second, twenty percent (20%) to Sponsor and eighty percent (80%) to investors pro rata in proportion to their respective percentage interests until investors have received a 11% IRR; 3. 3. Third, thirty percent (30%) to Sponsor and seventy percent (70%) to the investors pro rata in proportion to their respective percentage interests until the investors have received a 15% IRR 3/1/2018 9/4/2018 5/6/2019 1/1/2022 8/15/2022 9/15/2022 7/5/2023 1/5/2024 6/1/2024 6/30/2025 Contribution Contribution Contribution Distribution Distribution Distribution Distribution Distribution Distribution LP 1 (61'600'000.00) (16'500'000.00) (8'800'000.00) 7'700'000.00 275'000.00 302'500.00 11'000'000.00 27'500'000.00 33'000'000.00 LP 2 (44'800'000.00) (12'000'000.00) (6'400'000.00) 5'600'000.00 200'000.00 220'000.00 8'000'000.00 20'000'000.00 24'000'000.00 GP (5'600'000.00) (1'500'000.00) (800'000.00) 700'000.00 25'000.00 27'500.00 1'000'000.00 2'500'000.00 3'000'000.00 Total (112'000'000.00) (30'000'000.00) (16'000'000.00) 14'000'000.00 500'000.00 550'000.00 20'000'000.00 50'000'000.00 60'000'000.00