ABC Fund will receive a preferred $5$ percent operating return that is cumulative. That is$,$ any shortfall is carried over to the next year and is paid before Newtown Development Inc. receives any cash from operations. After ABC Fund is paid its preferred return $($including anything due in arrears$),$ Newtown Development Inc. will receive a $5$ percent operating return on its contributed capital that is also cumulative. Any remaining cash flow from operations is split $50-50$ to each party. When the property is sold, proceeds from the sale will be distributed $($in a waterfall structure$)$ as follows: