CoChalet · Confidential · Attorney-Client Privileged · For Me Michel Lebeuf and Me Éliot Barberger

§3.1 Master Cash Flow Diagram

Visual reference accompanying the May 12, 2026 supplement to the April 21 Client Brief
Audience
For attorney review at the May 12, 2026 follow-up session
Property
Ensemble Base · 304 Cardinal (Tremblant North Peak by Lac-Supérieur) as canonical example · Sanctuaire variant deltas in callout below diagram
Legal architecture
CCQ 1010-1037 indivision · 30-year partition postponement (CCQ 1013) · convention published per CCQ 1014 · CCQ 1018 §4.3 self-override doctrine · CCQ 2098 prestataire de service routing for management entity

3.1 — Visual reference · master cash flow diagram

The diagram below shows revenue inflows, operating cost outflows, intercompany flows, LP waterfall distribution, and CO economic returns across the entity structure. Color-coded by flow type per the legend. Ensemble Base property used as the canonical example; Sanctuaire variant deltas in the callout below.

CoChalet Cash Flow Architecture — Master Diagram (Ensemble Base property example) Master visualization of cash flows: revenue inflows (CO contributions, STR revenue, Strike Premium, Tier services upsell, Pre-sale fees) entering the E-4 SPV LP; operating cost outflows (Property opex A/B/C, Desjardins debt service); intercompany flows to E-3 Hospitality (cost-recovery basis) and E-2 ManCo (2-3% management fee); LP waterfall distribution from Property DCF through 5 tiers to LP investors and GP promote chain (E-2 to E-1 to Justin); and Co-Owner economic returns (4 returns: personal use, appreciation, tax efficiency, contingent governance-allocated payments) flowing separately from operating cash per CCQ 1018 §4.3 self-override. CoChalet Cash Flow Architecture — Master Diagram · Ensemble Base property (304 Cardinal canonical) External capital sources Property entity Operating outflows Service entities (intercompany) LP waterfall distribution CO economic returns (separate from operating cash · CCQ 1018 §4.3 wall) 3 Co-Owners → E-4 SPV LP (capital): $132,500 stake each → E-2 ManCo (svc fees · CCQ 2098): $1,875/mo holding fee $22,500 pre-sale · $24K Strike LP Capital Financer Accredited LP equity exact 50% capital stack NI 45-106 exemption CoChalet $0 · Pure GP (Pioneer 01) LP = 100% outside accredited Desjardins Debt exact 50% LTV 5.25% / 25-year Ensemble only Ensemble debt service active $662,500 mortgage · 304 Cardinal STR market revenue (Ensemble only) ~$114,800 Conservative (164 nights) · ~$139,300 Optimized (199 nights) — 304 Cardinal Base E-4 · Phase 1 canon · A6 RATIFIED 2026-05-11 CoChalet Real-Estate SPV LP (per property) • Receives: LP equity 50% (accredited) + Desjardins 50% + STR rev + CO equity $132,500 each • A6: CoChalet $0 capital · Pure GP model (Pioneer 01 wave) • Pays property opex (§A/§B/§C) + debt service + intercompany fees • Property DCF (Distributable Cash Flow) routed to LP waterfall • COs receive ZERO from operating cash — §4.3 CCQ 1018 self-override CANON ANCHOR — CCQ 1010-1037 indivision · CCQ 2693 acte en minute CANON ANCHOR — CCQ 1018 first-sentence "tout autre accord" derogation CANON ANCHOR — CCQ 1027/1029 Manager · Hybrid CCQ 1027+2098 framework Property opex §A Cleaning · platform · supplies Property opex §B Taxes · insurance · utilities Property opex §C Reserves (CapEx, FF&E) Desjardins debt service §D (Ensemble only) ~$47,650/yr · 5.25% / 25-yr · principal + interest E-2 · Phase 1 canon CoChalet GP / Management Entity Inc. Inflows (CCQ 2098 prestataire de service): • CO holding fee $1,875/mo (per CO) • Strike Premium $24K/yr (bid-only) • Pre-Sale Fee $22,500 (T0 · ASPE 3064) • Mgmt Fee 2.5% from E-4 SPV LP E-3 · Phase 1 canon CoChalet Hospitality Inc. • Cost + 5% margin (tax-neutral) • STR operations · CITQ permit holder E-1 · Phase 1 canon · APEX CoChalet Holdings Inc. • Receives IP licensing from E-2/E-3/E-4 • Justin compensation flows through here E-1.5 · PHASE 2 DEFERRED · LEBEUF A1 Real Estate Capital Corp Sub-holding for Sponsor Commit · Reading A vs B LP WATERFALL §2.1 (5-tier) Tier 1 — Pref Return 8% working default · LP investors Tier 2 — GP Catch-Up ~20% of profits · GP (E-2) Tier 3 — Below 15% IRR 80/20 LP/GP split Tier 4 — Catch-up 50/50 between hurdles Tier 5 — Above 20% IRR 70/30 LP/GP split Pending Lebeuf Phase 1 Q-W2 LP investors Capital Financer + Sponsor Commit RoC + Pref Return + tier splits Justin (founder) GP promote via E-2 → E-1 Pre-Seed accrual: $10K/mo · $120K/yr (E-1 BS liability) Post-Series-A salary + bonus: $180K base + $45K target (25% bonus) 3 KPIs: cohort · DSCR · capital S-A close triggers accrued payout CO LP capital CO svc fees → E-2 ManCo LP equity (T0) Debt principal STR revenue Variable Fixed Reserves Mgmt fee 2.5% Ops fee (cost+5%) IP/dividend Property DCF GP catch-up GP promote ⬛ §4.3 CCQ 1018 self-override "wall" — no operating cash flows to COs ⬛ RETURN 1 · IN-KIND VALUE Personal use rights 37 nights/yr Ensemble (or 67 Sanctuaire) ~$700/night avoided rental cost CCQ 1010-1037 indivision allocation Calendar use right per Convention §X RETURN 2 · MARKET Capital appreciation Realized at quote-part resale Property-law incident of real right CCQ 1010-1037 + market exposure NOT enterprise-derived profit RETURN 3 · TAX Tax efficiency CCQ immovable real right ETA Sch V Pt I exempt-supply (per 1351231 Ontario "substantially all") Capital gains treatment at resale RETURN 4 · CONTINGENT Governance-allocated payments From secondary-market resale OR refi Per Convention provisions (where applicable) CCQ 1018 second-sentence prescription addressed by notice/claim procedures contingent · governance event only FLOW LEGEND Revenue (inflows) Operating cost (outflows) Intercompany (E-4 → E-2/E-3/E-1) LP waterfall + GP promote CO returns (separate from operating)
Master cash-flow diagram · Ensemble Base property (304 Cardinal canonical example). Sanctuaire variant deltas in callout below. Legend at bottom-right of diagram.
SANCTUAIRE VARIANT — KEY DELTAS vs ENSEMBLE BASE
MechanicEnsemble Base (diagram)Sanctuaire variant
STR revenue~$114-139K/yr$0 (canon ZERO STR · ruling 2026-05-03 mesh msg bfdeabc1)
COs per property3 COs × 33.3%5 COs × 18% + CoChalet 10% = 100% (canon 2026-05-09 PM · supersedes prior "26%" reference)
CO holding fee$1,875/mo (Base) · $1,500/mo (Junior)$2,500/mo (canon CFO BLOCK 2026-05-08)
Annual CO contribution per property$67,500 (3 × $1,875 × 12)$150,000 (5 × $2,500 × 12)
Personal-use nights / CO37 nights/yr67 nights/yr (Sanctuaire_FO_Nights_Base canon)
Pre-sale fee$22,500 ASPE 3064 capitalized$22,500 (canon 2026-05-09 PM · supersedes prior $45K reference)
Capital structure50% Desjardins + 50% accredited LP (A6 ratified: CoChalet $0 Pure GP)[H7 AMEND-DEFERRED · DO NOT LOCK · pending Desjardins lender call this week] · 3 paths under consideration: Path A Desjardins pre-sell · Path B Desjardins post-sell · Path C Desjardins sized to CO holding fees
E-3 Hospitality engagementActive (CITQ permits, STR ops · cost + 5% margin per CCQ 1029+2098 hybrid)Shell-active (CITQ retention · zero operational EBITDA · manager-substance signal for CCQ 1029 fiduciary defense)
Property DCF sourceSTR revenue + CO contributions − opex − debt serviceCO contributions only − opex (no STR per H1 ZERO STR canon · Sanctuaire debt service path TBD per H7)
⬛ §4.3 CCQ 1018 SELF-OVERRIDE "WALL" — DOCTRINAL ANCHOR
The horizontal dashed line in the diagram represents the load-bearing legal-doctrinal anchor: per CCQ 1018 first-sentence "tout autre accord visant leur distribution périodique", the Convention d'indivision §4.3 derogates from the default fruits-and-revenues distribution rule. Operating cash flows accrue to the indivision (E-4 SPV LP) and are distributed via LP waterfall to LP investors and GP promote — NOT to individual indivisaires periodically. CO economic returns (the four returns below the wall) are structurally separate from operating cash and are realized as in-kind value (use rights), at-resale (appreciation), via tax-law incidents (efficiency), or contingent governance allocation (Strike Premium / refi proceeds). This separation is the legal correlate of the Pacific Coast Coin "expectation of profits derived significantly from the efforts of others" defense — see §8 doctrinal alignment in master HTML.