Currently XP earned by a character for a kill is equal to the percent of their total earned XP relative to the combined total earned XP of all group members. Since hybrids require 40% more XP to level, they receive a larger chunk of the cut, hence the oft misunderstood concept of "shared" penalties. Keep in mind that other classes (all except war, rog and priests) have some sort of penalty and there are racial penalties as well, which are currently "shared" in the same way.
Following the "hybrid" patch, XP distribution revised to calculate based off of character level only. Additional XP is created out of nowhere to offset class penalties (except rot/war which retain their lower requirements) and racial penalties are left in place. Due to the revised distribution calculation though, racial penalties are no longer shared following the patch, so if you play a human and duo with your friend who plays an iksar, you'll pull ahead of her.
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