Common use of Distributions to Classes of Units Clause in Contracts

Distributions to Classes of Units. (a) Distributions on Units of any class thereof may be paid with such frequency as the Managing Owner may determine in its sole discretion, which may be daily or otherwise, to the Unitholders in that class, from such of the income and capital gains, accrued or realized, from the Trust Estate allocable to that class, as the Managing Owner may determine, after providing for actual and accrued liabilities belonging to that class, as the Managing Owner may determine. All distributions on Units in a particular class thereof shall be distributed pro rata to the Unitholders in that class in proportion to the total outstanding Units in that class held by such Unitholders at the date and time of record established for the payment of such distribution, except to the extent otherwise required or permitted by the preferences and special or relative rights and privileges of any class. Such distributions may be made in cash or Units of that class as determined by the Managing Owner or pursuant to any program that the Managing Owner may have in effect at the time for the election by each Unitholder of the mode of the making of such distribution to that Unitholder. (b) The Units in a class of the Trust shall represent units of beneficial interest in the Trust Estate allocable to such class. Each Unitholder in a class shall be entitled to receive its pro rata share of distributions of income and capital gains made with respect to such class. Upon reduction or withdrawal of its Units or indemnification for liabilities incurred by reason of being or having been a holder of Units in a class, such Unitholder shall be paid solely out of the funds and property allocable to such class of the Trust.