Common use of Income Tax Status Clause in Contracts

Income Tax Status. (a) For United States federal income tax purposes (and for purposes of all state, local and other jurisdictions to the extent applicable), this Litigation Trust shall be treated as a liquidating trust pursuant to Treasury Regulation section 301.7701-4(d) and as a grantor trust pursuant to IRC sections 671-677. To the extent consistent with Revenue Procedure 94-45 and not otherwise inconsistent with this Litigation Trust Agreement, this Trust Agreement shall be construed so as to satisfy the requirements for liquidating trust status. Except as provided in Section 8.2(b) or with respect to the Litigation Trust Assets allocable to the Disputed Claims Reserve, as set forth in Article IV hereof, (i) the Beneficiaries will be treated as both the grantors and the deemed owners of the Litigation Trust, and (ii) any items of income, deduction, credit and loss of the Litigation Trust shall be allocated for federal income tax purposes to the Beneficiaries in accordance with Section 8.3. The Litigation Trust shall at all times be administered so as to constitute a domestic trust for United States federal income tax purposes. (b) For U.S. federal, state and local income tax purposes, the Reorganized Debtors will be treated as retaining a portion of the Litigation Trust Assets consisting of Cash and Assigned Preference Claims and transferring such Litigation Trust Assets directly to the Litigation Trust, and will be treated as the grantors and owners of their respective shares of the applicable Litigation Trust Assets.

Income Tax Status. (a) For United States all purposes of the Tax Code, the Debtors shall be deemed to have transferred the Liquidating Trust assets to the Beneficial Interestholders pursuant to the Plan and the Beneficial Interestholders shall be deemed to have transferred their share of the Liquidating Trust assets to the Liquidating Trust. For all federal income tax purposes (purposes, consistent valuations shall be used by the Liquidating Trust and the Beneficial Interestholders for purposes of all state, local and other jurisdictions the transferred Liquidating Trust Assets. The Liquidating Trust is intended to the extent applicable), this Litigation Trust shall be treated as a liquidating trust pursuant to Treasury Regulation section Regulations S 301.7701-4(d) ), and as a grantor trust pursuant to IRC sections 671-677. To the extent consistent with Revenue Procedure 94-45 and not otherwise inconsistent with this Litigation Trust Agreement, this Trust Agreement shall be construed so as to satisfy the requirements for liquidating trust status. Except as provided in Section 8.2(b) or with respect subject to the Litigation Trust Assets allocable to the Disputed Claims Reserveprovisions of Subchapter J, as set forth in Article IV hereof, (i) the Beneficiaries will be treated as both the grantors and the deemed owners Subpart E of the Litigation TrustTax Code, and (ii) any owned by the Beneficial Interestholders as grantors. Any items of income, deduction, credit and credit, or loss of the Litigation Liquidating Trust shall be allocated for federal income tax purposes to the Beneficiaries in accordance with Section 8.3. The Litigation Trust shall at all times be administered so as to constitute a domestic trust for United States federal income tax purposes. (b) For U.S. federal, state and local income tax purposespurposes among the Beneficial Interestholders pro rata on the basis of their Beneficial Interests; provided, however, that to the extent that any item of income cannot be allocated in the taxable year in which it arises, the Reorganized Debtors will Liquidating Trust shall pay the federal, state and local taxes attributable to such income (net of related deductions) and the amount of such taxes shall be treated as retaining a portion having been received by, and paid on behalf of, the Beneficial Interestholders receiving such allocations when such allocations are ultimately made. The Liquidating Trust is authorized to take any action that may be necessary or appropriate to minimize any potential tax liability of the Litigation Trust Assets consisting of Cash and Assigned Preference Claims and transferring such Litigation Trust Assets directly to the Litigation Trust, and will be treated as the grantors and owners of their respective shares Beneficial Interestholders arising out of the applicable Litigation Trust Assetsoperations of the Liquidating Trust.

Income Tax Status. (a) For United States all purposes of the Tax Code, the Debtors shall be deemed to have transferred the Liquidating Trust assets to the Beneficial Interestholders pursuant to the Plan and the Beneficial Interestholders shall be deemed to have transferred their share of the Liquidating Trust assets to the Liquidating Trust. For all federal income tax purposes (purposes, consistent valuations shall be used by the Liquidating Trust and the Beneficial Interestholders for purposes of all state, local and other jurisdictions the transferred Liquidating Trust Assets. The Liquidating Trust is intended to the extent applicable), this Litigation Trust shall be treated as a liquidating trust pursuant to Treasury Regulation section Regulations 301.7701-4(d) ), and as a grantor trust pursuant to IRC sections 671-677. To the extent consistent with Revenue Procedure 94-45 and not otherwise inconsistent with this Litigation Trust Agreement, this Trust Agreement shall be construed so as to satisfy the requirements for liquidating trust status. Except as provided in Section 8.2(b) or with respect subject to the Litigation Trust Assets allocable to the Disputed Claims Reserveprovisions of Subchapter J, as set forth in Article IV hereof, (i) the Beneficiaries will be treated as both the grantors and the deemed owners Subpart E of the Litigation TrustTax Code, and (ii) any owned by the Beneficial Interestholders as grantors. Any items of income, deduction, credit and credit, or loss of the Litigation Liquidating Trust shall be allocated for federal income tax purposes to the Beneficiaries in accordance with Section 8.3. The Litigation Trust shall at all times be administered so as to constitute a domestic trust for United States federal income tax purposes. (b) For U.S. federal, state and local income tax purposespurposes among the Beneficial Interestholders pro rata on the basis of their Beneficial Interests; provided, however, that to the extent that any item of income cannot be allocated in the taxable year in which it arises, the Reorganized Debtors will Liquidating Trust shall pay the federal, state and local taxes attributable to such income (net of related deductions) and the amount of such taxes shall be treated as retaining a portion having been received by, and paid on behalf of, the Beneficial Interestholders receiving such allocations when such allocations are ultimately made. The Liquidating Trust is authorized to take any action that may be necessary or appropriate to minimize any potential tax liability of the Litigation Trust Assets consisting of Cash and Assigned Preference Claims and transferring such Litigation Trust Assets directly to the Litigation Trust, and will be treated as the grantors and owners of their respective shares Beneficial Interestholders arising out of the applicable Litigation Trust Assetsoperations of the Liquidating Trust.

Income Tax Status. (a) For United States all purposes of the Tax Code, the Debtors shall be deemed to have transferred the Trust Assets to the Trust Beneficiaries and the other recipients of distributions hereunder pursuant to the Plan and thereupon the Trust Beneficiaries shall be deemed to have transferred their share of the Trust Assets to the Realization Trust. For all federal income tax purposes (consistent valuations shall be used by the Realization Trust and the Trust Beneficiaries for purposes of all state, local and other jurisdictions the transferred Trust Assets. The Realization Trust is intended to the extent applicable), this Litigation Trust shall be treated as a liquidating trust pursuant to Treasury Regulation section Regulations Section 301.7701-4(d) ), and as a grantor trust pursuant to IRC sections 671-677. To the extent consistent with Revenue Procedure 94-45 and not otherwise inconsistent with this Litigation Trust Agreement, this Trust Agreement shall be construed so as to satisfy the requirements for liquidating trust status. Except as provided in Section 8.2(b) or with respect subject to the Litigation Trust Assets allocable to the Disputed Claims Reserveprovisions of Subchapter J, as set forth in Article IV hereof, (i) the Beneficiaries will be treated as both the grantors and the deemed owners Subpart E of the Litigation TrustTax Code, and (ii) any owned by the Trust Beneficiaries as grantors. Any items of income, deduction, credit and credit, or loss of the Litigation Realization Trust shall be allocated for federal income tax purposes to the Beneficiaries in accordance with Section 8.3. The Litigation Trust shall at all times be administered so as to constitute a domestic trust for United States federal income tax purposes. (b) For U.S. federal, state and local income tax purposespurposes among the Trust Beneficiaries pro rata on the basis of their beneficial interests; provided, however, that to the extent that any item of income cannot be allocated in the taxable year in which it arises, the Reorganized Debtors will Realization Trust shall pay the federal, state and local taxes attributable to such income (net of related deductions) and the amount of such taxes shall be treated as retaining a portion having been received by, and paid on behalf of, the Trust Beneficiaries receiving such allocations when such allocations are ultimately made. The Realization Trustee is authorized to take any action that may be necessary or appropriate to minimize any potential tax liability of the Litigation Trust Assets consisting of Cash and Assigned Preference Claims and transferring such Litigation Trust Assets directly to the Litigation Trust, and will be treated as the grantors and owners of their respective shares Beneficiaries arising out of the applicable Litigation Trust Assetsoperations of the Realization Trust.