Common use of Transfer of or Change in Down MacroShares Clause in Contracts

Transfer of or Change in Down MacroShares. The Depositor may use any convention or combination of conventions that it believes is reasonable for U.S. federal income tax purposes regarding the allocation of items of income, gain, loss, deduction and expense with respect to transferred Down MacroShares and redeemed Down MacroShares. A transferee who takes all or part of a Holder's Down MacroShares shall succeed to the Capital Account maintained in respect of the transferor Holder to the extent of such transfer; including where the transfer causes a termination of the Down Trust under Section 708(b)(1)(B) of the Code, in which case the Capital Account of the transferee and the Capital Accounts of the other Holders of Down MacroShares in the terminated Down Trust shall carry over to the new Down Trust that is formed, for U.S. federal income tax purposes, as a result of the termination.

Transfer of or Change in Down MacroShares. The Depositor may use any convention or combination of conventions that it believes is reasonable for U.S. federal income tax purposes regarding the allocation of items of income, gain, loss, deduction and expense with respect to transferred Down MacroShares and redeemed Down MacroShares. A transferee who takes all or part of a Holder's Down MacroShares shall succeed to the Capital Account maintained in respect of the transferor Holder to the extent of such transfer; , including where the transfer causes a termination of the Down Trust under Section 708(b)(1)(B) of the Code, in which case the Capital Account of the transferee and the Capital Accounts of the other Holders of Down MacroShares in the terminated Down Trust shall carry over to the new Down Trust that is formed, for U.S. federal income tax purposes, as a result of the termination.