Common use of Disposition of Units Clause in Contracts

Disposition of Units. A Non-Canadian Holder will not be subject to tax under the Tax Act on any capital gain realized on a disposition or deemed disposition of the Units (whether by way of sale, redemption, or capital distribution by the Fund in excess of the Non-Canadian Holder’s adjusted cost base) , unless, at the time of disposition, the Units are, or are deemed to be, “taxable Canadian property” (as defined in the Tax Act) to the Non-Canadian Holder and the gain is not exempt from tax pursuant to the terms of an applicable income tax convention between Canada and the country in which the Non-Canadian Holder is resident. Generally, the Units will not constitute taxable Canadian property to a Non-Canadian Holder at a particular time, unless at any particular time during the 60-month period that ends at that particular time: