Hugh and Linda Janow - Page 5

                                                 - 5 -                                                    
                        Name of First Tier              First Tier                                        
                        Partnership                     TIN                  Years                        
                        Federal Arbitrage               13-2964750        1978-1988                       
                        NOW IT IS HEREBY DETERMINED AND AGREED for Federal                                
                  income tax purposes that:                                                               
                        1.     In each year they had an interest in the                                   
                  partnerships, the taxpayers will recognize their                                        
                  distributive share of the partnerships' net trading                                     
                  gain or loss from the Arbitrage Management securities                                   
                  trading transactions.  The net trading gain or loss                                     
                  equals the annual increase or reduction in the                                          
                  taxpayers' K-1 capital account, plus any capital                                        
                  distributions received from the partnerships during the                                 
                  year.  The taxpayers will recognize income to the                                       
                  extent of such capital distribution.                                                    
                                     *   *   *   *   *   *   *                                            
                        7.     In accordance with paragraphs 1 through 6,                                 
                  the attached TABLE 1, which is incorporated into this                                   
                  agreement by this reference, represents all of the                                      
                  taxpayers' taxable income, deductions, gains and losses                                 
                  from their interest in the partnerships.                                                
                        8.     The annual tax underpayments and overpayments                              
                  attributable to the taxpayers' interest in the                                          
                  partnership shall be calculated by comparing the                                        
                  amounts in TABLE 1 to the partnerships items reported                                   
                  by the taxpayer(s) on their original returns.  * * *                                    
                                     *   *   *   *   *   *   *                                            
                        10. Other than as provided in paragraph 8, no                                     
                  additions to the tax or penalties shall be imposed with                                 
                  respect to the taxpayers' interest in the partnership,                                  
                  including the additions and penalties described in                                      
                  I.R.C. Section 6653, 6659, and 6661.                                                    
                                     *   *   *   *   *   *   *                                            
                        13. The taxpayers' taxable income for any taxable year                            
                  shall not be increased at any time after the execution of                               
                  this agreement due to the taxpayers' interest in the                                    
                  partnerships, except to the extent that the taxpayer receive                            
                  actual distributions of cash and/or property from the                                   
                  partnerships after the execution of this agreement.                                     

Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011