CGF Industries, Inc. and Subsidiaries - Page 16




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          the remaining 99.9 percent to partnership interest B.  The                   
          Lincoln Partnerships, like their CGF counterparts, were also                 
          required to make annual distributions of income, pursuant to the             
          Kansas Uniform Principal and Income Act, and in accordance with              
          the partners' interests in the partnerships.                                 
               Simultaneously with the execution of the Lincoln partnership            
          agreements, Lincoln and the Lincoln Family Trusts executed                   
          separate agreements for each partnership detailing how                       
          partnership interest B would be owned.  Four of the nine                     
          agreements stated that Lincoln would own partnership interest B              
          during the first 10 years of forming the partnership, after which            
          partnership interest B would become the sole property of the                 
          Lincoln Family Trusts.  The remaining five agreements stated that            
          Lincoln would own partnership interest B for a term of 20 years              
          from the date of its capital contribution, after which the                   
          Lincoln Family Trusts would become sole owners of the interest.              
          During the period of the Lincoln term interests, Lincoln would be            
          entitled to all of partnership interest B's share of partnership             
          distributions.                                                               
               Lincoln and the Lincoln Family Trusts made the following                
          cash contributions to the Lincoln Partnerships in exchange for               
          their respective term and remainder interests in partnership                 
          interest B:                                                                  







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Last modified: May 25, 2011