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Limited Lincoln Term Trust
Partnership Contribution InterestContribution Total
Lincoln Partnership #1, L.P. $1,500,000 10 years $941,180 $2,441,180
Lincoln Partnership #2, L.P. 1,500,000 10 years 941,180 2,441,180
Lincoln Partnership #3, L.P. 1,500,000 10 years 941,180 2,441,180
HFC Partnership, L.P. 1,500,000 10 years 941,009 2,441,009
Lincoln 88 Partnership, L.P. 3,360,000 20 years 586,645 3,946,645
Lincoln Partnership #11, L.P. 4,410,000 20 years 769,972 5,179,972
Two Thousand Eight Partnership, L.P.4,410,000 20 years 769,972 5,179,972
Donlan Partnership #1, L.P. 4,410,000 20 years 769,972 5,179,972
HFC2 Partnership, L.P. 4,410,000 20 years 769,972 5,179,972
Total 27,000,000 7,431,082 34,431,082
In calculating the contribution amounts, Lincoln and the Lincoln
Family Trusts used the actuarial tables set forth in the Federal
Estate and Gift Tax Regulations to value their respective term
and remainder interests.
The cash contributed by Lincoln's shareholders for their
remainder interests in partnership interest B came, in part, from
Lincoln via cash dividend distributions and stock redemptions.
In March, July, and October 1988, Lincoln made distributions
totaling $12,040,000. At the beginning of the year, in January,
1988, Lincoln also called 116,857 shares of its class A preferred
stock in the amount of $6,427,135. Thus, during calendar year
1988, Lincoln engaged in stock transactions totaling $18,467,135.
Lincoln funded this amount by withdrawing money from its invest-
ment in Net Venture, a partnership investing solely in U.S.
Government obligations.11 See discussion of Net Venture, infra.
11During January 1988, when Lincoln called $6,427,135 worth
of its class A preferred stock, it also made a cash withdrawal of
$6,600,000 from its capital account with Net Venture (capital
withdrawal). On Mar. 28, 1988, the same day that Lincoln
redeemed $5,440,000 worth of its stock, it also made a $5,500,000
capital withdrawal. A few days later, on Mar. 31, 1988, Lincoln
made another capital withdrawal of $6,800,000. Less than 1 month
(continued...)
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