##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from to
 Commission file number 0-27496
 CRONOS GLOBAL INCOME FUND XVI, L.P.
  California
(State or other jurisdiction of 
incorporation or organization)
    
    94-3230380
(I.R.S. Employer Identification No.)
 
   Title of each class
    
    Name of each exchange on
which registeredNot Applicable
  UNITS OF LIMITED PARTNERSHIP INTERESTS
 o þ
 o þ
 þ o
 o o
 þ
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
(Do not check if a smaller reporting company)
    
    Smaller reporting company þ
 o þ




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##### 



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Report on Form 10-K for the Fiscal Year
Ended December 31, 2009
 TABLE OF CONTENTS
 PAGEPART I
    
    
    3Item 1 Business
    
    
    3Item 1A Risk Factors
    
    
    10Item 1B Unresolved Staff Comments
    
    
    14Item 2 Properties
    
    
    14Item 3 Legal Proceedings
    
    
    14Item 4 Reserved
    
    
    14PART II
    
    
    15Item 5 Market for the Partnerships Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
    
    
    15Item 6 Selected Financial Data
    
    
    16Item 7 Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    17Item 7AQuantitative and Qualitative Disclosures About Market Risk
    
    
    22Item 8 Financial Statements and Supplementary Data
    
    
    22Item 9 Changes In and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    36Item 9A Controls and Procedures
    
    
    36Item 9A(T) Controls and Procedures
    
    
    36Item 9B Other Information
    
    
    36PART III
    
    
    37Item 10 Directors, Executive Officers and Corporate Governance
    
    
    37Item 11 Executive Compensation
    
    
    40Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
    
    
    41Item 13 Certain Relationships and Related Transactions, and Director Independence
    
    
    41Item 14 Principal Accountant Fees and Services
    
    
    42PART IV
    
    
    43Item 15 Exhibits and Financial Statement Schedules
    
    
    43EX-31.1EX-31.2EX-32
  2




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##### Table of Contents



PART I
 
 Item 1. Business
    Percentage ofAmount
    
    

Gross ProceedsGross
Subscription Proceeds
    
    $
    31,993,340
    
    
    
    100.0
    %Public
Offering Expenses:Underwriting Commissions
    
    $
    3,199,334
    
    
    
    10.0
    %Offering and
Organization Expenses
    
    $
    1,482,466
    
    
    
    4.6
    %Total Public
Offering Expenses
    
    $
    4,681,800
    
    
    
    14.6
    %Net Proceeds
    
    $
    27,311,540
    
    
    
    85.4
    %Acquisition Fees
    
    $
    1,276,220
    
    
    
    4.0
    %Working
Capital Reserve
    
    $
    319,933
    
    
    
    1.0
    %Unexpended Proceeds
    
    $
    190,993
    
    
    
    0.6
    %Gross
Proceeds Invested in Equipment
    
    $
    25,524,394
    
    
    
    79.8
    %
    3




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Benefits of Leasing
  
    
    Leasing provides shipping lines with the flexibility to respond to rapidly changing
market opportunities as they arise without relying exclusively on their own containers;
    
    Leasing allows shipping lines to respond to changing seasonal and trade route demands,
thereby optimizing their capital investment and minimizing storage costs;
    
    Leasing enables shipping lines to expand their trade routes and market shares at a
relatively low cost without making a permanent commitment to support their new structure;
 4




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
    
    Leasing allows the shipping lines to utilize the equipment they need without having to
make large capital expenditures;
    
    Leasing offers a shipping line an alternative source of financing in a traditionally
capital-intensive industry; and
    
    Leasing allows shipping lines to benefit from the relationships between container
manufacturers and leasing companies.
 Fleet Profile
  Ò Ò
    Dry Cargo
    
    
    RefrigeratedContainers
    
    
    Containers
    
    
    Tank Containers
    
    
    TotalContainer on lease:Master lease
    
    
    3,906
    
    
    
    52
    
    
    
    21
    
    
    
    3,979Term leaseShort term1
    
    
    446
    
    
    
    4
    
    
    
    13
    
    
    
    463Long term2
    
    
    916
    
    
    
    27
    
    
    
    9
    
    
    
    9521,362
    
    
    
    31
    
    
    
    22
    
    
    
    1,415Subtotal
    
    
    5,268
    
    
    
    83
    
    
    
    43
    
    
    
    5,394Containers off-hire
    
    
    1,274
    
    
    
    31
    
    
    
    7
    
    
    
    1,312Total container fleet
    
    
    6,542
    
    
    
    114
    
    
    
    50
    
    
    
    6,706
 
 1.
    
    Short term leases represent term leases that are either scheduled for renegotiation or
that may expire in 2010.2.
    
    Long term leases represent term leases that will expire after 2010.  5




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##### Table of Contents



Types of Leases
  
    
    Master leases.Master leases provide customers with flexibility by
allowing them to pick up containers where and when required on pre-agreed terms, subject
to restrictions and availability. Master leases also define the number of containers
that may be returned within each calendar month, the permitted return locations and
applicable drop-off charges. Due to the increased flexibility they offer, master leases
usually command higher per-diem rates and generate more ancillary revenue (including
pick-up, drop-off, handling and off-hire revenue) than term leases. The commercial
terms of master leases are usually negotiated or renewed annually.
 
    
    Term leases.Term leases are for a fixed quantity of containers for
a fixed period of time, typically ranging from three to five years. In most cases,
containers cannot be returned prior to the expiration of the lease. Some term lease
agreements contain early termination penalties that apply in the event of early
redelivery. Term leases provide greater revenue stability to the lessor, but usually at
lower lease rates than master leases. Ocean carriers use term leases to lower their
operating costs when they have a need for an identified number of containers for a
specified term.
 
    
    Direct finance leases.Direct finance leases are long-term in
nature, usually ranging from three to seven years, and require relatively low levels of
customer service. They ordinarily require fixed payments over a defined period and
provide customers with an option to purchase the subject containers at the end of the
lease term. Per-diem rates include an element of repayment of capital and therefore are
usually higher than rates charged under either term or master leases.
      Customers
  6




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Credit Controls
   Repair and Maintenance
   Disposition of Used Containers
  Operations
    7




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Insurance
  Competition
     8




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Environmental Matters
  Employees
     2009
    
    
    2008
    
    
    2007Dry cargo containers
    
    $
    1,150,647
    
    
    $
    1,663,728
    
    
    $
    1,926,769Refrigerated containers
    
    
    190,501
    
    
    
    356,450
    
    
    
    567,939Tank containers
    
    
    149,150
    
    
    
    165,428
    
    
    
    157,917Total
    
    $
    1,490,298
    
    
    $
    2,185,606
    
    
    $
    2,652,625
     9




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##### Table of Contents



Item 1A.
    
    Risk Factors
  Risks Related to the Container Leasing Industry and to the Partnership
 Demand for leased containers depends on economic and political factors beyond the control of
the Leasing Agent, CCC and the Partnership.
  §
    
    prices of new and used containers;§
    
    economic conditions, competitive pressures and consolidation in the container shipping industry;§
    
    shifting trends and patterns of cargo traffic;§
    
    the availability and terms of container financing;§
    
    fluctuations in inflation rates, interest rates and foreign currency values;§
    
    overcapacity, undercapacity and consolidation of container manufacturers;§
    
    the lead times required to purchase containers;§
    
    the number of containers purchased by competitors and container lessees;§
    
    container ship fleet overcapacity or undercapacity;§
    
    increased repositioning by container shipping lines of their own empty
containers to higher demand locations instead of leasing containers;§
    
    consolidation or withdrawal of individual container lessees in the container
leasing industry;§
    
    import / export tariffs and restrictions;§
    
    customs procedures, foreign exchange controls and other governmental
regulations;§
    
    natural disasters that are severe enough to affect local and global economies
or interfere with trade; and§
    
    other political and economic factors.
 Lease rates may decrease, which could harm the results of operations and financial condition
of the Partnership.
  §
    
    the supply of containers available;§
    
    the price of new containers (which is positively correlated with the price of steel);§
    
    the type and length of the lease;§
    
    interest rates;§
    
    embedded residual assumptions;§
    
    the type and age of the container;§
    
    the location of the container being leased;§
    
    the number of containers available for lease by competitors; and§
    
    the lease rates offered by competitors.
 Customer defaults could have an adverse effect on the profitability and financial
condition of the Leasing Agent and the Partnership.
   §
    
    a decline in revenues reflecting lower volumes of world trade and
correspondingly lower freight rates;§
    
    increased expenses due to a rise in cost of financing; and
 10




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§
    
    a decline in the supply of capital required to acquire new ships and container
equipment and to refinance existing debt facilities.
  Fluctuations in the residual value of containers may impact profitability and the long-term
returns generated by leased equipment.
  The Leasing Agent operates in a highly competitive industry.
  Increases in the cost of insurance or the lack of availability of insurance could increase the
risk exposure of the Partnership and reduce its profitability. Potential losses could exceed
maximum insurance coverage limits
  The Leasing Agent relies on its information technology systems to conduct its business. Any
failure or interruption in these systems could have an adverse effect on the profitability and
financial condition of the Leasing Agent and the Partnership.
   11




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The Leasing Agent and Partnership are reliant on electronic banking systems to receive and
make payments. Any failure or interruption in banking systems could have an adverse effect on the
profitability and financial condition of the Leasing Agent and the Partnership.
  Specialized containers could experience potential mechanical, obsolescence and other risks.
  Environmental liability may adversely affect the Partnerships business and financial
situation.
  Affiliates of the Leasing Company may not have adequate resources to pay container
manufacturers for equipment purchased for resale.
  There are political, economic and business risks inherent in the global business environment.
  §
    
    Political and economic instability;
 §
    
    Increases in maintenance expenses, taxes, third party fees and other expenses
attributable to the operation and the maintenance of the containers that cannot be offset
by increased lease revenues from the containers;
 §
    
    Fluctuations in supply and demand for containers resulting from, among other
things, obsolescence, changes in the methods or economics of a particular mode of
transportation or changes in governmental regulations or safety standards;
 §
    
    Restrictions on the movement of capital;
 §
    
    The imposition of new direct and indirect taxes in jurisdictions in which the
Leasing Agent trades;
 §
    
    The effects of strikes and labor disputes; and
 §
    
    Terrorist acts, conflicts and wars.
 Risk Associated with the Operations of an Equipment Leasing Business in Partnership Form
 There is no assurance of successful operations.
  The Partnership has a high degree of reliance on CCC and the Leasing Agent.
  12




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The Partnership is dependent on key personnel in CCC and the Leasing Agent.
  There is a lack of liquidity for Partnership units.
  The Limited Partners have limited voting rights.
  Limited liability is not clearly established.
  13




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Item 1B.
    
    Unresolved Staff Comments
  
 Item 2.
    
    Properties
  Containers
    
    Quantity (Units)Dry Cargo - 20-Foot
    
    
    2,052Dry Cargo - 40-Foot
    
    
    804Dry Cargo - 40-Foot High-Cube
    
    
    1,441Refrigerated - 20-Foot
    
    
    14Refrigerated - 40-Foot High-Cube
    
    
    50Tank
    
    
    50
   
 Item 3.
    
    Legal Proceedings
  
 Item 4. Reserved
 14




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PART II
 
 Item 5. Market for the Partnerships Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
 (a)
    
    Market Information; Recent Sales of Unregistered Securities
  (a)(1)(ii)
    
    Inapplicable.(a)(1)(iii)
    
    Inapplicable.(a)(1)(iv)
    
    Inapplicable.(a)(1)(v)
    
    Inapplicable.(a)(2)
    
    Inapplicable.(a)(3)
    
    The Partnership sold no equity securities during 2009 that were not registered under the
Securities Act of 1933, as amended.(b)
    
    Holders(b)(1)
    
    As of December 31, 2009, there were 1,631 holders of record of limited
partnership interests.(c)
    
    Dividends
  (d)
    
    Securities authorized for issuance under equity compensation plans
  (e)
    
    Performance Graph
  (f)
    
    Use of Proceeds
  (g)
    
    Purchases of equity securities by the issuer and affiliated purchasers
  15




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Item 6. Selected Financial Data
 Year Ended December 31,2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Net lease revenue
    
    $
    900,588
    
    
    $
    1,603,384
    
    
    $
    1,808,075
    
    
    $
    2,316,295
    
    
    $
    2,803,236Net income
    
    $
    84,523
    
    
    $
    303,588
    
    
    $
    308,275
    
    
    $
    196,435
    
    
    $
    916,814Limited partners share of net
income (per unit basis)
    
    $
    0.01
    
    
    $
    0.12
    
    
    $
    0.12
    
    
    $
    0.06
    
    
    $
    0.47Cash distributions per unit of
limited partnership
interest
    
    $
    1.42
    
    
    $
    1.63
    
    
    $
    1.88
    
    
    $
    2.08
    
    
    $
    1.71At year-end:Total assets
    
    $
    4,573,500
    
    
    $
    6,824,266
    
    
    $
    9,218,045
    
    
    $
    12,013,715
    
    
    $
    15,272,387Partners capital$
    4,573,500
    
    
    $
    6,824,266
    
    
    $
    9,218,045
    
    
    $
    12,013,715
    
    
    $
    15,272,387
 16




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Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
  Forward-Looking Statements
   Primary Revenue Items
  
    
    Activity-related expenses, include agents costs and depot costs such as repairs,
maintenance and handling;
    
    Inventory-related expenses for off-hire containers, comprise dof storage and
repositioning costs. These costs are sensitive to the quantity of off-hire containers as
well as the frequency at which containers are re-delivered and the frequency and size of
repositioning moves undertaken; and
    
    Legal and other expenses, include legal costs related to the recovery of containers and
doubtful accounts, insurance and provisions for doubtful accounts.
 Partnership Overview
  17




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Dry Cargo
    
    
    RefrigeratedContainers
    
    
    Containers
    
    
    Tank Containers
    
    
    TotalTEU
    
    
    %
    
    
    TEU
    
    
    %
    
    
    TEU
    
    
    %
    
    
    TEU
    
    
    %Total purchases
    
    
    11,053
    
    
    
    100
    %
    
    
    690
    
    
    
    100
    %
    
    
    52
    
    
    
    100
    %
    
    
    11,795
    
    
    
    100
    %Less disposals
    
    
    4,511
    
    
    
    41
    %
    
    
    576
    
    
    
    83
    %
    
    
    2
    
    
    
    4
    %
    
    
    5,089
    
    
    
    43
    %Remaining fleet at December 31, 2009
    
    
    6,542
    
    
    
    59
    %
    
    
    114
    
    
    
    17
    %
    
    
    50
    
    
    
    96
    %
    
    
    6,706
    
    
    
    57
    %
  Market & Industry Overview
    18




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2009
    
    
    2008
    
    
    2007Fleet size (measured in TEUs)Dry cargo containers
    
    
    7,191
    
    
    
    8,181
    
    
    
    8,934Refrigerated containers
    
    
    161
    
    
    
    310
    
    
    
    428Tank containers
    
    
    51
    
    
    
    51
    
    
    
    51Utilization rates for combined fleetAverage for the period
    
    
    81
    %
    
    
    94
    %
    
    
    91
    %At end of period
    
    
    81
    %
    
    
    91
    %
    
    
    94
    %
  Year Ended December 31, 2009 Compared to the Year Ended December 31, 2008
   §
    
    a 16% reduction in the size of the container fleet (measured in TEUs) as equipment that
was off-hired was sold;
 §
    
    a decline in the levels of net lease revenues, resulting from the combined effect of the
reduction in the size of the fleet, lower utilization and lease per-diem levels, and
increased direct operating expenses; and
 §
    
    a decrease in depreciation expense as a result of the declining fleet size.
 Analysis & Discussion
 Net lease revenue
 §
    
    a $695,308 reduction in gross lease revenue, of which approximately 47% was
attributable to a reduction in the size of the Partnerships fleet and 53% was
attributable to the combined effect of both lower utilization rates and dry cargo
container per-diem rental rates;
 §
    
    a $92,368 increase in direct operating expenses as both activity-related and
inventory-related expenses increased in line with the level of containers off-hired by
the shipping lines.
 Depreciation expense
 Other general and administrative expenses
 Net gain on disposal of equipment
 19




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Year Ended December 31, 2008 Compared to the Year Ended December 31, 2007
 Overview
  §
    
    a 12% reduction in the size of the container fleet as equipment that was off-hired was
sold;
 §
    
    a decline in net lease revenue as a result of the reduction in the size of the fleet;
and
 §
    
    an increased gain recorded on the disposal of equipment.
 Analysis and Discussion
 Net lease revenue
 Depreciation expense
 Other general and administrative expenses
 Net gain on disposal of equipment
 Liquidity and Capital Resources
    Cash from Operating Activities:
 Cash from Investing Activities:
 20




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Cash from Financing Activities
 Off-Balance Sheet Arrangements
  Contractual Obligations
  Critical Accounting Policies
 Container equipment  depreciable lives
 Container equipment  valuation:
 Allowance for doubtful accounts:
 Accounting Pronouncements Adopted During the Period
  21




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Inflation
  The Cronos Group
    
 Item 7A. Quantitative and Qualitative Disclosures About Market Risk
 Exchange rate risk:
   Credit risk:
 
 Item 8. Financial Statements and Supplementary Data
 22




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
    
  23




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Balance Sheets
 December 31, 2009 and 2008
 2009
    
    
    2008AssetsCurrent assets:Cash
    
    $
    650,666
    
    
    $
    886,181Net lease receivables due from Leasing Agent
    
    
    182,324
    
    
    
    396,009Direct finance lease receivable, due from Leasing Agent within one year, net
    
    
    26,485
    
    
    
    22,382Total current assets
    
    
    859,475
    
    
    
    1,304,572Direct finance lease receivable, due from Leasing Agent after one year, net
    
    
    67,711
    
    
    
    21,091Container rental equipment, at cost
    
    
    13,976,467
    
    
    
    18,016,216Less accumulated depreciation
    
    
    (10,330,153
    )
    
    
    (12,517,613
    )Net container rental equipment
    
    
    3,646,314
    
    
    
    5,498,603Total assets
    
    $
    4,573,500
    
    
    $
    6,824,266Partners CapitalPartners capital:General partner
    
    
    1,697
    
    
    
    607Limited partners
    
    
    4,571,803
    
    
    
    6,823,659Total partners capital
    
    $
    4,573,500
    
    
    $
    6,824,266
  24




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Statements of Operations
 For the years ended December 31, 2009, 2008 and 2007
 2009
    
    
    2008
    
    
    2007Net lease revenue from Leasing Agent
    
    $
    900,588
    
    
    $
    1,603,384
    
    
    $
    1,808,075Other operating (expenses) income:Depreciation
    
    
    (944,375
    )
    
    
    (1,273,694
    )
    
    
    (1,466,930
    )Other general and administrative expenses
    
    
    (111,452
    )
    
    
    (142,368
    )
    
    
    (116,299
    )Net gain on disposal of equipment
    
    
    239,762
    
    
    
    111,011
    
    
    
    43,743(816,065
    )
    
    
    (1,305,051
    )
    
    
    (1,539,486
    )Income from operations
    
    
    84,523
    
    
    
    298,333
    
    
    
    268,589Other income:Interest income
    
    
    
    
    
    
    5,255
    
    
    
    39,686Net income
    
    $
    84,523
    
    
    $
    303,588
    
    
    $
    308,275Allocation of net income:General partner
    
    $
    70,186
    
    
    $
    116,447
    
    
    $
    119,183Limited partners
    
    
    14,337
    
    
    
    187,141
    
    
    
    189,092$
    84,523
    
    
    $
    303,588
    
    
    $
    308,275Limited partners per unit share of net income
    
    $
    0.01
    
    
    $
    0.12
    
    
    $
    0.12
  25




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Statements of Partners Capital
 For the years ended December 31, 2009, 2008 and 2007
 Limited
    
    
    GeneralPartners
    
    
    Partner
    
    
    TotalBalances at January 1, 2007
    
    $
    12,052,925
    
    
    $
    (39,210
    )
    
    $
    12,013,715Net income
    
    
    189,092
    
    
    
    119,183
    
    
    
    308,275Cash distributions
    
    
    (2,999,376
    )
    
    
    (104,569
    )
    
    
    (3,103,945
    )Balances at December 31, 2007
    
    $
    9,242,641
    
    
    $
    (24,596
    )
    
    $
    9,218,045Net income
    
    
    187,141
    
    
    
    116,447
    
    
    
    303,588Cash distributions
    
    
    (2,606,123
    )
    
    
    (91,244
    )
    
    
    (2,697,367
    )Balances at December 31, 2008
    
    $
    6,823,659
    
    
    $
    607
    
    
    $
    6,824,266Net income
    
    
    14,337
    
    
    
    70,186
    
    
    
    84,523Cash distributions
    
    
    (2,266,193
    )
    
    
    (69,096
    )
    
    
    (2,335,289
    )Balances at December 31, 2009
    
    $
    4,571,803
    
    
    $
    1,697
    
    
    $
    4,573,500
  26




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Statements of Cash Flows
 For the years ended December 31, 2009, 2008 and 2007
 2009
    
    
    2008
    
    
    2007Cash flows from operating activities:Net income
    
    $
    84,523
    
    
    $
    303,588
    
    
    $
    308,275Adjustments to reconcile net income to net cash from
operating activities:Depreciation
    
    
    944,375
    
    
    
    1,273,694
    
    
    
    1,466,930Net gain on disposal of equipment
    
    
    (239,762
    )
    
    
    (111,011
    )
    
    
    (43,743
    )Decrease in net lease and other receivables
due from Leasing Agent
    
    
    134,757
    
    
    
    104,269
    
    
    
    24,708Total adjustments
    
    
    839,370
    
    
    
    1,266,952
    
    
    
    1,447,895Net cash provided by operating activities
    
    
    923,893
    
    
    
    1,570,540
    
    
    
    1,756,170Cash flows from investing activities:Proceeds from sale of container rental equipment
    
    
    1,175,881
    
    
    
    1,181,848
    
    
    
    975,561Cash flows from financing activities:Distributions to general partner
    
    
    (69,096
    )
    
    
    (91,244
    )
    
    
    (104,569
    )Distributions to limited partners
    
    
    (2,266,193
    )
    
    
    (2,606,123
    )
    
    
    (2,999,376
    )Net cash used in financing activities
    
    
    (2,335,289
    )
    
    
    (2,697,367
    )
    
    
    (3,103,945
    )Net (decrease) increase in cash
    
    
    (235,515
    )
    
    
    55,021
    
    
    
    (372,214
    )Cash at beginning of year
    
    
    886,181
    
    
    
    831,160
    
    
    
    1,203,374Cash at end of year
    
    $
    650,666
    
    
    $
    886,181
    
    
    $
    831,160
  27




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Notes to Financial Statements
 December 31, 2009, 2008 and 2007
 (1)
    
    Summary of Significant Accounting Policies
 (a)
    
    Nature of OperationsCronos Global Income Fund XVI, L.P. (the Partnership) is a limited partnership that was
organized under the laws of the State of California on September 1, 1995, for the purpose
of owning and leasing dry and specialized marine cargo containers to ocean carriers. The
Partnership commenced operations on March 29, 1996, when the minimum subscription proceeds
of $2,000,000 were received from over 100 subscribers (excluding from such count,
Pennsylvania residents, Cronos Capital Corp. (CCC), the general partner, and all
affiliates of CCC). On February 3, 1997, CCC suspended the offer and sale of units in the
Partnership. The offering terminated on December 27, 1997, at which time 1,599,667
limited partnership units had been sold. The Partnership shall continue until December
31, 2015, unless terminated sooner upon the occurrence of certain events.CCC and its affiliate, Cronos Containers Limited (the Leasing Agent), manage the
business of the Partnership. CCC and the Leasing Agent also manage the container leasing
business for other partnerships affiliated with CCC.The Partnership has entered into its 15th year of operations and its liquidation phase,
wherein CCC focuses its attention on the retirement of the remaining equipment in the
Partnerships container fleet. At December 31, 2009, approximately 57% of the original
equipment remained in the Partnerships fleet. CCC will take several factors into
consideration when examining options for the timing of the disposal of the containers.
These factors include the level of gross lease revenue generated by the diminishing fleet,
the level of costs relative to this revenue, projected disposal proceeds on the
disposition of the Partnerships containers, overall market conditions and any foreseeable
changes in other general and administrative expenses. The Partnerships operations depend
on global economic and political conditions. The Partnership believes that the
profitability and risk profile of leases with foreign customers are generally the same as
those with domestic customers. The majority of the Partnerships leases generally require
all payments to be made in US dollars.
 (b)
    
    Cronos Ltd.The Cronos Group S.A. (CGH), a Luxembourg registered company, formerly the parent of
CCC, announced on February 28, 2007 that it had entered into an asset purchase agreement
(the Asset Purchase Agreement) with CRX Acquisition Ltd, a Bermuda exempted company
(CRX) and FB Transportation Capital LLC, a Delaware limited liability company (FB
Transportation). Under the terms of the Asset Purchase Agreement, and subject to the
conditions stated therein, CGH agreed to sell all of its assets to CRX and CRX agreed to
assume all of CGHs liabilities. FB Transportation is an affiliate of Fortis Bank S.A. /
N.V.At a special meeting held August 1, 2007, CGHs shareholders approved the Asset Purchase
Agreement and the transactions contemplated thereunder, including CGHs dissolution and
liquidation. Closing of the sale of CGHs assets and liabilities to CRX occurred later
that same day. Promptly following the closing, CGH changed its name to CRG Liquidation
Company, and CRX changed its name to Cronos Ltd.The container leasing business of CGH has been continued by Cronos Ltd. as a private
company. Management of CGH has continued as the management of Cronos Ltd and acquired an
equity interest in Cronos Ltd. at closing.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 
 (c)
    
    Leasing AgentThe Partnership and the Leasing Agent have entered into an agreement (the Leasing Agent
Agreement) whereby the Leasing Agent manages the leasing operations for all equipment
owned by the Partnership. In addition to responsibility for leasing and re-leasing the
equipment to ocean carriers, the Leasing Agent disposes of the containers at the end of
their useful economic life and has full discretion over which ocean carriers and suppliers
of goods and services it may deal with. The Leasing Agent Agreement permits the Leasing
Agent to use the containers owned by the Partnership, together with other containers owned
or managed by the Leasing Agent and its affiliates, as part of a single fleet operated
without regard to ownership. The Leasing Agent Agreement generally provides that the
Leasing Agent will make payments to the Partnership based upon rentals collected from
ocean carriers after deducting direct operating expenses and management fees due both to
CCC and the Leasing Agent.The Leasing Agent leases containers to ocean carriers, generally under operating leases
which are either master leases or term leases (mostly one to five years). Master leases
do not specify the exact number of containers to be leased or the term that each container
will remain on hire but allow the ocean carrier to pick up and drop off containers at
various locations, and rentals are charged and recognized based upon the number of
containers used and the applicable per-diem rate. Accordingly, rentals under master
leases are all variable and contingent upon the number of containers used.Term leases are for a fixed quantity of containers for a fixed period of time, typically
varying from three to five years. In most cases, containers cannot be returned prior to
the expiration of the lease. Term lease agreements may contain early termination penalties
that apply in the event of early redelivery. Term leases provide greater revenue stability
to the lessor, usually at lower lease rates than master leases. Ocean carriers use term
leases to lower their operating costs when they have a need for an identified number of
containers for a specified term. Rentals under term leases are charged and recognized
based upon the number of containers leased, the applicable per-diem rate and the length of
the lease, irrespective of the number of days which the customer actually uses the
containers.
 (d)
    
    Concentrations of Credit RiskThe Partnerships financial instruments that are exposed to concentrations of credit risk
consist primarily of cash, cash equivalents and net lease receivables due from the Leasing
Agent. See note 3 for further discussion regarding the credit risk associated with cash
and cash equivalents.Net lease receivables due from the Leasing Agent (see notes 1(c) and 4 for discussion
regarding net lease receivables) subject the Partnership to a significant concentration of
credit risk. The net lease receipts, represent rentals collected from ocean carriers
after deducting payments for direct operating expenses and management fees, are remitted
by the Leasing Agent to the Partnership on a weekly basis.
 (e)
    
    Basis of AccountingThe Partnerships accounting records are maintained in US dollars and the financial
statements are prepared in accordance with accounting principles generally accepted in the
United States of America (US GAAP).
 (f)
    
    Use of EstimatesThe preparation of financial statements in conformity with US GAAP requires the
Partnership to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reported
period. The most significant estimates relate to the carrying value of equipment
including estimates relating to depreciable lives, residual values and asset impairments.
Actual results could differ from those estimates.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 
 (g)
    
    Allocation of Net Income or Loss, Partnership Distributions and Partners CapitalNet income or loss has been allocated between general and limited partners in accordance
with the Partnership Agreement. The Partnership Agreement generally provides that CCC
shall at all times maintain at least a 1% interest in each item of income or loss,
including the net gain arising from the sale of containers. The Partnership Agreement
further provides that the gain arising from the sale of containers be allocated first to
the partners with capital account deficit balances in an amount sufficient to eliminate
any deficit capital account balance. Thereafter, the Partnerships gains arising from the
sale of containers are allocated to the partners in accordance with their share of sale
proceeds distributed. The Partnership Agreement also provides for income (excluding the
gain arising from the sale of containers) for any period, be allocated to CCC in an amount
equal to that portion of CCCs distributions in excess of 1% of the total distributions
made to both CCC and the limited partners of the Partnership for such period, as well as
other allocation adjustments.
 Actual cash distributions differ from the allocations of net income or loss between the
general and limited partners as presented in these financial statements. Partnership
distributions are paid to its partners from distributable cash from operations, allocated
95% to the limited partners and 5% to CCC. Distributions of sales proceeds are allocated
99% to the limited partners and 1% to CCC. The allocations remain in effect until such
time as the limited partners have received from the Partnership aggregate distributions in
an amount equal to their capital contributions plus an 8% cumulative, compounded (daily),
annual return on their adjusted capital contributions. Thereafter, all Partnership
distributions will be allocated 85% to the limited partners and 15% to CCC. Cash
distributions from operations to CCC in excess of 5% of distributable cash will be
considered an incentive fee and will be recorded as compensation to CCC, with the
remaining distributions from operations charged to partners capital.
 Upon dissolution, the assets of the Partnership will be sold and the proceeds thereof
distributed as follows: (i) all of the Partnerships debts and liabilities to persons
other than CCC or the limited partners shall be paid and discharged; (ii) all of the
Partnerships debts and liabilities to CCC and the limited partners shall be paid and
discharged; and (iii) the balance of such proceeds shall be distributed to CCC and the
limited partners in accordance with the positive balances of CCC and the limited partners
capital accounts. CCC shall contribute to the Partnership, if necessary, an amount equal
to the lesser of the deficit balance in its capital account at the time of such
liquidation, or 1.01% of the excess of the limited partners capital contribution to the
Partnership over the capital contributions previously made to the Partnership by CCC,
after giving effect to the allocation of income or loss arising from the liquidation of
the Partnerships assets.
 (h)
    
    Acquisition FeesPursuant to the Partnership Agreement, acquisition fees paid to CCC are based on 5% of the
equipment purchase price. These fees are capitalized and included in the cost of the
container rental equipment.
 (i)
    
    Container Rental EquipmentContainer rental equipment is depreciated over a 15-year life using the straight-line
basis to a residual value of 10% of the original equipment cost. The Partnership and CCC
evaluate the period of depreciation and residual values to determine whether subsequent
events and circumstances warrant revised estimates of useful lives.
 In accordance with ASC 360-10-35  Accounting for the Impairment or Disposal of
Long-Lived Assets, container rental equipment is considered to be impaired if the
carrying value of the asset exceeds the expected future cash flows from related operations
(undiscounted and without interest charges). If impairment is deemed to exist, the assets
are written down to fair value. An analysis of projected future cash flows from container
operations is prepared annually or upon material changes in market conditions. The
primary variables utilized by the analysis are current and projected utilization rates,
per-diem rental rates, direct operating expenses, fleet size, container disposal proceeds
and the timing of container disposals.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 
 Additionally, the Partnership evaluates future cash flows and potential impairment for its
entire fleet rather than for each container type or individual container. As a result,
future losses could result for individual container dispositions due to various factors,
including age, condition, suitability for continued leasing, as well as the geographical
location of containers when disposed.
 (j)
    
    Income TaxesThe Partnership is not subject to income taxes, consequently no provision for income taxes
has been made. The Partnership files federal and state annual information tax returns,
prepared on the accrual basis of accounting. Taxable income or loss is reportable by the
partners individually.
 (k)
    
    New Accounting Pronouncements Adopted During the PeriodOn July 1, 2009, the Financial Accounting Standards Board (FASB) established the
Accounting Standards Codification (the Codification  or ASC) as the single source of
authoritative non-governmental US GAAP. Rules and interpretive releases of the SEC under
authority of federal securities laws are also sources of authoritative GAAP for SEC
registrants. The Codification is effective prospectively from July 1, 2009 and has
superseded all existing non-SEC accounting and reporting standards. All other accounting
literature not included in the Codification is non-authoritative. The Codification did not
impact the Partnerships financial position or results of operations.On April 1, 2009 the Partnership adopted new guidance issued by the FASB on subsequent
events within ASC 855  Subsequent Events. This guidance establishes general standards
of accounting for and disclosure of events that occur after the balance sheet date but
before financial statements are issued or are available to be issued. The guidance is
effective prospectively from April 1, 2009. The adoption of the guidance did not impact
the Partnerships financial position, results of operations or cash flows. The Partnership
has evaluated subsequent events to the date the financial statements were issued.
 (2)
    
    Operating SegmentAn operating segment is a component of an enterprise that engages in business activities from
which it may earn revenues and incur expenses, whose operating results are regularly reviewed
by the enterprises chief operating decision maker to make decisions about resources to be
allocated to the segment and assess its performance, and about which separate financial
information is available. CCC and the Leasing Agent operate the Partnerships container fleet
as a homogeneous unit and have determined that as such, it has a single reportable operating
segment.The Partnership derives revenues from dry cargo containers, refrigerated containers and tank
containers that are used by its customers in global trade routes. As of December 31, 2009, the
Partnership owned 2,052 twenty-foot, 804 forty-foot and 1,441 forty-foot high-cube marine dry
cargo containers, as well as 14 twenty-foot and 50 forty-foot refrigerated high-cube cargo
containers, and 50 tank containers. A summary of gross lease revenue earned by each
Partnership container type for the years ended December 31, 2009, 2008 and 2007 follows:
 2009
    
    
    2008
    
    
    2007Dry cargo containers
    
    $
    1,150,647
    
    
    $
    1,663,728
    
    
    $
    1,926,769Refrigerated containers
    
    
    190,501
    
    
    
    356,450
    
    
    
    567,939Tank containers
    
    
    149,150
    
    
    
    165,428
    
    
    
    157,917Total
    
    $
    1,490,298
    
    
    $
    2,185,606
    
    
    $
    2,652,625
 Due to the Partnerships lack of information regarding the physical location of its fleet of
containers when on lease in the global shipping trade, the Partnership believes that it does
not possess discernible geographic reporting segments.
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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 The Partnership does not believe that its ongoing business is dependent upon a single customer
of the Leasing Agent, although the loss of one or more of the Leasing Agents customers could
have an adverse effect upon its business.Two sub-lessees of the Leasing Agent generated more than 10% of the gross lease revenue earned
on the Partnerships equipment during 2009. Mediterranean Shipping Company S.A. (MSC)
generated approximately 16%, or $236,007 of gross lease revenue, and Hapag-Lloyd AG generated
approximately 14%, or $201,975 of gross lease revenue. Two sub-lessees of the Leasing Agent
generated more than 10% of the gross lease revenue earned on the Partnerships equipment during
2008. MSC generated approximately 12%, or $252,228 of gross lease revenue, and Hapag-Lloyd AG
generated approximately 11%, or $235,336 of gross lease revenue. One sub-lessee of the Leasing
Agent generated more than 10% of the gross lease revenue earned on the Partnerships equipment
during 2007. Hamburg Sudamerikanische Dampfschifffahrts-Gesellschaft KG generated
approximately 24%, or $635,143 of gross lease revenue.
 (3)
    
    Cash
 At December 31, 2009, the Partnership held its cash on deposit in an operating bank account.
The Partnership will review its investment strategy for cash balances on a periodic basis.
Cash at December 31, 2009 and 2008 was $650,666 and $886,181, respectively.
 (4)
    
    Net Lease Receivables Due from Leasing Agent
 Net lease receivables at December 31, 2009 and 2008 comprised:
 December 31,
    
    
    December 31,2009
    
    
    2008Gross lease receivables
    
    $
    391,120
    
    
    $
    607,309Less:Direct operating payables and accrued expenses
    
    
    155,879
    
    
    
    131,180Base management fees payable
    
    
    18,860
    
    
    
    30,874Reimbursed administrative expenses
    
    
    6,873
    
    
    
    6,421Allowance for doubtful accounts
    
    
    27,184
    
    
    
    42,825Net lease receivables due from Leasing Agent
    
    $
    182,324
    
    
    $
    396,009
 Included within the amount of gross lease receivables are $115,220 and $183,061 in respect of
amounts owed by the Leasing Agent in relation to the disposal of containers for the years ended
December 31, 2009 and 2008, respectively.For the years ended December 31, 2009 and 2008, respectively, $1,761 and ($1,021) were recorded
as doubtful debt expense. In addition, $17,402 and $3,572 were written-off for the years ended
December 31, 2009 and 2008, respectively.
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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 (5)
    
    Direct Finance Lease Receivables Due from Leasing Agent
 The Leasing Agent, on behalf of the Partnership, entered into lease purchase agreements
that included bargain purchase options. The Partnership classified the lease purchase
agreements as direct finance leases and has recorded direct finance lease receivables. The
underlying equipment had previously been classified as container rental equipment. At December
31, 2009, the minimum future lease rentals under these direct finance leases, net of unearned
income were:
 Gross Direct
    
    
    Unearned Direct
    
    
    Net Minimum FutureFinance Lease
    
    
    Finance Lease
    
    
    Direct FinanceReceivable
    
    
    Income
    
    
    Lease Rentals2010
    
    $
    58,029
    
    
    $
    31,543
    
    
    $
    26,4852011
    
    
    44,986
    
    
    
    22,026
    
    
    
    22,9612012
    
    
    32,856
    
    
    
    12,340
    
    
    
    20,5162013
    
    
    23,928
    
    
    
    4,502
    
    
    
    19,4262014
    
    
    5,163
    
    
    
    355
    
    
    
    4,808Total
    
    $
    164,962
    
    
    $
    70,766
    
    
    $
    94,196
 (6)
    
    Damage Protection Plan
 The Leasing Agent offers a service to several customers of the Partnerships containers,
whereby the customer pays an additional rental fee and in return the Partnership undertakes to
cover the cost of certain damage repairs that are required when the container is redelivered.
The level of damage cover provided will vary according to the terms of each lease agreement.
 (7)
    
    Net Lease Revenue
 Net lease revenue for 2009, 2008 and 2007 comprised:
 2009
    
    
    2008
    
    
    2007Gross lease revenue
    
    $
    1,490,298
    
    
    $
    2,185,606
    
    
    $
    2,652,625Interest income from direct finance lease
    
    
    18,716
    
    
    
    104
    
    
    
    1,509,014
    
    
    
    2,185,710
    
    
    
    2,652,625Less:Direct operating expenses
    
    
    423,445
    
    
    
    331,077
    
    
    
    534,360Base management fees (note 8)
    
    
    104,163
    
    
    
    152,007
    
    
    
    183,230Reimbursed administrative expenses (note 8):Salaries
    
    
    60,015
    
    
    
    73,300
    
    
    
    88,107Other payroll related expenses
    
    
    6,316
    
    
    
    9,226
    
    
    
    13,773General administrative expenses
    
    
    14,487
    
    
    
    16,716
    
    
    
    25,080608,426
    
    
    
    582,326
    
    
    
    844,550Net lease revenue
    
    $
    900,588
    
    
    $
    1,603,384
    
    
    $
    1,808,075
 Contingent master lease rentals earned on the Partnerships equipment approximated $1,094,028,
$1,697,641, and $1,996,100 of gross lease revenue, respectively, in the years ended December
31, 2009, 2008 and 2007, respectively.
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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 As of December 31, 2009, the minimum lease rentals receivable on the Partnerships equipment in
future years under non-cancelable term operating leases were:
 2010
    
    $
    995,2002011
    
    
    306,1092012
    
    
    151,2952013
    
    
    80,9322014
    
    
    57,784Thereafter
    
    
    354,516Total
    
    $
    1,945,836
 (8)
    
    Related Party Transactions
 CCC and the Leasing Agent are related parties of the Partnership.Base management fees are equal to 7% of the gross lease revenue earned on the Partnerships
equipment. Reimbursed administrative expenses are equal to the costs expended by CCC and its
affiliates for services necessary for the prudent operation of the Partnership pursuant to the
Partnership Agreement. The following compensation was earned by CCC and the Leasing Agent for
the years indicated:
 2009
    
    
    2008
    
    
    2007Base management feesLeasing Agent
    
    $
    104,163
    
    
    $
    152,007
    
    
    $
    183,230Reimbursed administrative expensesCCC
    
    
    10,321
    
    
    
    10,308
    
    
    
    16,897Leasing Agent
    
    
    70,497
    
    
    
    88,934
    
    
    
    110,06380,818
    
    
    
    99,242
    
    
    
    126,960$
    184,981
    
    
    $
    251,249
    
    
    $
    310,190
 The following compensation was payable to CCC and the Leasing Agent at December 31, 2009
and 2008:
 2009
    
    
    2008CCC
    
    $
    938
    
    
    $
    657Leasing Agent
    
    
    24,795
    
    
    
    36,638$
    25,733
    
    
    $
    37,295
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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 (9)
    
    Limited Partners Capital
 Cash distributions made to the limited partners during 2009, 2008 and 2007 were as follows:
 2009
    
    
    2008
    
    
    2007Cash Distribution from Operations
    
    $
    1,086,439
    
    
    $
    1,526,346
    
    
    $
    1,746,304Cash Distribution from Sales Proceeds
    
    
    1,179,754
    
    
    
    1,079,777
    
    
    
    1,253,072Total Cash Distributions
    
    $
    2,266,193
    
    
    $
    2,606,123
    
    
    $
    2,999,376
 These distributions are used in determining Adjusted Capital Contributions as defined by the
Partnership Agreement.The limited partners per unit share of capital at December 31, 2009, 2008 and 2007 was $2.86,
$4.27 and $5.78, respectively. This is calculated by dividing the limited partners capital at
the end of each year by 1,599,667, the total number of outstanding limited partnership units.
 35




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##### Table of Contents



Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure
  
 Item 9A. Controls and Procedures
  
 Item 9A(T). Controls and Procedures
 Evaluation of Disclosure Controls and Procedures
   Report of Management on Internal Control Over Financial Reporting
    
 Item 9B. Other Information
  36




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##### Table of Contents



PART III
 
 Item 10. Directors, Executive Officers and Corporate Governance
  Name
    
    OfficePeter J. Younger
    
    President and Chairman of the Board of Directors of CCC, and Chief
Executive Officer of CCC and Cronos Ltd.Dennis J. Tietz
    
    Vice Chairman and Director of CCC and of Cronos Ltd.Frank P. Vaughan
    
    Vice President, Treasurer, Chief Financial Officer and Director of CCCJohn Kallas
    
    Vice President, Secretary and Director of CCC
 Peter J. Younger
  Dennis J. Tietz
   Frank P. Vaughan
 John Kallas
   37




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##### Table of Contents



Name
    
    TitleFrank P. Vaughan
    
    Director of Leasing Agent and Vice President, Chief Financial Officer of
Cronos Ltd.John C. Kirby
    
    Director of Leasing Agent and Vice President  Atlantic Region of Cronos Ltd.Timothy W. Courtenay
    
    Director of Leasing AgentTimothy D. May
    
    Director of Leasing Agent and Vice President  Pacific Region of Cronos Ltd.
 Frank P. Vaughan
  John C. Kirby
 Timothy W. Courtenay
 Timothy D. May
 38




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##### Table of Contents



Audit Committee
  Audit Committee Financial Expert
  Code of Ethics
  ir@cronos.com
 Section 16(a) Beneficial Ownership Reporting Compliance
  39




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##### Table of Contents



Item 11. Executive Compensation
    Cash Fees andName
    
    Description
    
    Distributions1) CCL
    
    Base management fees  equal to 7% of
gross lease revenue from the leasing of
containers subject to leases whereby the
aggregate rental payments due during the
initial term of the lease are less than
the purchase price of the equipment
subject to the lease pursuant to Section
4.3 of the Limited Partnership Agreement
    
    $
    116,1772) CCC 
    CCL
    
    Reimbursed administrative expenses equal
to the costs expended by CCC and its
affiliates for services necessary to
the prudent operation of the Partnership
pursuant to Section 4.4 of the Limited
Partnership Agreement
    
    $
$
    10,340
70,3263) CCC
    
    Interest in Fund  5% of distributions of
distributable cash for any quarter
pursuant to Section 6.1 of the Limited
Partnership Agreement
    
    $
    69,096
 40




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##### Table of Contents



Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
         
 Item 13. Certain Relationships and Related Transactions, and Director Independence
             41




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##### Table of Contents



Item 14. Principal Accountant Fees and Services
  Audit Fees
  Audit-Related Fees
  Tax Fees
  All Other Fees
  42




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##### Table of Contents



PART IV
 
 Item 15. Exhibits and Financial Statement Schedules
 Page(1) Financial StatementsReport of Independent Registered Public Accounting Firm
    
    
    23(2) The following financial statements of the Partnership are included in Part II, Item 7:Balance Sheets  as of December 31, 2009 and 2008
    
    
    24Statements of Operations  for the years ended December 31, 2009, 2008 and 2007
    
    
    25Statements of Partners Capital  for the years ended December 31, 2009, 2008 and 2007
    
    
    26Statements of Cash Flows  for the years ended December 31, 2009, 2008 and 2007
    
    
    27Notes to Financial Statements
    
    
    28
   ExhibitNo
    
    Description
    
    Method of Filing3(a)
    
    Limited Partnership Agreement of the Partnership, amended andrestated as of December 28, 1995
    
    *3(b)
    
    Certificate of Limited Partnership
    
    **10
    
    Form of Leasing Agent Agreement with Cronos Containers Limited
    
    ***31.1
    
    Rule 13a-14 Certification
    
    Filed with this document31.2
    
    Rule 13a-14 Certification
    
    Filed with this document32
    
    Section 1350 Certification
    
    Filed with this document ****
 
 *
    
    Incorporated by reference to Exhibit A to the Prospectus of the Partnership dated December
28, 1995, included as part of Registration Statement on Form S-1 (No. 33-98290)**
    
    Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (No.
33-98290)***
    
    Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1 (No.
33-98290)****
    
    This certification, required by Section 906 of the Sarbanes-Oxley Act of 2002, other than as
required by Section 906, is not to be deemed filed with the Commission or subject to the rules
and regulations promulgated by the Commission under the Securities Exchange Act of 1934, as
amended, or to the liabilities of Section 18 of said Act. 43




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##### Table of Contents



SIGNATURES
  CRONOS GLOBAL INCOME FUND XVI, L.P.By
    Cronos Capital Corp.The General PartnerBy
    /s/ Peter J. YoungerPeter J. YoungerPresident and Chief Executive Officer of
Cronos Capital Corp. (CCC)
Principal Executive Officer of CCC   Signature
    
    Title
    
    Date/s/ Peter J. Younger

Peter J. Younger
    
    President and Chairman of the Board of Directors of
Cronos Capital Corp. (CCC)
(Principal Executive Officer of CCC)
    
    March 9, 2010/s/ Dennis J. Tietz

Dennis J. Tietz
    
    Vice Chairman and Director of CCC
    
    March 9, 2010/s/ Frank P. Vaughan

Frank P. Vaughan
    
    Vice President, Treasurer, Chief Financial Officer
and Director of CCC
(Principal Financial and Accounting Officer of CCC)
    
    March 9, 2010/s/ John Kallas

John Kallas
    
    Vice President- Secretary and Director of CCC
    
    March 9, 2010




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##### Table of Contents



Exhibit Index
 ExhibitNo
    
    Description
    
    Method of Filing3(a)
    
    Limited Partnership Agreement of the Partnership, amended and
    
    *restated as of December 28, 19953(b)
    
    Certificate of Limited Partnership
    
    **10
    
    Form of Leasing Agent Agreement with Cronos Containers Limited
    
    ***31.1
    
    Rule 13a-14 Certification
    
    Filed with this document31.2
    
    Rule 13a-14 Certification
    
    Filed with this document32
    
    Section 1350 Certification
    
    Filed with this document ****
 
 *
    
    Incorporated by reference to Exhibit A to the Prospectus of the Partnership dated
December 28, 1995, included as part of Registration Statement on Form S-1 (No. 33-98290)**
    
    Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (No.
33-98290)***
    
    Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1 (No.
33-98290)****
    
    This certification, required by Section 906 of the Sarbanes-Oxley Act of 2002, other than
as required by Section 906, is not to be deemed filed with the Commission or subject to the
rules and regulations promulgated by the Commission under the Securities Exchange Act of 1934,
as amended, or to the liabilities of Section 18 of said Act.