##### 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, 2007
 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
    
    94-3230380(State or other jurisdiction of
    
    (I.R.S. Employer Identification No.)incorporation or organization)
 
   Name of each exchange onTitle of each class
    
    which registeredNot Applicable
  UNITS OF LIMITED PARTNERSHIP INTERESTS
  o þ
 o þ
 þ o
 þ
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer
o   (Do not check if a smaller reporting company) company)
    
    Smaller reporting company þ
  ̈ þ




---



##### 



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Report on Form 10-K for the Fiscal Year
Ended December 31, 2007
 TABLE OF CONTENTS
 PAGEPART I
    
    
    3Item 1  Business
    
    
    3Item 1A  Risk Factors
    
    
    10Item 1B  Unresolved Staff Comments
    
    
    12Item 2  Properties
    
    
    13Item 3  Legal Proceedings
    
    
    13Item 4  Submission of Matters to a Vote of Security Holders
    
    
    13PART II
    
    
    14Item 5  Market for the Partnerships Common Equity and Related Stockholder Matters
    
    
    14Item 6  Selected Financial Data
    
    
    15Item 7  Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    16Item 7A Quantitative and Qualitative Disclosures About Market Risk
    
    
    23Item 8  Financial Statements and Supplementary Data
    
    
    23Item 9  Changes In and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    39Item 9A  Controls and Procedures
    
    
    39Item 9A(T)  Controls and Procedures
    
    
    39Item 9B  Other Information
    
    
    39PART III
    
    
    40Item 10  Directors, Executive Officers and Corporate Governance
    
    
    40Item 11  Executive Compensation
    
    
    43Item 12  Security Ownership of Certain Beneficial Owners and Management and Related Stockholde
Matters
    
    
    44Item 13  Certain Relationships and Related Transactions, and Director Independence
    
    
    44Item 14  Principal Accountant Fees and Services
    
    
    45PART IV
    
    
    46Item 15  Exhibits and Financial Statement Schedules
    
    
    46EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 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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##### Table of Contents



2007
    
    
    2006
    
    
    2005Dry cargo containers
    
    $
    1,926,769
    
    
    $
    2,271,778
    
    
    $
    2,707,893Refrigerated containers
    
    
    567,939
    
    
    
    975,704
    
    
    
    1,079,602Tank containers
    
    
    157,917
    
    
    
    154,421
    
    
    
    157,147Total
    
    $
    2,652,625
    
    
    $
    3,401,903
    
    
    $
    3,944,642
     4




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##### Table of Contents



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;
    
    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
     5




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##### Table of Contents



Dry Cargo
    
    
    
    
    
    Refrigerated
    
    TankContainers
    
    Containers
    
    Containers40-Foot
    
    
    
    
    
    40-Foot20-Foot
    
    40-Foot
    
    High-Cube
    
    20-Foot
    
    High-Cube
    
    24,000-LiterContainers on lease:Master lease
    
    
    2,370
    
    
    
    770
    
    
    
    1,344
    
    
    
    35
    
    
    
    97
    
    
    
    25Term leaseShort term1
    
    
    329
    
    
    
    101
    
    
    
    112
    
    
    
    2
    
    
    
    8
    
    
    
    10Long term2
    
    
    330
    
    
    
    124
    
    
    
    56
    
    
    
    3
    
    
    
    29
    
    
    
    14Sales-type lease
    
    
    11
    
    
    
    4
    
    
    
    4
    
    
    
    5
    
    
    
    3
    
    
    
    Subtotal
    
    
    3,040
    
    
    
    999
    
    
    
    1,516
    
    
    
    45
    
    
    
    137
    
    
    
    49Containers off lease
    
    
    164
    
    
    
    58
    
    
    
    98
    
    
    
    23
    
    
    
    25
    
    
    
    2Total container fleet
    
    
    3,204
    
    
    
    1,057
    
    
    
    1,614
    
    
    
    68
    
    
    
    162
    
    
    
    51
 
 1.
    
    Short term leases represent term leases that are either scheduled for renegotiation or
that may expire in 2008.2.
    
    Long term leases represent term leases, the majority of which will expire between 2009
and 2012.  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.
    
    Sales-type leases.Sales-type 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.
    6




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Customers
    Repair and Maintenance
   Disposition of Used Containers
  7




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Operations
      Insurance
    8




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##### Table of Contents



Environmental Matters
      9




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##### Table of Contents



Item 1A. Risk Factors
  Risk Associated with Container Leasing
  Container leasing is subject to the cyclicality and fluctuations in world trade
  The Leasing Agent operates in a highly competitive industry
  Fluctuations in shipping lines fleet mix could have an adverse effect on the demand for
leased containers
  Consolidation within the shipping industry could have an adverse effect on the profitability
and financial condition of the Leasing Agent and the Partnership
  Customer defaults could have an adverse effect on the profitability and financial condition of
the Leasing Agent and the Partnership
  Fluctuations in the residual value of containers may impact profitability and the long-term
returns generated by leased equipment
  10




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##### Table of Contents



Specialized containers could have potential mechanical, obsolescence and other risks
  There are political, economic and business risks inherent in the global business environment
  §
    
    Political instability;§
    
    Economic conditions in the shipping and other industries;§
    
    Increases in maintenance expenses, taxes, insurance costs, 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;§
    
    The supply and cost of new containers;§
    
    Fluctuations in inflation, interest rates and foreign exchange rates;§
    
    Import and export tariffs and restrictions;§
    
    Restrictions on the movement of capital;§
    
    The imposition of new direct and indirect taxes in jurisdictions in which the Group
trades;§
    
    The risk of uninsured losses with respect to the containers or insured losses for which
insurance proceeds are inadequate;§
    
    The effects of strikes and labor disputes; and,§
    
    Terrorist attacks and the risk of terrorist attack.
 Environmental liability may adversely affect the Partnerships business and financial
situation
  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.
  The Partnership is dependent on key personnel in CCC and the Leasing Agent
  11




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##### Table of Contents



There is a lack of liquidity for Partnership units
  The Limited Partners have limited voting rights
  Limited liability is not clearly established
  Compensation of CCC and the Leasing Agent may not be linked to performance of Partnership
  CCC and the Leasing Agent may face potential conflicts of interest
  Cash distributions
  
 Item 1B. Unresolved Staff Comments
  12




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##### Table of Contents



Item 2. Properties
  EstimatedContainers
    
    Quantity
    
    Useful Life
    
    Average Age
    
    Average Cost20-Foot Dry Cargo
    
    
    3,204
    
    
    15 years
    
    11 years
    
    $
    2,28240-Foot Dry Cargo
    
    
    1,057
    
    
    15 years
    
    10 years
    
    $
    3,20340-Foot High-Cube
Dry Cargo
    
    
    1,614
    
    
    15 years
    
    9 years
    
    $
    2,89020-Foot Refrigerated
    
    
    68
    
    
    15 years
    
    12 years
    
    $
    22,21040-Foot High-Cube
Refrigerated
    
    
    162
    
    
    15 years
    
    12 years
    
    $
    26,79724,000-Liter Tanks
    
    
    51
    
    
    15 years
    
    12 years
    
    $
    26,661
   
 Item 3. Legal Proceedings
  
 Item 4. Submission of Matters to a Vote of Security Holders
  13




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##### Table of Contents



PART II
 
 Item 5. Market for the Partnerships Common Equity and Related Stockholder Matters
         Number of Unit Holders(b)(1)

    Title of Class
    
    as of December 31, 2007Units of limited partnership interests
    
    
    1,671
       14




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##### Table of Contents



Item 6. Selected Financial Data
 Year Ended December 31,2007
    
    2006
    
    2005
    
    2004
    
    2003Net lease revenue
    
    $
    1,808,075
    
    
    $
    2,316,295
    
    
    $
    2,803,236
    
    
    $
    3,001,124
    
    
    $
    2,863,738Net income
    
    $
    308,275
    
    
    $
    196,435
    
    
    $
    916,814
    
    
    $
    947,281
    
    
    $
    794,601Limited partners
share of net
income (per
unit basis)
    
    $
    0.12
    
    
    $
    0.06
    
    
    $
    0.47
    
    
    $
    0.51
    
    
    $
    0.43Cash distributions
per unit of
limited
partnership
interest
    
    $
    1.88
    
    
    $
    2.08
    
    
    $
    1.71
    
    
    $
    1.48
    
    
    $
    1.35At year-end:Total assets
    
    $
    9,218,045
    
    
    $
    12,013,715
    
    
    $
    15,272,387
    
    
    $
    17,213,457
    
    
    $
    20,866,156Partners capital
    
    $
    9,218,045
    
    
    $
    12,013,715
    
    
    $
    15,272,387
    
    
    $
    17,213,457
    
    
    $
    18,759,371
 15




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##### Table of Contents



Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
    Liquidity and Capital Resources
  th
  16




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##### Table of Contents



Cash from Operating Activities:
 Cash from Investing Activities:
 Cash from Financing Activities
 Off-Balance Sheet Arrangements
  Contractual Obligations
  17




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Results of Operations
 Overview
  Dry Cargo
    
    Refrigerated
    
    TankContainers
    
    Containers
    
    Containers40-Foot
    
    
    
    
    
    40-Foot20-Foot
    
    40-Foot
    
    High-Cube
    
    20-Foot
    
    High-Cube
    
    24,000-LiterContainers on lease:Master lease
    
    
    2,370
    
    
    
    770
    
    
    
    1,344
    
    
    
    35
    
    
    
    97
    
    
    
    25Term leaseShort term1
    
    
    329
    
    
    
    101
    
    
    
    112
    
    
    
    2
    
    
    
    8
    
    
    
    10Long term2
    
    
    330
    
    
    
    124
    
    
    
    56
    
    
    
    3
    
    
    
    29
    
    
    
    14Sales-type lease
    
    
    11
    
    
    
    4
    
    
    
    4
    
    
    
    5
    
    
    
    3
    
    
    
    Subtotal
    
    
    3,040
    
    
    
    999
    
    
    
    1,516
    
    
    
    45
    
    
    
    137
    
    
    
    49Containers off lease
    
    
    164
    
    
    
    58
    
    
    
    98
    
    
    
    23
    
    
    
    25
    
    
    
    2Total container fleet
    
    
    3,204
    
    
    
    1,057
    
    
    
    1,614
    
    
    
    68
    
    
    
    162
    
    
    
    51
 
 1.
    
    Short term leases represent term leases that are either scheduled for
renegotiation or that may expire in 2008.2.
    
    Long term leases represent term leases, the majority of which will expire between
2009 and 2012.  
    
    Activity-related expenses, include agents costs and depot costs such as repairs,
maintenance and handling.
    
    Inventory-related expenses for off-hire containers, comprise of 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.
    
    Legal and other expenses, include legal costs related to the recovery of containers and
doubtful accounts, insurance and provisions for doubtful accounts.
  Dry Cargo
    
    Refrigerated
    
    TankContainers
    
    Containers
    
    Containers40-Foot20-Foot
    
    40-Foot
    
    High-Cube
    
    20-Foot
    
    40-Foot
    
    24,000-LiterUnits
    
    %
    
    Units
    
    %
    
    Units
    
    %
    
    Units
    
    %
    
    Units
    
    %
    
    Units
    
    %Total purchases
    
    
    4,553
    
    
    
    100
    %
    
    
    1,500
    
    
    
    100
    %
    
    
    1,750
    
    
    
    100
    %
    
    
    90
    
    
    
    100
    %
    
    
    300
    
    
    
    100
    %
    
    
    52
    
    
    
    100
    %Less disposals
    
    
    1,349
    
    
    
    30
    %
    
    
    443
    
    
    
    30
    %
    
    
    136
    
    
    
    8
    %
    
    
    22
    
    
    
    24
    %
    
    
    138
    
    
    
    46
    %
    
    
    1
    
    
    
    2
    %Remaining fleet at
December 31, 2007


    3,204
    
    
    
    70
    %
    
    
    1,057
    
    
    
    70
    %
    
    
    1,614
    
    
    
    92
    %
    
    
    68
    
    
    
    76
    %
    
    
    162
    
    
    
    54
    %
    
    
    51
    
    
    
    98
    %
  18




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##### Table of Contents



2007
    
    2006
    
    2005Fleet size (measured in twenty-foot
equivalent units (TEU))Dry cargo containers
    
    
    8,934
    
    
    
    9,574
    
    
    
    10,396Refrigerated containers
    
    
    428
    
    
    
    598
    
    
    
    676Tank containers
    
    
    51
    
    
    
    52
    
    
    
    52Average utilization ratesDry cargo containers
    
    
    91
    %
    
    
    89
    %
    
    
    93
    %Refrigerated containers
    
    
    81
    %
    
    
    85
    %
    
    
    88
    %Tank containers
    
    
    96
    %
    
    
    91
    %
    
    
    92
    %
      19




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##### Table of Contents



Year Ended December 31, 2007 Compared to the Year Ended December 31, 2006
 Net lease revenue
 Depreciation expense
 Other general and administrative expenses
 Net gain on disposal of equipment
 Year Ended December 31, 2006 Compared to the Year Ended December 31, 2005
 Net lease revenue
 Depreciation expense
 Other general and administrative expenses
 Impairment charge
 
    
    The age of the North American Dry Containers;
    
    The lack of demand for the North American Dry Containers;
    
    The cost to reposition the North American Dry Containers to high demand
markets; and
    
    The strong North American container sale market.
  20




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##### Table of Contents



Net loss on disposal of equipment
 Critical Accounting Policies
 Container equipment  depreciable lives
 Container equipment  valuation:
 Allowance for doubtful accounts:
 New Accounting Pronouncements Not Yet Adopted
  21




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##### Table of Contents



Inflation
  The Cronos Group
     22




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Item 7A. Quantitative and Qualitative Disclosures About Market Risk
 Exchange rate risk:
 Credit risk:
 
 Item 8. Financial Statements and Supplementary Data
 23




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##### Table of Contents



REPORT OF MANAGEMENT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
       /s/ Dennis J. TietzDennis J. Tietz,President and Director of Cronos Capital Corp.,
General Partner of the Partnership /s/ Frank P. VaughanFrank P. Vaughan,Chief Financial Officer of Cronos Capital
Corp,.
General Partner of the Partnership 24




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
    
 25




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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Balance Sheets
 December 31, 2007 and 2006
 2007
    
    
    2006AssetsCurrent assets:Cash and cash equivalents, includes $816,160 in 2007 and
$1,188,374 in 2006 in interest-bearing accounts
    
    $
    831,160
    
    
    $
    1,203,374Net lease receivables due from Leasing Agent
    
    
    390,560
    
    
    
    405,841Total current assets
    
    
    1,221,720
    
    
    
    1,609,215Container rental equipment, at cost
    
    
    22,530,005
    
    
    
    25,256,310Less accumulated depreciation
    
    
    (14,533,680
    )
    
    
    (14,851,810
    )Net container rental equipment
    
    
    7,996,325
    
    
    
    10,404,500Total assets
    
    $
    9,218,045
    
    
    $
    12,013,715Partners CapitalPartners capital (deficit):General partner
    
    
    (24,596
    )
    
    
    (39,210
    )Limited partners
    
    
    9,242,641
    
    
    
    12,052,925Total partners capital
    
    $
    9,218,045
    
    
    $
    12,013,715
  26




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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Statements of Operations
 For the years ended December 31, 2007, 2006 and 2005
 2007
    
    
    2006
    
    
    2005Net lease revenue from Leasing Agent
    
    $
    1,808,075
    
    
    $
    2,316,295
    
    
    $
    2,803,236Other operating income (expenses):Depreciation
    
    
    (1,466,930
    )
    
    
    (1,689,468
    )
    
    
    (1,842,594
    )Other general and administrative expenses
    
    
    (116,299
    )
    
    
    (110,848
    )
    
    
    (79,715
    )Net gain (loss) on disposal of equipment
    
    
    43,743
    
    
    
    (363,720
    )
    
    
    55,821Asset impairment
    
    
    
    
    
    
    
    
    
    
    (37,972
    )(1,539,486
    )
    
    
    (2,164,036
    )
    
    
    (1,904,460
    )Income from operations
    
    
    268,589
    
    
    
    152,259
    
    
    
    898,776Other income:Interest income
    
    
    39,686
    
    
    
    44,176
    
    
    
    18,038Net income
    
    $
    308,275
    
    
    $
    196,435
    
    
    $
    916,814Allocation of net income:General partner
    
    $
    119,183
    
    
    $
    95,599
    
    
    $
    160,010Limited partners
    
    
    189,092
    
    
    
    100,836
    
    
    
    756,804$
    308,275
    
    
    $
    196,435
    
    
    $
    916,814Limited partners per unit share of net income
    
    $
    0.12
    
    
    $
    0.06
    
    
    $
    0.47
  27




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Statements of Partners Capital
 For the years ended December 31, 2007, 2006 and 2005
 Limited
    
    
    GeneralPartners
    
    
    Partner
    
    
    TotalBalances at January 1, 2005
    
    $
    17,254,022
    
    
    $
    (40,565
    )
    
    $
    17,213,457Net income
    
    
    756,804
    
    
    
    160,010
    
    
    
    916,814Cash distributions
    
    
    (2,732,761
    )
    
    
    (125,123
    )
    
    
    (2,857,884
    )Balances at December 31, 2005
    
    $
    15,278,065
    
    
    $
    (5,678
    )
    
    $
    15,272,387Net income
    
    
    100,836
    
    
    
    95,599
    
    
    
    196,435Cash distributions
    
    
    (3,325,976
    )
    
    
    (129,131
    )
    
    
    (3,455,107
    )Balances at December 31, 2006
    
    $
    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
    )
    
    $
    9,218,045
  28




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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Statements of Cash Flows
 For the years ended December 31, 2007, 2006 and 2005
 2007
    
    
    2006
    
    
    2005Cash flows from operating activities:Net income
    
    $
    308,275
    
    
    $
    196,435
    
    
    $
    916,814Adjustments to reconcile net income to net cash
from operating activities:Depreciation
    
    
    1,466,930
    
    
    
    1,689,468
    
    
    
    1,842,594Asset impairment
    
    
    
    
    
    
    
    
    
    
    37,972Net (gain) loss on disposal of equipment
    
    
    (43,743
    )
    
    
    363,720
    
    
    
    (55,821
    )Decrease (increase) in net lease and
other receivables due from Leasing Agent
    
    
    24,708
    
    
    
    (38,472
    )
    
    
    5,246Total adjustments
    
    
    1,447,895
    
    
    
    2,014,716
    
    
    
    1,829,991Net cash provided by operating
activities
    
    
    1,756,170
    
    
    
    2,211,151
    
    
    
    2,746,805Cash flows from investing activities:Proceeds from sale of container rental equipment
    
    
    975,561
    
    
    
    1,399,068
    
    
    
    711,276Cash flows from financing activities:Distributions to general partner
    
    
    (104,569
    )
    
    
    (129,131
    )
    
    
    (125,123
    )Distributions to limited partners
    
    
    (2,999,376
    )
    
    
    (3,325,976
    )
    
    
    (2,732,761
    )Net cash used in financing activities
    
    
    (3,103,945
    )
    
    
    (3,455,107
    )
    
    
    (2,857,884
    )Net (decrease) increase in cash and cash equivalents
    
    
    (372,214
    )
    
    
    155,112
    
    
    
    600,197Cash and cash equivalents at beginning of year
    
    
    1,203,374
    
    
    
    1,048,262
    
    
    
    448,065Cash and cash equivalents at end of year
    
    $
    831,160
    
    
    $
    1,203,374
    
    
    $
    1,048,262
  29




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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Notes to Financial Statements
 December 31, 2006, 2005 and 2004
 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, CCC, 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.Cronos Capital Corp. (CCC), the general partner 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 13th year of operations and has entered its
liquidation phase, wherein CCC focuses its attention on the retirement of the remaining
equipment in the Partnerships container fleet. At December 31, 2007, approximately 75%
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 impact of a diminishing fleet size and current
market conditions on the level of gross lease revenue, and the level of fixed operating
costs relative to this revenue. CCC will also consider the impact of a projected
increase in expenses associated with the introduction of the additional reporting and
compliance requirements of Section 404 of the Sarbanes Oxley Act of 2002. These
additional costs, depending on their materiality, may reduce the Partnerships results
from operations and therefore negatively affect future distributions to the Limited
Partners. The Partnership is required to be in compliance with Section 404 for the year
ending December 31, 2008.The Partnerships operations are subject to the fluctuations of world economic and
political conditions. The Partnership believes that the profitability of, and risks
associated with, leases to foreign customers is generally the same as those of domestic
customers. The majority of the Partnerships leases require the customer to remit
payments in United States dollars.(b)
    
    The Cronos GroupThe Cronos Group (TCG), formerly the parent of CCC, announced on February 28, 2007 that
it had entered into an Asset Purchase Agreement (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, TCG agreed to sell all
of its assets to CRX and CRX agreed to assume all of TCGs liabilities. FB Transportation
is part of the Fortis group of companies, which included TCGs lead lender and a partner
in a container leasing joint venture with TCG.At a special meeting held August 1, 2007, TCGs shareholders approved the Asset Purchase
Agreement and the transactions contemplated thereunder, including TCGs dissolution and
liquidation. Closing of the sale of TCGs assets and liabilities to CRX occurred later
that same day. Promptly following the closing, TCG changed its name to CRG Liquidation Company,
and CRX changed its name to Cronos Ltd.
 30




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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 Summary of Significant Accounting Policies
 (b)
    
    The Cronos Group (continued)The container leasing business of TCG has been continued by Cronos Ltd. as a private
company. Management of TCG has continued as the management of Cronos Ltd and acquired at
closing an equity interest in Cronos Ltd.(c)
    
    Leasing AgentThe Partnership and the Leasing Agent have entered into an agreement (the 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.
 31




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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 Summary of Significant Accounting Policies (continued)
 (e)
    
    Basis of AccountingThe Partnerships accounting records are maintained in United States 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.(g)
    
    Allocation of Net Income or Loss, Partnership Distributions and Partners Capital
AccountsNet 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 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 (general and limited) 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.
 32




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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 (l)
    
    Summary of Significant Accounting Policies (continued)(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
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 original equipment cost. Depreciation policies are
also evaluated to determine whether subsequent events and circumstances warrant revised
estimates of useful lives. Residual values are only revised downwards.In accordance with SFAS No. 144, 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. Additionally, the
Partnership evaluates future cash flows and potential impairment for its entire container
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.In June 2005 the Partnership recorded an impairment charge of $37,972 related to 111
forty-foot standard off-hire dry cargo containers located in North America (the North
American Dry Containers). The impairment charge was a result of CCCs and the Leasing
Agent identifying a number of issues that had an impact on their carrying value.
 
    
    The age of the North American Dry Containers.
    
    The lack of regional market demand to lease the North American Dry
Containers.
    
    The cost to reposition the North American Dry Containers to high
demand markets.
    
    The strong North American container sale market.
 CCC and the Leasing Agent concluded that effective June 1, 2005, the North American Dry
Containers would be targeted for immediate sale and committed to a plan to dispose of the
North American Dry Containers. It was concluded that the carrying value of these
containers of $193,372, exceeded fair value and accordingly, an impairment charge of
$37,972, or approximately $0.02 per limited partnership unit, was recorded to operations
under impairment losses during 2005. Fair value was determined by estimating the
expected amount to be received at the time of sale. The expected sales price was
estimated by evaluating the current
sales price of similar containers. During 2006, the Partnership sold four North American
Dry Containers targeted for sale. The Partnership recognized a gain of $370 on the sale
of these containers. At December 31, 2006, 47 of the original 111 North American Dry
Containers remained in its fleet. These North American Dry Containers were originally
classified as held for sale after their impairment in 2005 as a result of the
aforementioned conditions that existed at the time of impairment. The Partnership
reclassified these containers as held and used as of December 31, 2006. The
reclassification is the result of current market conditions that have contributed to 41
of the remaining 47 North American Dry Containers being leased under master leases and
six North American Dry
 33




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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 Summary of Significant Accounting Policies (continued)
 (i)
    
    Container Rental Equipment (continued)Containers being off-hire and available for lease. The Partnership
expects to sell these North American Dry Containers, subject to the same disposal
criteria employed for its remaining container fleet. There were no impairment charges to
the carrying value of container rental equipment during 2007 and 2006.(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 an 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 Not Yet AdoptedIn September 2006 the FASB issued SFAS No. 157, Fair Value Measurements (SFAS 157),
which provides a single definition of fair value, establishes a framework for the
measurement of fair value and expands disclosure about the use of fair value to measure
assets and liabilities. SFAS 157 is effective for fiscal years beginning after November
15, 2007, and for interim periods within those fiscal years; SFAS 157 will therefore be
applicable for the Partnerships fiscal year commencing January 1, 2008. In November
2007, the FASB agreed to defer the effective date of Statement 157 for all non financial
assets and liabilities by one year. The Partnership will adopt the effective provisions
of SFAS 157 on January 1, 2008, and does not expect adoption to have an impact on the
balance sheet or statement of operations, however additional disclosures may be required
about the inputs used to develop the fair measures and the effect of certain measures on
changes in assets and liabilities for the period.In February 2007, the FASB issued SFAS No. 159  The Fair Value Option for Financial
Assets and Financial Liabilities (SFAS 159). SFAS 159 is effective for financial
statements for fiscal years beginning after November 15, 2007, with early adoption
permitted provided the entity also elects to apply SFAS 157. SFAS 159 permits all
entities to choose, at specified election dates, to measure eligible items at fair
value. The Partnership will adopt SFAS 159 on January 1, 2008, however, the Partnership
does not intend to use the fair value option for any of its existing financial assets and
liabilities and consequently, adoption will have no impact.
 34




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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 (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. The General Partner operates the Partnerships container fleet as a
homogenous unit and has 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, 2007, the
Partnership owned 3,204 twenty-foot, 1,057 forty-foot and 1,614 forty-foot high-cube marine dry
cargo containers, as well as 68 twenty-foot and 162 forty-foot refrigerated high-cube cargo
containers, and 51 twenty-four thousand-liter tank containers. A summary of gross lease
revenue earned by each Partnership container product, for the years ended December 31, 2007,
2006 and 2005 follows:
 2007
    
    
    2006
    
    
    2005Dry cargo containers
    
    $
    1,926,769
    
    
    $
    2,271,778
    
    
    $
    2,707,893Refrigerated containers
    
    
    567,939
    
    
    
    975,704
    
    
    
    1,079,602Tank containers
    
    
    157,917
    
    
    
    154,421
    
    
    
    157,147Total
    
    $
    2,652,625
    
    
    $
    3,401,903
    
    
    $
    3,944,642
 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 as defined in SFAS No. 131 (SFAS 131),
Disclosures about Segments of an Enterprise and Related Information.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. One sub-lessee of the Leasing Agent generated more
than 10% of the gross lease revenue earned on the Partnership equipment during 2007. Hamburg
Sudamerikanische Dampfschifffahrts-Gesellschaft KG generated approximately 24%, or $635,143, of
gross lease revenue. No single customer of the Leasing Agent generated more than 10% of the
gross lease revenue earned on the Partnership equipment during 2006. Two sub-lessees of the
Leasing Agent each generated more than 10% of the gross lease revenue earned on the Partnership
equipment during 2005. Container Equipment Leasing generated 12%, or $467,036, and APL Company
Pte Ltd (APL) generated approximately 12%, or $466,496, respectively.(3)
    
    Cash and Cash EquivalentsCash equivalents include money market funds with original maturities of three months or less
that invest in highly-liquid securities, such as U.S. Treasury obligations, repurchase
agreements secured by U.S. Treasury obligations, and obligations whose principal and interest
are backed by the U.S. Government. Cash equivalents are carried at cost which approximates
fair value, and at times, may exceed federally insured limits. The Partnership has not
experienced any losses in such accounts and believes it is not exposed to any significant
credit risk.
 35




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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 (4)
    
    Net Lease Receivables due from the Leasing AgentNet lease receivables at December 31, 2007 and 2006 comprised:
 December 31,
    
    
    December 31,2007
    
    
    2006Gross lease receivables
    
    $
    599,208
    
    
    $
    694,051Less:Direct operating payables and accrued expenses
    
    
    115,694
    
    
    
    203,928Base management fees payable
    
    
    35,913
    
    
    
    2,472Reimbursed administrative expenses
    
    
    9,622
    
    
    
    12,559Allowance for doubtful accounts
    
    
    47,419
    
    
    
    69,251208,648
    
    
    
    288,210Net lease receivables
    
    $
    390,560
    
    
    $
    405,841
 Included within the amount of gross lease receivables are
$9,427 and $7,141 in respect of
amounts owed by the Leasing Agent in relation to the disposal of containers for the years ended
December 31, 2007 and 2006, respectively.Doubtful debt expense (credit) charged during the year was $17,919 and $9,991 for the years
ended December 31, 2007 and 2006, respectively.(5)
    
    Damage Protection PlanThe Leasing Agent offers a repair service to several customers of the Partnerships containers,
whereby the customer pays an additional rental fee for the convenience of having the
Partnership incur the repair expense for containers damaged while on lease. This fee is
recorded as revenue when earned according to the terms of the rental contract. Repair costs,
when incurred by this service, are included within direct operating expenses, a component of
net lease revenue. The Partnership is not responsible in the event repair costs exceed
predetermined limits, or for repairs that are required for damages not defined by the damage
protection plan agreement.(6)
    
    Net Lease RevenueNet lease revenue for 2007, 2006 and 2005 comprised:
 2007
    
    
    2006
    
    
    2005Gross lease revenue
    
    $
    2,652,625
    
    
    $
    3,401,903
    
    
    $
    3,944,642Less:Direct operating expenses
    
    
    534,360
    
    
    
    679,399
    
    
    
    668,593Base management fees (note 7)
    
    
    183,230
    
    
    
    235,007
    
    
    
    270,813Reimbursed administrative expenses (note 7):Salaries
    
    
    88,107
    
    
    
    122,341
    
    
    
    144,498Other payroll related expenses
    
    
    13,773
    
    
    
    15,936
    
    
    
    20,194General administrative expenses
    
    
    25,080
    
    
    
    32,925
    
    
    
    37,308126,960
    
    
    
    171,202
    
    
    
    202,000844,550
    
    
    
    1,085,608
    
    
    
    1,141,406Net lease revenue
    
    $
    1,808,075
    
    
    $
    2,316,295
    
    
    $
    2,803,236
 36




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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 Net Lease Revenue (continued)
   2008
    
    $
    469,1512009
    
    
    297,4492010
    
    
    262,5622011
    
    
    104,1952012
    
    
    48,7162013 and thereafter
    
    
    37,495Total
    
    $
    1,219,568
 (7)
    
    Related party transactionsThe general partner, CCC, and its affiliates, 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
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 paid or payable by the Partnership to
CCC and the Leasing Agent for the years indicated:
 2007
    
    
    2006
    
    
    2005Base management feesLeasing Agent
    
    $
    183,230
    
    
    $
    235,007
    
    
    $
    270,813Reimbursed administrative expensesCCC
    
    
    16,897
    
    
    
    22,208
    
    
    
    26,474Leasing Agent
    
    
    110,063
    
    
    
    148,994
    
    
    
    175,526126,960
    
    
    
    171,202
    
    
    
    202,000$
    310,190
    
    
    $
    406,209
    
    
    $
    472,813
  2007
    
    
    2006CCC
    
    $
    1,199
    
    
    $
    1,423Leasing Agent
    
    
    44,336
    
    
    
    13,608$
    45,535
    
    
    $
    15,031
 37




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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 (8)
    
    Limited Partners CapitalCash distributions made to the limited partners during 2007, 2006 and 2005 were as follows:
 2007
    
    
    2006
    
    
    2005Cash Distribution from
Operations
    
    $
    1,746,304
    
    
    $
    2,246,201
    
    
    $
    2,293,150Cash
Distribution from Sales Proceeds
    
    
    1,253,072
    
    
    
    1,079,775
    
    
    
    439,611Total Cash Distributions
    
    $
    2,999,376
    
    
    $
    3,325,976
    
    
    $
    2,732,761
 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, 2007, 2006 and 2005 was $6, $8
and $10, respectively. This is calculated by dividing the limited partners capital at the end
of each year by 1,599,667, the total number of limited partnership units.
 38




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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
    
 Item 9B. Other Information
  39




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##### Table of Contents



PART III
 
 Item 10. Directors, Executive Officers and Corporate Governance
  Name
    
    OfficeDennis J. Tietz
    
    President and DirectorPeter J. Younger
    
    Vice President and DirectorJohn Kallas
    
    Vice President, Secretary/Treasurer and DirectorFrank P. Vaughan
    
    Vice President, Chief Financial Officer and Director
 Dennis J. Tietz
   Peter J. Younger
  John Kallas
  Frank P. Vaughan
 40




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##### Table of Contents



Name
    
    TitleFrank P. Vaughan
    
    Director and Secretary of Leasing
Agent and Vice President, Chief
Financial Officer of Cronos LtdJohn C. Kirby
    
    Director of Leasing Agent and Vice
President  Atlantic Region of
Cronos Ltd.Timothy W. Courtenay
    
    Director
 Frank P. Vaughan
  John C. Kirby
 Timothy W. Courtenay
 41




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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
  42




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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
    
    
    $ 149,7892)
    
    CCC
CCL
    
    Reimbursed administrative expenses equal
to the costs
expended by CCC and its
affiliates for services necessary
to the
prudent operation of the Partnership
pursuant to Section 4.4 of the Limited
Partnership Agreement
    
    
    $   17,122$ 112,7763)
    
    CCC
    
    Interest in Fund - 5% of distributions of
distributable cash for any quarter
pursuant to Section 6.1 of the Limited
Partnership Agreement
    
    
    $ 104,569
 43




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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
         44




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##### Table of Contents



Item 14. Principal Accountant Fees and Services
  Audit Fees
  Audit-Related Fees
  Tax Fees
  All Other Fees
  45




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##### Table of Contents



PART IV
 
 Item 15. Exhibits and Financial Statement Schedules
 Page(1) Financial StatementsReport of Management on Internal Control over Financial Reporting
    
    
    24Report of Independent Registered Public Accounting Firm
    
    
    25(2) The following financial statements of the Partnership are included in Part II, Item 8:Balance Sheets  as of December 31, 2007 and 2006
    
    
    26Statements of Operations  for the years ended December 31, 2007, 2006 and 2005
    
    
    27Statements of Partners Capital  for the years ended December 31, 2007, 2006 and 2005
    
    
    28Statements of Cash Flows  for the years ended December 31, 2007, 2006 and 2005
    
    
    29Notes to Financial Statements
    
    
    30
  46




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##### Table of Contents



ExhibitNo.
    
    Description
    
    Method of Filing3
    (a)
    
    Limited Partnership Agreement of the
Partnership, amended and restated as of
December 28, 1995
    
    (a)3
    (b)
    
    Certificate of Limited Partnership
    
    (b)10
    
    
    Form of Leasing Agent Agreement with
Cronos Containers Limited
    
    (c)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 (d)
 
 (a)
    
    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)(b)
    
    Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (No.
33-98290)(c)
    
    Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1 (No.
33-98290)(d)
    
    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. 47




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##### Table of Contents



SIGNATURES
  CRONOS GLOBAL INCOME FUND XVI, L.P.By
    
    Cronos Capital Corp.The General PartnerBy
    
    /s/ Dennis J. TietzDennis J. TietzPresident and Director of Cronos Capital Corp. (CCC)Principal Executive Officer of CCC
   Signature
    
    Title
    
    Date/s/ Dennis J. Tietz

Dennis J. Tietz
    
    President and Director of
Cronos Capital Corp. (CCC)
(Principal Executive Officer of
CCC)
    
    March 7, 2008/s/ John Kallas

John Kallas
    
    Vice President -
Secretary/Treasurer and Director
of CCC
    
    March 7, 2008/s/ Frank P.
Vaughan

Frank P. Vaughan
    
    Vice President, Chief Financial
Officer and Director of CCC
(Principal Financial and
Accounting Officer of CCC)
    
    March 7, 2008/s/ Peter J. Younger

Peter J. Younger
    
    Vice President and Director of CCC
    

March 7, 2008




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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, 1995
    
    (a)3(b)
    
    
    Certificate of Limited Partnership
    
    (b)10
    
    
    Form of Leasing Agent Agreement with
Cronos Containers Limited
    
    (c)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
(d)
 
 (a)
    
    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)(b)
    
    Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (No.
33-98290)(c)
    
    Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1 (No.
33-98290)(d)
    
    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.