10-K/A 1 flif5-adendum.txt FLIF 5 10-K ADDENDUM 2000 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K /X/ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the year ended December 31, 2000 / / 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 0-17658 Fidelity Leasing Income Fund V, L.P. _________________________________________________________________ (Exact name of registrant as specified in its charter) Delaware 23-2496362 _________________________________________________________________ (State of Organization) (I.R.S. Employer Identification No.) 3 North Columbus Blvd., Philadelphia, Pennsylvania 19106 _________________________________________________________________ (Address of principal executive offices) (Zip Code) (215) 574-1636 _________________________________________________________________ (Registrant's telephone number, including area code) Securities registered pursuant to Section 12 (b) of the Act: Name of Each Exchange Title of Each Class on Which Registered None Not applicable Securities registered pursuant to Section 12 (g) of the Act: Limited Partnership Interests Title of Class Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes __X__ No_____ The number of outstanding limited partnership units of the Registrant at December 31, 2000 is 76,047. There is no public market for these securities. The index of Exhibits is located on page 12. 1 PART I Item 1. BUSINESS Fidelity Leasing Income Fund V, L.P. (the "Fund"), a Delaware limited partnership, was organized in 1988 and acquired computer equipment, including printers, tape and disk storage devices, data communications equipment, computer terminals, technical workstations, networking equipment as well as other electronic equipment, that was leased to third parties on a short-term basis. The Fund's principal objective is to generate leasing revenues for distribution. The Fund manages the equipment, releasing or disposing of equipment as it comes off lease in order to achieve its principal objective. The Fund did not borrow funds to purchase equipment. The Fund generally acquired equipment subject to a lease. Purchases of equipment for lease were typically made through equipment leasing brokers, under a sale-leaseback arrangement directly from lessees owning equipment, from the manufacturer either pursuant to a purchase agreement relating to significant quantities of equipment or on an ad hoc basis to meet the needs of a particular lessee. The equipment leasing industry is highly competitive. The Fund competed with leasing companies, equipment manufacturers and distributors, and entities similar to the Fund (including similar programs sponsored by the General Partner), some of which had greater financial resources than the Fund. Other leasing companies and equipment manufacturers and distributors may have been in a position to offer equipment to prospective lessees on financial terms which were more favorable than those which the Fund could offer. Equipment manu- facturers and distributors may have offered to sell equipment on terms and conditions (such as liberal financing terms and exchange privileges) that would afford benefits to the purchaser similar to those obtained through leases. They may also have been in a position to offer trade-in-privileges, maintenance contracts and other services which the Fund may not have been able to offer. As a result of the advantages that certain of its competitors had, the Fund may have leased its equipment on a less favorable basis than certain of its competitors. A brief description of the types of equipment in which the Fund has invested as of December 31, 2000, together with information concerning the users of such equipment is contained in Item 2, following. The Fund does not have any employees. All persons who work on the Fund are employees of the General Partner. 2 Item 2. PROPERTIES The following schedules detail the type, aggregate purchase price and percentage of the various types of equipment leased by the Fund under the operating and direct financing methods as of December 31, 2000: Operating Leases: Purchase Price Percentage of Type of Equipment of Equipment Total Equipment Technical Workstations and Terminals $1,349,201 84.01% Printers 145,767 9.08 Network Communications 111,082 6.91 __________ ______ Totals $1,606,050 100.00% ========== ====== Direct Financing Leases: Purchase Price Percentage of Type of Equipment of Equipment Total Equipment Network Communications $2,515,973 74.20% PCB Assembly Equipment 874,947 25.80 __________ ______ Totals $3,390,920 100.00% ========== ====== The following schedules detail the type of business, aggregate purchase price and percentage of equipment usage by industrial classification for equip- ment leased by the Fund under the operating and direct financing methods as of December 31, 2000: Operating Leases: Purchase Price Percentage of Type of Business of Equipment Total Equipment Telephone/Telecommunications $1,335,099 83.13% Retailing/Consumer Goods 155,717 9.70 Manufacturing/Refining 115,234 7.17 __________ ______ Totals $1,606,050 100.00% ========== ====== Direct Financing Leases: Purchase Price Percentage of Type of Business of Equipment Total Equipment Retailing/Consumer Goods $2,515,973 74.20% Manufacturing/Refining 874,947 25.80 __________ ______ Totals $3,390,920 100.00% ========== ====== Average Initial Term of Leases (in months): 35 3 Item 3. LEGAL PROCEEDINGS Not applicable. Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Not applicable. 4 PART II Item 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS (a) The Fund's limited partnership units are not publicly traded. There is no market for the Fund's limited partnership units and it is unlikely that any will develop. (b) Number of Equity Security Holders: Number of Partners Title of Class as of December 31, 2000 Limited Partnership Interests 2,584 General Partnership Interest 1 Item 6. SELECTED FINANCIAL DATA

December 31, 2000 1999 1998 1997 1996 Total Assets $6,889,023 $6,817,584 $7,047,755 $7,455,365 $7,569,806 Equipment under Operating Leases and Equipment Held for Sale or Lease (Net) - 969,503 2,354,710 3,423,510 3,909,025 Net Investment in Direct Financing Leases 2,117,968 3,130,411 2,489,583 - 209,459 Limited Partnership Units 76,047 76,047 76,137 76,137 76,137 Limited Partners 2,584 2,581 2,573 2,570 2,558

5 Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations The Fund had revenues of $1,421,098, $2,093,718 and $3,640,530 for the years ended December 31, 2000, 1999 and 1998, respectively. Rental income from the leasing of equipment accounted for 54%, 75% and 90% of total income in 2000, 1999 and 1998, respectively. In 2000 and 1999, the decrease in total revenues was primarily attributable to a decrease in rental income. In 2000, rental income decreased by approximately $811,000 because of equipment that terminated and was sold. In 1999, rental income decreased by approximately $1,519,000 because of equipment that terminated or was sold. Additionally, the Fund entered into a transaction whereby it collected the remaining rents owed on certain leases resulting in the recognition of $315,000 of rental income in 1998. This also contributed to the decrease in rental income in 1999. These decreases in rental income were mitigated by $117,000 of rentals generated on 1998 equipment purchases for which a full year of rent was recognized in 1999 and only a partial year was recognized in 1998. The fluctuation in earned income on direct financing leases also accounted for the decrease in total revenues in 2000 and mitigated a portion of the decrease in total revenues in 1999. There were no investments made in direct financing leases in 2000. Therefore, the earned income on direct financing leases decreased in 2000 in accordance with the recognition of income on these leases using the interest method. However, the Fund invested in approximately $2.5 million and $2.7 million of direct financing leases during 1999 and 1998, respectively, which accounted for the increase in earned income on direct financing leases in 1999. The overall decrease in revenues was mitigated by an increase in net gain on sale of equipment in both 2000 and 1999. The Fund recorded $261,634, $70,262 and $53,323 of net gain on sale of equipment for the years ended December 31, 2000, 1999 and 1998, respectively. In addition, interest income increased in 2000 and 1999 resulting from higher cash balances available for investment by the Fund during these years. The increase in this account also served to lower the amount of the decrease in total revenues during the twelve months ended December 31, 2000 and 1999. Furthermore, the increase in other income also mitigated the overall decrease in revenues in 2000 and 1999. The Fund recorded approximately $33,000, $20,000 and $-0- in late charges on delinquent rentals collected that is included in other income in 2000, 1999 and 1998, respec- tively. The increase in other income was primarily related to the increase in these late charges. Expenses were $784,004, $1,757,001, and $3,408,425 for the years ended December 31, 2000, 1999 and 1998, respectively. Depreciation expense com- prised 59%, 70% and 76% of total expenses in 2000, 1999 and 1998, respectively. The decrease in total expenses in 2000 and 1999 was primarily related to the decrease in depreciation expense. In 2000 and 1999, depreciation expense de- creased because of equipment that terminated and was sold. The decrease in write-down of equipment to net realizable value also contributed to the de- crease in total expenses in 2000 and 1999. There was no write-down of equip- ment to net realizable value during 2000. The Fund recorded approximately $92,000 and $247,000 of write-down of equipment to net realizable value during 1999 and 1998, respectively. Currently, the Fund's practice is to review the recoverability of its undepreciated costs of rental equipment quarterly. The Fund's policy, as part of this review, is to analyze such factors as releasing of equipment, technological developments and information provided in third party publications. In accordance with accounting principles generally 6 Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Results of Operations (Continued) accepted in the United States of America, the Fund writes down its rental equipment to its estimated net realizable value when the amounts are reasonably estimated and only recognizes gains, if any, upon actual sale of its rental equipment. Any future losses are dependent upon unanticipated technological developments affecting the types of equipment in the portfolio in subsequent years. Furthermore, general and administrative expenses decreased in 1999 compared to 1998 because the Fund incurred more fees to remarket equipment in 1998. This decrease also contributed to the decrease in expenses in 1999. Management fee to related party decreased in 2000 and 1999 because of the decrease in rental income during these years. Furthermore, general and admin- istrative expense to related party decreased in 2000 and 1999 because of a decrease in expenses charged by the General Partner or its parent company for services and materials provided to the Fund. The decrease in these accounts also accounted for the overall decrease in expenses in 2000 and 1999. The Fund's net income was $637,094, $336,717 and $232,105 for the years ended December 31, 2000, 1999 and 1998, respectively. The earnings per equiv- alent limited partnership unit, after earnings allocated to the General Partner, were $24.27, $13.59 and $9.05 for the years ended December 31, 2000, 1999 and 1998, respectively. The weighted average number of equivalent limited partnership units outstanding were 24,327, 24,404 and 25,065 for 2000, 1999 and 1998, respectively. The Fund generated cash from operations of $836,633, $1,583,430 and $3,019,439 for the purpose of determining cash available for distribution during the years ended December 31, 2000, 1999 and 1998, respectively. The Fund distributed $375,000, $375,000 and $400,000 of those amounts during the period April 1 through December 31, 2000, 1999 and 1998, respectively, and during the first quarter of 2001, 2000 and 1999, the Fund distributed $4,300,000, $125,000 and $125,000 of those amounts, respectively. The Fund also paid a cash distribution of $150,000 to partners during the first quarter of 1998 for the last quarter of the previous year. For financial statement purposes, the Fund records cash distributions to partners on a cash basis in the period in which they are paid. Analysis of Financial Condition The Fund is currently in the process of dissolution. As provided in the Restated Limited Partnership Agreement, the assets of the Fund shall be liquidated as promptly as is consistent with obtaining their fair value. Therefore, as leases expire, the General Partner will make every effort to sell the equipment at market value. During the year ended December 31, 1998, the Fund purchased $2,335,867 of equipment subject to operating leases. Addition- ally, the Fund invested in $2,515,974 and $2,731,393 of direct financing leases during the years ended December 31, 1999 and 1998, respectively. The cash position of the Fund is reviewed daily and cash is invested on a short-term basis. The Fund's cash from operations is expected to continue to be adequate to cover all operating expenses and contingencies during the next fiscal year. 7 Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The response to this Item is submitted as a separate section of the report commencing on page F-1. Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable. 8 PART III Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT F.L. Partnership Management, Inc. (FLPMI) is a wholly owned subsidiary of Resource Leasing, Inc., a wholly owned subsidiary of Resource America, Inc. (Resource America). The Directors and Executive Officers of FLPMI are: FREDDIE M. KOTEK, age 45, Chairman of the Board of Directors, President, and Chief Executive Officer of FLPMI since September 1995 and Senior Vice President of Resource America since 1995. President of Resource Leasing, Inc. since September 1995. President of Resource Properties, Inc. (a wholly owned subsidiary of Resource America) since 2000. Executive Vice President of Resource Properties, Inc. from 1993 to 2000. MICHAEL L. STAINES, age 51, Director and Secretary of FLPMI since September 1995. Director of Resource America from 1989 to 2000 and Senior Vice President of Resource America since 1989. Chief Operating Officer, Secretary and Managing Board Member of Atlas Pipeline Partners G.P., LLC since its formation in 1999. President, Secretary and a direc- tor of Resource Energy, Inc. (a wholly owned subsidiary of Resource America) since 1993. SCOTT F. SCHAEFFER, age 38, Director of FLPMI since September 1995. President of RAIT Investment Trust (a publicly traded real estate invest- ment trust) since October 2000. Vice Chairman of the Board of Resource America from 1998 to September 2000 and Executive Vice President of Re- source America from 1997 to 1998. Prior thereto, Senior Vice President of Resource America since 1995. President of Resource Properties, Inc. (a wholly owned subsidiary of Resource America) from 1992 to September 2000. Others: MARIANNE T. SCHUSTER, age 42, Vice President and Controller of FLPMI since 1984. KRISTIN L. CHRISTMAN, age 33, Portfolio Manager of FLPMI since December 1995 and Equipment Brokerage Manager since 1993. 9 Item 11. EXECUTIVE COMPENSATION The following table sets forth information relating to the aggregate compensation earned by the General Partner of the Fund during the year ended December 31, 2000: Name of Individual or Capacities in Number in Group Which Served Compensation F.L. Partnership Management, Inc. General Partner $114,219(1) ======== (1) This amount does not include the General Partner's share of cash distributions made to all partners. Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT (a) As of December 31, 2000, there was no person or group known to the Fund that owned more than 5% of the Fund's outstanding securities either beneficially or of record. (b) In 1988, the General Partner contributed $1,000 to the capital of the Fund but it does not own any of the Fund's outstanding securities. No individual director or officer of F.L. Partnership Management, Inc. nor such directors or officers as a group, owns more than one percent of the Fund's outstanding securities. The General Partner owns a general partnership interest which entitles it to receive 1% of cash distri- butions until the Limited Partners have received an amount equal to the purchase price of their Units plus a 10% cumulative compounded priority return; hereafter 10%. The General Partner will also share in net income equal to the greater of its cash distributions or 1% of net income or to the extent there are losses, 1% of such losses. (c) There are no arrangements known to the Fund that would, at any sub- sequent date, result in a change in control of the Fund. Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS During the year ended December 31, 2000, the Fund was charged $114,219 of management fees by the General Partner. The General Partner will continue to receive 6% or 3% of rental payments on equipment under operating leases or full pay-out leases, respectively, for administrative and management services performed on behalf of the Fund. Full pay-out leases are noncancellable leases with initial lease terms in excess of 42 months for which rental payments during the initial term are at least sufficient to recover the purchase price of the equipment, including acquisition fees. A majority of the direct financ- ing leases in which the Fund has invested meet the criteria for a full pay- out lease and pay a 3% management fee to the General Partner. This manage- ment fee is paid quarterly only if and when the Limited Partners have received distributions for the period from January 1, 1989 through the end of the most recent quarter equal to a return for such period at a rate of 12% per year on the aggregate amount paid for their units. 10 Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS (Continued) The General Partner also receives 1% of cash distributions until the Limited Partners have received an amount equal to the purchase price of their Units plus a 10% cumulative compounded priority return. Thereafter, the General Partner will receive 10% of cash distributions. During the year ended December 31, 2000, the General Partner received $5,000 of cash distri- butions. The Fund incurred $118,219 of reimbursable costs to the General Partner and its parent company for services and materials provided in connection with the administration of the Fund during 2000. 11 PART IV Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K (a) (1) and (2). The response to this portion of Item 14 is submitted as a separate section of this report commencing on page F-1. (a) (3) and (c) Exhibits (numbered in accordance with Item 601 of Regulation S-K) Exhibit Numbers Description Page Number 3(a) & (4) Amended and Restated Agreement * of Limited Partnership (9) not applicable (10) not applicable (11) not applicable (12) not applicable (13) not applicable (18) not applicable (19) not applicable (22) not applicable (23) not applicable (24) not applicable (25) not applicable (28) not applicable * Incorporated by reference. 12 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. FIDELITY LEASING INCOME FUND V, L.P. A Delaware limited partnership By: F.L. PARTNERSHIP MANAGEMENT, INC. /s/ Freddie M. Kotek By: ___________________________ Freddie M. Kotek, Chairman and President Dated May 14, 2001 Pursuant to the requirements of the Securities Exchange Act of 1934, this annual report has been signed below by the following persons, on behalf of the Registrant and in the capacities and on the date indicated: Signature Title Date /s/ Freddie M. Kotek ____________________________ Chairman of the Board of Directors 5-14-01 Freddie M. Kotek and President of F.L. Partnership Management, Inc. (Principal Executive Officer) /s/ Michael L. Staines ____________________________ Director of F.L. Partnership 5-14-01 Michael L. Staines Management, Inc. /s/ Marianne T. Schuster ____________________________ Vice President and Controller 5-14-01 Marianne T. Schuster of F.L. Partnership Management, Inc. (Principal Financial Officer) 13 INDEX TO FINANCIAL STATEMENTS AND SCHEDULES Pages Report of Independent Certified Public Accountants F-2 Balance Sheets as of December 31, 2000 and 1999 F-3 Statements of Operations for the years ended December 31, 2000, 1999 and 1998 F-4 Statements of Partners' Capital for the years ended December 31, 2000, 1999 and 1998 F-5 Statements of Cash Flows for the years ended December 31, 2000, 1999 and 1998 F-6 Notes to Financial Statements F-7 - F-11 All schedules have been omitted because the required information is not applicable or is included in the Financial Statements or Notes thereto. F-1 Report of Independent Certified Public Accountants The Partners Fidelity Leasing Income Fund V, L.P. We have audited the accompanying balance sheets of Fidelity Leasing Income Fund V, L.P. as of December 31, 2000 and 1999, and the related state- ments of operations, partners' capital and cash flows for each of the three years in the period ending December 31, 2000. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the finan- cial statements are free of material misstatement. An audit includes examin- ing, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting princi- ples used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Fidelity Leasing Income Fund V, L.P. as of December 31, 2000 and 1999, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2000 in conformity with accounting principles generally accepted in the United States of America. Grant Thornton LLP Philadelphia, Pennsylvania February 16, 2001 F-2 FIDELITY LEASING INCOME FUND V, L.P. BALANCE SHEETS ASSETS

The accompanying notes are an integral part of these financial statements. F-3 FIDELITY LEASING INCOME FUND V, L.P. STATEMENTS OF OPERATIONS

The accompanying notes are an integral part of these financial statements. F-4 FIDELITY LEASING INCOME FUND V, L.P. STATEMENTS OF PARTNERS' CAPITAL

The accompanying notes are an integral part of these financial statements. F-5 FIDELITY LEASING INCOME FUND V, L.P. STATEMENTS OF CASH FLOWS

The accompanying notes are an integral part of these financial statements. F-6 FIDELITY LEASING INCOME FUND V, L.P. NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND NATURE OF BUSINESS Fidelity Leasing Income Fund V, L.P. (the "Fund") was formed in January 1988. The General Partner of the Fund is F.L. Partnership Management, Inc. ("FLPMI") which is a wholly owned subsidiary of Resource Leasing, Inc., a wholly owned subsidiary of Resource America, Inc. (Resource America). The Fund is managed by the General Partner. The Fund's limited partnership interests are not publicly traded. There is no market for the Fund's limited partnership interests and it is unlikely that any will develop. The Fund acquires computer equipment including printers, tape and disk storage devices, data communica- tions equipment, computer terminals, technical workstations, networking equip- ment as well as other electronic equipment that is leased to third parties throughout the United States on a short-term basis. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Concentration of Credit Risk Financial instruments which potentially subject the Fund to concentrations of credit risk consist principally of temporary cash investments. The Fund places its temporary investments in money market savings accounts. Concentrations of credit risk with respect to accounts receivables are limited due to the dispersion of the Fund's lessees over different industries and geographies. Impairment of Long-Lived Assets The Fund reviews its assets to determine if it has any long-lived assets that are carried on the books for an amount that may not be recoverable. If it is determined that an asset's estimated future cash flows will not be suf- ficient to recover its carrying amount, an impairment charge will be recorded. Equipment Held for Sale or Lease Equipment held for sale or lease is carried at its estimated net realiz- able value. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Accounting for Leases The Fund's leasing operations consist of both operating and direct financing leases. Under the operating method of accounting for leases, the cost of the leased equipment is recorded as an asset and depreciated on a F-7 FIDELITY LEASING INCOME FUND V, L.P. NOTES TO FINANCIAL STATEMENTS (Continued) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Accounting for Leases (Continued) straight-line basis over its estimated useful life, up to six years. Acqui- sition fees associated with lease placements are allocated to equipment when purchased and depreciated as part of equipment cost. Rental income consists primarily of monthly periodic rentals due under the terms of the leases. Upon sale or other disposition of assets, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is reflected in income. Under the direct financing method of accounting for leases, income (the excess of the aggregate future rentals and estimated unguaranteed residuals upon expiration of the lease over the related equipment cost) is recognized over the life of the lease using the interest method. Income Taxes Federal and State income tax regulations provide that taxes on the income or benefits from losses of the Fund are reportable by the partners in their individual income tax returns. Accordingly, no provision for such taxes has been made in the accompanying financial statements. Statements of Cash Flows For purposes of the statements of cash flows, the Fund considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Net Income per Equivalent Limited Partnership Unit Net income per equivalent limited partnership unit is computed by dividing net income allocated to limited partners by the weighted average number of equivalent limited partnership units outstanding during the year. The weighted average number of equivalent units outstanding during the year is computed based on the weighted average monthly limited partners' capital account balances, converted into equivalent units at $500 per unit. Significant Fourth Quarter Adjustments Currently, the Fund's practice is to review the recoverability of its undepreciated costs of rental equipment quarterly. The Fund's policy, as part of this review, is to analyze such factors as releasing of equipment, techno- logical developments and information provided in third party publications. Based upon this review, there were no significant fourth quarter adjustments made in 2000 and 1999. However, the Fund recorded an adjustment of approx- imately $32,000 or $1.27 per equivalent limited partnership unit to write down its rental equipment in the fourth quarter of 1998. F-8 FIDELITY LEASING INCOME FUND V, L.P. NOTES TO FINANCIAL STATEMENTS (Continued) 3. ALLOCATION OF PARTNERSHIP INCOME, LOSS AND CASH DISTRIBUTIONS Cash distributions, if any, are made quarterly as follows: 99% to the Limited Partners and 1% to the General Partner, until the Limited Partners have received an amount equal to the purchase price of their Units, plus a 10% compounded priority return (an amount equal to 10% compounded annually on the portion of the purchase price not previously distributed); thereafter, 90% to the Limited Partners and 10% to the General Partner. Net Losses are allocated 99% to the Limited Partners and 1% to the General Partner. The General Partner is allocated Net Income equal to its cash distributions, but not less than 1% of Net Income, with the balance allo- cated to the Limited Partners. Net Income (Losses) allocated to the Limited Partners are allocated to individual limited partners based on the ratio of the daily weighted average partner's net capital account balance (after deducting related commission expense) to the total daily weighted average of the Limited Partners' net capital account balances. 4. EQUIPMENT LEASED Equipment on lease consists of equipment under operating leases. The lessees have agreements with the manufacturer of the equipment to provide maintenance for the leased equipment. The Fund's operating leases are for initial lease terms of 10 to 36 months. In accordance with accounting principles generally accepted in the United States of America, the Fund writes down its rental equipment to its estimated net realizable value when the amounts are reasonably estimated and only recog- nizes gains upon actual sale of its rental equipment. As a result, there was no write-down of equipment to net realizable value during 2000. In 1999 and 1998, approximately $92,000 and $247,000, respectively was charged to write- down of equipment to net realizable value. Any future losses are dependent upon technological developments affecting the equipment in subsequent years. Unguaranteed residuals for direct financing leases represent the estimated amounts recoverable at lease termination from lease extensions or disposition of the equipment. The Fund reviews these residual values quarterly. If the equipment's fair market value at lease expiration is below the estimated residual value, an adjustment is made. The net investment in direct financing leases as of December 31, 2000 is as follows: Minimum lease payments to be received $1,920,000 Unguaranteed residuals 388,000 Unearned rental income (136,000) Unearned residual income (54,000) __________ $2,118,000 ========== F-9 FIDELITY LEASING INCOME FUND V, L.P. NOTES TO FINANCIAL STATEMENTS (Continued) 4. EQUIPMENT LEASED (Continued) The future approximate minimum rentals to be received on noncancellable operating and direct financing leases as of December 31 are as follows: Direct Operating Financing 2001 $50,000 $1,144,000 2002 - 660,000 2003 - 116,000 2004 - - _______ __________ $50,000 $1,920,000 ======= ========== 5. RELATED PARTY TRANSACTIONS The General Partner receives 6% or 3% of rental payments on equipment under operating leases and full pay-out leases, respectively, for adminis- trative and management services performed on behalf of the Fund. Full pay-out leases are noncancellable leases with terms in excess of 42 months and for which rental payments during the initial term are at least sufficient to recover the purchase price of the equipment, including acquisition fees. This management fee is paid quarterly only if and when the Limited Partners have received distributions for the period from January 1, 1989 through the end of the most recent quarter equal to a return for such period at a rate of 12% per year on the aggregate amount paid for their units. The General Partner may also receive up to 3% of the proceeds from the sale of the Fund's equipment for services and activities to be performed in connection with the disposition of equipment. The payment of this sales fee is deferred until the Limited Partners have received cash distributions equal to the purchase price of their units plus a 10% cumulative compounded priority return. Based on current estimates, it is not expected that the Fund will be required to pay the General Partner a sales fee. Additionally, the General Partner and its parent company are reimbursed by the Fund for certain costs of services and materials used by or for the Fund except those items covered by the above-mentioned fees. Following is a summary of fees and costs charged by the General Partner or its parent company during the years ended December 31: 2000 1999 1998 Management fee $114,219 $195,471 $219,659 Reimbursable costs 118,219 156,874 206,109 During 1999, the Fund maintained its checking and investment accounts in Jefferson Bank, a subsidiary of JeffBanks, Inc. in which the Chairman of Resource America served as a director. In November 1999, Hudson United Bancorp acquired JeffBanks, Inc. The Fund maintains a normal banking relationship F-10 FIDELITY LEASING INCOME FUND V, L.P. NOTES TO FINANCIAL STATEMENTS (Continued) 5. RELATED PARTY TRANSACTIONS (Continued) with Hudson United Bancorp. As of December 31, 2000 and 1999, the Chairman of Resource America did not hold any position with Hudson United Bancorp. Amounts due from related parties at December 31, 2000 and 1999 represent monies due to the Fund from the General Partner and/or other affiliated funds for rentals and sales proceeds collected and not yet remitted to the Fund. Amounts due to related parties at December 31, 2000 and 1999 represent monies due to the General Partner for the fees and costs mentioned above, as well as, rentals and sales proceeds collected by the Fund on behalf of other affiliated funds. 6. MAJOR CUSTOMERS For the year ended December 31, 2000, four customers accounted for approx- imately 46%, 22%, 10% and 10% of the Fund's rental income. For the year ended December 31, 1999, three customers accounted for approximately 36%, 21% and 19% of the Fund's rental income. For the year ended December 31, 1998, three customers accounted for approximately 34%, 17% and 10% of the Fund's rental income. 7. CASH DISTRIBUTIONS Below is a summary of the quarterly cash distributions paid to partners during the years ended December 31: Month of Distribution 2000 1999 1998

In addition, the General Partner declared and paid a cash distribution of $4,300,000 in February 2001 for the three months ended December 31, 2000, to all admitted partners as of December 31, 2000. F-11 24

FIDELITY LEASING INCOME FUND V LP 10-K/A