10-K 1 flif5.txt FLIF 5 10-K 2001 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, 2001 / / 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.) 1845 Walnut Street, Suite 1000, Philadelphia, Pennsylvania 19103 _________________________________________________________________ (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, 2001 is 76,047. There is no public market for these securities. The index of Exhibits is located on page 8. 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. As of December 31, 2001, the Fund's equipment portfolio was liquidated. The Fund's principal objective was to generate leasing revenues for distribu- tion. The Fund managed the equipment, released or disposed of equipment as it came 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 or 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 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 re- sources 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 manufacturers 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 ob- tained through leases. They may also have been in a position to offer trade- in-privileges, maintenance contracts and other services which the Fund could not 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. The Fund did not have any employees. All persons who worked on the Fund were employees of the General Partner. Item 2. PROPERTIES During 2001, the General Partner liquidated the remaining equipment under operating leases and investments in direct financing leases owned by the Fund. Item 3. LEGAL PROCEEDINGS Not applicable. Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Not applicable. 2 PART II Item 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS (a) The Fund's limited partnership units were not publicly traded. There was no market for the Fund's limited partnership units. (b) Number of Equity Security Holders: Number of Partners Title of Class as of December 31, 2001 Limited Partnership Interests 2,589 General Partnership Interest 1 Item 6. SELECTED FINANCIAL DATA

December 31, 2001 2000 1999 1998 1997 Total Assets - $6,889,023 $6,817,584 $7,047,755 $7,455,365 Equipment under Operating Leases and Equipment Held for Sale or Lease (Net) - - 969,503 2,354,710 3,423,510 Net Investment in Direct Financing Leases - 2,117,968 3,130,411 2,489,583 - Limited Partnership Units - 76,047 76,047 76,137 76,137 Limited Partners 2,589 2,584 2,581 2,573 2,570

3 Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations The significant decrease in revenues and expenses in 2001 and 2000 is primarily due to the dissolution process of the Fund that commenced in 1996 and was completed during the fourth quarter of 2001. Equipment was sold to the end user at lease expiration or packaged and sold prior to lease expiration for the present value of the remaining lease payments plus the forecasted future residual value. The Fund had revenues of $384,776, $1,421,098 and $2,093,718 for the years ended December 31, 2001, 2000 and 1999, respectively. Rental income from the leasing of equipment accounted for 41%, 54% and 75% of total income in 2001, 2000 and 1999, respectively. In 2001 and 2000, the decrease in total revenues was primarily attributable to a decrease in rental income. In 2001, rental income decreased by approximately $603,000 because of equipment that was sold as a result of a lease termination or the dissolution of the Fund. In 2000, rental income decreased by approximately $811,000 because of equipment that terminated and was sold. The decrease in earned income on direct fi- nancing leases also accounted for the decrease in total revenues in 2001 and 2000. There were no investments made in direct financing leases in 2001 and 2000. Therefore, the earned income on direct financing leases decreased in 2001 and 2000 in accordance with the recognition of income on these leases using the interest method. The overall decrease in revenues was also related to the decrease in the net gain on sale of equipment in 2001 and was mitigated by the increase in net gain on sale of equipment in 2000. The Fund recorded $22,753, $261,634 and $70,262 of net gain on sale of equipment for the years ended December 31, 2001, 2000 and 1999, respectively. In addition, interest income decreased in 2001 resulting from lower cash balances available for investment by the Fund during 2001. The Fund paid a cash distribution of $4,300,000 in February 2001 that caused the decrease in the cash balance. The decrease in this account contributed to the decrease in total revenues during the twelve months ended December 31, 2001. Expenses were $282,187, $784,004 and $1,757,001 for the years ended December 31, 2001, 2000 and 1999, respectively. There was no depreciation expense in 2001. Depreciation expense comprised 59% and 70% of total expenses in 2000 and 1999, respectively. The decrease in total expenses in 2001 and 2000 was primarily related to the decrease in depreciation expense because of equipment that was sold. The decrease in write-down of equipment to net realizable value also contributed to the decrease in total expenses in 2000. There was no write-down of equipment to net realizable value charged to opera- tions in 2000 compared to approximately $92,000 of write-down of equipment to net realizable value recorded during 1999. The Fund's practice was to review the recoverability of its undepreciated costs of rental equipment quarterly. The Fund's policy, as part of this review, was to analyze such factors as releasing of equipment, technological developments and information provided in third party publications. In accordance with accounting principles gen- erally accepted in the United States of America, the Fund wrote down its rental equipment to its estimated net realizable value when the amounts were reason- ably estimated and only recognized gains, if any, upon actual sale of its rental equipment. Furthermore, the decrease in general and administrative expense to related party and management fee to related party also accounted for the overall decrease in expenses in both 2001 and 2000. General and administrative expense to related party decreased in 2001 and 2000 because of the decrease in expenses charged by the General Partner or its parent 4 Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Results of Operations (Continued) company for services and materials provided to the Fund. Management fee to related party decreased in 2001 and 2000 because of the decrease in rental income during these years. The Fund's net income was $102,589, $637,094 and $336,717 for the years ended December 31, 2001, 2000 and 1999, respectively. The earnings per equiv- alent limited partnership unit, after earnings allocated to the General Partner, were $5.05, $24.27 and $13.59 for the years ended December 31, 2001, 2000 and 1999, respectively. The weighted average number of equivalent limited partnership units outstanding were 15,181, 24,327 and 24,404 for 2001, 2000 and 1999, respectively. The Fund generated cash from operations of $79,836, $836,633 and $1,583,430 for the purpose of determining cash available for distribution during the years ended December 31, 2001, 2000 and 1999, respectively. The Fund distributed $2,515,586, $375,000 and $375,000 to partners during the periods from April 1 through December 31, 2001, 2000 and 1999, respectively, for the years ended December 31, 2001, 2000 and 1999, respectively. During the first quarter of 2001 and 2000, the Fund distributed $4,300,000 and $125,000, respectively, for the quarter ended December 31, 2000 and 1999, respectively. The Fund liquidated in December 2001 and distributed all of its cash to part- ners in December 2001. For financial statement purposes, the Fund recorded cash distributions to partners on a cash basis in the period in which they were paid. Analysis of Financial Condition The Fund's equipment portfolio was liquidated as of December 31, 2001. The cash position of the Fund was reviewed daily and cash was invested on a short-term basis. Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The response to this Item is submitted as a separate section of this report commencing on page F-1. Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable. 5 PART III Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT In December 2001, the General Partner's Certificate of Incorporation was amended to change the name of the General Partner of the Fund from F.L. Partnership Management, Inc. to LEAF Financial Corporation (LEAF). LEAF Financial Corporation is a wholly owned subsidiary of Resource Leasing, Inc. which is a wholly owned subsidiary of Resource America, Inc. (Resource America). The Directors and Executive Officers of LEAF are: CRIT S. DEMENT, age 49, Chairman, President and Chief Executive Officer of LEAF since November 2001. President of Fidelity Leasing, Inc. and its successor, the Technology Finance Group of CitiCapital Vendor Finance from 1996 to 2001. Vice President of Marketing for Tokai Financial Services from 1987 through 1996. EDWARD E. COHEN, age 62, Director of LEAF since November 2001. Chairman of the Board of Resource America since 1990, President of Resource America since 2000 and Chief Executive Officer and a Director of Resource America since 1988. Chairman of the Managing Board of Directors of Atlas Pipeline Partners GP, LLC (a wholly owned subsidiary of Resource America that is the general partner of a publicly traded limited partnership that owns and operates natural gas pipelines) since its formation in 1999. Chairman of the Board of Directors of Brandywine Construction & Management, Inc. (a property management company) since 1994. Mr. Cohen is the father of Jonathan Z. Cohen. JONATHAN Z. COHEN, age 31, Director of LEAF since November 2001. Execu- tive Vice President of Resource America since 2001, Senior Vice President of Resource America from 1999 to 2001. Vice Chairman of the Managing Board of Atlas Pipeline Partners GP, LLC since its formation in 1999. Trustee and Secretary of RAIT Investment Trust (a publicly traded real estate investment trust) since 1997. Mr. Cohen is the son of Edward E. Cohen. MILES HERMAN, age 42, Vice President and a Director of LEAF since November 2001. Held various senior operational offices with Fidelity Leasing, Inc. and its successor from 1998 to 2001. Held several management positions in sales, marketing and operations at Tokai Financial Services from 1983 to 1998. FREDDIE M. KOTEK, age 46, Director of LEAF since 1996. Senior Vice President of Resource America since 1995. President of Resource Leasing, Inc. since 1995. MARIANNE T. SCHUSTER, age 43, Vice President and Treasurer of LEAF since 1984. 6 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, 2001: Name of Individual or Capacities in Number in Group Which Served Compensation LEAF Financial Corporation General Partner $110,132(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, 2001, 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 LEAF Financial Corporation nor such directors or officers as a group, owned more than one percent of the Fund's outstanding securities. The General Partner owned a general partnership interest which entitled it to receive 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 10%. The General Partner also shared in net income equal to the greater of its cash distributions or 1% of net income or to the extent there were losses, 1% of such losses. Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS During the year ended December 31, 2001, the Fund was charged $110,132 of management fees by the General Partner. The General Partner received 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, in- cluding acquisition fees. A majority of the direct financing leases in which the Fund invested met the criteria for a full pay-out lease and paid a 3% management fee to the General Partner. This management fee was paid quarterly only if and when the Limited Partners 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 also received 1% of cash distributions. During the year ended December 31, 2001, the General Partner received $70,264 of cash distributions. The Fund incurred $70,898 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 2001. 7 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. 8 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: LEAF FINANCIAL CORPORATION /s/ Crit S. DeMent By: ___________________________ Crit S. DeMent, Chairman and President Dated March 28, 2002 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/ Crit S. DeMent ____________________________ Chairman of the Board of Directors 3-28-02 Crit S. DeMent and President of LEAF Financial Corporation (Principal Executive Officer) /s/ Miles Herman ____________________________ Vice President and Director of 3-28-02 Miles Herman LEAF Financial Corporation /s/ Freddie M. Kotek ____________________________ Director of LEAF Financial Corporation 3-28-02 Freddie M. Kotek /s/ Marianne T. Schuster ____________________________ Vice President and Treasurer of 3-28-02 Marianne T. Schuster LEAF Financial Corporation (Principal Financial Officer) 9 INDEX TO FINANCIAL STATEMENTS AND SCHEDULES Pages Report of Independent Certified Public Accountants F-2 Balance Sheets as of December 31, 2001 and 2000 F-3 Statements of Operations for the years ended December 31, 2001, 2000 and 1999 F-4 Statements of Partners' Capital for the years ended December 31, 2001, 2000 and 1999 F-5 Statements of Cash Flows for the years ended December 31, 2001, 2000 and 1999 F-6 Notes to Financial Statements F-7 - F-12 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, 2001 and 2000, and the related state- ments of operations, partners' capital and cash flows for each of the three years in the period ending December 31, 2001. 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, 2001 and 2000, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2001 in conformity with accounting principles generally accepted in the United States of America. Grant Thornton LLP Philadelphia, Pennsylvania February 14, 2002 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

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

The accompanying notes are an integral part of this financial statement. 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. In December 2001, the General Partner's Certificate of Incorporation was amended to change the name of the General Partner of the Fund from F.L. Partnership Management, Inc. to LEAF Financial Corporation (LEAF). LEAF Financial Corporation is a wholly owned subsidiary of Resource Leasing, Inc. which is a wholly owned subsidiary of Resource America, Inc. (Resource Amer- ica). The Fund was managed by the General Partner. The Fund's limited part- nership interests were not publicly traded. There was no market for the Fund's limited partnership interests. During 2001, the General Partner com- pleted the dissolution process of the Fund. The remaining lease portfolio was sold during the year and all cash was distributed to the partners. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Concentration of Credit Risk Financial instruments that potentially subject the Fund to concentrations of credit risk consisted principally of temporary cash investments. The Fund placed its temporary investments in money market savings accounts. Concentrations of credit risk with respect to accounts receivables were limited due to the dispersion of the Fund's lessees over different industries and geographies. Impairment of Long-Lived Assets The Fund reviewed its assets to determine if it had any long-lived assets that was carried on the books for an amount that may not be recoverable. If it was determined that an asset's estimated future cash flows were not sufficient to recover its carrying amount, an impairment charge was recorded. 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 consisted of both operating and direct financing leases. Under the operating method of accounting for leases, the cost of the leased equipment was recorded as an asset and depreciated on a straight-line basis over its estimated useful life, up to six years. Acqui- sition fees associated with lease placements were allocated to equipment when purchased and depreciated as part of equipment cost. Rental income consisted 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 were removed from the accounts and the resulting gain or loss, if any, was reflected in income. 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) 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) was 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. 3. ALLOCATION OF PARTNERSHIP INCOME, LOSS AND CASH DISTRIBUTIONS Cash distributions, if any, were 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 were allocated 99% to the Limited Partners and 1% to the General Partner. The General Partner was 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 were 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. F-8 FIDELITY LEASING INCOME FUND V, L.P. NOTES TO FINANCIAL STATEMENTS (Continued) 4. EQUIPMENT LEASED Equipment on lease consisted of equipment under operating leases. The lessees have agreements with the manufacturer of the equipment to provide maintenance for the leased equipment. In accordance with accounting principles generally accepted in the United States of America, the Fund writes down its rental equipment to its esti- mated net realizable value when the amounts are reasonably estimated and only recognizes gains upon actual sale of its rental equipment. As a result, there was no write-down of equipment to net realizable value recorded during 2001 and 2000. In 1999, approximately $92,000 was charged to write-down of equipment to net realizable value. 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. 5. RELATED PARTY TRANSACTIONS The General Partner received 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 was paid quarterly only if and when the Limited Partners 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. Additionally, the General Partner and its parent company were 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: 2001 2000 1999 Management fee $110,132 $114,219 $195,471 Reimbursable costs 70,898 118,219 156,874 During 2001, the Fund transferred its checking and investment accounts from Hudson United Bank to The Bancorp.com, Inc. (TBI). The son and the spouse of the Chairman of Resource America, Inc. are the Chairman and Chief Executive Officer, respectively, of TBI. The Fund maintained a normal banking relation- ship with TBI. Amounts due from related parties at December 31, 2000 represented 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. F-9 FIDELITY LEASING INCOME FUND V, L.P. NOTES TO FINANCIAL STATEMENTS (Continued) 5. RELATED PARTY TRANSACTIONS (Continued) Amounts due to related parties at December 31, 2000 represented 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, 2001, three customers accounted for ap- proximately 58%, 22% and 12% of the Fund's rental income. For the year ended December 31, 2000, four customers accounted for approximately 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. 7. CASH DISTRIBUTIONS Below is a summary of the quarterly cash distributions paid to partners during the years ended December 31: Month of Distribution 2001 2000 1999

F-10 FIDELITY LEASING INCOME FUND V, L.P. NOTES TO FINANCIAL STATEMENTS (Continued) 8. SUMMARY OF QUARTERLY RESULTS (UNAUDITED) The following table summarizes the results of operations on a quarterly basis during 2001 and 2000: 2001 ---------------------------------------- Fourth Third Second First Quarter Quarter Quarter Quarter ------- ------- ------- ------- Income: Rentals $ 190 $ 23,540 $ 23,790 $ 47,933 Earned income on direct financing leases 64,165 31,124 36,388 41,542 Interest 11,411 8,874 6,378 21,816 Gain on sale of equipment, net 13,908 - 8,845 - Other 36,874 5,356 1,375 1,267 ________ ________ ________ ________ Total income 126,548 68,894 76,776 112,558 ________ ________ ________ ________ Expenses: General and administrative 21,013 27,024 34,035 19,085 General and administrative to related party 14,450 13,544 15,552 27,352 Management fee to related party 57,204 17,150 17,165 18,613 ________ ________ ________ ________ Total expenses 92,667 57,718 66,752 65,050 ________ ________ ________ ________ Net income $ 33,881 $ 11,176 $ 10,024 $ 47,508 ======== ======== ======== ======== Net income per equivalent limited partnership unit $ 1.14 $ .64 $ .55 $ 2.45 ======== ======== ======== ========

F-11 FIDELITY LEASING INCOME FUND V, L.P. NOTES TO FINANCIAL STATEMENTS (Continued) 8. SUMMARY OF QUARTERLY RESULTS (UNAUDITED) (Continued) 2000 ---------------------------------------- Fourth Third Second First Quarter Quarter Quarter Quarter ------- ------- ------- ------- Income: Rentals $ 53,574 $152,523 $213,869 $342,420 Earned income on direct financing leases 46,590 51,532 57,936 67,129 Interest 35,641 31,990 28,539 38,360 Gain on sale of equipment, net - 255,963 - 27,287 Other 35,594 1,376 1,405 986 ________ ________ ________ ________ Total income 171,399 493,384 301,749 476,182 ________ ________ ________ ________ Expenses: Depreciation 2,221 60,157 160,913 237,882 General and administrative 27,806 17,762 18,257 26,568 General and administrative to related party 35,943 29,269 25,959 27,048 Management fee to related party 18,952 24,889 30,780 39,598 Loss on sale of equipment, net - - 21,616 - ________ ________ ________ ________ Total expenses 84,922 132,077 257,525 331,096 ________ ________ ________ ________ Net income $ 86,477 $361,307 $ 44,224 $145,086 ======== ======== ======== ======== Net income per equivalent limited partnership unit $ 1.89 $ 14.67 $ 1.78 $ 5.93 ======== ======== ======== ========

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FIDELITY LEASING INCOME FUND V LP 10-K