10-K 1 seriesc10k.txt SERIES C 12/31/00 FORM 10K UNITED STATES 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 [Fee Required] For the fiscal year ended December 31, 2000 ------------------------------------------------------ or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 [Fee Required] For the transition period from ___________________ to __________________________ Commission File Number 0-27904 --------------------------------------------------------- ICON Cash Flow Partners, L.P., Series C -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 13-3575099 ------------------------------- -------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 111 Church Street, White Plains, New York 10601-1505 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (914) 993-1700 ----------------------------- Securities registered pursuant to Section 12(b) of the Act: None Title of each class Name of each exchange on which registered -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Securities registered pursuant to Section 12(g) of the Act: Units of Limited Partnership Interests -------------------------------------------------------------------------------- (Title of class) -------------------------------------------------------------------------------- (Title of class) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 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. [X] Yes [ ] No ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) December 31, 2000 TABLE OF CONTENTS Item Page PART I 1. Business 3-4 2. Properties 5 3. Legal Proceedings 5 4. Submission of Matters to a Vote of Security Holders 5 PART II 5. Market for the Registrant's Securities and Related Security Holder Matters 5 6. Selected Financial and Operating Data 6 7. General Partner's Discussion and Analysis of Financial Condition and Results of Operations 7-8 8. Financial Statements and Supplementary Data 9-22 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 23 PART III 10. Directors and Executive Officers of the Registrant's General Partner 23 11. Executive Compensation 24 12. Security Ownership of Certain Beneficial Owners and Management 25 13. Certain Relationships and Related Transactions 25 PART IV 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K 26 SIGNATURES 27 ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) December 31, 2000 PART I Item 1. Business General Development of Business ICON Cash Flow Partners, L.P., Series C (the "Partnership") was formed in June 1990 as a Delaware limited partnership. The Partnership commenced business operations on its initial closing date, January 3, 1991, with the admission of 15,249.37 limited partnership units. Between January 4, 1991 and June 21, 1991 (the final closing date), 184,750.63 additional units were admitted bringing the final admission to 200,000 units totaling $20,000,000 in capital contributions. Between 1993 and 1997, the Partnership redeemed 1,755 limited partnership units. In 1998 the Partnership redeemed 208 units, leaving 198,037 limited partnership units outstanding at December 31, 2000. The sole general partner is ICON Capital Corp. (the "General Partner"). The Partnership's original reinvestment period was to expire on June 19, 1996, five years after the final closing date. The General Partner distributed a definitive consent statement to the limited partners to solicit approval of two amendments to the Partnership agreement. A majority of the limited partnership units outstanding responded affirmatively and the amendments were adopted. These amendments are effective from and after June 19, 1996 and include: (1) extending the reinvestment period for a maximum of four and one half additional years and likewise delaying the start and end of the liquidation period, and (2) eliminating the Partnership's obligation to pay the General Partner a portion of accrued and unpaid management fees, and any additional management fees which would otherwise accrue. The previously accrued and unpaid management fees of $105,000 were paid to the General Partner in 1999. The General Partner subsequently remitted this amount back to the Partnership as an additional capital contribution. Segment Information The Partnership has only one operating segment: the business of acquiring equipment subject to leases with companies that the Partnership believes to be creditworthy.. Narrative Description of Business The Partnership is an equipment leasing income fund. The principal investment objective of the Partnership is to obtain the maximum economic return from its investments for the benefit of its limited partners. To achieve this objective the Partnership has and intends to continue to: (1) acquire a diversified portfolio of short-term, high-yield investments; (2) make monthly cash distributions to its limited partners from cash from operations, commencing with each limited partner's admission to the Partnership, when cash is available, continuing through the reinvestment period; (3) re-invest substantially all undistributed cash from operations and cash from sales in additional equipment and financing transactions during the reinvestment period; and (4) sell the Partnership's investments and distribute the cash from sales of such investments to its limited partners during the liquidation period. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) December 31, 2000 The equipment leasing industry is highly competitive. In initiating its leasing transactions the Partnership competes with leasing companies, manufacturers that lease their products directly, equipment brokers and dealers and financial institutions, including commercial banks and insurance companies. Many competitors are larger than the Partnership and have greater financial resources. The Partnership has no direct employees. The General Partner has full and exclusive discretion in management and control of the Partnership. Lease and Financing Transactions The Partnership did not lease or finance any equipment for the years ended December 31, 2000 and 1999. A summary of the portfolio equipment cost by category held at December 31, 2000 and 1999 is as follows: December 31, 2000 December 31, 1999 ----------------------- ----------------------- Category Cost Percent Cost Percent -------- ---- ------- ---- ------- Computer systems $ 372,739 37.7% $ 551,423 25.3% Manufacturing & production 196,443 19.9 252,449 11.6 Medical 159,470 16.1 159,469 7.3 Office furniture & fixtures 89,386 9.1 119,242 5.5 Printing 86,980 8.8 223,231 10.2 Telecommunications 37,927 3.8 49,359 2.3 Automotive equipment 28,051 2.8 43,283 2.0 Copiers 17,654 1.8 50,566 2.3 Restaurant equipment -- -- 657,423 30.1 Video production -- -- 65,815 3.0 Retail systems -- -- 10,164 0.4 ---------- ----- ---------- ----- $ 988,650 100.0% $2,182,424 100.0% ========== ===== ========== ===== No single lessee represents greater than 10% of the total portfolio equipment cost at December 31, 2000. Item 2. Properties ---------- The Partnership neither owns nor leases office space or equipment for the purpose of managing its day-to-day affairs. Item 3. Legal Proceedings ----------------- The Partnership is not a party to any pending legal proceedings. Item 4. Submission of Matters to a Vote of Security Holders --------------------------------------------------- No matters were submitted to a vote of security holders during the fourth quarter of 2000. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) December 31, 2000 PART II Item 5. Market for the Registrant's Securities and Related Security Holder Matters ----------------------------------------------------------------------- The Partnership's limited partnership interests are not publicly traded nor is there currently a market for the Partnership's limited partnership interests. It is unlikely that any such market will develop. Number of Equity Security Holders Title of Class as of December 31, -------------- --------------------------------- 2000 1999 ---- ---- Limited partners 1,741 1,741 General Partner 1 1 ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) December 31, 2000 Item 6. Selected Financial and Operating Data

The above selected financial and operating data should be read in conjunction with the financial statements and related notes appearing elsewhere in this report. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) December 31, 2000 Item 7. General Partner's Discussion and Analysis of Financial Condition and Results of Operations ------------------------------------------------------------------------ The Partnership's portfolio consisted of a net investment in financings, finance leases and investment in joint venture of 57%, 5% and 38% of total investments, respectively, at December 31, 2000 and 61%, 28% and 11% of total investments, respectively, at December 31, 1999. Results of Operations Years Ended December 31, 2000 and 1999 Revenues for the year ended December 31, 2000 were $50,569, representing a decrease of $163,986 from 1999. The decrease in revenues was primarily due to the loss on sales of equipment in 2000 of $6,900 compared to a gain of $51,752 in 1999, and decreases in finance income of $56,779 and interest income and other of $47,917. The loss on sales of equipment in 2000 resulted from equipment being sold where the remaining book value exceeded sales proceeds. The decrease in finance income was due to a decrease in the average size of the lease portfolio from 1999 to 2000. The decrease in interest income and other was due primarily to a decline in the average cash balance from 1999 to 2000. Expenses for the year ended December 31, 2000 totaled $101,234, representing an increase of $15,182 from 1999. The increase resulted primarily from an increase in general and administrative expenses of $22,949 and a provision for bad debt of $1,630 recorded in 2000 with no provision for bad debts recorded in 1999. These increases were offset in part by a $9,397 reduction in administrative expense reimbursements - General Partner. General and administrative expenses increased as a result of higher professional service fees. The provision for bad debts recorded in 2000 resulted from an analysis of delinquency trends, loss experience and an assessment of overall credit risk for the investment in financing portfolio, no such provision for bad debts was required in 1999. Administrative expense reimbursements - General Partner decreased due to the decrease in the average size of the portfolio from 1999 to 2000. Net (loss) income for the years ended December 31, 2000 and 1999 was ($50,665) and $128,503, respectively. The net (loss) income per weighted average limited partnership unit was ($.25) and $.64 for 2000 and 1999, respectively. Years Ended December 31, 1999 and 1998 Revenues for the year ended December 31, 1999 were $214,555, representing a decrease of $541,786 from 1998. The decrease in revenues resulted primarily from a decrease in gain on sales of equipment of $413,392, a decrease in interest income and other of $39,931 and a decrease in finance ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) December 31, 2000 income of $94,421. The decrease was partially offset by an increase in income from investment in joint venture of $5,958. The gain on sales of equipment decreased due to a decrease in the number of leases maturing in which the underlying equipment was sold. The decrease in interest income and other resulted from a decrease in the average cash balance from 1998 to 1999. The decrease in finance income resulted from a decrease in the average size of the portfolio from 1998 to 1999. In December 1998, the Partnership entered into a new joint venture, however, there was no revenue generated from such joint venture in 1998 compared to $5,958 generated in 1999. Expenses for the year ended December 31, 1999 totaled $86,052, representing an increase of $103,406 from 1998. The increase resulted primarily from a 1998 reversal of a $150,000 allowance for doubtful accounts which was partially offset by a decrease in general and administrative expense of $33,768 and a decrease in administrative expense reimbursements of $12,826. Administrative expense reimbursements decreased due to a decrease in the average size of the portfolio from 1998 to 1999. The reversal of the allowance for doubtful accounts in 1998 resulted from an analysis of delinquency trends, loss experience and an assessment of overall credit risk. Net income for the years ended December 31, 1999 and 1998 was $128,503 and $773,695, respectively. The net income per weighted average limited partnership unit was $.64 and $3.87 for 1999 and 1998, respectively. Liquidity and Capital Resources The Partnership's primary sources of funds in 2000, 1999 and 1998 were net cash provided by operations of $227,545, $373,704 and $952,528, and proceeds from sales of equipment of $64,421, $178,551 and $646,783, respectively. These funds were used to fund cash distributions to partners. Cash distributions to the limited partners in 2000, 1999 and 1998 totaled $890,950, $1,707,724 and $1,782,770, respectively, of which $0, $127,218 and $765,958 was investment income and $890,950, $1,580,506 and $1,016,812 was a return of capital, respectively. As of December 31, 2000, except as noted above, there were no known trends or demands, commitments, events or uncertainties which are likely to have any material effect on liquidity. As cash is realized from operations and sales of equipment, the Partnership will make distributions to limited partners while retaining sufficient cash reserves to meet its obligations. Item 7a. Qualitative and Quantitative Disclosures About Market Risk The Partnership had been exposed to interest rate risks during the periods it had outstanding debt obligations. The Partnership presently does not have any remaining outstanding debt obligations and believes its exposure to other market risks are insignificant to both its financial position and results of operations. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) December 31, 2000 Item 8. Financial Statements and Supplementary Data Index to Financial Statements Page Number Independent Auditors' Report 11 Balance Sheets as of December 31, 2000 and 1999 12 Statements of Operations for the Years Ended December 31, 2000, 1999 and 1998 13 Statements of Changes in Partners' Equity for the Years Ended December 31, 2000, 1999 and 1998 14 Statements of Cash Flows for the Years Ended December 31, 2000, 1999 and 1998 15 Notes to Financial Statements 16-21 ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) Financial Statements December 31, 2000 (With Independent Auditors' Report Thereon) INDEPENDENT AUDITORS' REPORT The Partners ICON Cash Flow Partners, L.P., Series C: We have audited the accompanying balance sheets of ICON Cash Flow Partners, L.P., Series C (a Delaware limited partnership) as of December 31, 2000 and 1999, and the related statements of operations, changes in partners' equity and cash flows for each of the years in the three-year period ended December 31, 2000. These financial statements are the responsibility of the partnership'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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles 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 ICON Cash Flow Partners, L.P., Series C as of December 31, 2000 and 1999, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2000 in conformity with accounting principles generally accepted in the United States of America. /s/ KPMG LLP -------------------------------------- KPMG LLP March 28, 2001 New York, New York ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) Balance Sheets December 31,

See accompanying notes to financial statements. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) Statements of Operations For the Years Ended December 31,

See accompanying notes to financial statements. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) Statements of Changes in Partners' Equity For the Years Ended December 31, 2000, 1999 and 1998

See accompanying notes to financial statements. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) Statements of Cash Flows For the Years Ended December 31,

See accompanying notes to financial statements. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) Notes to Financial Statements December 31, 2000 1. Organization ICON Cash Flow Partners, L.P., Series C (the "Partnership") was formed on June 22, 1990 as a Delaware limited partnership with an initial capitalization of $2,000. It was formed to acquire various types of equipment, to lease such equipment to third parties and, to a lesser degree, to enter into secured financing transactions. The Partnership's offering period commenced on January 3, 1991 and by its final closing in 1991, 200,000 units had been admitted into the Partnership with aggregate gross proceeds of $20,000,000. Between 1993 and 1997, the Partnership redeemed 1,755 limited partnership units. In 1998 the Partnership redeemed 208 limited partnership units, leaving 198,037 limited partnership units outstanding at December 31, 1998, 1999 and 2000. The General Partner of the Partnership is ICON Capital Corp. (the "General Partner"), a Connecticut corporation. The General Partner manages and controls the business affairs of the Partnership's equipment leases and financing transactions under a management agreement with the Partnership. ICON Securities Corp., an affiliate of the General Partner, received an underwriting commission on the gross proceeds from sales of all units. The total underwriting compensation paid by the Partnership, including underwriting commissions, sales commissions, incentive fees, public offering expense reimbursements and due diligence activities was limited to 13% of the gross proceeds received from the sale of the units. Such offering costs aggregated $2,600,000, (including $1,013,120 paid to the General Partner or its affiliates) and were charged directly to limited partners' equity. Profits, losses, cash distributions and disposition proceeds are allocated 99% to the limited partners and 1% to the General Partner until each limited partner has received cash distributions and disposition proceeds sufficient to reduce its adjusted capital contribution account to zero and receive, in addition, other distributions and allocations which would provide a 10% per annum cumulative return on its outstanding adjusted capital contribution account. After such time, distributions would be allocated 90% to the limited partners and 10% to the General Partner. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) Notes to Financial Statements - Continued 2. Amendments to Partnership Agreement The Partnership's original reinvestment period was to expire on June 19, 1996, five years after the final closing date. The General Partner distributed a definitive consent statement to the limited partners to solicit approval of two amendments to the Partnership agreement. A majority of the limited partnership units outstanding responded affirmatively and the amendments were adopted accordingly. These amendments are effective from and after June 19, 1996 and include: (1) extending the reinvestment period for a maximum of four and one half additional years and likewise delayed the start and end of the liquidation period, and (2) eliminating the Partnership's obligation to pay the General Partner $529,125 of the $634,125 accrued and unpaid management fees as of December 31, 1997 and all additional management fees which would otherwise accrue. The remaining $105,000 of previously accrued and unpaid management fees was paid to the General Partner in 1999. The General Partner remitted this amount back to the Partnership in 1999 in the form of an additional capital contribution. 3. Significant Accounting Policies Basis of Accounting and Presentation - The Partnership's records are maintained on the accrual basis. The preparation of financial statements in conformity with generally accepted accounting principles requires the General Partner's management to make estimates and assumptions that affect the reported amounts of 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. In addition, management is required to disclose contingent assets and liabilities. Leases - The Partnership accounts for owned equipment leased to third parties as finance leases or operating leases, as appropriate. The Partnership presently has only investments in finance leases. For finance leases, the Partnership records, at the inception of the lease, the total minimum lease payments receivable, the estimated unguaranteed residual values, the initial direct costs related to the leases and the related unearned income. Unearned income represents the difference between the sum of the minimum lease payments receivable plus the estimated unguaranteed residual minus the cost of the leased equipment. Unearned income is recognized as finance income over the terms of the related leases using the interest method. Initial direct costs of finance leases are capitalized and are amortized over the terms of the related leases using the interest method. Each lease is expected to provide aggregate contractual rents that, along with residual proceeds, return the Partnership's cost of its investments along with investment income. Investment in Financings - Investment in financings represent the gross receivables due from the financing of equipment plus the initial direct costs related thereto less the related unearned income. The unearned income is recognized as finance income and the initial direct costs are amortized over the terms of the receivables using the interest method. Financing transactions are supported by a written promissory note evidencing the obligation of the user to repay the principal, together with interest, which will be sufficient to return the Partnership's full cost associated with such financing transaction, together with some investment income. Furthermore, the repayment obligation is collateralized by a security interest in the tangible or intangible personal property. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) Notes to Financial Statements - Continued Disclosures About Fair Value of Financial Instruments - Statement of Financial Accounting Standards ("SFAS") No. 107, "Disclosures about Fair Value of Financial Instruments" requires disclosures about the fair value of financial instruments. Separate disclosure of fair value information as of December 31, 2000 and 1999 with respect to the Company's assets and liabilities is not provided because (i) SFAS No. 107 does not require disclosures about the fair value of lease arrangements and (ii) the carrying value of financial assets, other than lease related investments, approximates market value. Investment in Joint Ventures - The Partnership accounts for its interests in less than 50% owned joint ventures under the equity method of accounting. In such cases, the Partnership's original investment is recorded at cost and adjusted for its share of earnings, losses and distributions thereafter. Allowance for Doubtful Accounts - The Partnership records provisions for bad debts to provide for estimated credit losses in the portfolio. The allowance for doubtful accounts is based on an analysis of delinquency and loss trends and an assessment of overall credit risk. The Partnership's write-off policy is based on an analysis of the aging of the Partnership's portfolio, a review of the non-performing receivables and leases, and prior collection experience. An account is fully reserved for or written off when such analysis indicates that the probability of collection of the account is remote. In 2000, the Partnership recorded a provision for bad debt expense of $1,630. In 1998, the Partnership reversed $150,000 of amounts previously included in the allowance for doubtful accounts. Impairment of Estimated Residual Values - The Partnership's policy with respect to impairment of estimated residual values is to review, on a periodic basis, the carrying value of its residuals on an individual asset basis to determine whether events or changes in circumstances indicate that the carrying value of an asset may not be recoverable and, therefore, an impairment loss should be recognized. The events or changes in circumstances which generally indicate that the residual value of an asset has been impaired are (i) the estimated fair value of the underlying equipment is less than the Partnership's carrying value or (ii) the lessee is experiencing financial difficulties and it does not appear likely that the estimated proceeds from disposition of the asset will be sufficient to satisfy the remaining obligation to the non-recourse lender and the Partnership's residual position. The Partnership measures its impairment loss as the amount by which the carrying amount of the residual value exceeds the estimated proceeds to be received by the Partnership from release or resale of the equipment. Generally, quoted market prices are used as the basis for measuring whether an impairment loss should be recognized. Income Taxes - No provision for income taxes has been made as the liability for such taxes is that of each of the partners rather than the Partnership. New Accounting Pronouncement - Effective January 1, 2001, the Partnership adopted SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," as amended. The adoption of SFAS No. 133 did not have any effect on the Partnership's financial position or results of operations. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) Notes to Financial Statements - Continued 4. Investment in Joint Venture In December 1998 the Partnership and three affiliates, ICON Cash Flow Partners L.P. Six ("L.P. Six"), ICON Cash Flow Partners L.P. Seven ("L.P. Seven") and ICON Income Fund Eight A L.P. ("Eight A") formed ICON Boardman Funding LLC ("ICON BF"), for the purpose of acquiring a lease with Portland General Electric. The purchase price totaled $27,421,810, and was funded with cash and non-recourse debt assumed in the purchase price. The Partnership, L.P. Six, L.P. Seven and Eight A received a .5%, .5%, .5% and 98.5% interest, respectively, in ICON BF. The Partnership's original investment was recorded at cost of $56,960 and is adjusted by its share of earnings, losses and distributions, thereafter. The Partnership invested $4,112 in the joint venture in 1999. Simultaneously with the acquisition of the Portland General Electric lease by ICON BF, the rent in excess of the senior debt payments was acquired by L.P. Six for $3,801,108. On March 30, 1999, ICON BF acquired L.P. Six's investment in a portion of the rent in excess of the senior debt payments for $3,097,637 and financed, with a third party, all of the rent receivable in excess of the senior debt payments. ICON BF received $7,643,867 from the financing. There was no gain or loss to L.P. Six on this transaction. The proceeds from the financing, net of the purchase of L.P. Six's investment, were distributed to the members of ICON BF in accordance with their ownership interests. Information as to the financial position of ICON BF as of and for the years ended December 31, 2000 and 1999 is summarized below: December 31, 2000 December 31, 1999 ----------------- ----------------- Assets $ 22,744,551 $ 27,740,665 =============== ================ Liabilities $ 12,819,987 $ 18,880,079 =============== ================ Equity $ 9,924,564 $ 8,860,586 =============== ================ Partnership's share of equity $ 49,619 $ 44,299 =============== ================ Year Ended Year Ended December 31, 2000 December 31, 1999 ----------------- ----------------- Net income $ 1,063,978 $ 1,191,629 =============== ================ Partnership's share of net income $ 5,320 $ 5,958 =============== ================ Distributions $ - $ 4,546,230 =============== ================ Partnership's share of distributions $ - $ 22,731 =============== ================ ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) Notes to Financial Statements - Continued 5. Receivables Due in Installments Non-cancelable minimum annual amounts receivable on financings and finance leases are as follows: Finance Year Financings Leases Total 2001 $124,000 $ 15,172 $139,172 -------- -------- -------- $124,000 $ 15,172 $139,172 ======== ======== ======== 6. Allowance for Doubtful Accounts The Allowance for doubtful accounts related to the investments in finance leases and investment in financings consisted of the following:

ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) Notes to Financial Statements - Continued 7. Related Party Transactions During the years ended December 31, 2000, 1999 and 1998 the Partnership paid or accrued to the General Partner administrative expense reimbursements of $7,192, $16,589 and $29,415, respectively. These reimbursements were charged to operations. As a result of the Partnership Agreement amendments discussed in Note 2, no management fee expense was recorded in 2000, 1999 and 1998. See Note 2 for information relating to the 1999 capital contribution made by the General Partner. In December 1998 the Partnership and three affiliates, L.P. Six, L.P. Seven and Eight A formed ICON BF, for the purpose of acquiring a lease with Portland General Electric. See Note 4 for additional information relating to the joint venture. 8. Tax Information (Unaudited) The following reconciles the net income for financial reporting purposes to income for federal income tax purposes for the years ended December 31:

As of December 31, 2000, the partners' capital accounts included in the financial statements totaled $391,055 compared to the partners' capital accounts for federal income tax purposes of $3,065,328 (unaudited). The difference arises primarily from commissions reported as a reduction in the partners' capital for financial reporting purposes but not for federal income tax purposes, and temporary differences related to direct finance leases, depreciation and provision for losses. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) Notes to Financial Statements - Continued 9. Quarterly Financial Data (Unaudited) The following table is a summary of financial data by quarter for the years ended December 31, 2000 and 1999:

ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) December 31, 2000 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ---------------------------------------------------------------------- None PART III Item 10. Directors and Executive Officers of the Registrant's General Partner -------------------------------------------------------------------- The General Partner, a Connecticut corporation, was formed in 1985. The General Partner's principal offices are located at 111 Church Street, White Plains, New York 10601-1505, and its telephone number is (914) 993-1700. The officers of the General Partner have extensive experience with transactions involving the acquisition, leasing, financing and disposition of equipment, including acquiring and disposing of equipment subject to leases and full financing transactions. The manager of the Partnership's business is the General Partner. The General Partner is engaged in a broad range of equipment leasing and financing activities. Through its sales representatives and through various broker relationships throughout the United States, the General Partner offers a broad range of equipment leasing services. The General Partner is performing or causing to be performed certain functions relating to the management of the equipment of the Partnership. Such services include the collection of lease payments from the lessees of the equipment, re-leasing services in connection with equipment which is off-lease, inspections of the equipment, liaison with and general supervision of lessees to assure that the equipment is being properly operated and maintained, monitoring performance by the lessees of their obligations under the leases and the payment of operating expenses. The officers and directors of the General Partner are as follows: Beaufort J.B. Clarke Chairman, Chief Executive Officer and Director Paul B. Weiss President and Director Thomas W. Martin Executive Vice President and Director ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) December 31, 2000 Beaufort J. B. Clarke, age 55, has been Chairman, Chief Executive Officer and Director of the General Partner since 1996. Prior to his present position, Mr. Clarke was founder and the President and Chief Executive Officer of Griffin Equity Partners, Inc. Mr. Clarke formerly was an attorney with Shearman and Sterling and has over 20 years of senior management experience in the United States leasing industry. Paul B. Weiss, age 40, is President and Director of the General Partner. Mr. Weiss has been exclusively engaged in lease acquisitions since 1988 from his affiliations with the General Partner since 1996, Griffin Equity Partners (as Executive Vice President from 1993-1996); Gemini Financial Holdings (as Senior Vice President-Portfolio Acquisitions from 1991-1993) and Pegasus Capital Corporation (as Vice President-Portfolio Acquisitions from 1988-1991). He was previously an investment banker and a commercial banker. Thomas W. Martin, age 47, has been Executive Vice President of the General Partner since 1996. Prior to his present position, Mr. Martin was the Executive Vice President and Chief Financial Officer of Griffin Equity Partners, Inc. (1993-1996), Gemini Financial Holdings (as Senior Vice President from 1992-1993) and Chancellor Corporation (as Vice President-Syndications from 1985-1992). Mr. Martin has 17 years of senior management experience in the leasing business. Item 11. Executive Compensation The Partnership has no directors or officers. The General Partner and its affiliates were paid or accrued the following compensation and reimbursement for costs and expenses for the years ended December 31, 2000, 1999 and 1998.

See Note 2 within the financial statements under Item 8 for disclosure of amendments made to the Partnership Agreement which eliminated the Partnership's obligation to pay the General Partner management fees. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) December 31, 2000 Item 12. Security Ownership of Certain Beneficial Owners and Management (a) The Partnership is a limited partnership and therefore does not have voting shares of stock. No person of record owns, or is known by the Partnership to own beneficially, more than 5% of any class of securities of the Partnership. (b) As of March 19, 2001, Directors and Officers of the General Partner do not own any equity securities of the Partnership. (c) The General Partner owns the equity securities of the Partnership set forth in the following table: Title of Class Amount Beneficially Owned Percent of Class -------------- ------------------------- ---------------- General Partner Represents initially a 1% and 100% Interest potentially a 10% interest in the Partnership's income, gain and loss deductions. Profits, losses, cash distributions and disposition proceeds are allocated 99% to the limited partners and 1% to the General Partner until each investor has received cash distributions and disposition proceeds sufficient to reduce its adjusted capital contribution account to zero and receive, in addition, other distributions and allocations which would provide a 10% per annum cumulative return, compounded daily, on the outstanding adjusted capital contribution account. After such time, the distributions will be allocated 90% to the limited partners and 10% to the General Partner. Item 13. Certain Relationships and Related Transactions See Item 11 for a discussion of the Partnership's related party transactions. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) December 31, 2000 PART IV Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K (a) 1. Financial Statements - See Part II, Item 8 hereof. 2. Financial Statement Schedule - None. Schedules not listed above have been omitted because they are not applicable or are not required or the information required to be set forth therein is included in the Financial Statements or Notes thereto. 3. Exhibits - The following exhibits are incorporated herein by reference: (i) Form of Dealer-Manager Agreement (Incorporated herein by reference to Exhibit 1.1 to Amendment No. 2 to Form S-1 Registration Statement No. 33-36376 filed with the Securities and Exchange Commission on November 30, 1990) (ii) Form of Selling Dealer Agreement (Incorporated herein by reference to Exhibit 1.2 to Amendment No. 2 to Form S-1 Registration Statement No. 33-36376 filed with the Securities and Exchange Commission on November 30, 1990) (iii)Amended and Restated Agreement of Limited Partnership (Incorporated by reference to Exhibit A to Amendment No. 2 to Form S-1 Registration Statement No. 33-36376 filed with the Securities and Exchange Commission on November 30, 1990) (iv) Form of Management Agreement between the Partnership and Crossgate Leasing, Inc. (Incorporated herein by reference to Exhibit 10.01 to Amendment No. 1 to Form S-1 Registration Statement No. 33-36376 filed with the Securities and Exchange Commission on October 25, 1990) (b) Reports on Form 8-K No reports on Form 8-K were filed by the Partnership during the year ended December 31, 2000. ICON Cash Flow Partners, L.P., Series C (A Delaware Limited Partnership) December 31, 2000 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Partnership has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ICON CASH FLOW PARTNERS, L.P., Series C File No. 33-36376 (Registrant) By its General Partner, ICON Capital Corp. Date: March 28, 2001 /s/ Beaufort J.B. Clarke ---------------------------------------------- Beaufort J.B. Clarke Chairman, Chief Executive Officer and Director Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacity and on the dates indicated. ICON Capital Corp. sole General Partner of the Registrant Date: March 28, 2001 /s/ Beaufort J.B. Clarke --------------------------------------------- Beaufort J.B. Clarke Chairman, Chief Executive Officer and Director Date: March 28, 2001 /s/ Paul B. Weiss --------------------------------------------- Paul B. Weiss President and Director Date: March 28, 2001 /s/ Thomas W. Martin --------------------------------------------- Thomas W. Martin Executive Vice President (Principal Financial and Accounting Officer) Supplemental Information to be Furnished With Reports Filed Pursuant to Section 15(d) of the Act by Registrant Which have not Registered Securities Pursuant to Section 12 of the Act No annual report or proxy material has been sent to security holders. An annual report will be sent to the limited partners and a copy will be forwarded to the Commission.

ICON CASH FLOW PARTNERS L P SERIES C 10-K