|United StatesSECURITIES AND
EXCHANGE COMMISSION


WASHINGTON, D.C. 20549


FORM 10-K


(Mark One)


/X/ Annual report
pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934


For the year ended
December 31, 2003


/ / Transition report
pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934


For the transition
period from _______________ to ______________


Commission file number
333-84730


LEASE EQUITY
APPRECIATION FUND I, L.P.


(Exact name of
registrant as specified in its charter)
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                  
| | ---------------------------------
| | Delaware  (State of Organization)

|1845 Walnut Street,
Suite 1000, Philadelphia, Pennsylvania 19103Address 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:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                        
| | -----------------------
| | Title of Each ClassNone

|Securities
registered pursuant to Section 12 (g) of the Act:


None


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____


Indicate by check if disclosures
filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information statements incorporated
by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  __X__

Indicated by check mark whether the registrant
is an accelerated filer (as defined in Exchange Act Rule 12b-2) of the Act.  Yes ____ No__X__


As of June 30, 2003, 47,322 units
of limited partner interest were held by non-affiliates of the registrant. There is no
public market for the registrants equity securities.


DOCUMENTS INCORPORATED
BY REFERENCENone







LEASE EQUITY
APPRECIATION FUND I, L.P.


INDEX TO ANNUAL REPORTON FORM 10-K
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|           |                                                                       | Page   
|---------- | --------------------------------------------------------------------- | -------
|PART I     |                                                                       |        
|ITEM 1:    | Business                                                              | 3 - 11 
|ITEM 2:    | Properties                                                            | 11     
|ITEM 3:    | Legal Proceedings                                                     | 11     
|ITEM 4:    | Submission of Matters to a Vote of Security Holders                   | 12     
|PART II   
|ITEM 5:    | Market for Registrant's Common Equity and Related Stockholder Matters | 12 - 13
|ITEM 6:    | Selected Financial Data                                               | 13     
|ITEM 7:    | Management's Discussion and Analysis of Financial Condition and       |        
|           | Results of Operations                                                 | 14 - 17
|ITEM 7A:   | Quantitative and Qualitative Disclosures about Market Risk            | 17     
|ITEM 8:    | Financial Statements and Supplementary Data                           | 18 - 32
|ITEM 7:    | Changes in and Disagreements with Accountants on Accounting and       | 33     
|           | and Financial Disclosure                                              | 33     
|ITEM 9A:   | Controls and Procedures                                               | 35     
|PART III  
|ITEM 10:   | Directors and Executive Officers of the Registrant                    | 34 - 35
|ITEM 11:   | Executive Compensation                                                | 36     
|ITEM 12:   | Security Ownership of Certain Beneficial Owners and Management        | 36     
|ITEM 13:   | Certain Relationships and Related Transactions                        | 36     
|ITEM 14:   | Principal Accountant Fees and Services                                | 37     
|PART IV   
|ITEM 15:   | Exhibits, Financial Statement Schedules and Reports on Form 8-K       | 38     
|SIGNATURES |                                                                       | 39     

|2











Forward-Looking
Statements


THE FOLLOWING DISCUSSION CONTAINS
FORWARD-LOOKING STATEMENTS REGARDING EVENTS AND FINANCIAL TRENDS WHICH MAY AFFECT THE
REGISTRANTS FUTURE OPERATING RESULTS AND FINANCIAL POSITION. SUCH STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE REGISTRANTS ACTUAL RESULTS
AND FINANCIAL POSITION TO DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS. FOR
A MORE COMPLETE DISCUSSION OF THE RISKS AND UNCERTAINTIES TO WHICH WE ARE SUBJECT, SEE
RISK FACTORS BELOW.


PART I


ITEM 1.
      BUSINESS


General


Lease
Equity Appreciation Fund I, L.P. (the Fund), is a Delaware limited
partnership, was formed on January 31, 2002. The Fund is currently conducting an
offering of a maximum of 500,000 limited partner units for aggregate maximum gross proceeds of $50,000,000.
On March 3, 2003, upon selling the minimum amount of the offering, we broke escrow and commenced operations.  As of
December 31, 2003 we have sold 95,693 limited partner units raising $8,327,128,
net of offering fees. The offering will end no later than August 15, 2004.


We
are managed by LEAF Asset Management, Inc.(LEAF,) our General Partner. Our General Partner is a
wholly-owned subsidiary of LEAF Financial Corp. and an indirect wholly-owned subsidiary of
Resource America, Inc. (RAI) (Nasdaq: REXI). Our General Partner and its
affiliates are responsible for originating, managing and disposing of our lease and
equipment portfolio.


The
Fund acquires diversified portfolios of equipment that are leased to third
parties. The Fund may also acquire portfolios of equipment subject to existing leases from
other equipment lessors. The principal objective of the Fund is to generate regular cash
distributions to the Limited Partners. We expect that the equipment we lease will be
principally for general business and industrial use and we will focus on the small to mid
sized business market, generally businesses with 500 or fewer employees, $1 billion or
less in total assets or $100 million or less in total annual sales. We specialize in
financing business essential equipment within a price range of $20,000 to $2 million. The
equipment we finance includes computers, copiers, furniture, heating, ventilation and air
conditioning equipment, industrial equipment, medical equipment and telecommunications
equipment.


The Fund entered into both operating leases and direct financing leases.  Under operating leases, the rent we receive on
a net present value basis will be in an amount that, when taken together with the amount we estimate we will receive
from selling or re-leasing the equipment, or from extension payment, after the termination of the initial lease, which
we call the (residual,) will be sufficient to return our invested capital plus an appropriate return.  Under direct
financing leases, the rent over the term of the lease will return our invested capital plus an appropriate return
without consideration of the residual and the lessee may acquire the equipment at the end of the lease term for a
nominal amount.


3







The Fund
commenced operations on March 3, 2003. As of December 31, 2003, our portfolio contained
566 equipment leases with 517 individual end users. No individual end user or single
piece of equipment accounted for more than 3% of our portfolio based on original cost of
the equipment. As of December 31, 2003, we had invested $467,592 in equipment under
operating leases and $26,321,445 in equipment under direct financing leases for a total of
$26,789,037 in original equipment cost. We describe our financing in Debt Facilities. Our average original
equipment cost per equipment lease transaction was $47,538.


Our Principal Objectives


Our
principal objectives are to invest in a diversified portfolio of equipment for lease to
end users, or to acquire equipment subject to existing leases, in order to:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | preserve,
protect and return invested capital;
| | - | ----------------------------------------------

| | o | generate
regular cash distributions to Limited Partners during the period ending five years after
the offering terminates;
| | - | --------------------------------------------------------------------------------------------------------------------------

| | o | reinvest
revenues, after payment of our expenses, establishment of appropriate reserves and making
        specified distributions to partners, in purchases of additional equipment during
the period ending five years after         the offering terminates; and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | provide
additional cash distributions after the end of the five-year reinvestment period and
        until all of our equipment has been sold.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------

|Our Lease Portfolio


The
following schedules detail the type and percentage of the
various types of equipment leased by the Fund under the operating and direct financing
leases as of December 31, 2003:


Direct Financing Leases:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Type of Equipment        | Percentage | 
|------------------------ | ---------- | 
|Climate Control Systems  |            | 
|Furniture                |            | 
|General Office Equipment |            | 
|Industrial Equipment     |            | 
|Medical Equipment        |            | 
|Other                    |            | 
|
|                         |            | 
|

|4







Operating Leases:
|--------------------------

|Type of Equipment        | Percentage
        of Equipment | 
|------------------------ | ------------------------------- | 
|Climate Control Systems  |                                 | 
|General Office Equipment |                                 | 
|Industrial Equipment     |                                 | 
|Medical Equipment        |                                 | 
|
|                         |                                 | 
|

|The
following schedules detail the type of business and percentage
of equipment usage by industrial classification for equipment leased by the Fund under the
operating and direct financing leases as of December 31, 2003:


Direct Financing Leases:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Type of Business                                    | Percentage | 
|--------------------------------------------------- | ---------- | 
|Automotive Dealers/Gasoline Stations and Repair     |            | 
|Diversified Financial/Banking/Insurance/Engineering |            | 
|Manufacturing / refining                            |            | 
|Medical                                             |            | 
|Education                                           |            | 
|Wholesale Trade                                     |            | 
|Other                                               |            | 
|
|                                                    |            | 
|

|Operating Leases:
|-----------------

|Type of Business                                    | Percentage | 
|--------------------------------------------------- | ---------- | 
|Restaurants                                         |            | 
|Diversified Financial/Banking/Insurance/Engineering |            | 
|Construction                                        |            | 
|Medical                                             |            | 
|Publishing/printing                                 |            | 
|Wholesale Trade                                     |            | 
|Other                                               |            | 
|
|                                                    |            | 
|

|As
of December 31, 2003, the average initial term of our leases (in months) was 42 months and the
weighted average initial term (based on initial cost) of our leases (in months) was 47 months and 17% of our
equipment was located in California.  No other state accounted for more than 10% of our equipment portfolio.
5








Asset Quality



In evaluating our
allowance for possible losses, we consider our contractual delinquencies, economic conditions and trends, industry statistics,
lease portfolio characteristics and our General Partner's management's prior experience with similar lease assets.
As of December 31, 2003, our credit evaluation indicated that we needed a $5,000 allowance
for possible losses for our lease assets.


The
following table sets forth our allowance for possible losses as of December 31, 2003, and
the related provisions for credit losses, write-offs and recoveries for such periods:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                               | 
|------------------------------ | 
|                               | 
|Balance at beginning of period | 
|Provision for credit losses    | 
|Net write-offs                 | 
|
|Balance at end of period       | 
|

|Debt Facilities


We
have augmented the proceeds of our offering with borrowings and intend to continue to
finance a significant portion of the cost of the equipment we acquire. We are not limited
in the amount of debt, including financings through securitizations, we may incur. Our
ability to obtain financing will, however, depend upon our General Partners
assessment of whether funds are available at rates and upon terms that are economically
advantageous to us. As a result, the amount of our financings may vary significantly from
our expectations.


The Fund and its affiliates
entered into revolving credit lines with National City Bank and Commerce Bank that had an aggregated
borrowing limit up to $10 million each consisting of revolving credit and loan components.  Interest on the facilities was
LIBOR plus three percent per annum at the time of borrowing.  Borrowings under the facilities were collateralized
by the leases being financed and the underlying equipment being leased.  On December 19, 2003 we paid off the outstanding balances
under the revolving credit facilities. Simultaneously with those
payments, we were, at our request, released from any obligations under the facilities and removed as a borrower.


As
of December 31, 2003 the outstanding balance of the secured financing we have obtained
from two lenders was $20,386,402. These loans are described below.


On
November 26, 2003, we entered into a Master Loan and Security Agreement with OFC Capital,
a division of ALFA Financial Corporation. Under the terms of the loan agreement, from time
to time OFC will make available to us loans in an aggregate principal amount not to exceed
$15 million. Each loan under the agreement will equal 93% of the aggregate payments due
under the related equipment lease or equipment finance transaction that collateralizes
such loan, discounted at an interest rate of 6.9%. Each loan will be funded subject to a
credit reserve of 3% of the loan amount. OFC made its first loan on December 19, 2003, in
the aggregate amount of $13,056,516. Of this amount, $421,937 of the funds loaned are held
in a credit reserve. The balance is due January 15, 2009.




6







On
September 29, 2003 we entered into a financing arrangement with Information Leasing
Corporation, a subsidiary of Provident Bank of Cincinnati, Ohio. Under this arrangement,
we assign specified leases and their related receivables to Information Leasing at a price
generally equal to the sum of the receivables, discounted to present value at a rate
agreed to at the time of assignment, less an amount agreed to at the time of assignment as
a credit reserve. We made our first assignment under this arrangement on September 30,
2003, assigning $8,786,854 of receivables at a discount rate of 5.79% and with a credit
reserve of 15% after security deposit and transaction costs, resulting in our receipt of
$7,962,395 in financing. We applied $6,646,521 of the proceeds to partially repay the thenexisting
lines of credit, $1,173,694 to a holdback of funds in
the credit reserve, $98,965 to a security deposit, and $5,406 to miscellaneous transaction
costs. The balance of $32,799 was remitted to us. As of December 31, 2003, the outstanding balance
under this financing arrangement was $7,329,886. The loan is repayable as payments are made under the leases or
equipment finance transactions collateralizing the loan, with a final maturity date of
October 13, 2009.



We
will seek to establish a warehouse credit facility to provide short-term
funding for our investments in lease receivables. We anticipate this short-term financing
will be provided by a bank and
secured by our lease receivables. We plan to repay warehouse borrowings from the
proceeds of commercial paper, or CP, conduit securitization financing facilities we will
seek to obtain.


Agreements with General
Partner


The
Fund is affiliated with the General Partner, LEAF and its subsidiaries,
(Affiliates). The Fund is dependent upon the resources and services
provided by the General Partner and these Affiliates.


The
Fund does not directly employ any persons to manage or operate its business. These
functions are provided by the General Partner and employees of LEAF and/or its Affiliates.


Our
General Partner and its affiliates receive substantial fees and other compensation from
us.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | Our General Partner has a partnership interest equal to 1% of all of our taxable income,
losses and cash distributions. During 2003, the General Partner received cash distributions
of $4,794, of which $657 was paid in January 2004 (declared December 2003).
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | Our General Partner receives an organization and offering expense allowance of 3% of
offering proceeds to reimburse it for expenses incurred in preparing us for registration
or qualification under federal and state securities laws and subsequently offering and
selling our units. This expense allowance does not cover underwriting fees or sales
commissions, but does cover reimbursement of bona fide accountable due diligence expenses
of selling dealers to a maximum of 1/2 of 1% of offering proceeds. Organization and
offering expenses paid to the General Partner were $285,249, during the year ended December 31,
2003.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | Our General Partner receives fees for acquiring our equipment of 2% of the purchase price
we pay, including debt we incur or assume in connection with the acquisition.
Fees for acquiring our equipment paid to the General Partner were $516,239, during
the year ended December 31, 2003.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | Our General Partner receives a subordinated annual asset management fee of either 3%
of gross rental payments on our operating leases or 2% of gross rental payments on our
full payout leases. During the five-year reinvestment period, the management fee will be
subordinated to the payment to Limited Partners of a cumulative annual distribution of 8%
of their capital contributions, as adjusted by distributions deemed to be a return of
capital. We paid asset management fees of $73,095 during the year ended December 31, 2003.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7
|-

| | o | Our General Partner will receive a subordinated commission equal to one-half of a
competitive commission, to a maximum of 3% of the contract sales price, for arranging the
sale of our equipment after the expiration of a lease. This commission will be
subordinated to the return to our Limited Partners of the purchase price of their units
plus a cumulative annual distribution, compounded daily, of 8% of their capital
contributions, as adjusted by distributions deemed to be a return of capital. No fees were
paid during the year ended December 31, 2003.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | Our General Partner will receive a commission equal to the lesser of a competitive rate or
2% of gross rental payments derived from any re-lease of equipment, payable as we receive
rental payments from re-lease. We will not, however, pay a re-lease commission if the
re-lease is with the original lessee or its affiliates. No re-lease commissions were paid during the year
ended December 31, 2003.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | Our General Partner will be reimbursed for operating and administrative expenses, subject
to limitations contained in our partnership agreement. Reimbursed expenses paid to the
General Partner were $594,985, during the year ended December 31, 2003.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | Anthem Securities, Inc., which is the dealer-manager for the offering of our units and an
affiliate of our General Partner, receives an underwriting fee of 2% of the offering
proceeds for obtaining and managing the group of broker-dealers who will sell the units in
this offering. From this fee, Anthem Securities may reimburse selling broker-dealers up to 1%
of the proceeds of each unit sold by them for marketing expenses. Anthem Securities also
receives sales commissions of 8% of the proceeds of each unit sold by it. Underwriting fees of
$179,185 and sales commissions of $716,741 were paid to Anthem Securities, during the year
ended December 31, 2003
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Competition


The equipment leasing business is highly fragmented and competitive. We compete with:
|---------------------------------------------------------------------------------------------------

| | o | a
large number of national, regional and local banks, savings banks, leasing companies and
other financial institutions;
| | - | ------------------------------------------------------------------------------------------------------------------------

| | o | captive
finance and leasing companies affiliated with major equipment manufacturers; and
| | - | ----------------------------------------------------------------------------------------

| | o | other
sources of equipment lease financing, including other publicly-offered partnerships.
| | - | ------------------------------------------------------------------------------------------

|Many
of our competitors are substantially larger and have considerably greater financial,
technical and marketing resources than we have. Competition with these entities may reduce
the creditworthiness of potential lessees or borrowers to whom we have access or decrease
our yields. For example, some competitors may have a lower cost of funds and access to
funding sources that are not available to us. A lower cost of funds could enable a
competitor to offer leases or loans at rates which are less than ours, potentially forcing
us to lower our rates or lose origination volume.


Employees



The Fund does not have any employees.  All persons who work on the Fund are employees of the
General Partner or an affiliate of the General Partner.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8
|-

|Risks Inherent in Our
Business


Our success will be subject to risks
inherent in the equipment leasing business, any of which may affect our ability to operate
profitably.


A
number of factors may affect our ability to operate profitably. These include:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | the
quality of the equipment we lease;
| | - | --------------------------------------

| | o | the
continuing strength of the equipment         manufacturers;
| | - | ---------------------------------------------------------------

| | o | the
timing of equipment purchases and our ability to forecast technological advances;
| | - | -------------------------------------------------------------------------------------

| | o | technological
and economic obsolescence;
| | - | ----------------------------------------

| | o | changes
in economic conditions, including fluctuations in demand for equipment, interest rates
        and inflation rates;
| | - | ---------------------------------------------------------------------------------------------------------------------------

| | o | defaults
by lessees; and
| | - | ------------------------

| | o | increases
in our expenses, including labor, tax and insurance expenses.
| | - | -----------------------------------------------------------------------

|Higher than expected equipment lease
defaults may result in losses.


Higher
than expected equipment lease defaults will result in a loss of anticipated revenues.
These losses may adversely affect our ability to make distributions to partners and, if
the level of defaults is sufficiently large, may result in our inability to fully recover
our investment in the underlying equipment. While we will seek to repossess and re-lease
or sell the equipment subject to a defaulted lease, we may not be able to do so on
advantageous terms. If a lessee files for protection under the bankruptcy laws, we may
experience difficulties and delays in recovering the equipment from the defaulting lessee.
The equipment may be returned in poor condition and we may be unable to enforce important
lease provisions against an insolvent lessee, including the contract provisions that
require the lessee to return the equipment in good condition. In some cases, a
lessees deteriorating financial condition may make trying to recover what the lessee
owes impractical. The costs of recovering equipment upon a lessees default,
enforcing the lessees obligations under the lease, and transporting, storing,
repairing and finding a new lessee or purchaser for the equipment may be high and may
affect our ability to make distributions or result in a loss to us. If a lessee defaults
on a lease we acquired using borrowed funds or subsequently financed, the entire proceeds
from the re-leased or sold equipment will typically first be applied to payment of the
financing and only after full repayment would we be entitled to any remaining proceeds. In
these circumstances, we may lose some or all of our investment in the equipment.


Using leverage to build
our portfolio subjects us to the risk that our revenues may not be sufficient to cover our
operating costs plus debt service and, consequently, may result in losses.


While
leverage can enhance our return on invested capital, if the return on investments we
finance fails to cover the fixed cost of the financings, or if the return is negative, our
ability to make distributions will be impaired and the value of our net assets will
decline more rapidly than would be the case in the absence of leverage. We may pledge some
or our entire portfolio as collateral for our financings. If we are unable to pay our debt
service because of the failure of our lessees or borrowers to make lease payments, or due
to other factors, we may lose the pledged collateral. Lenders or securitizers may require
covenants that could restrict our flexibility in the future. In order to repay our
financing, we may be required to dispose of assets at a time we would otherwise not do so.




9
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|If we are unable to realize the
residual value of our equipment, we may incur losses.


Our
ability to recover the full equipment purchase price and our expected return in connection
with an operating lease depends on the potential value of the equipment once the primary
lease term expires. We call this the residual value. The residual value will
depend upon numerous factors beyond our control, including:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | whether
the original lessee desires to retain the equipment;
| | - | ------------------------------------------------------------

| | o | the
cost of comparable new equipment;
| | - | -------------------------------------

| | o | the
obsolescence or poor condition of the leased equipment; and
| | - | ---------------------------------------------------------------

| | o | the
existence of a secondary market for the type of used equipment.
| | - | -------------------------------------------------------------------

|Interest rate changes may reduce the
value of our portfolio and our returns on it.


Changes
in interest rates will affect the market value of our portfolio. In general, the market
value of an equipment lease will change in inverse relation to an interest rate change
where it has a fixed rate of return. Accordingly, in a period of rising interest rates,
the market value of our equipment leases will decrease. A decrease in the market value of
our portfolio will adversely affect our ability to obtain financing against our portfolio
or to liquidate it. Interest rate changes will also affect the return we obtain on new
equipment leases. During a period of declining rates, our reinvestment of rental payments
may be at lower rates than we obtained in prior equipment leases or the equipment leases
being repaid, thereby reducing our gross revenues. Also, increases in interest on
financing we obtain will not necessarily be reflected in increased rates of return on the
equipment leases funded through that debt, which would adversely affect our net return on
them. Accordingly, interest rate changes may materially affect our revenues, which in turn
may affect the amount we are able to distribute to Limited Partners.


Current economic conditions may
adversely affect our ability to build our portfolio.


The
current economic slowdown in the United States may adversely affect our ability
expeditiously to invest the proceeds of this offering as businesses seek aggressively to
reduce their costs. This may result in distributions to partners that, in the initial
period of our operations, may be less than if the proceeds were fully invested. The
economic slowdown has also reduced interest rates which may reduce the returns we can
obtain on our leases and, as a consequence, the distributions we can make to partners.
Continuation of current conditions, or recurrence of these conditions, may reduce our
income or partnership distributions, increase our delinquencies or defaults and reduce our
ability to obtain financing to build our portfolio.


Damage or disruptions to our General
Partners operating systems could make us less attractive as a source of equipment
leases.


Our
ability to originate leases, manage our operations and realize residual values from our
equipment leases depends upon the operating systems of our General Partner, particularly
its computer, telecommunications and related equipment, and its ability to protect those
systems against damage or disruptions from power loss, telecommunications failure,
computer intrusions or viruses or similar adverse events. Although our General Partner has
implemented security and protective measures, our General Partners systems could
still be vulnerable. Any damage or disruption to these systems could make us less
attractive to customers as a source of equipment leases.




10







We may be unable to obtain insurance
for certain types of losses.


While
our equipment leases generally require lessees or borrowers to have comprehensive
insurance on the equipment under lease and to assume the risk of loss, some losses may be
either uninsurable or not economically insurable, such as from war or earthquakes.
Furthermore, we can neither anticipate nor obtain insurance against all possible
contingencies that may affect the equipment. If an event against which we have no
insurance were to occur, we could lose some or all of our investment in the affected
equipment.


If we are, or become, subject to
usury laws, it could result in reduced revenues or, possibly, lags on our investment.


Equipment
leases have sometimes been deemed to be loan transactions subject to state usury laws.
These laws impose maximum interest rates that may be charged on loans as well as penalties
for violation, including restitution of excess interest and unenforceability of debt. We
seek to structure our leases so that they will not be deemed to be loans or to violate
state usury laws. However, uncertainties in the application of some laws may result in
inadvertent violations which could result in reduced investment returns or, possibly, loss
on an investment.


Investments in joint ventures may be
subject to risks that our co-venturer may have different business objectives than ours.


Our
partnership agreement permits us to invest in joint ventures. Investing in joint ventures
involves risks not present when directly investing in equipment to lease to end users.
These risks include the possibility that our co-venturer may have business or economic
objectives or interests that are inconsistent with ours and want to manage the joint
venture in ways that do not maximize our return. Among other things, actions by a
co-venturer might subject equipment leases owned by the venture to liabilities greater
than those we contemplate. Also, when more than one person controls a venture, there may
be a stalemate, or impasse, on decisions, including decisions regarding a proposed sale or
other transfer of assets. Moreover, while our partnership agreement requires that any
joint venture arrangement contain provisions permitting one venturer to buy the equipment
from the other co-venturer in the case of a sale, it may not have the resources to do so.


ITEM 2.      PROPERTIES


We do not own
or lease any real estate.


ITEM 3.
              LEGAL PROCEEDINGS


We
are not subject to any pending legal proceedings.
11






ITEM 4.       SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS


No matters
were submitted to a vote of our Limited Partners during the fourth quarter of the year
ended December 31, 2003.


PART II


ITEM 5.               MARKET
FOR THE REGISTRANT'S COMMON EQUITY AND RELATED       
             STOCKHOLDER MATTERS



Our limited partner
units are not publicly traded.  As of December 31, 2003, we had 248 limited partners.


We are currently
offering units of our limited partnership interest pursuant to a registration statement (File No. 333-84730) that
was made effective by the Securities and Exchange Commission on August 15, 2002, when the offering commenced.  The
dealer manager for the offering is Anthem Securities.  We registered the sale of 500,000 units of limited partnership
interest at an aggregate offering price of $50 million.  As of March 19, 2004, we had sold 105,748 units for an aggregate offering
price of $10,555,954.


The following table
shows the use of proceeds from the offering since the effective date of the registration statement through December 31, 2003.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Offering proceeds                           | Offering
Proceeds | 
|------------------------------------------- | ----------------- | 
|
|Expenses:                                   |                   | 
|Sales commission (1)(2)                     |                   | 
|Underwriting fess (1)(2)                    |                   | 
|Organization and offering expenses (3)      |                   | 
|
|Public offering expenses                    |                   | 
|
|Net offering proceeds                       |                   | 
|Reserves                                    |                   | 
|
|Total proceeds available for investment     |                   | 
|                                            |                   | 
|Use of proceeds for investment (estimated): |                   | 
|Used in operations(4)                       |                   | 
|Acquisition of lease portfolios (5)         |                   | 
|Working capital                             |                   | 

|
|

|(1) | We did not pay sales commissions or underwriting fees with respect to the
          6,072.9 units sold to our General Partner, the selling dealers or their affiliates.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12
|--

|(2) | Paid to an affiliate of the General Partner.
|--- | --------------------------------------------

|(3) | Paid to the General Partner.
|--- | ----------------------------

|(4) | The General Partner was reimbursed $594,985 for operating expenses and paid asset management fees of $73,095.
|--- | -------------------------------------------------------------------------------------------------------------

|(5) | Included are asset acquisition fees of $516,237 that were paid to the General Partner.
|--- | --------------------------------------------------------------------------------------

|ITEM 6.       
        SELECTED FINANCIAL DATA


The
following selected financial data should be read together with our financial
statements, the notes to our financial statements and Managements
Discussion and Analysis of Financial Condition and Results of Operations in Item 7
in this report. We have derived the selected financial data set forth below for the year
ended December 31, 2003 and at December 31, 2003 from our financial
statements appearing elsewhere in this report, which have been audited by Grant Thornton
LLP, certified independent accountants. The financial data for the period ended December 31, 2003 is
for the period beginning with the inception of our operations on March 3, 2003 through
December 31, 2003; and, accordingly, we deem March 3, 2003 to be the commencement of our
operations and we refer to the period from that date through December 31, 2003 to as the
year ended December 31, 2003.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                                              | For the Year Ended
December 31, 2003 |              
|--------------------------------------------------------------------------------------------- | ------------------------------------ | -------------
|Interest, rental and fee income                                                               |                                      | $   969,369  
|Interest expense                                                                              |                                      | $   321,472  
|General and administrative expenses, including reimbursed
             expensesrelated party |                                      | $   807,151  
|Net loss                                                                                      |                                      | $  (396,285  
|Distributions to Partners                                                                     |                                      | $   479,744  
|Net loss per limited partnership unit                                                         |                                      | $       (6.48
|Weighted average number of limited partnership units
    outstanding during the year          |                                      | 61,149       
|Distributions declared per limited partner unit                                               |                                      | $        8.70

|                                                                        | As of December 31, |                 
|----------------------------------------------------------------------- | ------------------ | ----------------
|
|Total assets                                                            |                    | $   28,236,400  
|Equipment under operating leases
 (net of accumulated     depreciation) |                    | $    
   313,479
|Net investment in direct financing leases                               |                    | $   24,240,624  
|Debt                                                                    |                    | $   20,386,402  
|Partners' capital                                                       |                    | 7,452,099       
|                                                                        |                    |                 

|13






ITEM 7.       
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND     
             
  RESULTS OF OPERATIONS


Forward-Looking
Statements


When
used in this Form 10-K the words believes anticipates
expects and similar expressions are intended to identify forward-looking
statements. Such statements are subject to certain risks and uncertainties more
particularly described in Item 1 of this report, under the caption Risk
Factors. These risks and uncertainties could cause actual results to differ
materially. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. We undertake no obligation to publicly
release the results of any revisions to forward-looking statements which we may make to
reflect events or circumstances after the date of this Form 10-K or to reflect the
occurrence of unanticipated events.


General


Lease
Equity Appreciation Fund I, L.P. (the Fund), a Delaware limited
partnership, was formed on January 31, 2002. In August, 2002 we began our offering of
500,000 limited partner units. LEAF Asset Management, Inc. is the General Partner of the
Fund. The Fund is currently conducting an offering of a maximum of 500,000 limited partner units for aggregate
maximum gross proceeds of $50,000,000. Under the terms of our offering, subscriptions
received were held in escrow until we reached the required minimum subscriptions of 20,000 limited partner units. On
March 3, 2003, upon reaching the offering minimum, we broke escrow and commenced operations.
As of December 31, 2003, we had sold 95,693 limited partner units raising $8,327,128, net of
offering costs. The offering will end no later than August 15, 2004.


The
Fund acquires portfolios of existing leases originated by an affiliate of its
General Partner and other parties. The principal sources for these portfolios
will be small company lessors, international leasing institutions, regional and national
commercial banks and captive finance companies of large manufacturers. Our General
Partners board of directors has an investment committee which sets, and may from
time to time revise, standards and procedures for the review and approval of equipment
acquisitions and leases of that equipment.


The
Funds leases consist of both direct financing and operating leases which are
recorded in accordance with accounting principles generally accepted in the
United States of America. Under the direct financing method of accounting for leases,
interest income (the excess of the aggregate future minimum lease payments 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. Under the operating method of accounting
for leases, the cost of the leased equipment, including acquisition fees associated with
lease placements, is recorded as an asset and depreciated on a
straight-line basis over its estimated useful life. Rental income on operating leases
consists primarily of monthly periodic rentals due under the terms of
the leases. Generally, during the lease terms of existing operating leases, the Fund
will not recover all of the undepreciated cost and related expenses of its rental
equipment and, therefore, it is prepared to remarket the equipment in future years. When a direct
financing lease is 90 days or more delinquent, the lease is classified as being on non-accrual and we do
not recognize interest income on that lease until the lease is less than 90 days
delinquent.


As of December 31, 2003, our portfolio contained 566 leases
with 517 individual end users.  As of December 31, 2003, we had invested $467,592 in equipment
under operting leases and $26,321,445 in equipment under direct financings leases.


14







Results of Operations


The
Fund had interest, rental and fee income of $969,369 for the year ended December 31, 2003.
The principal sources of these revenues were interest income of $781,989
(80.7% of total 2003 revenues) from direct financing leases and rental income of $184,197,
(18.7% of total 2003 revenues) from operating leases.
Interest expense of $321,472 (23.3%) of total 2003 expenses includes interest incurred on warehouse
lines, loans payable and the amortization of deferred financing costs.  Total operating expenses
were $1,058,074 for the year ended December 31, 2003.  General and administrative expenses,
including reimbursed expenses -related party, were $807,151 (58.5% of total 2003 expenses). Of this
amount, $594,985 (43.1% of total 2003 expenses) was paid to the General Partner as a
direct reimbursement of expenses incurred on behalf of the Fund. The remaining general and
administrative expenses of $212,166 (15.4% of total 2003 expenses) were paid directly to
vendors of the Fund. In addition, the Fund paid management fees of $73,095 (5.2% of total
2003 operating expenses) to its General Partner for the year ended December 31, 2003. These
fees are calculated as a percentage of gross rental payments on both direct financing and
operating leases. As the Fund lease portfolio grows and the Fund obtains additional debt,
interest expense will increase in future periods. Depreciation expense, from operating
leases, comprised 20.1% of total operating expenses during the year ended December 31, 2003. The
Fund recognized a net loss on sale of equipment and lease dispositions of $10,206 for the
year ended December 31, 2003.


The Funds net loss was  $396,285  for the year ended  December  31,  2003.  The loss per limited  partner  unit,
after the loss allocated to the General  Partner,  was $6.48 based on a weighted  average number of limited  partner units
outstanding  of 61,149 for the year ended  December  31,  2003.  As would be  expected  in an initial  year of  operation,
overhead  expenses were incurred prior to the growth of revenues.  To attain  profitability the Fund needs to increase its
revenues  by  acquiring  additional  lease  portfolios.  The Fund plans to obtain  additional  capital  to  acquire  these
portfolios.  The Fund  expects to obtain  capital by selling  additional  limited  partner  units and  through  new credit
facilities, which may include warehouse lines, CP conduits or securitizations.


The
General Partner of the Fund declared cash distributions of $479,744 of which $414,068 was
paid during the year ended December 31, 2003. The remaining accrued distribution of
$65,676, which was declared in December 2003, was paid in January 2004.


Liquidity and Capital
Resources


Our
major sources of liquidity have been obtained by the sale of limited partner units and
borrowings under credit facilities. The offering of partnership units terminates in August 2004.


Our
primary cash requirements, in addition to normal operating expenses, are for debt service,
investment in leases and distributions to partners. In addition to cash generated from
operations, we plan to meet our cash requirements, through new credit facilities and
through the sale of additional limited partner units.


The
following table sets forth our sources and uses of cash for the periods indicated:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                          | For the Year Ended
        December 31, | 
|----------------------------------------- | --------------------------------------- | 
|
|Net cash used in operating activities     |                                         | 
|Net cash used in investing activities     |                                         | 
|Net cash provided by financing activities |                                         | 
|
|Increase in cash                          |                                         | 
|

|15








Our liquidity
is affected by our ability to sell additional limited partner units and to leverage our portfolio
through expansion of credit facilities. In addition, changes in interest rates will affect the
market value of our portfolio and our ability to obtain financing. In general, the market
value of an equipment lease will change in inverse relation to an interest rate change
where the lease has a fixed rate of return. Accordingly, in a period of rising interest
rates, the market value of our equipment leases will decrease. A decrease in the market
value of our portfolio will adversely affect our ability to obtain financing against our
portfolio or to liquidate it. In additional, the terms of our credit facilities have
financial covenants related to our net worth and leverage. Should we not meet the
requirements of the covenants, default could occur that will have an adverse effect on our
operations and could force us to liquidate our portfolio.


Our
liquidity could also be affected by higher than expected equipment lease defaults. Higher
than expected equipment lease defaults will result in a loss of anticipated revenues.
These losses may adversely affect our ability to make distributions to partners and, if
the level of defaults is sufficiently large, may result in our inability to fully recover
our investment in the underlying equipment. In evaluating our allowance for possible
uncollectible leases, we consider our contractual delinquencies, economic conditions and
trends, industry statistics, lease portfolio characteristics and our General
Partners managements prior experience with similar lease assets. At December
31, 2003, our credit evaluation indicated the need for an allowance
for doubtful accounts of $5,000. As our lease portfolio increases, we anticipate the allowance for doubtful
accounts will increase.


We
describe factors affecting our liquidity, as well as the risks and uncertainties relating
to our ability to generate this liquidity, in ITEM 1, Business  Risk
Factors and in this ITEM 7 in Results of Operations, and
-Contractual Obligations and Commercial Commitments.


Net
cash used by operations of $776,792 for the year ended December 31, 2003 consisted
primarily of the net loss of $396,285, which was partially offset by the increase in
accounts payable of $308,370 and negatively impacted by the increase in accounts receivables.


Net
cash used in investing activities of $24,736,930 for the year ended December 31, 2003 is
due primarily to the acquisition of lease portfolios. The Fund acquired direct financing
leases of $26,666,040 and equipment under operating leases of $657,952 of equipment
under operating leases.


Net
cash provided by financing activities for the year ended December 31, 2003 was $26,543,115.
Cash provided by financing of $18,630,055 was for the debt used to acquire lease portfolios and $8,327,128
was derived from the sale of partnership units. Cash provided by financing activities will
increase as the fund grows and acquires additional lease portfolios. During the year ended
December 31, 2003 we declared distributions of $479,744, of which we distributed $414,068.
Declared distributions to Limited Partners was 8% of invested their capital. As we continue to sell additional
partnership units the cash required for distributions will increase.


Contractual Obligations
and Commercial Commitments


The following tables set forth our
obligations and commitments as of December 31, 2003.


Contractual cash
obligations:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|     | Total | Less than 1 Year | 1-3 Years | 4-5 Years  | After 5 years
|---- | ----- | ---------------- | --------- | ---------- | -------------
|Debt |       |                  | $         | 20,386,402 |              

|16








Recent Accounting
Pronouncements



In January 2003,
the FASB issued FIN 46 Consolidation of Variable Interest Entities, revised December 2003, (FIN 46R).
FIN 46R clarifies the application of Accounting Research Bulletin 51, Consolidated Financial
Statements, for certain entities that do not have sufficient equity at risk for the entity to
finance its activities without additional subordinated financial support from other parties or in
which equity investors do not have the characteristics of a controlling financial interest
 (variable interest entities).  Variable interest entities within the scope of FIN 46R
will be required to be consolidated by their primary beneficiary.  The primary beneficiary of a
variable interest entity is determined to be the party that absorbs a majority of the entitys
expected losses, receives a majority of its expected returns, or both.  FIN 46R applies
to entities created considered to be special-purpose entities, as defined, not later
than as of the end of the first reporting period ending after December 15, 2003 and no later than the end
of the first reporting period that ends after March 15, 2004.  The Fund does not have any special
purpose entities, as of December 31, 2003. The Fund is in the process of determining what impact, if any; the adoption of the provisions
 of FIN 46R will have upon its financial condition or results of operations but it does not anticipate
that FIN 46R will have a material impact on its financial position or results of operations.


The Fund adopted Statement of Financial Accounting Standard 149 (SFAS 149),
Amendment of Statement 133 on Derivative Instruments and Hedging Activities, on July 1, 2003.
SFAS 149 clarifies and amends SFAS No. 133 (SFAS 133), Accounting for Derivative Financial
Instruments and Hedging Activities for implementation issues raised by constituents or
includes the conclusions reached by the FASB on certain FASB Staff Implementation Issues.  SFAS 149
also amends SFAS 133 to require a lender to account for loan commitments related to mortgage
loans that will be held for sale as derivatives.  SFAS 149 is effective for contracts entered
into or modified after June 30, 2003.  The adoption of SFAS 149 did not have a material
impact on the Fund's financial position or results of operations.


The
FASB issued SFAS No. 150, Accounting for Certain Financial Instruments with Characteristics of
Both Liabilities and Equity, (SFAS 150) on May 15, 2003.  SFAS 150 changes the
classification in the statement of financial position of certain common financial
instruments from either equity or mezzanine presentation to liabilities and requires an issuer
of those financial statements to recognize changes in fair value or redemption amount,
as applicable, in earnings.  SFAS 150 is effective for public companies for financial
instruments entered into or modified after May 31, 2003 and is effective at the
beginning of the first interim period beginning after June 15, 2003.  The adoption of
SFAS 150 did not have a material impact on the Fund's financial position or results of operations.


The
Fund does not believe that any other recently issued, but not yet effective,
accounting standards will have a material effect on the Funds financial
position or results of operations.



ITEM 7A.      
         QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


All
of our assets and  liabilities  are  denominated  in U.S.  dollars,  and as a result,  we
do not have exposure to currency exchange risks


We
do not engage in any interest rate, foreign currency exchange rate or commodity
price-hedging transactions, and as a result, we do not have exposure to derivatives risk.



17




ITEM 8.
                FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


Report of Independent
Certified Public Accountants


The Partners


LEASE EQUITY APPRECIATION FUND I,
L.P.


We have audited the accompanying
balance sheets of Lease Equity Appreciation Fund I, L.P. as of December 31, 2003 and 2002
and the related statements of operation, partners capital and cash flows for the year
ended December 31, 2003. 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 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 presents fairly, in all material respects, the financial
position of Lease Equity Appreciation Fund I, L.P. as of December 31, 2003 and 2002 and
the results of its operations and its cash flows for the year ended December 31, 2003, in
conformity with accounting principles generally accepted in the United States of America.


/s/ Grant Thornton LLP


Cleveland, Ohio
March 19, 2004
18








LEASE EQUITY
APPRECIATION FUND I, L.P.BALANCE SHEETS
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                                             | December 31, | 
|-------------------------------------------------------------------------------------------- | ------------ | 
|
|ASSETS                                                                                       |              | 
|Cash                                                                                         |              | 
|Accounts receivable                                                                          |              | 
|Other receivables                                                                            |              | 
|Net due from related parties                                                                 |              | 
|Net investment in direct financing leases
  (net of allowance for possible losses of $5,000) |              | 
|Equipment under operating leases (net of accumulated                                         |              | 
|depreciation of $154,113)                                                                    |              | 
|Other assets                                                                                 |              | 
|
|                                                                                             |              | 
|
|LIABILITIES AND PARTNERS' CAPITAL                                                            |              | 
|Liabilities:                                                                                 |              | 
|Accounts payable and accrued expenses                                                        |              | 
|Limited Partnership distributions payable                                                    |              | 
|Security deposits                                                                            |              | 
|Debt                                                                                         |              | 
|Total liabilities                                                                            |              | 
|Partners' Capital                                                                            |              | 
|
|                                                                                             |              | 
|

|The accompanying notes
are an integral part of these financial statements.



19











LEASE EQUITY
APPRECIATION FUND I, L.P.STATEMENT OF
OPERATIONS For the Year Ended
December 31, 2003
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                      | 
|----------------------------------------------------- | 
|Interest,
rental and fee income                       | 
|Interest expense                                      | 
|
|Net interest, rental and fee income                   | 
|Other income                                          | 
|
|                                                      | 
|
|Reimbursed expenses - related party                   | 
|General and administrative                            | 
|Management fee - related party                        | 
|Depreciation                                          | 
|Loss on sale of equipment and lease dispositions, net | 
|
|                                                      | 
|Net loss                                              | 
|
|Net loss per weighted limited partnership unit        | 
|
|Weighted average number of limited partnership units  | 
|outstanding during the year                           | 
|

|The accompanying notes
are an integral part of this financial statement.


20








LEASE EQUITY
APPRECIATION FUND I, L.P.STATEMENT OF PARTNERSCAPITALFor the Year Ended
December 31, 2003
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                        | General Partner | Limited Partners | Partners' Capital
|--------------------------------------- | --------------- | ---------------- | -----------------
|
|Balance, December 31, 2002              |                 |                  | $                
|Limited Partners' contribution          |                 |                  |                  
|Offering costs
related to the sale of   |                 |                 
|Limited Partnership units               |                 |                  |                  
|Cash distributions paid                 |                 |                  |                  
|Limited Partners' distributions payable |                 |                  |                  
|Cash distributions reinvested           |                 |                  |                  
|Redemption of Limited Partner units     |                 |                  |                  
|Net loss                                |                 |                  |                  
|
|Balance, December 31, 2003              |                 |                  | $                
|

|The accompanying notes
are an integral part of this financial statement.


21








LEASE EQUITY
APPRECIATION FUND I, L.P.


STATEMENT OF CASH
FLOWSFor the Year Ended December 31, 2003
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                            | 
|--------------------------------------------------------------------------- | 
|Cash flows from operating activities:                                       | 
|Net loss                                                                    | 
|Adjustments to reconcile net loss to net cash used in operating activities: | 
|Loss on sale of equipment and lease dispositions (net)                      | 
|Depreciation                                                                | 
|Reserve for uncollectible accounts                                          | 
|Amortization of deferred financing costs                                    | 
|Increase in accounts receivable                                             | 
|Increase in from related parties (net)                                      | 
|Increase in other assets                                                    | 
|Increase in security deposits                                               | 
|Increase in accounts payable and accrued expenses                           | 
|
|Net cash used in operating activities                                       | 
|
|Cash flows from investing activities:                                       | 
|Acquisition of equipment                                                    | 
|Investment in direct financing leases                                       | 
|Proceeds from direct financing leases, net of earned income                 | 
|Proceeds from sale of equipment and lease dispositions                      | 
|
|Net cash used in investing activities                                       | 
|
|Cash flows from financing activities:                                       | 
|Increase in restricted cash                                                 | 
|Increase in deferred financing costs                                        | 
|Proceeds from debt                                                          | 
|Repayment of debt                                                           | 
|Limited Partners' capital contribution                                      | 
|Cash distributions reinvested by Limited Partners'                          | 
|Partners' distributions paid                                                | 
|Payment of offering costs incurred for the sale of partnership units        | 
|
|Net cash provided by financing activities                                   | 
|
|
|Increase in cash                                                            | 
|Cash, beginning of year                                                     | 
|
|Cash, end of year                                                           | 
|

|The
accompanying notes are an integral part of this financial statement.


22









LEASE EQUITY
        APPRECIATION FUND I, L.P.NOTES TO FINANCIAL
        STATEMENTSDecember 31, 2003 and 2002



NOTE 1. 
ORGANIZATION AND NATURE OF BUSINESS


Lease
Equity Appreciation Fund I, L.P. (Fund), a Delaware limited partnership, was
formed on January 31, 2002 by LEAF Asset Management, Inc. (General Partner).
LEAF Asset Management, Inc., a Delaware corporation, is a wholly owned subsidiary of LEAF
Financial Corporation (LEAF). LEAF is a wholly owned subsidiary of Resource
Leasing, Inc., a wholly owned subsidiary of Resource America, Inc. Resource America, Inc.
is a publicly-traded company (NASDAQ: REXI) operating in the real estate, financial services,
energy and equipment leasing sectors.


On March 3, 2003,
the fund satisfied its minimum offering requirement of $2,000,000 and commenced
operations. At that time, the initial limited partner withdrew from the Fund.


As
of December 31, 2003, the Fund raised $9,371,139 through the sale of 94,310 limited
partnership units and $137,164 from the reinvestment of cash distributions by Limited
Partners, which is equivalent to 1,383 limited partnership units. The Fund seeks to
acquire a diversified portfolio of equipment to lease to end users throughout the United
States. The Fund also seeks to acquire existing portfolios of equipment subject to
existing leases from other equipment lessors. The primary objective of the Fund is to
generate regular cash distributions to the Limited Partners from its equipment lease
portfolio over the life of the Fund.


During the year ended December 31, 2003, the General Partner
purchased an approximate 5% limited partnership interest in the Fund. The Fund will terminate on December 31, 2027, or earlier, if a
dissolution event occurs, as defined in the Limited Partnership Agreement (the
Partnership Agreement).


NOTE 2.  SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES


Classification


Management
believes that, consistent with the financial statement presentation of other equipment leasing companies, it
is more appropriate to present the Companys consolidated balance sheet on a non-classified basis,
which does not segregate assets and liabilities into current and non-current categories.


Use of Estimates


Preparation
 of financial statements in conformity with accounting principles generally accepted in the
United States of America (U.S. GAAP) requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and the disclosure
of contingent assets and liabilities as of the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Significant estimates include the estimated residual values of leased equipment,
the allowance for possible losses and impairment of long-lived assets.  Actual results
could differ from those estimates.


23










LEASE EQUITY
        APPRECIATION FUND I, L.P.NOTES TO FINANCIAL
        STATEMENTS  (Continued)December 31, 2003 and 2002



NOTE 2.  SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES  (Continued)


Use of Estimates 
(Continued)


Unguaranteed residual value represents the estimated amount to be received at lease
termination from lease extensions or ultimate disposition of the leased equipment.
The estimates of residual values are based upon the Funds history with regard to
the realization of residuals, available industry data and senior managements prior
experience with respect to comparable equipment.   The estimated residual values
are recorded as a component of investments in leases on a net present value basis.
Residual values are reviewed periodically to determine if the current estimate of the equipments
fair market value appears to be below its recorded estimate.  If required, residual
values are adjusted downward to reflect adjusted estimates of fair market values.
In accordance with U.S. GAAP, upward adjustments to residual values are not permitted.


The Funds allowance for possible losses is primarily based on factors, which include the Funds
historical loss experience, an analysis of contractual delinquencies, economic conditions and trends,
industry statistics and lease portfolio characteristics.  The Funds policy is to charge off to the
allowance those leases which are in default and
for which management has determined the probability of collection to be remote.


Impairment of
Long-Lived Assets


The
Fund reviews its long-lived assets for impairment whenever events or circumstances indicate that the
carrying amount of such assets may not be recoverable.  If it is determined that estimated
future cash flows derived from long-lived assets will not be sufficient to recover
their carrying amounts, an impairment charge will be recorded to reduce the carrying
amounts to the assets estimated fair values.


Concentration of Credit
Risk


Financial
instruments, which potentially subject the Company to concentrations of credit risk,
consist of excess cash. The Company deposits its excess cash in high-quality financial institutions.
At December 31, 2003, the Company had $1,030,394 in deposits at a bank, of which $930,394 million is over
the insurance limit of the Federal Deposit Insurance Corporation.  No losses have been
experienced on such deposits.

24







LEASE EQUITY
        APPRECIATION FUND I, L.P.NOTES TO FINANCIAL
        STATEMENTS  (Continued)December 31, 2003 and 2002


NOTE 2.  SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES  (Continued)
Revenue Recognition


The
Funds investment in leases consists of direct financing and operating leases which
are recorded in accordance with Statement of Financial Accounting Standards No. 13 Accounting for Leases and
its various amendments and interpretations.


Certain of the Funds lease transactions are accounted for as direct financing
leases (as distinguished from sales-type or operating leases). Such leases transfer
substantially all benefits and risks of equipment ownership to the customer. A lease is a
direct financing lease if the creditworthiness of the customer and the collectibility of
lease payments are reasonably certain and it meets one of the following criteria: (1) the
lease transfers ownership of the equipment to the customer at the end of the lease term;
(ii) the lease contains a bargain purchase option; (iii) the lease term at inception is at
least 75% of the estimated economic life of the leased equipment; or (iv) the present
value of the minimum lease payments is at least 90% of the fair market value of the leased
equipment at inception of the lease. The Funds investment in leases consists of
the sum of the total future minimum lease payments receivable and the estimated
unguaranteed residual value of leased equipment, less unearned lease income. Unearned
lease income, which is recognized as revenue over the term of the lease by the effective
interest method, represents the excess of the total future minimum lease payments plus the
estimated unguaranteed residual value expected to be realized at the end of the lease term
over the cost of the related equipment. The Fund generally discontinues the recognition
of revenue for direct financing leases for which payments are more than 90 days past due.


Leases not meeting any of the four criteria to be classified as direct financing leases are deemed to be
operating leases.  Under the accounting for operating leases, the cost including acquisition fees
associated with lease placements, of the leased equipment is
recorded as an asset and depreciated on a straight-line basis over its estimated useful
life, up to seven years. Rental income consists primarily of monthly periodic rentals due under the terms of the leases.
Generally, during the lease terms of existing operating leases, the Fund will not
recover all of the undepreciated cost and related expenses of its rental equipment and, therefore, it is
prepared to remarket the equipment in future years. Fund policy is to review quarterly the
expected economic life of its rental equipment in order to determine the recoverability of
its undepreciated cost. 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 it is probable that the carrying amount exceeds such value and the
excess can be reasonably estimated gains are only recognized upon actual sale of the rental
equipment. There were no write-downs of equipment to net realizable value recorded
during the year ended December 31, 2003.


Fee income consists of fees for delinquent payment which are recognized when received.





25









LEASE EQUITY
        APPRECIATION FUND I, L.P.NOTES TO FINANCIAL
        STATEMENTS  (Continued)December 31, 2003 and 2002



NOTE 2.  SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES  (Continued)



Income Taxes


Federal
and state income tax laws provide that the income or losses of the Fund are reportable by
the Partners on their individual income tax returns. Accordingly, no provision for such
taxes has been made in the accompanying financial statements.


Supplemental Disclosure
of Cash Flow Information


During
the year ended December 31, 2003, the Fund paid $224,763 for interest.


The General
Partner declared and paid a cash distribution of $65,676 in January 2004 for the month of December 2003
to all admitted partners as of December 31, 2003.  The distribution was recored as a liability at December 31, 2003.



Net Loss per Limited Partnership Unit


Net
loss per limited partnership unit is computed by dividing net income (loss)
allocated to Limited Partners by the weighted average number of limited partnership units
outstanding during the period. The weighted average number of limited partnership units
outstanding during the period is computed based on the number of limited partnership units
issued during the period weighted for the days outstanding during the period.



Recent Accounting
Pronouncements


In January 2003,
the FASB issued FIN 46 Consolidation of Variable Interest Entities, revised December 2003, (FIN 46R).
FIN 46R clarifies the application of Accounting Research Bulletin 51, Consolidated Financial
Statements, for certain entities that do not have sufficient equity at risk for the entity to
finance its activities without additional subordinated financial support from other parties or in
which equity investors do not have the characteristics of a controlling financial interest
 (variable interest entities).  Variable interest entities within the scope of FIN 46R
will be required to be consolidated by their primary beneficiary.  The primary beneficiary of a
variable interest entity is determined to be the party that absorbs a majority of the entitys
expected losses, receives a majority of its expected returns, or both.  FIN 46R applies
to entities created considered to be special-purpose entities, as defined, not later
than as of the end of the first reporting period ending after December 15, 2003 and no later than the end
of the first reporting period that ends after March 15, 2004.  The Fund does not have any special
purpose entities, as of December 31, 2003. The Fund is in the process of determining what impact, if any; the adoption of the provisions
 of FIN 46R will have upon its financial condition or results of operations but it does not anticipate
that FIN 46R will have a material impact on its financial position or results of operations.



26









LEASE EQUITY
        APPRECIATION FUND I, L.P.NOTES TO FINANCIAL
        STATEMENTS  (Continued)December 31, 2003 and 2002


NOTE 2.  SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES  (Continued)


Recent Accounting
Pronouncements  (Continued)



The
Fund adopted Statement of Financial Accounting Standard 149 (SFAS 149),
Amendment of Statement 133 on Derivative Instruments and Hedging Activities,
on July 1, 2003. SFAS 149 clarifies and amends SFAS No. 133 (SFAS 133),
Accounting for Derivative Financial Instruments and Hedging Activities for
implementation issues raised by constituents or includes the conclusions reached by the
FASB on certain FASB Staff Implementation Issues. SFAS 149 also amends SFAS 133 to require
a lender to account for loan commitments related to mortgage loans that will be held for
sale as derivatives. SFAS 149 is effective for contracts entered into or modified after
June 30, 2003. The adoption of SFAS 149 did not have a material impact on the Funds
financial position or results of operations.


The
FASB issued SFAS No. 150, Accounting for Certain Financial Instruments with
Characteristics of Both Liabilities and Equity, (SFAS 150), on May 15, 2003. SFAS 150 changes
the classification in the statement of financial position of certain common financial
instruments from either equity or mezzanine presentation to liabilities and requires an
issuer of those financial statements to recognize changes in fair value or redemption
amount, as applicable, in earnings. SFAS 150 is effective for public companies for
financial instruments entered into or modified after May 31, 2003 and is effective at the
beginning of the first interim period beginning after June 15, 2003. The adoption of SFAS
150 did not have a material impact on the Funds financial position or results of
operations


Fair Value of Financial
Instruments


For
cash, receivables and payables, the carrying amounts approximate fair values because of
the short maturity of these instruments. The carrying value of debt approximates fair
market value since interest rates approximate current market rates.


Comprehensive Income (Loss)


Comprehensive
income (loss) includes net income and all other changes in the equity of a business during a
period from non-owner sources. These changes, other than net income, are referred to as
other comprehensive income. The Fund has no other elements of
comprehensive income (loss), other than net income (loss) to report.


Other Receivables


Other
receivables include cash reserves of $1,595,631 being held in reserve by the Fund's lenders and
$574,246 of customers payments deposited in a lockbox account that have not yet been
transferred to the Fund.


Other Assets


Other
assets include $154,315 of unamoritzed deferred financing costs which are amortized over the term of the related
debt.



27









LEASE EQUITY
        APPRECIATION FUND I, L.P.NOTES TO FINANCIAL
        STATEMENTS  (Continued)December 31, 2003 and 2002



NOTE 3.  ALLOCATION
OF PARTNERSHIP INCOME, LOSS AND CASH DISTRIBUTIONS


Cash
distributions, if any, are made monthly as follows: 99% to the Limited Partners and 1% to
the General Partner until the Limited Partners have received an amount equal to their
unpaid cumulative return (8% of their adjusted capital contribution) and thereafter, to
investment and reinvestment in investments or, if the partnership General Partner elects
not to invest or reinvest such distributable cash, 99% to the Limited Partners and 1% to
the General Partner.


Net
income for any fiscal period during the reinvestment period (the period commencing with
March 3, 2003 and ending five years after the last closing date on which any Limited
Partner is admitted) is allocated 99% to the Limited Partners and 1% to the General
Partner. Income during the liquidation period will be allocated first to the Partners in
proportion to and to the extent of the deficit balances, if any, in their respective
capital accounts. Thereafter, net income will be allocated 99% to the Limited Partners and
1% to the General Partner.


Net
losses for any fiscal period are allocated 99% to the Limited Partners and 1% to the
General Partner until the Limited Partners have been allocated losses equal to the excess,
if any, of their aggregated capital account balances over their aggregated adjusted
capital contributions. Next, losses are allocated to the Partners in proportion to and to
the extent of their respective remaining positive capital account balances, if any.
Thereafter, losses are allocated 99% to the Limited Partners and 1% to the General
Partner.


NOTE 4.  INVESTMENT
IN LEASE RECEIVABLES


The
Funds direct financing leases are for initial lease terms ranging from 3 to 80
months. Unguaranteed residuals for direct financing leases represent the estimated amounts
recoverable at lease termination from lease extensions or disposition of the equipment.  As of December 31, 2003,
approximately 17% of leased equipment was located in California.  No other state accounted for more than 10% of our equipment
portfolio.


The
components of the net investment in direct financing leases as of December 31, 2003 are as
follows:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                    | 
|----------------------------------- | 
|Total future minimum lease payments | 
|Unearned rental income              | 
|Unguaranteed residuals              | 
|Unearned residual income            | 
|
|                                    | 
|
|Allowance for possible losses       | 
|
|                                    | 
|

|For
year ended December 31, 2003, allowance for possible losses is as follows:
|------------------------------------------------------------------------------

|                                                 | 
|------------------------------------------------ | 
|Allowance for possible losses, December 31, 2002 | 
|Provision for losses                             | 
|
|Allowance for possible losses, December 31, 2003 | 
|

|28









LEASE EQUITY
        APPRECIATION FUND I, L.P.NOTES TO FINANCIAL
        STATEMENTS  (Continued)December 31, 2003 and 2002



NOTE 4.  INVESTMENT IN LEASE
RECEIVABLES  (Continued)


The
future minimum lease payments and related rental payments expected to be received on non-cancelable direct
financing and operating leases at December 31, 2003 are as follows:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|           |  | 
|---------- |  | 
|
|2004       |  | 
|2005       |  | 
|2006       |  | 
|2007       |  | 
|2008       |  | 
|Thereafter |  | 
|
|           |  | 
|

|NOTE 5.  DEBT



On
November 26, 2003, the Fund entered into a Master Loan and Security Agreement with OFC
Capital, a division of ALFA Financial Corporation to replace the credit facilities,
described below. Under the terms of the loan agreement, the Fund may borrow up to $15 million.
Each loan is collaterized by specific lease receivables and will equal 93% of the
aggregate payments due under the related equipment lease or equipment finance transaction,
discounted at an interest rate of 6.9%. Each loan will be funded subject to a credit
reserve of 3% of the loan amount. OFC made its first loan on December 19, 2003, in the
aggregate amount of $13,056,516. Of the aggregate amount $421,937 is held in a credit
reserve. The balance is due January 15, 2009.


On
September 29, 2003 the Fund entered into a financing arrangement with Information Leasing
Corporation, a subsidiary of Provident Bank of Cincinnati, Ohio. Under this arrangement,
the Fund assign specified leases and their related receivables to Information Leasing at a
price generally equal to the sum of the receivables, discounted to present value at a rate
agreed to at the time of assignment, less an amount agreed to at the time of assignment as
a credit reserve. The Fund made its first assignment under this arrangement on September
30, 2003, assigning $8,786,854 of receivables at a discount rate of 5.79% and with a
credit reserve of 15% after security deposit and transaction costs, resulting in the
receipt of $7,962,395 in financing. The Fund recorded this transaction as a secured
borrowing. As of December 31, 2003, the outstanding balance under this financing
arrangement is $7,329,886. The loan is repayable as payments are made under the leases or
equipment finance transactions collateralizing the loan, with a final maturity date of
October 13, 2009.




29
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|LEASE EQUITY
        APPRECIATION FUND I, L.P.NOTES TO FINANCIAL
        STATEMENTS  (Continued)December 31, 2003 and 2002


NOTE 5.  DEBT  (Continued)



On
December 19, 2003 we paid off the outstanding balances we owed under the revolving credit
facilities with National City Bank and Commerce Bank on which we were co-borrowers with our General Partner and LEAF.  Simultaneously with those payments, the Fund was, at its request,
released from any obligations under facilities and removed as a borrower.


The debt
maturity for each of the five succeeding fiscal years ended December 31, and
thereafter, are as follows:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |           
| | ----------
| | 2004      
| | 2005      
| | 2006      
| | 2007      
| | 2008      
| | Thereafter
|
| |           
|

|NOTE 6. 
TRANSACTIONS WITH AFFILIATES


The
General Partner and its affiliate, Anthem Securities, Inc. (Anthem Securities), a
subsidiary of Resource America, Inc., respectively, receive an organization and offering expense
allowance of 3% of the offering proceeds and an underwriting fee of 2% of the offering
proceeds raised. This expense allowance and fee are contingent upon the gross proceeds
raised and are limited in the aggregate to $2,500,000. These charges are recorded by the
Fund as offering costs incurred for the sale of limited partnership units on the Statement
of Partners Capital.


The
General Partner receives an acquisition fee for assisting the Fund in acquiring equipment
and portfolios of equipment subject to existing equipment leases. This fee is equal to 2%
of the purchase price paid for the equipment and portfolios of equipment subject to
existing equipment leases, including in each instance, debt it incurs or assumes in
connection with the acquisition.
30









LEASE EQUITY
        APPRECIATION FUND I, L.P.NOTES TO FINANCIAL
        STATEMENTS  (Continued)December 31, 2003 and 2002


NOTE 6.  TRANSACTIONS WITH
AFFILIATES  (Continued)


The
General Partner receives a subordinated annual asset management fee of 3% of gross rental
payments for operating leases and 2% of gross rental payments for deferred financing leases,
as defined in the Partnership Agreement. During the Funds five-year investment period,
the management fee will be subordinated to the payment of a cumulative annual distribution
to the Funds Limited Partners equal to 8% of their capital contributions, as
adjusted by distributions deemed to be a return of capital.


The
General Partner receives a subordinated commission equal to one-half of a competitive commission,
to a maximum of 3% of the contract sales price, for arranging the sale of the
Funds equipment after the expiration of a lease. This commission will be
subordinated to the payment of a cumulative 8% annual return to the Limited Partners on
their capital contributions, as adjusted by distributions deemed to be a return of
capital. No commission was paid during the year ended December 31, 2003.


The
General Partner will receive a commission equal to the lesser of a competitive rate or 2%
of gross rental payments derived from any re-lease of equipment if the re-lease is with
the original lessee or its affiliates. No re-lease commissions were paid during the year ended
December 31, 2003.


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.


During
the second quarter of 2003, the Fund invested in a portion of a direct financing lease
that was held by another Fund in which LEAF Financial Corporation is a General Partner.
The amount invested by the Fund is approximately $601,000. The investment was sold to the
Fund at its book value and no gain or loss was recorded on this transaction.


During
the first quarter of 2003, the Fund transferred its checking and investment accounts from
The Bancorp Bank (TBB) to Commerce Bank. The son and the spouse of the Chairman of
Resource America, Inc. are the Chairman and Chief Executive Officer, respectively, of TBB.


The
following is a summary of fees and costs of services and materials charged by the General
Partner or its affiliates during the year ended December 31, 2003:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                   | 
|---------------------------------- | 
|Acquisition fees                   | 
|Asset management fees              | 
|Organization and offering expenses | 
|Reimbursable expenses              | 
|Underwriting fees                  | 
|Sales commission                   | 

|31








LEASE EQUITY
        APPRECIATION FUND I, L.P.NOTES TO FINANCIAL
        STATEMENTS  (Continued)December 31, 2003 and 2002


NOTE 6.  TRANSACTIONS WITH
AFFILIATES  (Continued)


Due
from related parties at December 31, 2003 represents net monies due the Fund from the General
Partner and/or its affiliates for amounts collected and not yet remitted to the Fund.



NOTE 7.  SUMMARY OF
QUARTERLY RESULTS (UNAUDITED)


The
following table summarizes the results of operations on a quarterly basis during 2003 (in dollars, except unit data):
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                            | First
Quarter | Second
Quarter | Third
Quarter | Fourth
Quarter
|----------------------------------------------------------- | ------------- | -------------- | ------------- | --------------
|Interest, rental and fee
income   (net of interest expense) |               |                | $             | 23,529        
|Expenses                                                    |               |                |               | 25,620        
|Net loss                                                    |               |                |               | (2,091        
|Weighted average of Limited Partners' units                 |               |               
|outstanding                                                 |               |                |               | 22,059        
|Net loss per weighted average Limited                       |               |               
|Partners' units outstanding                                 |               |                | $             | (0.09         

|32




ITEM 9.      
        CHANGES IN AND DISAREEMENTS WITH ACCOUNTANTS ON ACCOUNTING       
             AND FINANCIAL DISCLOSURE


Not
applicable.


ITEM 9A.       CONTROLS AND
PROCEDURES


Evaluation of Disclosure
Controls and Procedures


The
chairman and chief financial officer of our General Partner, our principal executive
officer and financial officer, respectively, have evaluated our disclosure controls and
procedures, (as defined in Rules 13a-14 (c) and 15d14(c)) within 90 days prior to
the filing of this report. Based upon this evaluation, these officers believe that our
disclosure controls and procedures are effective.

33












PART III


ITEM 10.        DIRECTORS AND
EXECUTIVE OFFICERS OF THE GENERAL PARTNER


Our
General Partner manages our activities. Unit holders do not directly or indirectly
participate in our management or operation or have actual or apparent authority to enter
into contracts on our behalf or to otherwise bind us. Our General Partner will be liable,
as General Partner, for all of our debts to the extent not paid, except to the extent that
indebtedness or other obligations incurred by us are specifically with recourse only to
our assets. Whenever possible, our General Partner intends to make any of our indebtedness
or other obligations with recourse only to our assets.


As
is commonly the case with limited partnerships, we do not directly employ any of the
persons responsible for our management or operation. Rather, personnel of our
General Partner and its affiliates manage and operate our business. Officers of our General Partner may spend a
substantial amount of time managing the business and affairs of Leaf Asset Management,
Inc. and its affiliates and may face a conflict regarding the allocation of their time
between our business and affairs and their other business interests.


The
following table sets forth information with respect to the directors and executive
officers of our General Partner.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Name                | Age | Position with
General Partner | Year in which
service began
|------------------- | --- | ----------------------------- | ---------------------------
|Crit S. Dement      |     |                               |                            
|Jonathan Z. Cohen   |     |                               |                            
|Miles Herman        |     |                               |                            
|Freddie M. Kotek    |     |                               |                            
|Robert K. Moskovitz |     |                               |                            

|CRIT
S. DEMENT has been Chairman of the Board of Directors of LEAF Asset Management since January 2002.  Before that, he was President
of Fidelity Leasing, Inc. and its successor, the Technology Finance Group of Citi-Capital Vendor Finance from 1998 to
2001.  Mr. DeMent was Vice President of Marketing for Tokai Financial Services from 1987 through 1996.


FREDDIE
M. KOTEK has been Vice Chairman and Director of LEAF Asset  Management  since  January  2002.  Mr. Kotek has been a Senior
Vice President of Resource  America since 1995,  Executive Vice  President and Chief  Financial  Officer of Atlas America,
Inc. since  February 2004 where he served as a director from  September  2001 until  February 2004,  President of Resource
Leasing,  Inc. (a  wholly-owned  subsidiary  of Resource  America)  since 1995,  Chairman of Atlas  Resources,  Inc.  (our
wholly-owned  subsidiary which acts as the managing partner of our drilling investment  partnerships) since September 2001
and Chief  Executive  Officer and President of Atlas  Resources  since  January 2002.  Mr. Kotek was President of Resource
Properties from September 2000 to October 2001 and its Executive Vice President from 1993 to September 2000.


MILES
HERMAN has been President, Chief Executive Officer and a Director of LEAF Asset Management since January 2002.  Mr. Herman held
various senior operational offices with Fidelity Leasing, Inc. and its successor from 1998 to 2001, ending as
Senior Vice President.  From 1990 to 1998, he held various operational, marketing, program management, business development and
sales positions with Tokai Financial, most recently as Director of Capital Markets. Before that, he served as Vice
President, Operations and Sales at LSI Leasing Services, Inc. from 1989 to 1990, and as a manager of operations at
Master Lease Corporation from 1984 to 1989.



34











ROBERT
K. MOSKOVITZ has been Chief Financial Officer and Treasurer of LEAF Asset Management since February 2004.  Prior to that, from 2002
to 2004, Mr. Moskovitz was an independent consultant on performance management initiatives, primarily to the financial
services industry.  From 2001 to 2002, Mr. Moskovitz was Executive Vice President and Chief Financial Officer of
ImpactRx, Inc.  From 1999 to 2001 Mr. Moskovitz was Chief Financial Officer of Breakthrough Commerce LLC.   From 1983 to
1997 Mr. Moskovitz held senior financial positions with several high growth public and privately owned companies.
Mr. Moskovitz is a Certified Public Accountant and began his career with Touche Ross & Co.



JONATHAN
Z. COHEN has been a Director of LEAF Asset Management since January 2002 has been Vice Chairman of our board of directors since
our formation.  Mr. Cohen has been the President of Resource America since October 2003 and Chief Operating Officer
since April 2002 and a director since October 2002.  Before being named President, he served as Resource America's
Executive Vice President from April 2001 to October 2003, Senior Vice President from May 1999 to April 2001 and Vice
President from July 1998 to May 1999.  Mr. Cohen has been Vice Chairman of the managing board of Atlas Pipeline Partners
GP since its formation in November 1999, Vice Chairman of Atlas America since its formation in September 2000, a Trustee
and Secretary of RAIT Investment Trust (a publicly-traded real estate investment trust) since 1997 and Vice Chairman
since October 2003, and Chairman of the board of directors of The Richardson Company (a sales consulting company) since
October 1999.


Code of Business Conduct
and Ethics


Because
we do not directly employ any persons, we rely on a Code of Business Conduct and Ethics
adopted by Resource America, Inc. that applies to the principal executive officer, principal
financial officer and principal accounting officer of our General Partner, as well as to
persons performing services for us generally. You may obtain a copy of this code of ethics
by a request to our General Partner at 1845 Walnut Street, Suite 1000,
Philadelphia, Pennsylvania 19103.  We will disclose any amendment to,
or waiver from, a provision of our code of ethics by
filing a current report on Form 8-K.
35












ITEM 11.        EXECUTIVE
COMPENSATION



Compensation Committee Interlocks and Insider Participation


The Fund does not have any employees.  We do not reimburse LEAF Financial or its affiliates for the services of our
executive officers because such payments are prohibited under the terms of our partnership agreement.


Neither we nor the board of our General Partner has a compensation committee.  Compensation of the personnel of LEAF
Financial and its affiliates who provide us with services is set by LEAF Financial and such affiliates.  No executive
officer of our General Partner is a member of the compensation committee of another entity.


ITEM 12.        SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND       
               
 MANAGEMENT


As of March 26, 2004, we are not
aware of any person who is a beneficial owner of 5% or more of our limited partner units.
As of that date, the only executive officer and members of the board of our General
Partner who beneficially owned our limited partner units was Mr. DeMent, who owned 600
units comprising less than 1% of the outstanding units. Mr. DeMents address is 1845
Walnut Street, Philadelphia, PA 19103.


ITEM 13.       CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS


During
the year ended December 31, 2003, the Fund was charged by the General Partner $73,095 of
management fees. The General Partner will continue to receive 2% or 3% of rental payments
on equipment under operating leases and direct financing leases, respectively.  This management fee
is paid monthly only if and when the Limited Partners have received
distributions for the period from the initial closing through the end of the most recent
calendar quarter equal to a return for such period at a rate of 8% per year on the
aggregate amount paid for their units.


The
General Partner receives an acquisition fee for assisting the Fund in acquiring equipment and
portfolios of equipment subject to existing equipment leases.  This fee is equal to 2%
of the purchase price paid for the equipment and portfolios of equipment subject to existing
equipment leases, including in each instance, debt it incurs or assumes in connection
with the acquisition.  The Fund paid the General Partner $516,239 in acquisition fees during the
year ended December 31, 2003.


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 arranging for the
sale of our equipment after the expiration of lease. 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 an 8% cumulative compounded priority return. Based on current
estimates, it is not expected that the Fund will be required to pay this sales fee to the
General Partner.


The
General Partner applies distributable cash first at 1% to the General Partner and 99%
to the Limited Partners in an amount equal to their unpaid cumulative return and
thereafter, to investment and reinvestment in investments or, if the General Partner shall
elect not to invest or reinvest such distributable cash, 1% to the General Partner and 99%
to the Limited Partners. During 2003, the General Partner received cash distributions of
$4,794, of which $657 was paid in January 2004 (declared December 2003).


We
reimbursed $594,985 of expenses to our General Partner and its affiliates during 2003.  In addition, we
reimbursed our General Partner other cots and expenses as described in Note 6 of the financial statements.



36
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|ITEM 14.      PRINCIPAL
ACCOUNTANT FEES AND SERVICES


Aggregate
fees recognized by the Partnership during the years ending December 31, 2003 and 2002 by
its principal accounting firm, Grant Thornton, LLP are set forth below. The audit
committee of the managing board of our General Partner has considered whether the
provision of the non-audit services described below is compatible with maintaining the
principal accountants independence.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                            | For the Year Ended
December 31, 2003
|--------------------------- | ------------------------------------
|Audit fees (1)              |                                     
|Audit related fees (2)      |                                     
|Tax fees (3)                |                                     
|All other fees              |                                     
|
|Total aggregate fees billed |                                     
|

|(1) | Includes
the aggregate fees recognized in each of the last two years for           professional
services rendered by Grant Thornton, LLP for the audit of the           Partnerships
annual financial statements and the review of financial           statements included in
Form 10-Q. The fees are for services that are normally           provided by Grant
Thornton, LLP in connection with statutory or regulatory           filings or
engagements.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | There were no aggregate fees billed in each of the last two years for assurance
          and related services by Grant Thornton, LLP that are reasonably related to the
          performance of the audit or review of the Partnerships financial
          statements.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Includes the aggregate fees recognized in each of the last two years for
          professional services rendered by Grant Thornton, LLP for tax compliance, tax
          advice, and tax planning.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|37









PART IV


ITEM 15.       EXHIBITS,
FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K


     (a)       
          The following documents are filed as part of this Annual Report on Form 10-K:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.        Financial
Statements
| | ------------------------------

The
financial statements required by this Item are set forth in Item 8

| | 2.               Financial
Statement Schedules
| | ----------------------------------------------

No
schedules are required to be presented.

| | 3.               
Exhibits
| | --------------------------

|Exhibit No. | Description                                                                                                                                                              
|----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.1         | Amended and Restated Agreement of Limited Partnership (1)                                                                                                                
|3.2         | Certificate of Limited Partnership (2)                                                                                                                                   
|4           | Forms of letters sent to limited partners confirming their investment (2)                                                                                                
|10.1        | Origination and Servicing Agreement among LEAF Financial Corporation,
Lease Equity Appreciation Fund I, L.P. and LEAF Funding, Inc., dated April 4, 2003 (3)             
|10.2        | Master Program Agreement among LEAF Financial Corporation, Lease Equity
Appreciation Fund I, L.P. and Information Leasing Corporation dated September 29, 2003 (4)       
|10.3        | Master Loan and Security Agreement between Lease Equity Appreciation Fund I, L.P.
and OFC Capital, a division of Alpha Financial Corporation, dated November 26, 2003 (5)
|31.1        | Rule 13a-14(a)/15d-14(a) Certifications                                                                                                                                  
|31.2        | Rule 13a-14(a)/15d-14(a) Certifications                                                                                                                                  
|32.1        | Section 1350 Certifications                                                                                                                                              
|32.2        | Section 1350 Certifications                                                                                                                                              

|(1) | Filed previously as Appendix A to our Post-Effective Amendment No. 3 to our
          Registration Statement on Form S-1, filed on January 24, 2004.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Filed previously as an Exhibit to Amendment No. 1 to our Registration Statement
          on Form S-1 filed on June 7, 2002.
|--- | ----------------------------------------------------------------------------------------------------------------------------

|(3) | Filed previously on Form 8-K, filed on September 19, 2003.
|--- | ----------------------------------------------------------

|(4) | Filed previously as an exhibit to our Post-Effective Amendment No. 1 to our
          Registration Statement on Form S-1, filed on November 10, 2003.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Filed previously as an exhibit to our Post-Effective Amendment No. 2 to our
          Registration Statement on Form S-1, filed on January 13, 2004.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------

|38








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.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                        | 
| | -------------------------------------- | 
| | LEASE EQUITY APPRECIATION FUND I, L.P. | 

| |                                  | 
| | -------------------------------- | 
| | A Delaware Limited Partnership   | 
| | By:  LEAF Asset Management, Inc.

|               |                         | 
|-------------- | ----------------------- | 
|March 30, 2004 | By: /s/Miles Herman     | 
|               | MILES HERMAN, PRESIDENT

|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 capacities and on
the dates indicated.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                   |                                |               
|------------------ | ------------------------------ | --------------
|/s/ Crit S. DeMent | Chairman of the Board,         | March 30, 2004
|CRIT S. DEMENT     | of LEAF Asset Management, Inc.

|                 |                                |               
|---------------- | ------------------------------ | --------------
|/s/ Miles Herman | President and Director,        | March 30, 2004
|MILES HERMAN     | of LEAF Asset Management, Inc.
|                 | (Principal Executive Officer) 

|                     |                                |               
|-------------------- | ------------------------------ | --------------
|/s/ Freddie M. Kotek | Director,                      | March 30, 2004
|FREDDIE M. KOTEK     | of LEAF Asset Management, Inc.

|                        |                                |               
|----------------------- | ------------------------------ | --------------
|/s/ Robert K. Moskovitz | Director,                      | March 30, 2004
|ROBERT K. MOSKOVITZ     | of LEAF Asset Management, Inc.
|                        | (Principal Financial Officer) 

|39
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