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Form 10K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

|X| Annual report pursuant to section 13 or 15(d) of the
Securities Exchange Act of 1934 (fee required)
For the Year Ended December 31, 2004
OR
|_| Transition report pursuant to section 13 or 15(d) of the
Securities Exchange Act of 1934 (no fee required)
For the transition period from _______ to _______

Commission File number 000-50687

ATEL Capital Equipment Fund X, LLC

California 68-0517690
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)

600 California Street, 6th Floor, San Francisco, California 94108
(Address of principal executive offices)

Registrant's telephone number, including area code (415) 989-8800
Securities registered pursuant to section 12(b) of the Act: None
Securities registered pursuant to section 12(g) of the Act: None

Indicate by a check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes |X| No |_|

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (ss.229.405) 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|

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act). Yes |_| No |X|

State the aggregate market value of voting stock held by non-affiliates of the
registrant: Inapplicable

The number of Limited Liability Company Units outstanding as of December 31,
2004 was 11,722,823.



DOCUMENTS INCORPORATED BY REFERENCE

Prospectus dated March 12, 2003, filed pursuant to Rule 424(b) (Commission File
No. 000-50687) is hereby incorporated by reference into Part IV hereof.



1


PART I

Item 1: BUSINESS

General Development of Business

ATEL Capital Equipment Fund X, LLC (the Company) was formed under the laws of
the state of California on August 12, 2002. The Company was formed for the
purpose of acquiring equipment to engage in equipment leasing and sales
activities. The Managing Member of the Company is ATEL Financial Services LLC
(AFS), a California limited liability corporation.

The Company conducted a public offering of 15,000,000 Limited Liability Company
Units (Units), at a price of $10 per Unit. On April 9, 2003, subscriptions for
the minimum number of Units (120,000, representing $1,200,000) had been received
and AFS requested that the subscriptions be released to the Company. On that
date, the Company commenced operations in its primary business (leasing
activities). As of June 2, 2003, the Company had received subscriptions for
774,383 Units ($7,743,830), thus exceeding the $7,500,000 minimum requirement
for Pennsylvania, and AFS requested that the remaining funds in escrow (from
Pennsylvania investors) be released to the Company. The offering terminated on
March 12, 2005, and subscriptions of 14,036,636 ($140,366,360) were received and
accepted by the Company.

As of December 31, 2004, 11,722,823 Units ($117,228,230) were issued and
outstanding.

The Company's principal objectives are to invest in a diversified portfolio of
equipment that will (i) preserve, protect and return the Company's invested
capital; (ii) generate regular distributions to the members of cash from
operations and cash from sales or refinancing, with any balance remaining after
certain minimum distributions to be used to purchase additional equipment during
the reinvestment period ("Reinvestment Period"), ending six calendar years after
the termination of the offering (which will be no later than March 11, 2011) and
(iii) provide additional distributions following the Reinvestment Period and
until all equipment has been sold. The Company is governed by its Limited
Liability Company Operating Agreement (Operating Agreement).

Narrative Description of Business

The Company has acquired and intends to acquire various types of equipment and
to lease such equipment pursuant to "Operating" leases and "High Payout" leases,
whereby "Operating" leases are defined as being leases in which the minimum
lease payments during the initial lease term do not recover the full cost of the
equipment and "High Payout" leases recover at least 90% of such cost. It is the
intention of AFS that a majority of the aggregate purchase price of equipment
will represent equipment leased under "High Payout" leases upon final investment
of the Net Proceeds of the Offering and that no more than 20% of the aggregate
purchase price of equipment will be invested in equipment acquired from a single
manufacturer.

The Company will only purchase equipment for which a lease exists or for which a
lease will be entered into at the time of the purchase.

Through December 31, 2004, the Company had purchased equipment with a total
acquisition price of $42,851,084.

The Company's objective is to lease a minimum of 75% of the equipment acquired
with the net proceeds of the offering to lessees that (i) have an aggregate
credit rating by Moody's Investor Service, Inc. of Baa or better, or the credit
equivalent as determined by AFS, with the aggregate rating weighted to account
for the original equipment cost for each item leased or (ii) are established
hospitals with histories of profitability or municipalities. The balance of the
original equipment portfolio may include equipment leased to lessees which,
although deemed creditworthy by AFS, would not satisfy the general credit rating
criteria for the portfolio. In excess of 75% of the equipment acquired with the
net proceeds of the offering (based on original purchase cost) has been leased
to lessees with an aggregate credit rating of Baa or better or to such hospitals
or municipalities as described in (ii) above. During 2004 and 2003, certain
lessees generated significant portions of the Company's total lease revenues as
follows:

Lessee Type of Equipment 2004 2003

GE Aircraft Engines Manufacturing 22% *
Ball Corporation Materials handling 19% 26%
Colowyo Coal Company L.P. Mining 11% 37%
ARYx Therapeutics, Inc. Telecommunications * 14%

* Less than 10%.

These percentages are not expected to be comparable in future periods.



2


The equipment leasing industry is highly competitive. Equipment manufacturers,
corporations, partnerships and others offer users an alternative to the purchase
of most types of equipment with payment terms that vary widely depending on the
lease term and type of equipment. The ability of the Company to keep the
equipment leased and/or operating and the terms of the acquisitions, leases and
dispositions of equipment depends on various factors (many of which are not in
the control of AFS or the Company), such as general economic conditions,
including the effects of inflation or recession, and fluctuations in supply and
demand for various types of equipment resulting from, among other things,
technological and economic obsolescence.

AFS will seek to limit the amount invested in equipment to any single lessee to
not more than 20% of the aggregate purchase price of equipment owned at any time
during the Reinvestment Period.

The business of the Company is not seasonal.

The Company has no full time employees.

Equipment Leasing Activities

The Company has acquired a diversified portfolio of equipment. The equipment has
been leased to lessees in various industries. The following tables set forth the
types of equipment acquired by the Company through December 31, 2004 and the
industries to which the assets have been leased. The Company has purchased
certain assets subject to existing non-recourse debt.

Purchase Price Excluding Percentage of Total
Asset Types Acquisition Fees Acquisitions
Mining equipment $16,022,058 37.39%
Materials handling 9,657,329 22.54%
Transportation 7,946,939 18.55%
Manufacturing 6,960,296 16.24%
Office automation 2,264,462 5.28%
-------------- ---------------
$42,851,084 100.00%
============== ===============

Purchase Price Excluding Percentage of Total
Industry of Lessee Acquisition Fees Acquisitions
Mining $18,008,699 42.03%
Manufacturing 14,943,509 34.87%
Transportation 7,099,966 16.57%
Health Care 2,798,910 6.53%
-------------- ---------------
$42,851,084 100.00%
============== ===============

For further information regarding the Company's equipment lease portfolio as of
December 31, 2004, see Note 3 to the financial statements, Investment in leases,
as set forth in Part II, Item 8, Financial Statements and Supplementary Data.

Item 2. PROPERTIES

The Company does not own or lease any real property, plant or material physical
properties other than the equipment held for lease as set forth in Item 1.

Item 3. LEGAL PROCEEDINGS

In the ordinary course of conducting business, there may be certain claims,
suits, and complaints filed against the Company. In the opinion of management,
the outcome of such matters, if any, will not have a material impact on the
Company's consolidated financial position or results of operations. No material
legal proceedings are currently pending against the Company or against any of
its assets.

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

Not applicable.

PART II

Item 5. MARKET FOR REGISTRANT'S LIMITED LIABILITY COMPANY UNITS
AND RELATED MATTERS

Market Information

There are certain material conditions and restrictions on the transfer of Units
imposed by the terms of the Limited Liability Company Operating Agreement.
Consequently, there is no public market for Units and it is not anticipated that
a public market for Units will develop. In the absence of a public market for
the Units, there is no currently ascertainable fair market value for the Units.



3


Holders

As of December 31, 2004, a total of 2,760 investors were record holders of Units
in the Company.

Dividends

The Company does not make dividend distributions. However, the Members of the
Company are entitled to certain distributions as provided under the Operating
Agreement.

AFS has sole discretion in determining the amount of distributions; provided,
however, that AFS will not reinvest in equipment, but will distribute, subject
to payment of any obligations of the Company, such available cash from
operations and cash from sales or refinancing as may be necessary to cause total
distributions to the Members for each year during the Reinvestment Period to
equal an amount of $0.80 per Unit.

The rate for monthly distributions from 2004 operations was $0.0667 per Unit for
January through December 2004. The distributions were paid in February through
December 2004 and in January 2005. The rate for quarterly distributions paid in
April, July, October 2004 and January 2005 was $0.20, per Unit. Distributions
were from 2004 cash flows from operations.

The rate for monthly distributions from 2003 operations was $0.0667 per Unit for
April through December 2003. The distributions were paid in May through December
2003 and in January 2004. The rate for quarterly distributions paid in July,
October 2003 and January 2004 was $0.20, per Unit. Distributions were from 2003
cash flows from operations.

The following table presents summarized information regarding distributions to
members other than the Managing Member ("Other Members"):

2004 2003
Net loss per Unit, based on weighted
average Units outstanding ($0.04) $ (0.12)
Return of investment 0.75 0.54
-------------- ---------------
Distributions per Unit, based on
weighted average Units outstanding 0.72 0.42
Differences due to timing of distributions 0.08 0.18
-------------- ---------------
Actual distribution rates per Unit $ 0.80 $ 0.60
============== ===============



4


Use of Proceeds from Registered Securities

Information provided pursuant to ss. 228.701 (Item 701(f))(formerly included in
Form SR):

(1) Effective date of the offering: March 12, 2003; File Number: 000-50687

(2) Offering commenced: March 12, 2003

(3) The offering did not terminate before any securities were sold.

(4) The offering has not been terminated prior to the sale of all of the
securities.

(5) The managing underwriter is ATEL Securities Corporation.

(6) The title of the registered class of securities is "Units of Limited
Liability Company interest."

(7) Aggregate amount and offering price of securities registered and sold as of
February 24, 2005:




Aggregate Aggregate
price of price of
offering offering
Amount amount Units amount
Title of Security Registered registered sold sold


Units of Limited Liability Company interest 15,000,000 $150,000,000 12,920,745 $ 129,207,450

(8) Costs incurred for the issuers account in connection with the issuance and
distribution of the securities registered for each category listed below:

Direct or indirect payments to
directors, officers, Managing
Member of the issuer or their
associates; to persons owning
ten percent or more of any Direct or
class of equity securities of indirect
the issuer; and to affiliates of payments to
the issuer others Total

Underwriting discounts and
commissions $ 1,938,112 $ 9,690,559 $ 11,628,671

Other expenses - 6,710,372 6,710,372

-------------- --------------- ---------------
Total expenses $ 1,938,112 $ 16,400,931 $ 18,339,043
============== =============== ===============

(9) Net offering proceeds to the issuer after the total expenses in item 8: $ 110,868,407

(10) The amount of net offering proceeds to the issuer used for each of the
purposes listed below:

Direct or indirect payments to
directors, officers, Managing
Member of the issuer or their
associates; to persons owning
ten percent or more of any Direct or
class of equity securities of indirect
the issuer; and to affiliates of payments to
the issuer others Total
Purchase and installation of
machinery and equipment $ 1,956,694 $ 108,265,676 $ 110,222,370

Working capital - 646,037 646,037
-------------- --------------- ---------------
$ 1,956,694 $ 108,911,713 $ 110,868,407
============== =============== ===============


(11) The use of the proceeds in Item 10 does not represent a material change in
the uses of proceeds described in the prospectus.



5


Item 6. SELECTED FINANCIAL DATA

The following table presents selected financial data of the Company at December
31, 2004, 2003 and 2002 and for the periods then ended. This financial data
should be read in conjunction with the financial statements and related notes
included under Part II Item 8.



2004 2003 2002

Gross revenues $ 4,969,654 $ 907,914 $ -
Net income (loss) $ 169,752 $ (183,013) $ -
Weighted average Units 7,913,617 2,229,909 10
Net loss allocated to Other Members $ (290,814) $ (258,926) $ -
Net loss per Unit, based on weighted
average Units outstanding ($0.04) ($0.12) $0.00
Distributions per Unit, based on weighted average
Units outstanding $ 0.72 $ 0.42 $ -
Total Assets $95,527,159 $ 37,815,563 $ 600
Total Members' Capital $94,861,396 $ 37,110,663 $ 600



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

Statements contained in this Item 7, "Management's Discussion and Analysis of
Financial Condition and Results of Operations," and elsewhere in this Form 10-K,
which are not historical facts, may be forward-looking statements. Such
statements are subject to risks and uncertainties that could cause actual
results to differ materially form those projected. In particular, economic
recession and changes in general economic conditions, including, fluctuations in
demand for equipment, lease rates, and interest rates, may result in delays in
investment and reinvestment, delays in leasing, re-leasing, and disposition of
equipment, and reduced returns on invested capital. The Company's performance is
subject to risks relating to lessee defaults and the creditworthiness of its
lessees. The Fund's performance is also subject to risks relating to the value
of its equipment at the end of its leases, which may be affected by the
condition of the equipment, technological obsolescence and the markets for new
and used equipment at the end of lease terms. Investors are cautioned not to
attribute undue certainty to these forward-looking statements, which speak only
as of the date of this Form 10-K. We undertake no obligation to publicly release
any revisions to these forward-looking statements to reflect events or
circumstances after the date of this Form 10-K or to reflect the occurrence of
unanticipated events, other than as required by law.

Capital Resources and Liquidity

The Company commenced its offering of Units on March 12, 2003. On April 9, 2003,
the Company commenced operations in its primary business (leasing activities).
Until the Company's initial portfolio of equipment has been purchased, funds
that have been received, but that have not yet been invested in leased
equipment, are invested in interest-bearing accounts or high-quality/short-term
commercial paper. The Company's public offering provides for a total maximum
capitalization of $150,000,000.

During the funding period, the Company's primary source of liquidity will be
subscription proceeds from the public offering of Units. The liquidity of the
Company will vary in the future, increasing to the extent proceeds from the
offering, cash flows from leases and proceeds of asset sales exceed expenses,
and decreasing as lease assets are acquired, as distributions are made to the
Other Members and to the extent expenses exceed cash flows from leases and
proceeds from asset sales.

As another source of liquidity, the Company is expected to have contractual
obligations with a diversified group of lessees for fixed lease terms at fixed
rental amounts. As the initial lease terms expire, the Company will re-lease or
sell the equipment. The future liquidity beyond the contractual minimum rentals
will depend on AFS's success in re-leasing or selling the equipment as it comes
off lease.

Throughout the Reinvestment Period, the Company anticipates reinvesting a
portion of lease payments from assets owned in new leasing transactions. Such
reinvestment will occur only after the payment of all obligations, including
debt service (both principal and interest), the payment of management fees to
AFS and providing for cash distributions to the Other Members. At December 31,
2004, the Company had commitments to purchase lease assets totaling
approximately $21,788,000.



6


The Company participates with AFS and certain of its affiliates in a financing
arrangement (comprised of a term loan to AFS, an acquisition facility and a
warehouse facility) with a group of financial institutions that includes certain
financial covenants. The financial arrangement is $75,000,000 and expires in
June 2006. The availability of borrowings available to the Company under this
financing arrangement is reduced by the amount AFS has outstanding as a term
loan. As of December 31, 2004, the Company did not have any borrowings under the
facility. Borrowings under the facility as of December 31, 2004, were as
follows:

Total amount available under the financing arrangement $ 75,000,000
Term loan to AFS as of December 31, 2004 (2,027,636)
--------------
Total available under the acquisition and warehouse facilities 72,972,364

Amount borrowed by the Company under the acquisition facility -
Amounts borrowed by affiliated partnerships and limited liability
companies under the acquisition facility (30,500,000)
--------------
Total remaining available under the acquisition and warehouse
facilities $ 42,472,364
==============

Draws on the acquisition facility by any individual borrower are secured only by
that borrower's assets, including equipment and related leases. Borrowings on
the warehouse facility are recourse jointly to certain of the affiliated
partnerships and limited liability companies, the Company and AFS.

The credit agreement includes certain financial covenants applicable to each
borrower. The Company was in compliance with its covenants as of December 31,
2004.

AFS or an affiliate may purchase equipment in its own name, the name of an
affiliate or the name of a nominee, a trust or otherwise and hold title thereto
on a temporary or interim basis for the purpose of facilitating the acquisition
of such equipment or the completion of manufacture of the equipment or for any
other purpose related to the business of the Company, provided, however that:
(i) the transaction is in the best interest of the Company; (ii) such equipment
is purchased by the Company for a purchase price no greater than the cost of
such equipment to AFS or affiliate (including any out-of-pocket carrying costs),
except for compensation permitted by the Operating Agreement; (iii) there is no
difference in interest terms of the loans secured by the equipment at the time
acquired by AFS or affiliate and the time acquired by the Company; (iv) there is
no benefit arising out of such transaction to AFS or its affiliate apart from
the compensation otherwise permitted by the Operating Agreement; and (v) all
income generated by, and all expenses associated with, equipment so acquired
will be treated as belonging to the Company.

The Company currently has available adequate reserves to meet its immediate cash
requirements and those of the next twelve months, but in the event those
reserves were found to be inadequate, the Company would likely be in a position
to borrow against its current portfolio to meet such requirements. ATEL
envisions no such requirements for operating purposes.

AFS expects that aggregate borrowings in the future will be approximately 50% of
aggregate equipment cost. In any event, the Operating Agreement limits such
borrowings to 50% of the total cost of equipment, in aggregate.

The Company commenced regular distributions, based on cash flows from
operations, beginning with the month of April 2003. The distribution was made in
May 2003 and additional distributions have been consistently made through
December 2004.

If inflation in the general economy becomes significant, it may affect the
Company inasmuch as the residual (resale) values and rates on re-leases of the
Company's leased assets may increase as the costs of similar assets increase.
However, the Company's revenues from existing leases would not increase, as such
rates are generally fixed for the terms of the leases without adjustment for
inflation.

If interest rates increase significantly, the lease rates that the Company can
obtain on future leases will be expected to increase as the cost of capital is a
significant factor in the pricing of lease financing. Leases already in place,
for the most part, would not be affected by changes in interest rates.



7


Cash Flows

2004 vs. 2003:

In both 2004 and 2003, our primary source of cash flow was from the public
offering. Cash flows from financing activities increased from $37,293,076 in
2003 to $57,580,981 in 2004, an increase of $20,287,905. The increase is largely
the result of the capital contributions received from investors. An additional
7,281,891 units were invested in 2004 compared to 4,483,332 units in 2003.
Offsetting this increase is a higher distributions amount of $5,675,247 to
members in 2004 versus distributions of $937,496 in 2003, a difference of
$4,737,751.

The Company has completed the public offering of its Units on March 12, 2005.

In 2004 and 2003, our primary source of cash from operating sources was rents
from operating leases.

During 2004 and 2003, we used cash in investing activities to purchase operating
and direct financing lease assets and advance notes receivable. Purchases of
equipment on operating leases increased to $26,125,770 in 2004 from $14,144,965
in 2003, an rise of $11,980,805. Purchases of equipment on direct financing
leases increased to $1,882,879 in 2004 from $697,468 in 2003. Note advances of
$5,035,320 were made in 2004. No advances were made in 2003.

Results of Operations

As of April 9, 2003, subscriptions for the minimum amount of the offering
($1,200,000) had been received and accepted by the Company. As of that date, the
Company commenced operations in its primary business (leasing activities).
Because of the timing of the commencement of operations and the fact that the
initial portfolio acquisitions were not completed at December 31, 2004, the
results of operations in 2004 are not expected to be comparable to future
periods. After the Company's public offering and its initial asset acquisition
stage terminate, the results of operations are expected to change significantly.

As of December 31, 2004 and 2003, there were concentrations (greater than 10%)
of equipment leased to lessees and/or financial borrowers in certain industries
(as a percentage of total equipment cost) as follows:

2004 2003
Mining 42% 14%
Manufacturing 31% 79%
Transportation 20% *
* less than 10%

In 2004 and 2003, operations resulted in a net income of $169,752 and a net loss
of $183,013, respectively. Our primary source of revenues is operating leases.
Operating lease revenues surged $3,265,846 from $786,291 in 2003 to $4,052,137
in 2004. Our depreciation expense is directly related to the assets we have on
operating leases. As expected, depreciation on operating lease assets increased
to $3,601,196 in 2004 from $796,842 in 2003.

Cost reimbursements to Managing Member are based on costs incurred by AFS in
performing administrative services for the Company that are allocated to each
Company that AFS manages based on certain criteria such as existing or new
leases, number of investors or equity depending on the type of cost incurred.
AFS believes that the costs reimbursed are the lower of (i) actual costs
incurred on behalf of the Company or (ii) the amount the Company would be
required to pay independent parties for comparable administrative services in
the same geographic location.

Under the terms of the Limited Liability Company Operating Agreement, AFS is
entitled certain fees and reimbursements of costs. Management fees in 2004 and
2003 were $211,761 and $48,550, respectively, and costs reimbursements were
$356,797and $48,235, respectively. These amounts are expected to increase in
future periods as the operations of the Company expand.

Derivative Financial Instruments

In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 133, Accounting for Derivative
Instruments and Hedging Activities, which established new accounting and
reporting standards for derivative instruments. SFAS No. 133 has been amended by
SFAS No. 137, issued in June 1999, by SFAS No. 138, issued in June 2000 and by
SFAS No. 149, issued in June 2003.

SFAS No. 133, as amended, requires the Company to recognize all derivatives as
either assets or liabilities in the balance sheet and measure those instruments
at fair value. It further provides criteria for derivative instruments to be
designated as fair value, cash flow, or foreign currency hedges, and establishes
accounting standards for reporting changes in the fair value of the derivative
instruments. If derivative financial instruments are utilized, the Company will
be required to record derivative instruments at fair value in the balance sheet
and recognize the offsetting gains or losses as adjustments to net income or
other comprehensive income, as appropriate.



8


Recent Accounting Pronouncements

On October 13, 2004, the FASB concluded that SFAS No. 123R, Share-Based Payment
("SFAS 123R"), which requires all companies to measure compensation cost for all
share-based payments (including stock options and employee stock purchase plans)
at fair value, will be effective for public companies for interim or annual
periods beginning after June 15, 2005. Nonpublic companies will be required to
adopt the new statement at the beginning of the first annual period beginning
after December 15, 2005. The Company does not expect the adoption of SFAS 123R
to have a material impact on its financial statements.

In January 2003, the FASB issued Interpretation No. 46 ("FIN 46"),
"Consolidation of Variable Interest Entities, an interpretation of ARB 51." The
primary objectives of this interpretation are to provide guidance on the
identification of entities for which control is achieved through means other
than through voting rights ("variable interest entities") and how to determine
when and which business enterprise (the "primary beneficiary") should
consolidate the variable interest entity. This new model for consolidation
applies to an entity in which either (i) the equity investors (if any) do not
have a controlling financial interest; or (ii) the equity investment at risk is
insufficient to finance that entity's activities without receiving additional
subordinated financial support from other parties. In addition, FIN 46 requires
that the primary beneficiary, as well as all other enterprises with a
significant variable interest in a variable interest entity, make additional
disclosures. Certain disclosure requirements of FIN 46 were effective for
financial statements issued after January 31, 2003.

In December 2003, the FASB issued FIN No. 46 (revised December 2003),
"Consolidation of Variable Interest Entities" ("FIN 46-R") to address certain
FIN 46 implementation issues. The effective dates and impact of FIN 46 and FIN
46-R are as follows:

(i) Special purpose entities ("SPEs") created prior to February 1, 2003. The
company must apply either the provisions of FIN 46 or early adopt the provisions
of FIN 46-R at the end of the first interim or annual reporting period ending
after December 15, 2003.

(ii) Non-SPEs created prior to February 1, 2003. The company is required to
adopt FIN 46-R at the end of the first interim or annual reporting period ending
after March 15, 2004.

(iii) All entities, regardless of whether a SPE, that were created subsequent to
January 31, 2003. The provisions of FIN 46 were applicable for variable
interests in entities obtained after January 31, 2003.

The Company adopted FIN 46-R as of March 31, 2004. The adoption of FIN 46-R as
of March 31, 2004 did not have a material impact on the Company's position,
results of operations, or liquidity.

Critical Accounting Policies

The policies discussed below are considered by management of the Company to be
critical to an understanding of the Company's financial statements because their
application requires significant complex or subjective judgments, decisions, or
assessments, with financial reporting results relying on estimation about the
effect of matters that are inherently uncertain. Specific risks for these
critical accounting policies are described in the following paragraphs. The
Company also states these accounting policies in the notes to the financial
statements and in relevant sections in this discussion and analysis. For all of
these policies, management cautions that future events rarely develop exactly as
forecast, and the best estimates routinely require adjustment.

Equipment on operating leases:

Equipment on operating leases is stated at cost. Depreciation is being provided
by use of the straight-line method over the terms of the related leases to the
equipment's estimated residual values at the end of the leases. Revenues from
operating leases are recognized on as straight line basis over the lives of the
related leases.

Direct financing leases:

Income from direct financing lease transactions is reported using the financing
method of accounting, in which the Company's investment in the leased property
is reported as a receivable from the lessee to be recovered through future
rentals. The income portion of each rental payment is calculated so as to
generate a constant rate of return on the net receivable outstanding.

Allowances for losses on direct financing leases are typically established based
on historical charge offs and collections experience and are usually determined
by specifically identified lessees and billed and unbilled receivables.

Direct financing leases are placed in a non-accrual status (no revenue
recognized) based on specifically identified lessees. Such leases are only
returned to an accrual status based on a case by case review of AFS. Direct
financing leases are charged off on specific identification by AFS.



9


Use of Estimates:

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. Such
estimates primarily relate to the determination of residual values at the end of
the lease term.

Asset Valuation:

Recorded values of the Company's asset portfolio are periodically reviewed for
impairment in accordance with Statement of Financial Accounting Standards (SFAS)
No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. An
impairment loss is measured and recognized only if the estimated undiscounted
future cash flows of the asset are less than their net book value. The estimated
undiscounted future cash flows are the sum of the estimated residual value of
the asset at the end of the asset's expected holding period and estimates of
undiscounted future rents. The residual value assumes, among other things, that
the asset is utilized normally in an open, unrestricted and stable market.
Short-term fluctuations in the market place are disregarded and it is assumed
that there is no necessity either to dispose of a significant number of the
assets, if held in quantity, simultaneously or to dispose of the asset quickly.
Impairment is measured as the difference between the fair value (as determined
by the discounted estimated future cash flows) of the assets and its carrying
value on the measurement date.


Item 7a. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

The Company, like most other companies, is exposed to certain market risks,
including primarily changes in interest rates. The Company believes its exposure
to other market risks, including foreign currency exchange rate risk, commodity
risk and equity price risk, are insignificant to both its financial position and
results of operations.

In general, the Company expects to manage its exposure to interest rate risk by
obtaining fixed rate debt. The fixed rate debt is structured so as to match the
cash flows required to service the debt to the payment streams under fixed rate
lease receivables. The payments under the leases are assigned to the lenders in
satisfaction of the debt. Furthermore, AFS, in conjunction with other companies
it manages, has historically been able to maintain a stable spread between its
cost of funds and lease yields in both periods of rising and falling interest
rates. Nevertheless, the Company expects to frequently fund leases with a
floating interest rate revolving line of credit and will, therefore, be exposed
to interest rate risk until fixed rate financing is arranged, or the floating
interest rate revolving line of credit is repaid. As of December 31, 2004, the
Company has not been included in the floating rate revolving line of credit as a
borrower and there were no variable rate borrowings as of that date.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

See the Report of Independent Registered Public Accounting Firm, Financial
Statements and Notes to Financial Statements attached hereto at pages 11 through
24.


10










REPORT OF ERNST & YOUNG LLP, INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



The Members
ATEL Capital Equipment Fund X, LLC

We have audited the accompanying balance sheets of ATEL Capital Equipment Fund
X, LLC (the Company) as of December 31, 2004 and 2003, and the related
statements of operations, changes in members' capital and cash flows for each of
the two years in the period ended December 31, 2004 and for the period from
August 12, 2002 (inception) through December 31, 2002. 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 the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. We were not engaged to perform an
audit of the Company's internal control over financial reporting. Our audit
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Company's internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of ATEL Capital Equipment Fund X,
LLC at December 31, 2004 and 2003, and the results of its operations and cash
flows for the each of the two years in the period ended December 31, 2004 and
for the period from August 12, 2002 (inception) through December 31, 2002, in
conformity with U.S. generally accepted accounting principles.

/s/ ERNST & YOUNG LLP

San Francisco, California
March 9, 2005



11


ATEL CAPITAL EQUIPMENT FUND X, LLC

BALANCE SHEETS

DECEMBER 31, 2004 AND 2003


ASSETS

2004 2003

Cash and cash equivalents $ 50,767,859 $ 22,680,652
Accounts receivable 575,365 3,179
Notes receivable 4,549,389 -
Due from Managing Member 363,397 -
Due from affiliate - 248,428
Prepaid syndication costs - 156,624
Other assets 62,499 -
Investments in leases 39,208,650 14,726,680
--------------- ---------------
Total assets $ 95,527,159 $ 37,815,563
=============== ===============


LIABILITIES AND MEMBERS' CAPITAL

Accounts payable:
Other $ 64,249 $ 127,131
Managing Member - 472,041
Deposits due to lessees 131,017 -
Unearned operating lease income 470,497 105,728
--------------- ---------------
Total liabilities 665,763 704,900

Members' capital 94,861,396 37,110,663
--------------- ---------------
Total liabilities and Members' capital $ 95,527,159 $ 37,815,563
=============== ===============




See accompanying notes.


12


ATEL CAPITAL EQUIPMENT FUND X, LLC

STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 2004 AND 2003
AND FOR THE PERIOD ENDED
AUGUST 12, 2002 (INCEPTION)
THROUGH DECEMBER 31, 2002




2004 2003 2002
Revenues:
Leasing activities:

Operating leases $ 4,052,137 $ 786,291 $ -
Direct finance leases 153,357 44,134 -
Gain on sales of assets - 10,991 -
Interest:
Interest earned on cash deposits 369,854 66,325 -
Interest earned on notes receivable 316,451 - -
Other 77,855 173 -
--------------- --------------- ---------------
4,969,654 907,914 -
Expenses:
Depreciation of operating lease assets 3,601,196 796,842 -
Amortization of initial direct costs 338,435 66,861 -
Asset management fees to Managing Member 211,761 48,550 -
Cost reimbursements to Managing Member 356,797 48,235 -
Professional fees 106,093 33,563 -
Franchise fees and state taxes 31,886 - -
Other 153,734 96,876 -
--------------- --------------- ---------------
4,799,902 1,090,927 -
--------------- --------------- ---------------
Net income (loss) $ 169,752 $ (183,013) $ -
=============== =============== ===============

Net income (loss):
Managing Member $ 460,566 $ 75,913 -
Other Members (290,814) (258,926) -
--------------- --------------- ---------------
$ 169,752 $ (183,013) $ -
=============== =============== ===============

Net loss per Limited Liability Company Unit ($0.04) ($0.12) $0.00

Weighted average number of Units outstanding 7,913,617 2,229,909 10





See accompanying notes.




13


ATEL CAPITAL EQUIPMENT FUND X, LLC

STATEMENTS OF CHANGES IN MEMBERS' CAPITAL

FOR THE YEARS ENDED DECEMBER 2004 AND 2003
AND FOR THE PERIOD ENDED
AUGUST 12, 2002 (INCEPTION)
THROUGH DECEMBER 31, 2002





Other Members Managing
Units Amount Member Total


Initial capital contributions 50 $ 500 $ 100 $ 600
-------------- --------------- --------------- ---------------
Balance December 31, 2002 50 500 100 600

Capital contributions 4,483,332 44,833,320 - 44,833,320
Less selling commissions to affiliates - (4,034,999) - (4,034,999)
Other syndication costs to affiliates - (2,491,736) - (2,491,736)
Distributions to other members ($0.42 per Unit) - (937,496) (76,013) (1,013,509)
Net income (loss) - (258,926) 75,913 (183,013)
-------------- --------------- --------------- ---------------
Balance December 31, 2003 4,483,382 37,110,663 - 37,110,663

Capital contributions 7,281,891 72,818,910 - 72,818,910
Less selling commissions to affiliates - (6,553,702) - (6,553,702)
Other syndication costs to affiliates - (2,126,737) - (2,126,737)
Rescissions of capital contributions (39,200) (392,000) - (392,000)
Units repurchased (3,250) (29,677) - (29,677)
Distributions to other members ($0.48 per Unit) - (5,675,247) - (5,675,247)
Distributions to managing members - - (460,566) (460,566)
Net income (loss) - (290,814) 460,566 169,752
-------------- --------------- --------------- ---------------
Balance December 31, 2004 11,722,823 $ 94,861,396 $ - $ 94,861,396
============== =============== =============== ===============




See accompanying notes.


14


ATEL CAPITAL EQUIPMENT FUND X, LLC

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 2004 AND 2003
AND FOR THE PERIOD ENDED
AUGUST 12, 2002 (INCEPTION)
THROUGH DECEMBER 31, 2002



2004 2003 2002
Operating activities:

Net income (loss) $ 169,752 $ (183,013) $ -
Adjustments to reconcile net income (loss) to
cash provided by operating activities:
Gain on sales of assets - (10,991) -
Gain on sale of marketable securities (71,166)
Depreciation 3,601,196 796,842 -
Amortization 338,435 66,861 -
Changes in operating assets and liabilities:
Accounts receivable (572,186) (3,179) -
Due from Managing Member (363,397) - -
Prepaid syndication costs 156,624 (156,624) -
Accounts payable, Managing Member (472,041) 472,041 -
Accounts payable, other (62,882) 127,131 -
Deposits due to lessees 131,017 - -
Unearned operating lease income 364,769 105,728 -
--------------- --------------- ---------------
Net cash provided by operations 3,220,121 1,214,796 -
--------------- --------------- ---------------

Investing activities:
Purchases of equipment on operating leases (26,125,770) (14,144,965) -
Note receivable advances (5,035,320) - -
Proceeds from sales of assets - 257,206 -
Due from affiliate 248,428 (248,428) -
Purchases of equipment on direct financing leases (1,882,879) (697,468) -
Payments received on notes receivable 485,931 - -
Payments of initial direct costs to Managing Member, net (866,326) (1,092,193) -
Reduction of net investment in direct financing leases 453,374 98,028 -
Purchase of marketable securities (62,499) - -
Proceeds from sale of marketable securities 71,166 - -
--------------- --------------- ---------------
Net cash used in investing activities (32,713,895) (15,827,820) -
--------------- --------------- ---------------

Financing activities:
Capital contributions received 72,818,910 44,833,320 600
Payment of syndication costs to Managing Member (8,680,439) (6,526,735) -
Repurchase of limited liability company units (29,677) - -
Rescissions of capital contributions (392,000) - -
Distributions to Other Members (5,675,247) (937,496) -
Distributions to Managing Member (460,566) (76,013) -
--------------- --------------- ---------------
Net cash provided by financing activities 57,580,981 37,293,076 600
--------------- --------------- ---------------

Net increase in cash and cash equivalents 28,087,207 22,680,052 600

Cash and cash equivalents at beginning of period 22,680,652 600 -
--------------- --------------- ---------------
Cash and cash equivalents at end of period $ 50,767,859 $ 22,680,652 $ 600
=============== =============== ===============

Supplemental disclosures of cash flow information:
Cash paid during the period for interest $ 615 $ 8,045 $ -
=============== =============== ===============




See accompanying notes.


15


ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2004


1. Organization and Limited Liability Company matters:

ATEL Capital Equipment Fund X, LLC (the Company) was formed under the laws of
the state of California on August 12, 2002 for the purpose of acquiring
equipment to engage in equipment leasing and sales activities. The Company may
continue until December 31, 2021.

The Company is conducting a public offering of 15,000,000 Limited Liability
Company Units (Units), at a price of $10 per Unit. Upon the sale of the minimum
amount of Units of Limited Liability Company interest (Units) of 120,000 Units
($1,200,000) and the receipt of the proceeds thereof on April 9, 2003, the
Company commenced operations. As of December 31, 2001, the Company had received
subscriptions for 4,483,382 ($44,833,820) Units, including the Initial Members'
Units. All of the Units were issued and outstanding as of December 31, 2004. The
Company's offering will terminate on or before March 11, 2005.

ATEL Financial Services, LLC (AFS), an affiliated entity, acts as the Managing
Member of the Company.

The Company, or AFS on behalf of the Company, will incur costs in connection
with the organization, registration and issuance of the Limited Liability
Company Units (Units) (Note 5). The amount of such costs to be borne by the
Company is limited by certain provisions of the Company's Operating Agreement.

The Company's principal objectives are to invest in a diversified portfolio of
equipment that will (i) preserve, protect and return the Company's invested
capital; (ii) generate regular distributions to the members of cash from
operations and cash from sales or refinancing, with any balance remaining after
certain minimum distributions to be used to purchase additional equipment during
the Reinvestment Period (ending six calendar years after the completion of the
Company's public offering of Units) and (iii) provide additional distributions
following the Reinvestment Period and until all equipment has been sold. The
Company is governed by its Limited Liability Company Operating Agreement
(Operating Agreement).


2. Summary of significant accounting policies:

Cash and cash equivalents:

Cash and cash equivalents includes cash in banks and cash equivalent investments
with original maturities of ninety days or less.

Accounts receivable:

Accounts receivable represent the amounts billed under lease contracts and
currently due to the Company. Allowances for doubtful accounts are typically
established based on historical charge offs and collection experience and are
usually determined by specifically identified lessees and invoiced amounts.
Accounts receivable are charged off on specific identification by AFS.

Investment in notes receivable:

Income from notes receivable is reported using the financing method of
accounting. The Company's investment in notes receivable is reported as the
present value of the future note payments. The income portion of each note
payment is calculated so as to generate a constant rate of return on the net
balance outstanding. Notes receivable are charged off on specific identification
by AFS. To date, the Company has made no provisions for losses on notes
receivable nor has the Company written off any notes receivables.



16


ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2004


2. Summary of significant accounting policies (continued):

Equipment on operating leases:

Equipment on operating leases is stated at cost. Depreciation is being provided
by use of the straight-line method over the terms of the related leases to the
equipment's estimated residual values at the end of the leases. Revenues from
operating leases are recognized evenly over the lives of the related leases.

Direct financing leases:

Income from direct financing lease transactions is reported using the financing
method of accounting, in which the Company's investment in the leased property
is reported as a receivable from the lessee to be recovered through future
rentals. The income portion of each rental payment is calculated so as to
generate a constant rate of return on the net receivable outstanding.

Allowances for losses on direct financing leases are typically established based
on historical charge offs and collections experience and are usually determined
by specifically identified lessees and billed and unbilled receivables.

Direct financing leases are placed in a non-accrual status based on specifically
identified lessees. Such leases are only returned to an accrual status based on
a case by case review of AFS. Direct financing leases are charged off on
specific identification by AFS.

Initial direct costs:

The Company capitalizes initial direct costs associated with the acquisition of
lease assets. The costs are amortized over a five year period using the straight
line method.

Income taxes:

The Company does not provide for income taxes since all income and losses are
the liability of the individual members and are allocated to the members for
inclusion in their individual tax returns.

The tax basis of the Company's net assets and liabilities varies from the
amounts presented in these financial statements at December 31 :

2004 2003
Financial statement basis of net assets $ 94,861,396 $ 37,815,563
Tax basis of net assets (unaudited) 104,295,819 43,059,556
--------------- ---------------
Difference $ 9,434,423 $ 5,243,993
=============== ===============

The primary differences between the tax basis of net assets and the amounts
recorded in the financial statements are the result of differences in accounting
for syndication costs and differences between the depreciation methods used in
the financial statements and the Company's tax returns.



17


ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2004

2. Summary of significant accounting policies (continued):

Income taxes (continued):

The following reconciles the net income (loss) reported in these financial
statements to the loss reported on the Company's federal tax return (unaudited)
for each of the years ended December 31:

2004 2003
Net income (loss) per financial statements $ 169,752 $ (183,013)
Adjustment to depreciation expense (6,013,054) (778,726)
Adjustments to lease revenues 818,145 200,884
--------------- ---------------
Net loss per federal tax return $ (5,025,157) $ (760,855)
=============== ===============

Per unit data:

Net income and distributions per unit are based upon the weighted average number
of units outstanding during the period.

Asset valuation:

Recorded values of the Company's asset portfolio are periodically reviewed for
impairment in accordance with Statement of Financial Accounting Standards (SFAS)
No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. An
impairment loss is measured and recognized only if the estimated undiscounted
future cash flows of the asset are less than their net book value. The estimated
undiscounted future cash flows are the sum of the estimated residual value of
the asset at the end of the asset's expected holding period and estimates of
undiscounted future rents. The residual value assumes, among other things, that
the asset is utilized normally in an open, unrestricted and stable market.
Short-term fluctuations in the market place are disregarded and it is assumed
that there is no necessity either to dispose of a significant number of the
assets, if held in quantity, simultaneously or to dispose of the asset quickly.
Impairment is measured as the difference between the fair value (as determined
by the discounted estimated future cash flows) of the assets and its carrying
value on the measurement date.

Credit risk:

Financial instruments that potentially subject the Company to concentrations of
credit risk include cash and cash equivalents, direct finance lease receivables,
accounts and notes receivable. The Company places its cash deposits and
temporary cash investments with creditworthy, high quality financial
institutions. The concentration of such deposits and temporary cash investments
is not deemed to create a significant risk to the Company. Accounts receivable
represent amounts due from lessees in various industries, related to equipment
on operating and direct financing leases. See Note 8 for a description of
lessees by industry as of December 31, 2004.

Derivative financial instruments:

In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 133, Accounting for Derivative
Instruments and Hedging Activities, which established new accounting and
reporting standards for derivative instruments. SFAS No. 133 has been amended by
SFAS No. 137, issued in June 1999, by SFAS No. 138, issued in June 2000 and by
SFAS No. 149, issued June 2003.

SFAS No. 133, as amended, requires the Company to recognize all derivatives as
either assets or liabilities in the balance sheet and measure those instruments
at fair value. It further provides criteria for derivative instruments to be
designated as fair value, cash flow, or foreign currency hedges, and establishes
accounting standards for reporting changes in the fair value of the derivative
instruments. The Company has not utilized derivative financial instruments.



18


ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2004


2. Summary of significant accounting policies (continued):

Use of estimates:

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. Such
estimates primarily relate to the determination of residual values at the end of
the lease term.

Basis of presentation:

The accompanying financial statements have been prepared in accordance with U.S.
generally accepted accounting principles. Certain prior year amounts have been
reclassified to conform to the current year presentation.

Recent accounting pronouncements:

On October 13, 2004, the FASB concluded that SFAS No. 123R, Share-Based Payment
("SFAS 123R"), which requires all companies to measure compensation cost for all
share-based payments (including stock options and employee stock purchase plans)
at fair value, will be effective for public companies for interim or annual
periods beginning after June 15, 2005. Nonpublic companies will be required to
adopt the new statement at the beginning of the first annual period beginning
after December 15, 2005. The Company does not expect the adoption of SFAS 123R
to have a material impact on its financial statements.

In January 2003, the FASB issued Interpretation No. 46 ("FIN 46"),
"Consolidation of Variable Interest Entities, an interpretation of ARB 51." The
primary objectives of this interpretation are to provide guidance on the
identification of entities for which control is achieved through means other
than through voting rights ("variable interest entities") and how to determine
when and which business enterprise (the "primary beneficiary") should
consolidate the variable interest entity. This new model for consolidation
applies to an entity in which either (i) the equity investors (if any) do not
have a controlling financial interest; or (ii) the equity investment at risk is
insufficient to finance that entity's activities without receiving additional
subordinated financial support from other parties. In addition, FIN 46 requires
that the primary beneficiary, as well as all other enterprises with a
significant variable interest in a variable interest entity, make additional
disclosures. Certain disclosure requirements of FIN 46 were effective for
financial statements issued after January 31, 2003.

In December 2003, the FASB issued FIN No. 46 (revised December 2003),
"Consolidation of Variable Interest Entities" ("FIN 46-R") to address certain
FIN 46 implementation issues. The effective dates and impact of FIN 46 and FIN
46-R are as follows:

(i) Special purpose entities ("SPEs") created prior to February 1, 2003. The
company must apply either the provisions of FIN 46 or early adopt the provisions
of FIN 46-R at the end of the first interim or annual reporting period ending
after December 15, 2003.

(ii) Non-SPEs created prior to February 1, 2003. The company is required to
adopt FIN 46-R at the end of the first interim or annual reporting period ending
after March 15, 2004.

(iii) All entities, regardless of whether a SPE, that were created subsequent to
January 31, 2003. The provisions of FIN 46 were applicable for variable
interests in entities obtained after January 31, 2003.

The Company adopted FIN 46-R as of March 31, 2004. The adoption of FIN 46-R as
of March 31, 2004 did not have a material impact on the Company's position,
results of operations, or liquidity.



19


ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2004



3. Investment in leases:

The Company's investment in leases consists of the following:



Depreciation /
Amortization
Expense or Net
Balance Amortization of Reclassi- Balance
December 31, Direct Financing fications or December 31,
2003 Additions Leases Dispositions 2004


Net investment in operating leases $ 12,967,263 $26,125,770 $ (3,601,196) $ (994,445) $ 34,497,392
Net investment in direct financing
leases 735,451 1,882,879 (453,374) 994,445 3,159,401
Initial direct costs 1,023,966 875,721 (338,435) (9,395) 1,551,857
-------------- -------------- --------------- ---------------- --------------
$ 14,726,680 $28,884,370 $ (4,393,005) $ (9,395) $ 39,208,650
============== ============== =============== ================ ==============


All of the property on leases was acquired in 2003 and 2004.

Operating leases:

Property on operating leases consists of the following:




Net
Balance Reclassi- Balance
December 31, Depreciation fications or December 31,
2003 Expense Additions Dispositions 2004

Manufacturing $ 5,848,508 $ - $ 689,352 $ - $ 6,537,860
Materials handling 4,827,588 - 3,434,134 (994,445) 7,267,277
Mining 2,000,000 - 14,022,058 - 16,022,058
Data processing 1,046,434 - 33,288 - 1,079,722
Transportation - - 7,946,938 - 7,946,938
-------------- -------------- --------------- ---------------- --------------
13,722,530 - 26,125,770 (994,445) 38,853,855
Less accumulated depreciation (755,267) (3,601,196) - - (4,356,463)
-------------- -------------- --------------- ---------------- --------------
$ 12,967,263 $ (3,601,196) $ 26,125,770 $ (994,445) $34,497,392)
============== ============== =============== ================ ==============



The average assumed residual values for assets on operating leases was 21% at
December 31, 2004.



20


ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2004


3. Investment in leases (continued):

Direct financing leases:

The following lists the components of the Company's investment in direct
financing leases as of December 31, 2004:

Total minimum lease payments receivable $ 3,326,851
Estimated residual values of leased equipment (unguaranteed) 338,680
---------------
Investment in direct financing leases 3,665,531
Less unearned income (506,130)
---------------
Net investment in direct financing leases $ 3,159,401
===============

At December 31, 2004, the aggregate amounts of future minimum lease payments to
be received are as follows:


Direct
Year ending Operating Financing
December 31, Leases Leases Total
2005 $ 7,128,867 $ 1,032,647 $ 8,161,51447
2006 6,566,005 863,430 7,429,435
2007 5,928,045 548,848 6,476,893
2008 5,281,707 483,446 5,765,153
2009 3,341,438 398,480 3,739,918
Thereafter 198,766 - 198,766
-------------- --------------- ----------------
$28,444,828 $ 3,326,851 $ 31,771,679
============== =============== ================

4. Notes receivable:

The Company has various notes receivable from parties who have financed the
purchase of equipment through the Company. The terms of the notes receivable are
18 to 60 months and bear interest at rates ranging from 11% to 22%. The notes
are secured by the equipment financed. As of December 31, 2004, the minimum
future payments receivable are as follows:

Year ending
December 31,
2005 $ 1,576,031
2006 1,225,242
2007 822,598
2008 457,030
2009 1,818,006
---------------
5,898,907
Less portion representing interest (1,349,518)
---------------
$ 4,549,389
===============




21


ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2004


5. Related party transactions:

The terms of the Limited Liability Company Operating Agreement provide that AFS
and/or affiliates are entitled to receive certain fees for equipment
acquisition, management and resale and for management of the Company.

The Limited Liability Company Operating Agreement allows for the reimbursement
of costs incurred by AFS in providing services to the Company. Services provided
include Company accounting, investor relations, legal counsel and lease and
equipment documentation. AFS is not reimbursed for services where it is entitled
to receive a separate fee as compensation for such services, such as acquisition
and management of equipment. Reimbursable costs incurred by AFS are allocated to
the Company based upon estimated time incurred by employees working on Company
business and an allocation of rent and other costs based on utilization studies.

Each of ATEL Leasing Corporation ("ALC"), ATEL Equipment Corporation ("AEC"),
ATEL Investor Services ("AIS") and ATEL Financial Services LLC is a wholly-owned
subsidiary of ATEL Capital Group and performs services for the Company.
Acquisition services are performed for the Company by ALC, equipment management,
lease administration and asset disposition services are performed by AEC,
investor relations and communications services are performed by AIS and general
administrative services for the Company are performed by AFS.

Cost reimbursements to Managing Member are based on costs incurred by AFS in
performing administrative services for the Company that are allocated to each
Company that AFS manages based on certain criteria such as existing or new
leases, number of investors or equity depending on the type of cost incurred.
AFS believes that the costs reimbursed are the lower of (i) actual costs
incurred on behalf of the Company or (ii) the amount the Company would be
required to pay independent parties for comparable administrative services in
the same geographic location.

AFS and/or affiliates earned fees, commissions and reimbursements, pursuant to
the Limited Liability Company Operating Agreement as follows for the year ended
December 31, 2004:



2004 2003

Selling commissions (equal to 9% of the selling price of the Limited Liability
Company Units, deducted from Other Members' capital) $ 6,553,702 4,034,999
Reimbursement of other syndication costs to Managing Member, deducted from
Other Members' capital 2,126,737 2,491,736
Asset management fees to AFS 211,761 48,550
Costs reimbursed to AFS 356,797 48,235
--------------- ---------------
$ 9,248,997 $ 6,623,520
=============== ===============


The Managing Member makes certain payments to third parties on behalf of the
Company for convenience purposes. During the years ended December 31, 2004 and
2003, the Managing Member made such payments of $234,835 and $98,402,
respectively.

On December 31, 2003, the Company sold certain assets subject to operating
leases and direct financing leases to the lessee. The assets being sold were a
part of a larger sale involving the sale of assets belonging to an affiliate of
the Company. On December 31, 2003, the lessee/purchaser sent the proceeds of the
sale by wire transfer to the account of the Company's affiliate. The funds
belonging to the Company were transferred to the Company on the Company's next
business day.



22


ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2004


6. Members' capital:

As of December 31, 2004, 11,722,823 Units were issued and outstanding. The
Company is authorized to issue up to 15,000,050 Units.

As defined in the Limited Liability Company Operating Agreement, the Company's
Net Income, Net Losses, and Distributions are to be allocated 92.5% to the
Members and 7.5% to ATEL. In accordance with the terms of the of Operating
Agreement, an additional allocations of income were made to AFS in 2004 and
2003. The amounts allocated were determined to bring AFS's ending capital
account balance to zero at the end of 2004 and 2003.

7. Commitments:

As of December 31, 2004, the Company had outstanding commitments to purchase
lease equipment totaling approximately $21,778,000.

8. Concentration of credit risk and major customers:

The Company leases equipment to lessees and provides debt financing to borrowers
in diversified industries. Leases and notes receivable are subject to AFS's
credit committee review. The leases and notes receivable provide for the return
of the equipment upon default.

As of December 31 2004 and 2003, there were concentrations (greater than 10%) of
equipment leased to lessees and/or financial borrowers in certain industries (as
a percentage of total equipment cost) as follows:

2004 2003
Mining 42% 14%
Manufacturing 31% 79%
Transportation 20% *
* Less than 10%

During 2004, three customers comprised 22%, 19% and 11% of the Company's
revenues from leases. During 2003, three customers comprised 37%, 26% and 14% of
the Company's revenues from leases.


9. Selected quarterly data (unaudited):



March 31, June 30, September 30, December 31,
Quarter ended 2003 2003 2003 2003


Total revenues $ - $ 114,291 $ 239,996 $ 553,627
Net loss $ - $ (67,686) $ (103,187) $ (12,140)
Net income (loss) per Limited Liability Company Unit $ - $ (0.12) $ (0.05) $0.05




March 31, June 30, September 30, December 31,
Quarter ended 2004 2004 2004 2004


Total revenues $ 734,763 $ 1,082,107 $ 1,266,482 $ 1,886,302
Net income (loss) $ (100,518) $ 19,386 $ 58,856 $ 192,028
Net income (loss) per Limited Liability Company Unit $ (0.03) $ (0.01) $ (0.01) $0.01




23


ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2004


10. Line of credit:

The Company participates with AFS and certain of its affiliates in a financing
arrangement (comprised of a term loan to AFS, an acquisition facility and a
warehouse facility) with a group of financial institutions that includes certain
financial covenants. The financial arrangement is $75,000,000 and expires in
June 2006. The availability of borrowings available to the Company under this
financing arrangement is reduced by the amount AFS has outstanding as a term
loan. As of December 31, 2004 borrowings under the facility were as follows:

Total amount available under the financing arrangement $ 75,000,000
Term loan to AFS as of December 31, 2004 (2,027,636)
--------------
Total available under the acquisition and warehouse facilities 72,972,364

Amount borrowed by the Company under the acquisition facility -
Amounts borrowed by affiliated partnerships and limited liability
companies under the acquisition facility (30,500,000)
--------------
Total remaining available under the acquisition and warehouse
facilities $ 42,472,364
==============

Draws on the acquisition facility by any individual borrower are secured only by
that borrower's assets, including equipment and related leases. Borrowings on
the warehouse facility are recourse jointly to certain of the affiliated
partnerships and limited liability companies, the Company and AFS.

The Company has not borrowed under the line of credit. Interest on the line of
credit is based on either the thirty day LIBOR rate or the bank's prime rate.

The credit agreement includes certain financial covenants applicable to each
borrower. The Company was in compliance with its covenants as of December 31,
2004.


11. Fair value of financial instruments:

The recorded amounts of the Company's cash and cash equivalents, accounts
receivable, accounts payable and accruals at December 31, 2004 approximate fair
value because of the liquidity and short-term maturity of these instruments.

12. Guarantees:

The Company enters into contracts that contain a variety of indemnifications.
The Company's maximum exposure under these arrangements is unknown. However, the
Company has not had prior claims or losses pursuant to these contracts and
expects the risk of loss to be remote.




24


Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURES

None.

Item 9A. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

Under the supervision and with the participation of our management (ATEL
Financial Services, LLC as Managing Member of the registrant, including the
chief executive officer and chief financial officer), an evaluation of the
effectiveness of the design and operation of the Company's disclosure controls
and procedures [as defined in Rules 240.13a-14(c) under the Securities Exchange
Act of 1934] was performed as of a date within ninety days before the filing
date of this annual report. Based upon this evaluation, the chief executive
officer and the chief financial officer concluded that, as of the evaluation
date, our disclosure controls and procedures were effective for the purposes of
recording, processing, summarizing, and timely reporting information required to
be disclosed by us in the reports that we file under the Securities Exchange Act
of 1934; and that such information is accumulated and communicated to our
management in order to allow timely decisions regarding required disclosure.

Changes in internal controls

There have been no significant changes in our internal controls or in other
factors that could significantly affect our disclosure controls and procedures
subsequent to the evaluation date nor were there any significant deficiencies or
material weaknesses in our internal controls.


PART III

Item 10. DIRECTORS AND EXECUTIVE OFFICERS

The registrant is a Limited Liability Company and, therefore, has no officers or
directors.

All of the outstanding capital stock of AFS is held by ATEL Capital Group ("ACG"
or "ATEL"), a holding company formed to control ATEL and affiliated companies.
The outstanding voting capital stock of ATEL Capital Group is owned 100% by Dean
Cash.

Each of ATEL Leasing Corporation ("ALC"), ATEL Equipment Corporation ("AEC"),
ATEL Investor Services ("AIS") and ATEL Financial Services LLC ("AFS") is a
wholly-owned subsidiary of ATEL Capital Group and performs services for the
Company. Acquisition services are performed for the Company by ALC, equipment
management, lease administration and asset disposition services are performed by
AEC, investor relations and communications services are performed by AIS and
general administrative services for the Company are performed by AFS. ATEL
Securities Corporation ("ASC") is a wholly-owned subsidiary of AFS.

The officers and directors of ATEL Capital Group and its affiliates are as
follows:

Dean L. Cash Chairman of the Board of Directors of ACG, AFS, ALC,
AEC, AIS and ASC; President and Chief Executive
Officer of ACG, AFS and AEC

Paritosh K. Choksi Director, Executive Vice President, Chief Operating
Officer and Chief Financial Officer of ACG, AFS,
ALC, AEC and AIS

Donald E. Carpenter Vice President and Controller of ACG, AFS, ALC, AEC and
AIS; Chief Financial Officer of ASC

Vasco H. Morais Senior Vice President, Secretary and General Counsel
for ACG, AFS, ALC, AIS and AEC

Dean L. Cash, age 54, joined ATEL as director of marketing in 1980 and has been
a vice president since 1981, executive vice president since 1983 and a director
since 1984. He has been President and CEO since April 2001. Prior to joining
ATEL, Mr. Cash was a senior marketing representative for Martin Marietta
Corporation, data systems division, from 1979 to 1980. From 1977 to 1979, he was
employed by General Electric Corporation, where he was an applications
specialist in the medical systems division and a marketing representative in the
information services division. Mr. Cash was a systems engineer with Electronic
Data Systems from 1975 to 1977, and was involved in maintaining and developing
software for commercial applications. Mr. Cash received a B.S. degree in
psychology and mathematics in 1972 and an M.B.A. degree with a concentration in
finance in 1975 from Florida State University. Mr. Cash is an arbitrator with
the American Arbitration Association.



25


Paritosh K. Choksi, age 51, joined ATEL in 1999 as a director, senior vice
president and its chief financial officer. He became its executive vice
president and COO in April 2001. Prior to joining ATEL, Mr. Choksi was chief
financial officer at Wink Communications, Inc. from 1997 to 1999. From 1977 to
1997, Mr. Choksi was with Phoenix American Incorporated, a financial services
and management company, where he held various positions during his tenure, and
was senior vice president, chief financial officer and director when he left the
company. Mr. Choksi was involved in all corporate matters at Phoenix and was
responsible for Phoenix's capital market needs. He also served on the credit
committee overseeing all corporate investments, including its venture lease
portfolio. Mr. Choksi was a part of the executive management team which caused
Phoenix's portfolio to increase from $50 million in assets to over $2 billion.
Mr. Choksi received a bachelor of technology degree in mechanical engineering
from the Indian Institute of Technology, Bombay; and an M.B.A. degree from the
University of California, Berkeley.

Donald E. Carpenter, age 56, joined ATEL in 1986 as controller. Prior to joining
ATEL, Mr. Carpenter was an audit supervisor with Laventhol & Horwath, certified
public accountants in San Francisco, California, from 1983 to 1986. From 1979 to
1983, Mr. Carpenter was an audit senior with Deloitte, Haskins & Sells,
certified public accountants, in San Jose, California. From 1971 to 1975, Mr.
Carpenter was a Supply Corp officer in the U. S. Navy. Mr. Carpenter received a
B.S. degree in mathematics (magna cum laude) from California State University,
Fresno in 1971 and completed a second major in accounting in 1978. Mr. Carpenter
has been a California certified public accountant since 1981.

Vasco H. Morais, age 46, joined ATEL in 1989 as general counsel to provide legal
support in the drafting and reviewing of lease documentation, advising on
general corporate law matters, and assisting on securities law issues. From 1986
to 1989, Mr. Morais was employed by the BankAmeriLease Companies, Bank of
America's equipment leasing subsidiaries, providing in-house legal support on
the documentation of tax-oriented and non-tax oriented direct and leveraged
lease transactions, vendor leasing programs and general corporate matters. Prior
to the BankAmeriLease Companies, Mr. Morais was with the Consolidated Capital
Companies in the corporate and securities legal department involved in drafting
and reviewing contracts, advising on corporate law matters and securities law
issues. Mr. Morais received a B.A. degree in 1982 from the University of
California in Berkeley, a J.D. degree in 1986 from Golden Gate University Law
School and an M.B.A. (Finance) in 1997 from Golden Gate University. Mr. Morais
has been an active member of the State Bar of California since 1986.

Audit Committee

ATEL Leasing Corporation is the managing member of ATEL Financial Services, LLC.
ATEL Financial Services LLC is the Managing Member of the registrant. The board
of directors of ATEL Leasing Corporation acts as the audit committee of the
registrant. Dean L. Cash and Paritosh K. Choksi are members of the board of
directors of ALC and are deemed to be financial experts. They are not
independent of the Company.


Code of Ethics

ACG on behalf of AFS and ALC has adopted a code of ethics for its Chief
Executive Officer, Chief Financial Officer and Chief Accounting Officer. The
Code of Ethics is included as Exhibit 14.1 to this report.


Item 11. EXECUTIVE COMPENSATION

The registrant is a Limited Liability Company and, therefore, has no officers or
directors.

Set forth hereinafter is a description of the nature of remuneration paid and to
be paid to ATEL and its Affiliates. The amount of such remuneration paid in 2004
is set forth in Item 8 of this report under the caption "Financial Statements
and Supplementary Data - Notes to the Financial Statements - Related party
transactions," at Note 5 thereof, which information is hereby incorporated by
reference.

Selling Commissions

The Company paid selling commissions in the amount of 9% of Gross Proceeds, as
defined, to ATEL Securities Corporation, an affiliate of ATEL.

Through December 31, 2004, $10,571,421 of such commissions had been paid to AFS
or its affiliate. Of that amount, $8,809,517 has been re-allowed to other
broker/dealers.



26


Asset Management Fee

The Company pays AFS an Asset Management Fee in an amount equal to 4% of
Operating Revenues, which includes Gross Lease Revenues and Cash From Sales or
Refinancing. The Asset Management Fee are paid on a monthly basis. The amount of
the Asset Management Fee payable in any year is reduced for that year to the
extent it would otherwise exceed the Asset Management Fee Limit, as described
below. The Asset Management Fee is paid for services rendered by AFS and its
affiliates in determining portfolio and investment strategies (i.e.,
establishing and maintaining the composition of the Equipment portfolio as a
whole and the Company's overall debt structure) and generally managing or
supervising the management of the Equipment.

AFS supervises performance of among others activities, collection of lease
revenues, monitoring compliance by lessees with the lease terms, assuring that
Equipment is being used in accordance with all operative contractual
arrangements, paying operating expenses and arranging for necessary maintenance
and repair of Equipment in the event a lessee fails to do so, monitoring
property, sales and use tax compliance and preparation of operating financial
data. AFS intends to delegate all or a portion of its duties and the Asset
Management Fee to one or more of its affiliates who are in the business of
providing such services.

Asset Management Fee Limit:

The Asset Management Fee is subject to the Asset Management Fee Limit. The Asset
Management Fee Limit is calculated each year during the Company's term by
calculating the total fees that would be paid to AFS if AFS were to be
compensated on the basis of an alternative fee schedule, to include an Equipment
Management Fee, Incentive Management Fee, and Equipment Resale/Re-Leasing Fee,
plus AFS's Carried Interest, as described below. To the extent that the amount
paid to AFS as the Asset Management Fee plus its Carried Interest for any year
would exceed the aggregate amount of fees calculated under this alternative fee
schedule for the year, the Asset Management Fee and/or Carried Interest for that
year is reduced to equal the maximum aggregate fees under the alternative fee
schedule.

To the extent any such fees are reduced, the amount of such reduction will be
accrued and deferred, and such accrued and deferred compensation would be paid
to AFS in a subsequent period, but only if and to the extent that such deferred
compensation would be payable within the Asset Management Fee Limit for the
subsequent period. Any deferred fees which cannot be paid under the applicable
limitations in any subsequent period through the date of liquidation would be
forfeited by AFS upon liquidation.

Alternative Fee Schedule:

For purposes of the Asset Management Fee Limit, the Company will calculate an
alternative schedule of fees, including a hypothetical Equipment Management Fee,
Incentive Management Fee, Equipment Resale/Re- Leasing Fee, and Carried Interest
as follows:

An Equipment Management Fee will be calculated to equal the lesser of (i) 3.5%
of annual Gross Revenues from Operating Leases and 2% of annual Gross Revenues
from Full Payout Leases which contain Net Lease Provisions), or (ii) the fees
customarily charged by others rendering similar services as an ongoing public
activity in the same geographic location and for similar types of equipment. If
services with respect to certain Operating Leases are performed by nonaffiliated
persons under the active supervision of AFS or its Affiliate, then the amount so
calculated shall be 1% of Gross Revenues from such Operating Leases.

An Incentive Management Fee will be calculated to equal 4% of Distributions of
Cash from Operations until Holders have received a return of their Original
Invested Capital plus a Priority Distribution, and, thereafter, to equal a total
of 7.5% of Distributions from all sources, including Sale or Refinancing
Proceeds. In subordinating the increase in the Incentive Management Fee to a
cumulative return of a Holder's Original Invested Capital plus a Priority
Distribution, a Holder would be deemed to have received Distributions of
Original Invested Capital only to the extent that Distributions to the Holder
exceed the amount of the Priority Distribution.

An Equipment Resale/Re-Leasing Fee will be calculated in an amount equal to the
lesser of (i) 3% of the sale price of the Equipment, or (ii) one-half the normal
competitive equipment sale commission charged by unaffiliated parties for resale
services. Such fee would apply only after the Holders have received a return of
their Original Invested Capital plus a Priority Distribution. In connection with
the releasing of Equipment to lessees other than previous lessees or their
Affiliates, the fee would be in an amount equal to the lesser of (i) the
competitive rate for comparable services for similar equipment, or (ii) 2% of
the gross rental payments derived from the re-lease of such Equipment, payable
out of each rental payment received by the Company from such re-lease.

A Carried Interest equal to 7.5% of all Distributions of Cash from Operations
and Cash from Sales or Refinancing.

See Note 5 to the financial statements included in Item 8 for amounts paid.



27


Managing Member's Interest in Operating Proceeds

Net income, net loss and investment tax credits are allocated 92.5% to the
Members and 7.5% to AFS. See financial statements included in Item 8, Part I of
this report for amounts allocated to AFS in 2004 and 2003.

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

Security Ownership of Certain Beneficial Owners

At December 31, 2004, no investor is known to hold beneficially more than 5% of
the issued and outstanding Units.

Security Ownership of Management

The parent of AFS is the beneficial owner of Limited Liability Company Units as
follows:



(1) (2) (3) (4)
Name and Address of Amount and Nature of Percent
Title of Class Beneficial Owner Beneficial Ownership of Class


Limited Liability ATEL Capital Group Initial Limited Liability 0.0011%
Company Units 600 California Street, 6th Floor Company Units
San Francisco, CA 94108 50 Units ($500)


Changes in Control

The Members have the right, by vote of the Members owning more than 50% of the
outstanding Limited Liability Company Units, to remove a Managing Member.

AFS may at any time call a meeting of the Members or a vote of the Members
without a meeting, on matters on which they are entitled to vote, and shall call
such meeting or for vote without a meeting following receipt of a written
request therefore of Members holding 10% or more of the total outstanding
Limited Liability Company Units.

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The responses to Item 1 of this report under the caption "Equipment Leasing
Activities," Item 8 of this report under the caption "Financial Statements and
Supplemental Data - Notes to the Financial Statements - Related party
transactions" at Note 5 thereof, and Item 11 of this report under the caption
"Executive Compensation," are hereby incorporated by reference.

Item 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

During the last two years, the Company incurred audit, audit related, tax and
other fees with its principal auditors as follows:

2004 2003
Audit fees $ 44,672 $ 14,360
Audit related fees - -
Tax fees 17,878 -
Other - -
-------------- ---------------
$ 62,550 $ 14,360
============== ===============

ATEL Leasing Corporation is the managing member of ATEL Financial Services, LLC.
ATEL Financial Services LLC is the Managing Member of the registrant. The board
of directors of ATEL Leasing Corporation acts as the audit committee of the
registrant. Engagements for audit services, audit related services and tax
services are approved in advance by the Chief Financial Officer of ATEL Leasing
Corporation acting on behalf the board of directors of ATEL Leasing Corporation
in its role as the audit committee of the Company.




28


PART IV

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

(a)Financial Statements and Schedules
1. Financial Statements
Included in Part II of this report:

Report of Independent Registered Public Accounting Firm

Balance Sheets at December 31, 2004 and 2003

Statements of operations for the years ended December 31, 2004 and
2003 and for the period from August 12, 2002 (inception) through
December 31, 2002

Statements of Changes in Members' Capital for the years ended December
31, 2004 and 2003 and for the period from August 12, 2002 (inception)
through December 31, 2002

Statements of Cash Flows for the years ended December 31, 2004 and
2003 and for the period from August 12, 2002 (inception) through
December 31, 2002

Notes to Financial Statements

2. Financial Statement Schedules

All schedules for which provision is made in the applicable accounting
regulations of the Securities and Exchange Commission are not required
under the related instructions or are inapplicable and, therefore,
have been omitted.

(b)Reports on Form 8-K for the fourth quarter of 2003 None.

(c)Exhibits

(3) and (4) Agreement of Limited Liability Company, included as
Exhibit B to Prospectus, is incorporated herein by reference to the
report on Form 10K for the period ended December 31, 2003 (File Number
333-100452) (Exhibit 28.1)

(14.1) Code of Ethics

(31.1) Certification of Paritosh K. Choksi

(31.2) Certification of Dean L. Cash

(32.1) Certification Pursuant to 18 U.S.C. section 1350 of Dean L.
Cash

(32.2) Certification Pursuant to 18 U.S.C. section 1350 of Paritosh K.
Choksi

29


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.



Date: 3/29/2005

ATEL Capital Equipment Fund X, LLC
(Registrant)


By: ATEL Financial Corporation,
Managing Member of Registrant



By: /s/ Dean L. Cash
-----------------------
Dean Cash
President of ATEL Financial Services LLC (Managing Member)





By: /s/ Paritosh K. Choksi
-----------------------
Paritosh K. Choksi
Executive Vice President of ATEL Financial
Services LLC (Managing Member)






30


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the persons in the capacities and on the dates
indicated.


SIGNATURE CAPACITIES DATE



/s/ Dean L. Cash President, Chairman and Chief Executive 3/29/2005
- ------------------------ Officer of ATEL Financial Services LLC
Dean Cash



/s/ Paritosh K. Choksi Executive Vice President and director of 3/29/2005
- ------------------------ ATEL Financial Services LLC, Principal
Paritosh K. Choksi financial officer of registrant; principal
financial officer and director of ATEL
Financial Services LLC




/s/ Donald E. Carpenter Principal accounting officer of registrant; 3/29/2005
- ------------------------ principal accounting officer of ATEL
Donald E. Carpenter Financial Services LLC








No proxy materials have been or will be sent to security holders. An annual
report will be furnished to security holders subsequent to the filing of this
report on Form 10-K, and copies thereof will be furnished supplementally to the
Commission when forwarded to the security holders.


31