I can only answer for the exec part:
exec without a command given may be used to change I/O redirections. <> in this case means open for read+write. 5 is the channel number (or file descriptor). This makes sense if other commands send their output / read their input from channel 5.
For "/dev/tcp/${SERVER}/${PORT}" I don't know if it's a feature of a specific Linux version or if it's a bash feature (I assume the latter).
-- EDIT: from the bash manual page: --
Bash handles several filenames specially when they are used
in redirections, as described in the following table:
/dev/fd/fd
If fd is a valid integer, file descriptor fd is
duplicated.
/dev/stdin
File descriptor 0 is duplicated.
/dev/stdout
File descriptor 1 is duplicated.
/dev/stderr
File descriptor 2 is duplicated.
/dev/tcp/host/port
If host is a valid hostname or Internet address,
and port is an integer port number or service
name, bash attempts to open a TCP connection to
the corresponding socket.
/dev/udp/host/port
If host is a valid hostname or Internet address,
and port is an integer port number or service
name, bash attempts to open a UDP connection to
the corresponding socket.