UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-Q





[x]           Quarterly
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934





For
      the quarterly period ended
            June 30, 2010




or


[  ]           Transition
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934





For
      the transition period from
            
            to





Commission_File_Number_
            000-50654





ICON Income Fund Ten,
LLC(Exact
      name of registrant as specified in its
charter)





Delaware
            35-2193184(State
      or other jurisdiction of incorporation or organization)
            (I.R.S.
      Employer Identification No.)





100 Fifth Avenue, 4thFloor, New York, New York
            10011(Address
      of principal executive offices)
            (Zip
      code)





(212) 418-4700(Registrant's
      telephone number, including area
code)








Indicate
by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.


[X]
Yes     [ ] No




Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such
files).
 [ ]
Yes     [  ] No





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of “large accelerated filer,’’ “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange
Act.




Large
accelerated filer [  ]  Accelerated
filer [  ]  Non-accelerated filer
[X]  Smaller reporting
company [   ]





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).


[  ]
Yes   [X] No





Number of
outstanding shares of limited liability company interests of the
registrant on August 6, 2010 is 148,211.










ICON Income Fund Ten, LLC
                Table
      of ContentsPagePART I - FINANCIAL INFORMATIONItem 1.  Consolidated Financial
      StatementsConsolidated Balance Sheets
              1Consolidated Statements of
Operations
              2Consolidated Statements of Changes in
      Equity
              3Consolidated Statements of Cash Flows
              4Notes to Consolidated Financial
    Statements
              6Item
      2.  Manager’s Discussion and Analysis of Financial Condition andResults
      of Operations
              15Item 3. Quantitative and Qualitative Disclosures About
      Market Risk
              23Item 4. Controls and Procedures
              23PART II – OTHER INFORMATIONItem 1. Legal Proceedings
              
              24Item 1A. Risk Factors
              
              24Item 2. Unregistered Sales of Equity Securities and Use of
      Proceeds
              24Item 3. Defaults Upon Senior
Securities
              24Item 4. (Removed
      and Reserved)
              24Item 5. Other Information
              
              24Item 6. Exhibits
              
              25Signatures
              
              26







Table of Contents





PART I – FINANCIAL INFORMATION





Item 1.  Consolidated Financial
Statements




ICON Income Fund Ten, LLC(A
      Delaware Limited Liability Company)Consolidated
      Balance SheetsAssetsJune
      30,2010
            
            
            December
      31,(unaudited)
            
            
            2009Current
      assets:Cash
      and cash equivalents
            
            $
            2,350,898
            
            
            $
            2,428,058Current
      portion of net investment in finance leases
            
            
            1,836,126
            
            
            
            -Service
      contracts receivable
            
            
            428,237
            
            
            
            569,447Equipment
      held for sale or lease, net
            
            
            23,393
            
            
            
            23,350Other
      current assets
            
            
            963,010
            
            
            
            1,015,170Total
      current assets
            
            
            5,601,664
            
            
            
            4,036,025Non-current
      assets:Net
      investment in finance leases, less current portion
            
            
            33,776,207
            
            
            
            31,808,689Leased
      equipment at cost (less accumulated depreciation of$12,096,245
      and $11,201,367, respectively)
            
            
            6,396,806
            
            
            
            11,134,806Fixed
      assets (less accumulated depreciation of$2,729,691
      and $2,107,900, respectively)
            
            
            3,463,733
            
            
            
            4,442,732Investments
      in joint ventures
            
            
            24,715,080
            
            
            
            25,243,236Investments
      in unguaranteed residual values
            
            
            204,466
            
            
            
            290,331Other
      non-current assets, net
            
            
            76,096
            
            
            
            77,797Total
      non-current assets
            
            
            68,632,388
            
            
            
            72,997,591Total
      Assets
            
            $
            74,234,052
            
            
            $
            77,033,616Liabilities
      and EquityCurrent
      liabilities:Revolving
      line of credit, recourse
            
            $
            1,350,000
            
            
            $
            100,000Deferred
      revenue
            
            
            234,725
            
            
            
            241,851Due
      to Manager and affiliates
            
            
            975,093
            
            
            
            131,351Accrued
      expenses and other current liabilities
            
            
            1,204,563
            
            
            
            1,628,461Total
      Liabilities
            
            
            3,764,381
            
            
            
            2,101,663Commitments
      and contingencies (Note 11)Equity:Members'
      Equity:Additional
      Members
            
            
            71,861,359
            
            
            
            75,332,248Manager
            
            
            (586,559
            )
            
            
            (551,499
            )Accumulated
      other comprehensive loss
            
            
            (2,222,144
            )
            
            
            (1,879,919
            )Total
      Members' Equity
            
            
            69,052,656
            
            
            
            72,900,830Noncontrolling
      Interests
            
            
            1,417,015
            
            
            
            2,031,123Total
      Equity
            
            
            70,469,671
            
            
            
            74,931,953Total
      Liabilities and Equity
            
            $
            74,234,052
            
            
            $
            77,033,616










1
 Table of Contents


ICON
      Income Fund Ten, LLC(A
      Delaware Limited Liability Company)Consolidated
      Statements of Operations(unaudited)Three Months Ended June 30,
              
              
              Six Months Ended June 30,2010
              
              
              2009
              
              
              2010
              
              
              2009Revenue:Rental
      income
              
              $
              1,395,422
              
              
              $
              3,893,042
              
              
              $
              3,535,258
              
              
              $
              7,714,872Finance
      income
              
              
              1,398,737
              
              
              
              -
              
              
              
              2,742,958
              
              
              
              -Servicing
      income
              
              
              1,308,802
              
              
              
              1,594,485
              
              
              
              2,798,091
              
              
              
              2,566,220Income
      from investments in joint ventures
              
              
              713,754
              
              
              
              1,106,149
              
              
              
              1,409,056
              
              
              
              2,112,730Net
      (loss) gain on sales of equipment and unguaranteed residual
      values
              
              
              (35,637
              )
              
              
              (53,688
              )
              
              
              158,970
              
              
              
              74,855Interest
      and other income
              
              
              50,624
              
              
              
              9,446
              
              
              
              90,206
              
              
              
              14,578Total
      revenue
              
              
              4,831,702
              
              
              
              6,549,434
              
              
              
              10,734,539
              
              
              
              12,483,255Expenses:Management
      fees - Manager
              
              
              208,056
              
              
              
              330,798
              
              
              
              437,141
              
              
              
              679,448Administrative
      expense reimbursements - Manager
              
              
              282,593
              
              
              
              420,985
              
              
              
              478,520
              
              
              
              711,774General
      and administrative
              
              
              1,802,413
              
              
              
              1,689,043
              
              
              
              3,302,522
              
              
              
              3,158,519Interest
              
              
              10,091
              
              
              
              34,446
              
              
              
              18,669
              
              
              
              212,839Loss
      on guaranty
              
              
              807,057
              
              
              
              -
              
              
              
              807,057
              
              
              
              -Depreciation
      and amortization
              
              
              1,293,902
              
              
              
              2,234,502
              
              
              
              2,951,032
              
              
              
              4,205,976Total
      expenses
              
              
              4,404,112
              
              
              
              4,709,774
              
              
              
              7,994,941
              
              
              
              8,968,556Net
      income
              
              
              427,590
              
              
              
              1,839,660
              
              
              
              2,739,598
              
              
              
              3,514,699Less:
      Net income attributable to noncontrolling interests
              
              
              70,743
              
              
              
              75,258
              
              
              
              173,924
              
              
              
              157,482Net
      income attributable to Fund Ten
              
              $
              356,847
              
              
              $
              1,764,402
              
              
              $
              2,565,674
              
              
              $
              3,357,217Net
      income attributable to Fund Ten allocable to:Additional
      Members
              
              $
              353,279
              
              
              $
              1,746,758
              
              
              $
              2,540,018
              
              
              $
              3,323,645Manager
              
              
              3,568
              
              
              
              17,644
              
              
              
              25,656
              
              
              
              33,572$
              356,847
              
              
              $
              1,764,402
              
              
              $
              2,565,674
              
              
              $
              3,357,217Weighted
      average number of additionalshares
      of limited liability company interests outstanding
              
              
              148,211
              
              
              
              148,231
              
              
              
              148,211
              
              
              
              148,231Net
      income attributable to Fund Ten per weightedaverage
      additional share of limited liability company interests
      outstanding
              
              $
              2.38
              
              
              $
              11.78
              
              
              $
              17.14
              
              
              $
              22.42




2
 Table of Contents


ICON Income Fund Ten,
      LLC(A
      Delaware Limited Liability Company)Consolidated
      Statements of Changes in EquityMembers'
      EquityAccumulatedAdditional
      Shares
              
              
              
              
              
              
              
              
              Other
              
              
              Totalof
      Limited Liability
              
              
              Additional
              
              
              
              
              
              Comprehensive
              
              
              Members'
              
              
              Noncontrolling
              
              
              TotalCompany Interests
              
              
              Members
              
              
              Manager
              
              
              Loss
              
              
              Equity
              
              
              Interests
              
              
              EquityBalance,
      December 31, 2009
              
              
              148,211
              
              
              $
              75,332,248
              
              
              $
              (551,499
              )
              
              $
              (1,879,919
              )
              
              $
              72,900,830
              
              
              $
              2,031,123
              
              
              $
              74,931,953Comprehensive
      income:Net
      income
              
              
              -
              
              
              
              2,186,739
              
              
              
              22,088
              
              
              
              -
              
              
              
              2,208,827
              
              
              
              103,181
              
              
              
              2,312,008Change
      in valuation of interestrate
      swap contracts
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (36,766
              )
              
              
              (36,766
              )
              
              
              -
              
              
              
              (36,766
              )Currency
      translation adjustments
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (281,114
              )
              
              
              (281,114
              )
              
              
              -
              
              
              
              (281,114
              )Total
      comprehensive income
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (317,880
              )
              
              
              1,890,947
              
              
              
              103,181
              
              
              
              1,994,128Cash
      distributions
              
              
              -
              
              
              
              (3,186,544
              )
              
              
              (32,187
              )
              
              
              -
              
              
              
              (3,218,731
              )
              
              
              (418,868
              )
              
              
              (3,637,599
              )Balance,
      March 31, 2010 (unaudited)
              
              
              148,211
              
              
              $
              74,332,443
              
              
              $
              (561,598
              )
              
              $
              (2,197,799
              )
              
              $
              71,573,046
              
              
              $
              1,715,436
              
              
              $
              73,288,482Comprehensive
      income:Net
      income
              
              
              -
              
              
              
              353,279
              
              
              
              3,568
              
              
              
              -
              
              
              
              356,847
              
              
              
              70,743
              
              
              
              427,590Change
      in valuation of interestrate
      swap contracts
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (21,683
              )
              
              
              (21,683
              )
              
              
              -
              
              
              
              (21,683
              )Currency
      translation adjustments
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (2,662
              )
              
              
              (2,662
              )
              
              
              -
              
              
              
              (2,662
              )Total
      comprehensive income
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (24,345
              )
              
              
              332,502
              
              
              
              70,743
              
              
              
              403,245Cash
      distributions
              
              
              -
              
              
              
              (2,824,363
              )
              
              
              (28,529
              )
              
              
              -
              
              
              
              (2,852,892
              )
              
              
              (369,164
              )
              
              
              (3,222,056
              )Balance,
      June 30, 2010 (unaudited)
              
              
              148,211
              
              
              $
              71,861,359
              
              
              $
              (586,559
              )
              
              $
              (2,222,144
              )
              
              $
              69,052,656
              
              
              $
              1,417,015
              
              
              $
              70,469,671




3
 Table of Contents







ICON Income Fund Ten, LLC(A
      Delaware Limited Liability Company)Consolidated
      Statements of Cash Flows(unaudited)Six Months Ended June 30,2010
            
            
            2009Cash
      flows from operating activities:Net
      income
            
            $
            2,739,598
            
            
            $
            3,514,699Adjustments
      to reconcile net income to net cashprovided
      by operating activities:Rental
      income paid directly to lenders by lessees
            
            
            -
            
            
            
            (4,386,105
            )Finance
      income
            
            
            (2,742,958
            )
            
            
            -Income
      from investments in joint ventures
            
            
            (1,409,056
            )
            
            
            (2,112,730
            )Net
      gain on sales of equipment and unguaranteed residual
values
            
            
            (158,970
            )
            
            
            (74,855
            )Depreciation
      and amortization
            
            
            2,951,032
            
            
            
            4,205,976Loss
      on guaranty
            
            
            807,057
            
            
            
            -Interest
      expense on non-recourse financing paid directlyto
      lenders by lessees
            
            
            -
            
            
            
            210,873Loss
      on financial instruments
            
            
            4,122
            
            
            
            -Changes
      in operating assets and liabilities:Collection
      of finance leases
            
            
            1,379,448
            
            
            
            695,943Restricted
      cash
            
            
            -
            
            
            
            65,740Service
      contracts receivable
            
            
            108,397
            
            
            
            (1,152,138
            )Other
      assets, net
            
            
            (124,061
            )
            
            
            (25,873
            )Deferred
      revenue
            
            
            (7,126
            )
            
            
            (25,869
            )Due
      to/from Manager and affiliates, net
            
            
            39,699
            
            
            
            (167,329
            )Accrued
      expenses and other current liabilities
            
            
            (350,479
            )
            
            
            2,436,121Distributions
      from joint ventures
            
            
            287,923
            
            
            
            2,119,337Net
      cash provided by operating activities
            
            
            3,524,626
            
            
            
            5,303,790Cash
      flows from investing activities:Proceeds
      from sales of equipment and unguaranteed residual values
            
            
            480,149
            
            
            
            299,273Purchase
      of equipment
            
            
            (3,236
            )
            
            
            (1,154,418
            )Distributions
      received from joint ventures in excess of profits
            
            
            1,590,840
            
            
            
            1,162,249Net
      cash provided by investing activities
            
            
            2,067,753
            
            
            
            307,104Cash
      flows from financing activities:Proceeds
      from revolving line of credit, recourse
            
            
            1,350,000
            
            
            
            2,185,000Repayments
      of revolving line of credit, recourse
            
            
            (100,000
            )
            
            
            -Repayments
      of non-recourse long-term debt
            
            
            -
            
            
            
            (1,471,530
            )Cash
      distributions to members
            
            
            (6,071,623
            )
            
            
            (6,438,334
            )Distributions
      to noncontrolling interests
            
            
            (788,032
            )
            
            
            (542,661
            )Net
      cash used in financing activities
            
            
            (5,609,655
            )
            
            
            (6,267,525
            )Effects
      of exchange rates on cash and cash equivalents
            
            
            (59,884
            )
            
            
            -Net
      decrease in cash and cash equivalents
            
            
            (77,160
            )
            
            
            (656,631
            )Cash
      and cash equivalents, beginning of the period
            
            
            2,428,058
            
            
            
            3,784,794Cash
      and cash equivalents, end of the period
            
            $
            2,350,898
            
            
            $
            3,128,163









4
 Table of Contents







ICON
      Income Fund Ten, LLC(A
      Delaware Limited Liability Company)Consolidated
      Statements of Cash Flows(unaudited)Six Months Ended June 30,2010
            
            
            2009Supplemental
      disclosure of non-cash investing and financing activities:Principal
      and interest paid on non-recourse long-term debtdirectly
      to lenders by lessees
            
            $
            -
            
            
            $
            4,386,105Transfer
      from net investment in finance leases to fixed assets
            
            $
            -
            
            
            $
            6,829,746Transfer
      from leased equipment at cost to net investment in finance
      leases
            
            $
            2,440,135
            
            
            $
            -










5
 Table of Contents
 ICON Income Fund Ten, LLC
 (A
Delaware Limited Liability Company)
 Notes to
Consolidated Financial Statements
 June 30,
2010
 (unaudited)





(1)
            Organization




ICON
Income Fund Ten, LLC (the “LLC”) was formed on January 2, 2003 as a Delaware
limited liability company.  The LLC is engaged in one business
segment, the business of purchasing equipment and leasing it to third parties,
providing equipment and other financing, acquiring equipment subject to lease
and, to a lesser degree, acquiring ownership rights to items of leased equipment
at lease expiration.  The LLC will continue until December 31, 2023,
unless terminated sooner.





The
manager of the LLC is ICON Capital Corp., a Delaware corporation (the
“Manager”).  The Manager manages and controls the business affairs of
the LLC, including, but not limited to, the equipment leases and other financing
transactions that the LLC entered into pursuant to the terms of the LLC’s
amended and restated operating agreement (the “LLC
Agreement”).  Additionally, the Manager has a 1% interest in the
profits, losses, cash distributions and liquidation proceeds of the
LLC.





Effective
April 30, 2010, the LLC completed its operating period. On May 1, 2010, the LLC
entered its liquidation period during which the LLC will sell its assets in the
normal course of business. If the Manager believes it would benefit the members
to reinvest the proceeds received from investments in additional investments
during the liquidation period, the Manager may do so. The Manager will not
receive any acquisition fees on equipment purchased during the liquidation
period.





Members’
capital accounts are increased for their initial capital contribution plus their
proportionate share of earnings and decreased by their proportionate share of
losses and distributions. Profits, losses, cash distributions and liquidation
proceeds are allocated 99% to the additional members and 1% to the Manager until
each additional member has (a) received cash distributions and liquidation
proceeds sufficient to reduce its adjusted capital account to zero and (b)
received, in addition, other distributions and allocations that would provide an
8% per year cumulative return, compounded daily, on its outstanding adjusted
capital account.  After such time, distributions will be allocated 90%
to the additional members and 10% to the Manager.







6
 Table of Contents
 ICON
Income Fund Ten, LLC
 (A
Delaware Limited Liability Company)
 Notes to
Consolidated Financial Statements
 June 30,
2010
 (unaudited)


(2)
              Basis
      of Presentation and
Consolidation


The
accompanying consolidated financial statements of the LLC have been prepared in
accordance with U.S. generally accepted accounting principles (“US GAAP”) for
interim financial information and pursuant to the rules and regulations of the
Securities and Exchange Commission for Quarterly Reports on Form 10-Q. In the
opinion of the Manager, all adjustments considered necessary for a fair
presentation have been included.  These consolidated financial
statements should be read together with the consolidated financial statements
and notes included in the LLC’s Annual Report on Form 10-K for the year ended
December 31, 2009.  The results for the interim period are not
necessarily indicative of the results for the full year.





The
consolidated financial statements include the accounts of the LLC and its
majority-owned subsidiaries and other controlled entities.  All
intercompany accounts and transactions have been eliminated in
consolidation.  In joint ventures where the LLC has majority
ownership, the financial condition and results of operations of the joint
venture are consolidated.  Noncontrolling interest represents the
minority owner’s proportionate share of its equity in the joint
venture.  The noncontrolling interest is adjusted for the minority
owner’s share of the earnings, losses, investments and distributions of the
joint venture.





The LLC
accounts for its noncontrolling interests in joint ventures where the LLC has
influence over financial and operational matters, generally 50% or less
ownership interest, under the equity method of accounting.  In such
cases, the LLC’s original investments are recorded at cost and adjusted for its
share of earnings, losses and distributions.  The LLC accounts for
investments in joint ventures where the LLC has virtually no influence over
financial and operational matters using the cost method of
accounting.  In such cases, the LLC’s original investments are
recorded at cost and any distributions received are recorded as
revenue.  All of the LLC’s investments in joint ventures are subject
to its impairment review policy.




Recently
Adopted Accounting Pronouncements





In June
2009, the Financial Accounting Standards Board (“FASB”) issued an update to
Accounting Standard Codification 810 – Consolidation (“ASC 810”). The update
amends the consolidation guidance applicable to variable interest entities
(“VIEs”) and changes how a reporting entity evaluates whether an entity is
considered the primary beneficiary of a VIE and is therefore required to
consolidate such VIE. ASC 810 also requires assessments at each reporting period
of which party within the VIE is considered the primary beneficiary and requires
a number of new disclosures related to VIEs. The adoption of this guidance,
effective January 1, 2010, did not have a material impact on the LLC’s
consolidated financial statements.





In January 2010, the FASB issued
Accounting Standards Update 2010-06, Fair Value Measurements and Disclosures
(Topic 820), Improving Disclosures about Fair Value Measurements (“ASU
2010-06”), amending Accounting Standards Codification 820. ASU 2010-06 requires
new disclosures and clarifies existing disclosures on fair value
measurements.  It requires new disclosures including (i) separate
disclosure of the amounts of significant transfers in and out of Level 1 and
Level 2 fair value measurements and a description of the reasons for the
transfers and (ii) separate presentation of information about purchases, sales,
issuances and settlements in the reconciliation of Level 3 fair value
measurements. This update also clarifies existing disclosures requiring the LLC
to (i) determine each class of assets and liabilities based on the nature and
risks of the investments rather than by major security type and (ii) for each
class of assets and liabilities, disclose the valuation techniques and inputs
used to measure fair value for both Level 2 and Level 3 fair value
measurements. The new disclosures and clarifications of existing
disclosures are effective for interim and annual reporting periods beginning
after December 15, 2009, except for the disclosures about purchases, sales,
issuances, and settlements in Level 3 fair value measurements, which are
effective for fiscal years beginning after December 15, 2010. The adoption
of ASU 2010-06 did not have a material effect on the LLC’s consolidated
financial statements.







7
 Table of Contents
 ICON
Income Fund Ten, LLC
 (A
Delaware Limited Liability Company)
 Notes to
Consolidated Financial Statements
 June 30,
2010
 (unaudited)





(3)
              Net
      Investment in Finance Leases


Net
investment in finance leases consisted of the following:





June
      30,
            
            
            December
      31,2010
            
            
            2009Minimum
      rents receivable, net
            
            $
            56,911,939
            
            
            $
            55,821,635Estimated
      residual values
            
            
            7,300,005
            
            
            
            7,300,000Unearned
      income
            
            
            (28,599,611
            )
            
            
            (31,312,946
            )Net
      investment in finance leases
            
            
            35,612,333
            
            
            
            31,808,689Less:
      Current portion of net investment in finance leases
            
            
            1,836,126
            
            
            
            -Net
      investment in finance leases, less current portion
            
            $
            33,776,207
            
            
            $
            31,808,689





Telecommunications
Equipment





On March
17, 2010, the LLC, through its wholly-owned subsidiary, ICON Global Crossing,
LLC (“ICON Global Crossing”), and Global Crossing Telecommunications, Inc.
(“Global Crossing”) agreed to extend the lease between the entities for the
period beginning on April 1, 2010 and ending on March 31, 2011.  In
connection with the extension, ICON Global Crossing and Global Crossing agreed
to a purchase option of $1 at the end of the lease for each schedule of
equipment. As of March 17, 2010, this lease has been classified as a finance
lease.




(4)
              Leased
      Equipment at Cost


Leased
equipment at cost consisted of the following:





June
      30,
            
            
            December
      31,2010
            
            
            2009Telecommunications
      equipment
            
            $
            13,884,669
            
            
            $
            17,319,286Manufacturing
      equipment
            
            
            4,584,191
            
            
            
            4,992,696Information
      technology equipment
            
            
            24,191
            
            
            
            24,19118,493,051
            
            
            
            22,336,173Less:
      Accumulated depreciation
            
            
            12,096,245
            
            
            
            11,201,367$
            6,396,806
            
            
            $
            11,134,806





Depreciation expense was $857,040 and
$1,658,391 for the three months ended June 30, 2010 and 2009, respectively.
Depreciation expense was $2,207,464 and $3,314,324 for the six months ended June
30, 2010 and 2009, respectively.





Manufacturing
Equipment





On
February 22, 2010, the LLC received notice that its leases with Saturn
Corporation (“Saturn”) were being rejected by General Motors Corporation (“GM”)
in conjunction with GM’s petition for reorganization under Chapter 11 of the
U.S. Bankruptcy Code, filed on June 1, 2009, in which Saturn was named as a
debtor and that the monthly lease payments would cease effective March 1,
2010.  In March 2010, the LLC sold all of the equipment subject to
lease with Saturn to unaffiliated third parties for approximately $145,000 and
recorded a gain on sale of approximately $54,000.





On July
28, 2009, the LLC terminated its lease with MW Monroe Plastics, Inc. (“Monroe”),
and transferred title to the machining and metal working equipment to Cerion
MPI, LLC (“MPI”), an affiliate of Monroe, in consideration for MPI transferring
title to equipment of at least equal or greater fair market value to the LLC.
Beginning August 1, 2009, the LLC entered into a lease with MPI for such
equipment for a term of 41 months.  On July 26, 2010, the LLC, in
consideration for all amounts due under the lease, sold the equipment to MPI and
terminated the lease.





On July
26, 2010, the LLC, in consideration for all amounts due under the lease, sold
the equipment it leased to MW Texas Die Casting, Inc. and terminated the
lease.





8
 Table of Contents
 ICON
Income Fund Ten, LLC
 (A
Delaware Limited Liability Company)
 Notes to
Consolidated Financial Statements
 June 30,
2010
 (unaudited)




(5)
              Investments
      in Joint Ventures


ICON
Mayon, LLC





On June
26, 2007, the LLC and ICON Leasing Fund Twelve, LLC (“Fund Twelve”), an entity
also managed by the Manager, formed ICON Mayon, LLC (“ICON Mayon”), with
ownership interests of 49% and 51%, respectively.  On July 24, 2007,
ICON Mayon purchased a 98,507 DWT Aframax product tanker, the Mayon Spirit, from
an affiliate of Teekay Corporation (“Teekay”).  The purchase price for
the Mayon Spirit was approximately $40,250,000, with approximately $15,312,000
funded in the form of a capital contribution to ICON Mayon and borrowings of
approximately $24,938,000 of non-recourse debt borrowed from Fortis Capital
Corp.  Simultaneously with the closing of the purchase of the Mayon
Spirit, the Mayon Spirit was bareboat chartered back to Teekay for a term of 48
months.  The charter commenced on July 24, 2007.  The total
capital contributions made to ICON Mayon were approximately $16,020,000, of
which the LLC’s share was approximately $7,548,000.





The
results of operations of ICON Mayon are summarized below:





Three Months Ended June 30,
            
            
            Six Months Ended June 30,2010
            
            
            2009
            
            
            2010
            
            
            2009Revenue
            
            $
            1,549,555
            
            
            $
            1,551,702
            
            
            $
            3,106,995
            
            
            $
            3,103,404Net
      income
            
            $
            691,136
            
            
            $
            604,555
            
            
            $
            1,255,373
            
            
            $
            1,157,407LLC's
      share of net income
            
            $
            333,653
            
            
            $
            314,991
            
            
            $
            602,588
            
            
            $
            604,647




(6)
              Revolving
      Line of Credit, Recourse


The LLC
and certain entities managed by the Manager, ICON Income Fund Eight B L.P., ICON
Income Fund Nine, LLC, ICON Leasing Fund Eleven, LLC (“Fund Eleven”), ICON
Leasing Fund Twelve, LLC (“Fund Twelve”) and ICON Equipment and Corporate
Infrastructure Fund Fourteen, L.P. (collectively, the “Borrowers”), are parties
to a Commercial Loan Agreement, as amended (the “Loan Agreement”), with
California Bank & Trust (“CB&T”).  The Loan Agreement provides
for a revolving line of credit of up to $30,000,000 pursuant to a senior secured
revolving loan facility (the “Facility”), which is secured by all assets of the
Borrowers not subject to a first priority lien, as defined in the Loan
Agreement.  Each of the Borrowers is jointly and severally liable for
all amounts borrowed under the Facility.  At June 30, 2010, no amounts
were accrued related to the LLC’s joint and several obligations under the
Facility.  Amounts available under the Facility are subject to a
borrowing base that is determined, subject to certain limitations, on the
present value of the future receivables under certain lease agreements and loans
in which the Borrowers have a beneficial interest.





The
Facility expires on June 30, 2011 and the Borrowers may request a one year
extension to the revolving line of credit within 390 days of the then-current
expiration date, but CB&T has no obligation to extend. The interest rate for
general advances under the Facility is CB&T’s prime rate and the interest
rate on up to five separate non-prime rate advances that are permitted to be
made under the Facility is the rate at which U.S. dollar deposits can be
acquired by CB&T in the London Interbank Eurocurrency Market plus 2.5% per
year, provided that neither interest rate is permitted to be less than 4.0% per
year. The interest rate at June 30, 2010 was 4.0%. In addition, the Borrowers
are obligated to pay a quarterly commitment fee of 0.50% on unused commitments
under the Facility.





9
 Table of Contents
 ICON
Income Fund Ten, LLC
 (A
Delaware Limited Liability Company)
 Notes to
Consolidated Financial Statements
 June 30,
2010
 (unaudited)


(6)
              Revolving
      Line of Credit, Recourse -
continued


Aggregate
borrowings by all Borrowers under the Facility amounted to $1,350,000
at June 30, 2010, all of which was borrowed by the LLC.  Subsequent to
June 30, 2010, the LLC repaid the entire balance, which reduced its outstanding
loan balance to $0.





Pursuant
to the Loan Agreement, the Borrowers are required to comply with certain
covenants.  At June 30, 2010, the Borrowers were in compliance with
all covenants.




(7)
              Transactions
      with Related Parties


In
accordance with the terms of the LLC Agreement, the LLC paid the Manager (i)
management fees ranging from 1% to 5% based on a percentage of the rentals and
other contractual payments recognized either directly by the LLC or through its
joint ventures and (ii) acquisition fees, through the end of the operating
period, of 3% of the purchase price of the LLC’s investments.  In
addition, the Manager was reimbursed for administrative expenses incurred in
connection with the LLC’s operations.  The Manager also has a 1%
interest in the LLC’s profits, losses, cash distributions and liquidation
proceeds.





The
Manager performs certain services relating to the management of the LLC’s
equipment leasing and other financing activities.  Such services
include, but are not limited to, the collection of lease payments from the
lessees of the equipment or loan payments from borrowers, re-leasing services in
connection with equipment which is off-lease, inspections of the equipment,
liaising with and general supervision of lessees and borrowers to ensure that
the equipment is being properly operated and maintained, monitoring performance
by the lessees of their obligations under the leases and the payment of
operating expenses.





Administrative
expense reimbursements were costs incurred by the Manager or its affiliates that
were necessary to the LLC’s operations.  These costs included the Manager’s
and its affiliates’ legal, accounting, investor relations and operations
personnel costs, as well as professional fees and other costs that were charged
to the LLC based upon the percentage of time such personnel dedicated to the
LLC.  Excluded were salaries and related costs, office rent, travel
expenses and other administrative costs incurred by individuals with a
controlling interest in the Manager.





Fees and
other expenses paid or accrued by the LLC to the Manager or its affiliates were
as follows:





Three Months Ended June 30,
            
            
            Six Months Ended June 30,Entity
            
            Capacity
            
            Description
            
            2010
            
            
            2009
            
            
            2010
            
            
            2009ICON
      Capital Corp.
            
            Manager
            
            Management
      fees (1)
            
            $
            208,056
            
            
            $
            330,798
            
            
            $
            437,141
            
            
            $
            679,448ICON
      Capital Corp.
            
            Manager
            
            Administrative
      expense reimbursements (1)
            
            
            282,593
            
            
            
            420,985
            
            
            
            478,520
            
            
            
            711,774$
            490,649
            
            
            $
            751,783
            
            
            $
            915,661
            
            
            $
            1,391,222(1)  Amount
      charged directly to operations.





At June
30, 2010, the LLC had an obligation of $975,093 due to the Manager and
affiliates, which consisted primarily of an accrued obligation in the amount of
$807, 057 to Fund Twelve in connection with the credit support agreement (see
Note 11) and a net payable of $168,036 due to the Manager for administrative
expense reimbursements.





10
 Table of Contents
 ICON
Income Fund Ten, LLC
 (A
Delaware Limited Liability Company)
 Notes to
Consolidated Financial Statements
 June 30,
2010
 (unaudited)





(8)
            Derivative
      Financial Instruments





The LLC
may enter into derivative transactions for purposes of hedging specific
financial exposures, including movements in foreign currency exchange rates and
changes in interest rates on its non-recourse long-term debt. The LLC enters
into these instruments only for hedging underlying exposures.  The LLC
does not hold or issue derivative financial instruments for purposes other than
hedging, except for warrants, which are not hedges.  Certain
derivatives may not meet the established criteria to be designated as qualifying
accounting hedges, even though the LLC believes that these are effective
economic hedges.





The LLC
accounts for derivative financial instruments in accordance with the accounting
pronouncements that established accounting and reporting standards for
derivative financial instruments.  These
accounting pronouncements require the LLC to recognize all derivatives as either
assets or liabilities on the consolidated balance sheets and measure those
instruments at fair value.  The LLC recognizes the fair value of all
derivatives as either assets or liabilities on the consolidated balance sheets
and changes in the fair value of such instruments are recognized immediately in
earnings unless certain accounting criteria established by the accounting
pronouncements are met.





These
criteria demonstrate that the derivative is expected to be highly effective at
offsetting changes in the fair value or expected cash flows of the underlying
exposure at both the inception of the hedging relationship and on an ongoing
basis and include an evaluation of the counterparty risk and the impact, if any,
on the effectiveness of the derivative.  If these criteria are met,
which the LLC must document and assess at inception and on an ongoing basis, the
LLC recognizes the changes in fair value of such instruments in accumulated
other comprehensive income (loss) (“AOCI”), a component of equity on the
consolidated balance sheets.  Changes in the fair value of the
ineffective portion of all derivatives are recognized immediately in
earnings.





Interest
Rate Risk





Interest
rate derivatives are used to add stability to interest expense and to manage
exposure to interest rate movements on the LLC’s variable non-recourse
debt.  The strategy to accomplish this objective is to match the
projected future cash flows with the underlying debt service. Interest rate
swaps designated as cash flow hedges involve the receipt of floating-rate
interest payments from a counterparty in exchange for the LLC or joint ventures
making fixed interest rate payments over the life of the agreements without
exchange of the underlying notional amount.





As of
June 30, 2010, the LLC had interests through joint ventures in three
floating-to-fixed interest rate swaps relating to ICON Eagle Corona Holdings,
LLC (“ICON Corona Holdings”), ICON Eagle Carina Holdings, LLC (“ICON Carina
Holdings”) and ICON Mayon, LLC (“ICON Mayon”) designated and qualifying as cash
flow hedges with an aggregate notional amount of approximately $50,562,000.
These interest rate swaps have maturity dates ranging from July 25, 2011 to
November 14, 2013.





11
 Table of Contents
 ICON
Income Fund Ten, LLC
 (A
Delaware Limited Liability Company)
 Notes to
Consolidated Financial Statements
 June 30,
2010
 (unaudited)




(8)
            Derivative
      Financial Instruments - continued





For these
derivatives, the LLC records its interest in the gain or loss from the effective
portion of changes in the fair value of derivatives designated and qualifying as
cash flow hedges in AOCI and such gain or loss is subsequently reclassified into
earnings in the period that the hedged forecasted transaction affects earnings
and is recorded as a component of income (loss) from investments in joint
ventures. During the six months ended June 30, 2010, the joint ventures recorded
no hedge ineffectiveness in earnings.





The
LLC transferred $135,304 and $259,060 from AOCI to income from investments in
joint ventures for the three and six months ended June 30, 2010. The LLC
recognized $156,987 and $317,509 in AOCI for the three and six months ended June
30, 2010. The LLC transferred $148,754 and $369,205 from AOCI to income from
investments in joint ventures for the three and six months ended June 30, 2009.
The LLC recognized $119,012 and $92,574 in AOCI for the three and six months
ended June 30, 2009.





At June
30, 2010, the total unrealized loss recorded to AOCI related to the joint
ventures’ interest in the change in fair value of these interest rate swaps was
approximately $448,000.




During
the twelve months ending June 30, 2011, the LLC estimates that approximately
$358,000 will be transferred from AOCI to income (loss) from investments in
joint ventures.





Non-designated
Derivatives





As of
June 30, 2010, warrants are the only derivatives that the LLC holds for purposes
other than hedging. All changes in the fair value of the warrants are recorded
directly in earnings.





The table
below presents the fair value of the LLC’s derivative financial instruments as
well as their classification within the LLC’s consolidated balance sheets as of
June 30, 2010 and December 31, 2009:





Asset
      DerivativesJune
      30,
              
              
              
              December
      31,2010
              
              
              
              2009Balance
      Sheet Location
              
              
              Fair
      Value
              
              
              
              Fair
      ValueDerivatives
      not designated as hedginginstruments:
 Warrants
              Other
      non-current assets
              
              $
              75,249
              
              
              $
              79,371





The LLC’s
derivative financial instruments not designated as hedging instruments generated
a net loss recorded in general and administrative expense on the consolidated
statements of operations for the three and six months ended June 30, 2010 of
$2,333 and $4,122, respectively. The LLC’s derivative financial instruments not
designated as hedging instruments generated a net gain recorded in general and
administrative expense on the consolidated statements of operations for the
three and six months ended June 30, 2009 of $39,918 and $80,960, respectively.
The net loss recorded for the three and six months ended June 30, 2010 was
comprised of an unrealized loss relating to warrants.





12
 Table of Contents
 ICON
Income Fund Ten, LLC
 (A
Delaware Limited Liability Company)
 Notes to
Consolidated Financial Statements
 June 30,
2010
 (unaudited)
  (8)
              Derivative
      Financial Instruments -
continued





The net
gain recorded for the three months ended June 30, 2009 was comprised of realized
gains of $37,408 relating to interest rate swap contracts and $2,510 relating to
warrants. The net gain recorded for the six months ended June 30, 2009 was
comprised of $84,232 in realized gains relating to interest rate swap contracts
and a realized loss of $3,272 relating to warrants.





Derivative
Risks





The
LLC manages exposure to possible defaults on derivative financial instruments by
monitoring the concentration of risk that the LLC has with any individual bank
and through the use of minimum credit quality standards for all
counterparties.  The LLC does not require collateral or other security
in relation to derivative financial instruments.  Since it is the
LLC’s policy to enter into derivative contracts with banks of internationally
acknowledged standing only, the LLC considers the counterparty risk to be
remote.




(9)
              Accumulated
      Other Comprehensive Loss




AOCI
includes accumulated losses on derivative financial instruments of joint
ventures and currency translation adjustments of $447,875 and $1,774,269,
respectively, at June 30, 2010 and accumulated losses on derivative financial
instruments of joint ventures and currency translation adjustments of $389,426
and $1,490,493, respectively, at December 31, 2009.




Total
comprehensive income for the three and six months ended June 30, 2010 was
$403,245 and $2,397,373, which included: (i) net income of $427,590 and
$2,739,598, (ii) the net change in unrealized loss on derivative financial
instruments of $21,683 and $58,449 and (iii) unrealized loss on currency
translation adjustments of $2,662 and $283,776, respectively. Total
comprehensive income for the three and six months ended June 30, 2009 was
$3,207,340 and $4,761,316, which included: (i) net income of $1,839,660 and
$3,514,699, (ii) the net change in unrealized gain on derivative financial
instruments of $267,768 and $276,631 and (iii) unrealized gains on currency
translation adjustments of $1,099,912 and $969,986, respectively.


(10)
              Fair
      Value Measurements


The LLC
accounts for the fair value of financial instruments in accordance with the
accounting pronouncements, which require assets and liabilities carried at fair
value to be classified and disclosed in one of the following three
categories:





·
            Level
      1:  Quoted market prices available in active markets for
      identical assets or liabilities as of the reporting
  date.


·
            Level
      2:  Pricing inputs other than quoted prices in active markets
      included in Level 1, which are either directly or indirectly observable as
      of the reporting date.


·
            Level
      3:  Pricing inputs that are generally unobservable and cannot be
      corroborated by market data.




13
 Table of Contents
 ICON
Income Fund Ten, LLC
 (A
Delaware Limited Liability Company)
 Notes to
Consolidated Financial Statements
 June 30,
2010
 (unaudited)


(10)
                Fair
      Value Measurements -
continued


Financial
Assets and Liabilities Measured on a Recurring Basis





Financial
assets and liabilities are classified in their entirety based on the lowest
level of input that is significant to the fair value measurement.  The
Manager’s assessment, on the LLC’s behalf, of the significance of a particular
input to the fair value measurement requires judgment and may affect the
valuation of the assets and liabilities being measured and their placement
within the fair value hierarchy.





The
following table summarizes the valuation of the LLC’s material financial assets
and liabilities measured at fair value on a recurring basis as of June 30,
2010:


Level 1(1)
            
            
            Level 2(2)
            
            
            Level 3(3)
            
            
            TotalAssets:Warrants
            
            $
            -
            
            
            $
            75,249
            
            
            $
            -
            
            
            $
            75,249Liabilities:
            
            $
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            -(1)
      Quoted prices in active markets for identical assets or
      liabilities.(2)
      Observable inputs other than quoted prices in active markets for identical
      assets and liabilities.(3)
      No observable pricing inputs in the market.





The LLC’s warrants are valued using
models based on readily observable market parameters for all substantial terms
and are classified within Level 2. As permitted by the accounting
pronouncements, the LLC uses market prices and pricing models for fair value
measurements of its derivative instruments.  The fair value of the
warrants was recorded in other non-current assets within the consolidated
balance sheets.





Fair
value information with respect to the LLC’s leased assets and liabilities is not
separately provided since (i) the current accounting pronouncements do not
require fair value disclosures of lease arrangements and (ii) the carrying value
of financial assets, other than lease-related investments, and the recorded
value of recourse debt approximate fair value due to their short-term maturities
and variable interest rates.




(11)
                Commitments
      and Contingencies


At the
time the LLC acquires or divests of its interest in an equipment lease or other
financing transaction, the LLC may, under very limited circumstances, agree to
indemnify the seller or buyer for specific contingent
liabilities.  The Manager believes that any liability that may arise
as a result of any such indemnification obligations will not have a material
adverse effect on the consolidated financial condition of the LLC taken as a
whole.





The LLC, Fund Eleven and Fund Twelve
(collectively, the “Participating Funds”) entered into a credit support
agreement, pursuant to which losses incurred by a Participating Fund with
respect to any financing provided to any subsidiary of MW Universal, Inc.
(“MWU”) are shared among the Participating Funds in proportion to their
respective capital investments. The term of the credit support agreement matches
the term of the schedules to the master lease agreement.  At June 30,
2010, the LLC accrued approximately $807,000  in connection with the
obligation to Fund Twelve under the credit support agreement.







14
 Table of Contents







Item 2. Manager’s Discussion and Analysis of Financial Condition
and Results of Operations





The
following is a discussion of our current financial position and results of
operations. This discussion should be read together with our unaudited
consolidated financial statements and related notes included elsewhere in this
Quarterly Report on Form 10-Q and the audited consolidated financial statements
and related notes included in our Annual Report on Form 10-K for the year ended
December 31, 2009.  This discussion should also be read in conjunction
with the disclosures below regarding “Forward-Looking Statements” and the “Risk
Factors” set forth in Item 1A of Part II of this Quarterly Report on Form
10-Q.





As used
in this Quarterly Report on Form 10-Q, references to “we,” “us,” “our” or
similar terms include ICON Income Fund Ten, LLC and its consolidated
subsidiaries.





Forward-Looking
Statements





Certain
statements within this Quarterly Report on Form 10-Q may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 (“PSLRA”).  These statements are being
made pursuant to the PSLRA, with the intention of obtaining the benefits of the
“safe harbor” provisions of the PSLRA, and, other than as required by law, we
assume no obligation to update or supplement such
statements.  Forward-looking statements are those that do not relate
solely to historical fact.  They include, but are not limited to, any
statement that may predict, forecast, indicate or imply future results,
performance, achievements or events.  You can identify these
statements by the use of words such as “may,” “will,” “could,” “anticipate,”
“believe,” “estimate,” “expect,” “continue,” “further,” “plan,” “seek,”
“intend,” “predict” or “project” and variations of these words or comparable
words or phrases of similar meaning.  These forward-looking statements
reflect our current beliefs and expectations with respect to future events and
are based on assumptions and are subject to risks and uncertainties and other
factors outside our control that may cause actual results to differ materially
from those projected. We undertake no obligation to update publicly or review
any forward-looking statement, whether as a result of new information, future
developments or otherwise.





Overview





We
operate as an equipment leasing and finance program in which the capital our
members invested was pooled together to make investments, pay fees and establish
a small reserve.  We were primarily engaged in the business of
purchasing equipment and leasing or servicing it to third parties, equipment
financing, acquiring equipment subject to lease and, to a lesser degree,
acquiring ownership rights to items of leased equipment at lease
expiration.




Our
Manager manages and controls our business affairs, including, but not limited
to, our equipment leases and other financing transactions, pursuant to the terms
of our LLC Agreement. We completed our operating period on April 30, 2010 and
entered our liquidation period effective May 1, 2010. During our liquidation
period, we are selling and will continue to sell our assets in the ordinary
course of business. As we sell our assets, both rental income and finance income
will decrease over time, as will expenses related to our assets, such as
depreciation and amortization expense. As leased equipment is sold, we will
incur gains or losses on these sales. We will continue to liquidate our assets
during this period and we expect to see a reduction in revenue and expenses
accordingly.






15
 Table of Contents





Recent
Significant Transactions





We
engaged in the following significant transactions since December 31,
2009:





Telecommunications
Equipment





On March
17, 2010, we, through our wholly-owned subsidiary, ICON Global Crossing, and
Global Crossing agreed to extend our lease for the period April 1, 2010 to March
31, 2011.  In connection with the extension, ICON Global Crossing and
Global Crossing agreed to a purchase option of $1 at the end of the lease for
each schedule of equipment. As of March 17, 2010, this lease has been classified
as a finance lease.





Materials
Handling and Manufacturing Equipment




On
February 22, 2010, we received notice that our leases with Saturn were being
rejected by GM in conjunction with GM’s petition for reorganization under
Chapter 11 of the U.S. Bankruptcy Code, filed on June 1, 2009, in which Saturn
was named as a debtor and that the monthly lease payments would cease effective
March 1, 2010. In March 2010, we sold all of the equipment subject to lease with
Saturn to unaffiliated third parties for approximately $145,000 and recorded a
gain on sale of approximately $54,000.




On July
28, 2009, we terminated our lease with Monroe, and transferred title to the
machining and metal working equipment to MPI, an affiliate of Monroe, in
consideration for MPI transferring title to equipment of at least equal or
greater fair market value to us. Beginning August 1, 2009, we entered into a
lease with MPI for such equipment for a term of 41 months.  On July
26, 2010, we, in consideration for all amounts due under the lease, sold the
equipment to MPI and terminated the lease.





On July
26, 2010, we, in consideration for all amounts due under the lease, sold the
equipment we leased to MW Texas Die Casting, Inc. and terminated the
lease.





Recently
Adopted Accounting Pronouncements





There are
no recent accounting pronouncements that are expected to have a significant
impact on our consolidated financial statements as of June 30, 2010. See Note 2
to our consolidated financial statements for a discussion of accounting
pronouncements that we have recently adopted.





Other
Recent Events





Since the onset of the recession in
December 2007, the rate of payment defaults by lessees, borrowers and other
financial counterparties has generally risen significantly.  Our
Manager continuously reviews and evaluates our transactions to take such action
as it deems necessary to mitigate any adverse developments on our liquidity,
cash flows or profitability, which may include agreeing to restructure a
transaction with one or more of our lessees, borrowers or other financial
counterparties.  In the event of a restructuring of a transaction, our
Manager generally expects that the lessee, borrower and/or other financial
counterparty will ultimately be able to satisfy its obligations to
us.  As a result thereof, our Manager has discussed and continues to
discuss restructuring options with some of our lessees, borrowers and other
financial counterparties.  In many instances, the transaction is not
restructured and continues as initially structured.  Nevertheless,
there can be no assurance that any future restructurings will not have an
adverse effect on our financial position, results of operations or cash
flows.  During the six months ended June 30, 2010, our Manager has not
agreed to restructure any of our transactions and we have not taken any
impairment charges and there is no information that would cause our Manager to
take an impairment charge on any of our transactions at this
time.








16
 Table of Contents


Results
of Operations for the Three Months Ended June 30, 2010 (the “2010 Quarter”) and
2009 (the “2009 Quarter”)





Revenue
for the 2010 Quarter and the 2009 Quarter is summarized as follows:





Three Months Ended June 30,2010
            
            
            2009
            
            
            ChangeRental
      income
            
            $
            1,395,422
            
            
            $
            3,893,042
            
            
            $
            (2,497,620
            )Finance
      income
            
            
            1,398,737
            
            
            
            -
            
            
            
            1,398,737Servicing
      income
            
            
            1,308,802
            
            
            
            1,594,485
            
            
            
            (285,683
            )Income
      from investments in joint ventures
            
            
            713,754
            
            
            
            1,106,149
            
            
            
            (392,395
            )Net
      loss on sales of equipment and unguaranteed residual
values
            
            
            (35,637
            )
            
            
            (53,688
            )
            
            
            18,051Interest
      and other income
            
            
            50,624
            
            
            
            9,446
            
            
            
            41,178Total
      revenue
            
            $
            4,831,702
            
            
            $
            6,549,434
            
            
            $
            (1,717,732
            )




Total
revenue for the 2010 Quarter decreased $1,717,732, or 26.2%, as compared to the
2009 Quarter. Rental income decreased primarily due to the October 30, 2009
bareboat charter restructurings of ICON Containership I, LLC (“ICON
Containership I”) and ICON Containership II, LLC (“ICON Containership II”),
which resulted in the bareboat charters being reclassified from operating leases
to finance leases, as well as from the sale on September 30, 2009 of all of the
assets on lease to Anchor Tool & Die Co. (“Anchor”).  Income from
investments in joint ventures decreased as ICON Global Crossing is no longer
accounted for as a joint venture since its financial position and results of
operations have been consolidated effective September 30, 2009. Servicing
income, which relates to Pretel Group Limited (“Pretel”), decreased primarily as
a result of the change in foreign exchange rates between April 1, 2010 and June
30, 2010.  These decreases were partially offset by an increase in
finance income resulting from the aforementioned bareboat charter restructurings
of ICON Containership I and ICON Containership II and from the reclassification
of our lease with Global Crossing from an operating lease to a finance lease
effective March 17, 2010.





Expenses
for the 2010 Quarter and the 2009 Quarter are summarized as
follows:





Three Months Ended June 30,2010
            
            
            2009
            
            
            ChangeManagement
      fees - Manager
            
            $
            208,056
            
            
            $
            330,798
            
            
            $
            (122,742
            )Administrative
      expense reimbursements - Manager
            
            
            282,593
            
            
            
            420,985
            
            
            
            (138,392
            )General
      and administrative
            
            
            1,802,413
            
            
            
            1,689,043
            
            
            
            113,370Interest
            
            
            10,091
            
            
            
            34,446
            
            
            
            (24,355
            )Loss
      on guaranty
            
            
            807,057
            
            
            
            -
            
            
            
            807,057Depreciation
      and amortization
            
            
            1,293,902
            
            
            
            2,234,502
            
            
            
            (940,600
            )Total
      expenses
            
            $
            4,404,112
            
            
            $
            4,709,774
            
            
            $
            (305,662
            )




Total
expenses for the 2010 Quarter decreased $305,662, or 6.5%, as compared to the
2009 Quarter. Depreciation and amortization expense decreased due to the
reclassification of the ICON Containership I and ICON Containership II bareboat
charters to finance leases, at which time we ceased recording depreciation
expense on those assets, and the sale of all of the equipment on lease to Anchor
on September 30, 2009. Management fees and administrative expense reimbursements
decreased as a result of a decline in the assets under management for the 2010
Quarter as compared to the 2009 Quarter.  These decreases were
partially offset by the loss on guaranty in connection with the credit support
agreement related to financing provided to the MWU
subsidiaries.








17
 Table of Contents








Noncontrolling
Interests





Net income attributable to
noncontrolling interests for the 2010 Quarter was consistent with that reported
for the 2009 Quarter.





Net
Income Attributable to Fund Ten





As a
result of the foregoing factors, net income attributable to us for the 2010
Quarter and the 2009 Quarter was $356,847 and $1,764,402,
respectively.  Net income attributable to us per weighted average
additional share of limited liability company interests outstanding (“Share”)
for the 2010 Quarter and the 2009 Quarter was $2.38 and $11.78,
respectively.





Results
of Operations for the Six Months Ended June 30, 2010 (the “2010 Period”) and
2009 (the “2009 Period”)





Revenue for the 2010 Period and the
2009 Period is summarized as follows:




Six Months Ended June 30,2010
            
            
            2009
            
            
            ChangeRental
      income
            
            $
            3,535,258
            
            
            $
            7,714,872
            
            
            $
            (4,179,614
            )Finance
      income
            
            
            2,742,958
            
            
            
            -
            
            
            
            2,742,958Servicing
      income
            
            
            2,798,091
            
            
            
            2,566,220
            
            
            
            231,871Income
      from investments in joint ventures
            
            
            1,409,056
            
            
            
            2,112,730
            
            
            
            (703,674
            )Net
      gain on sales of equipment and unguaranteed residual
values
            
            
            158,970
            
            
            
            74,855
            
            
            
            84,115Interest
      and other income
            
            
            90,206
            
            
            
            14,578
            
            
            
            75,628Total
      revenue
            
            $
            10,734,539
            
            
            $
            12,483,255
            
            
            $
            (1,748,716
            )





Total revenue for the 2010 Period
decreased $1,748,716, or 14.0%, as compared to the 2009 Period. Rental income
decreased due to the October 30, 2009 bareboat charter restructurings of ICON
Containership I and ICON Containership II, which resulted in the bareboat
charters being reclassified from operating leases to finance leases, as well as
from the sale of all of the assets on lease to Anchor on September 30, 2009.
This decrease in rental income was partially offset by the consolidation of the
results of operations of ICON Global Crossing effective September 30, 2009.
Income from investments in joint ventures decreased as ICON Global Crossing is
no longer accounted for as a joint venture since its financial position and
results of operations have been consolidated effective September 30,
2009.  These decreases were partially offset by an increase in finance
income resulting from the bareboat charter restructurings of ICON Containership
I and ICON Containership II and from the reclassification of our lease with
Global Crossing from an operating lease to a finance lease effective March 17,
2010. Additionally, servicing income increased as a result of a full six months
of activity from the operations of Pretel in the 2010 Period as compared to the
2009 Period as we acquired Pretel on January 30, 2009.








18
 Table of Contents







Expenses
for the 2010 Period and the 2009 Period are summarized as follows:





Six Months Ended June 30,2010
            
            
            2009
            
            
            ChangeManagement
      fees - Manager
            
            $
            437,141
            
            
            $
            679,448
            
            
            $
            (242,307
            )Administrative
      expense reimbursements - Manager
            
            
            478,520
            
            
            
            711,774
            
            
            
            (233,254
            )General
      and administrative
            
            
            3,302,522
            
            
            
            3,158,519
            
            
            
            144,003Interest
            
            
            18,669
            
            
            
            212,839
            
            
            
            (194,170
            )Loss
      on guaranty
            
            
            807,057
            
            
            
            -
            
            
            
            807,057Depreciation
      and amortization
            
            
            2,951,032
            
            
            
            4,205,976
            
            
            
            (1,254,944
            )Total
      expenses
            
            $
            7,994,941
            
            
            $
            8,968,556
            
            
            $
            (973,615
            )





Total expenses for the 2010 Period
decreased $973,615, or 10.9%, as compared to the 2009 Period. Depreciation and
amortization expense decreased due to the reclassification of the ICON
Containership I and ICON Containership II bareboat charters to finance leases,
at which time we ceased recording depreciation expense on those assets, and the
sale of all of the equipment on lease to Anchor on September 30, 2009. This
decrease in depreciation and amortization expense was partially offset by the
consolidation of the results of operations of ICON Global Crossing effective
September 30, 2009. Management fees and administrative expense reimbursements
decreased as a result of a decline in the assets under management for the 2010
Period as compared to the 2009 Period. Interest expense decreased as a result of
our July 1, 2009 repayment of the outstanding balance of the non-recourse
long-term debt obligations of ICON Containership I and ICON Containership
II. These decreases were partially offset by the loss on guaranty in
connection with the credit support agreement related to financing provided to
the MWU subsidiaries.





Noncontrolling
Interests





Net income attributable to
noncontrolling interests for the 2010 Period was consistent with that reported
for the 2009 Period.





Net
Income Attributable to Fund Ten





As a
result of the foregoing factors, net income attributable to us for the 2010
Period and the 2009 Period was $2,565,674 and $3,357,217,
respectively.  Net income attributable to us per weighted average
additional Share for the 2010 Period and the 2009 Period was $17.14 and $22.42,
respectively.





Financial
Condition





This
section discusses the major balance sheet variances at June 30, 2010 compared to
December 31, 2009.





Total
Assets





Total
assets decreased $2,799,564, from $77,033,616 at December 31, 2009 to
$74,234,052 at June 30, 2010. The decrease was primarily due to the depreciation
of our leased equipment and fixed assets and distributions to our members and
noncontrolling interests. These decreases were partially offset by cash
collected pursuant to our operating leases.







19
 Table of Contents








Current
Assets





Current
assets increased $1,565,639, from $4,036,025 at December 31, 2009 to $5,601,664
at June 30, 2010.  The increase was primarily due to an increase in
the current portion of our net investment in finance leases as a result of the
change in lease classification of our lease with Global Crossing. This increase
was partially offset by a decrease in other current assets, which was primarily
due to a decrease in accrued income and prepaid expenses of Pretel.




Total
Liabilities





Total
liabilities increased $1,662,718, from $2,101,663 at December 31, 2009 to
$3,764,381 at June 30, 2010.  The increase was primarily due to an
increase in our obligation under our revolving line of credit as a result of an
additional $1,250,000 that we borrowed during the 2010 Period and due to our
obligation in connection with the credit support agreement related to
financing provided to the MWU subsidiaries, partially offset by a decrease in
accrued expenses and other liabilities, which was primarily the result of
decreased accrued expenses of Pretel.





Equity





Equity
decreased $4,462,282, from $74,931,953 at December 31, 2009 to $70,469,671 at
June 30, 2010. The decrease was primarily due to distributions paid to our
members and noncontrolling interests, which were partially offset by the net
income we reported in the 2010 Period.





Liquidity
and Capital Resources





Summary





At June
30, 2010 and December 31, 2009, we had cash and cash equivalents of $2,350,898
and $2,428,058, respectively.  During our operating period, which
ended on April 30, 2010, our main sources of cash were the collection of rentals
pursuant to our non-leveraged operating leases and proceeds from sales of
equipment.  Our main uses of cash during our operating period were
investing in equipment and leasing it to third parties and distributions to our
members. During our liquidation period, which we entered May 1, 2010, we expect
our main sources of liquidity to remain the same and our main use of liquidity
to be distributions to our members.





Cash and
cash equivalents include cash in banks and highly liquid investments with
original maturity dates of three months or less.  Our cash and cash
equivalents are held principally at one financial institution and at times may
exceed insured limits.  We have placed these funds in a high quality
institution in order to minimize risk relating to exceeding insured
limits.





On May 1,
2010, we entered our liquidation period. During this period, we anticipate that
cash generated by our investing activities will become a more significant source
of our liquidity as we begin to sell assets in the normal course of business. We
believe that cash generated from the expected results of our operations will be
sufficient to finance our liquidity requirements for at least the next twelve
months, including distributions to our members, the repayment of principal and
interest on our non-recourse debt obligations, general and administrative
expenses, management fees and administrative expense
reimbursements.  We anticipate that our liquidity requirements for the
remaining life of the fund will be financed by the expected results of our
operations, as well as cash received from our investments at
maturity.  In addition, our revolving line of credit had $28,650,000
available as of June 30, 2010 (see Note 6 to our consolidated financial
statements).





We
anticipate being able to meet our liquidity requirements into the foreseeable
future.  However, our ability to generate cash in the future is
subject to general economic, financial, competitive, regulatory and other
factors that affect us and our lessees’ and borrowers’ businesses that are
beyond our control.




Pursuant to the terms of our offering,
we established a cash reserve in the amount of 1.0% of the gross offering
proceeds.  As of June 30, 2010, the cash reserve was
$1,449,945.






20
 Table of Contents





Cash
Flows





The
following table sets forth summary cash flow data:




Six Months Ended June 30,2010
              
              
              2009Net
      cash provided by (used in):Operating
      activities
              
              $
              3,524,626
              
              
              $
              5,303,790Investing
      activities
              
              
              2,067,753
              
              
              
              307,104Financing
      activities
              
              
              (5,609,655
              )
              
              
              (6,267,525
              )Effects
      of exchange rates on cash and cash equivalents
              
              
              (59,884
              )
              
              
              -Net
      decrease in cash and cash equivalents
              
              $
              (77,160
              )
              
              $
              (656,631
              )


Note:
See the Consolidated Statements of Cash Flows included in “Item 1. Consolidated
Financial Statements” of this Quarterly Report on Form 10-Q for additional
information.





Operating
Activities





Cash
provided by operating activities decreased $1,779,164, from $5,303,790 in the
2009 Period to $3,524,626 in the 2010 Period.  The decrease was
primarily due to a decrease in rental income due to the sale of the equipment
previously on lease to Anchor and Saturn, the change in lease classification of
our lease with Global Crossing and a decrease in the distributions received from
our investments in joint ventures.





Investing
Activities





Cash
provided by investing activities increased $1,760,649, from $307,104 in the 2009
Period to $2,067,753 in the 2010 Period.  The increase was primarily
due to approximately $3,000 used on the purchase of equipment in the 2010 Period
as compared to approximately $1,154,000 used in the 2009 Period. In addition, we
received net proceeds of approximately $480,000 during the 2010 Period from the
sale of equipment and unguaranteed residual values as compared to approximately
$299,000 in the 2009 Period and  distributions in excess of profits from
our joint ventures of approximately $1,591,000 during the 2010 Period as
compared to approximately $1,162,000 during the 2009 Period.





Financing
Activities




Cash used
in financing activities decreased $657,870, from $6,267,525 in the 2009 Period
to $5,609,655 in the 2010 Period.  The change was due to repayments
totaling approximately $1,472,000 of  non-recourse debt during the
2009 Period, which was offset by a decrease in borrowings under our revolving
line of credit of approximately $835,000.




Non-Recourse
Long-Term Debt





We had no
non-recourse long-term debt obligations at June 30, 2010.  All of our
non-recourse obligations were repaid as of July 1, 2009.






21
 Table of Contents







Distributions





We, at
our Manager’s discretion, paid monthly distributions to each of our additional
members and noncontrolling interests beginning the first month after each such
member’s admission and the commencement of our joint venture operations,
respectively, through April 30, 2010, the end of our operating
period.  During the liquidation period, we plan to make distributions
in accordance with the terms of our LLC Agreement.  We expect that
distributions made during the liquidation period will vary, depending on the
timing of the sale of our assets and our receipt of rental and other income from
our investments.  We paid distributions to our Manager, additional
members and noncontrolling interests of $60,716, $6,010,907 and $788,032,
respectively, during the 2010 Period.





Commitments
and Contingencies and Off-Balance Sheet Transactions





Commitments
and Contingencies





At June
30, 2010, we had no non-recourse debt obligations as our outstanding
non-recourse long-term indebtedness was repaid on July 1, 2009.  We
had $1,350,000 in outstanding borrowings under the Facility at June 30,
2010.  Subsequent to June 30, 2010, we repaid the entire balance,
which reduced our outstanding loan balance to $0.





The
Participating Funds have entered into a credit support agreement, pursuant to
which losses incurred by a Participating Fund with respect to any financing
provided to any MWU subsidiary are shared among the Participating Funds in
proportion to their respective capital investments. The term of the credit
support agreement matches the term of the schedules to the master lease
agreement. At June 30, 2010, we  accrued approximately $807,000
in connection with the obligation to Fund Twelve under the credit support
agreement.





Off-Balance
Sheet Transactions





None.







22
 Table of Contents





Item 3. Quantitative and Qualitative Disclosures About Market
Risk





There are
no material changes to the disclosures related to this item since the filing of
our Annual Report on Form 10-K for the year ended December 31,
2009.





Item 4. Controls and Procedures





Evaluation of disclosure controls
and procedures





In
connection with the preparation of this Quarterly Report on Form 10-Q for the
three months ended June 30, 2010, as well as the financial statements for our
Manager, our Manager carried out an evaluation, under the supervision and with
the participation of the management of our Manager, including its Co-Chief
Executive Officers and the Chief Financial Officer, of the effectiveness of the
design and operation of our Manager’s disclosure controls and procedures as of
the end of the period covered by this report pursuant to the Securities Exchange
Act of 1934, as amended.  Based on the foregoing evaluation, the
Co-Chief Executive Officers and the Chief Financial Officer concluded that our
Manager’s disclosure controls and procedures were effective.





In
designing and evaluating our Manager’s disclosure controls and procedures, our
Manager recognized that disclosure controls and procedures, no matter how well
conceived and operated, can provide only reasonable, not absolute, assurance
that the objectives of the disclosure controls and procedures are
met.  Our Manager’s disclosure controls and procedures have been
designed to meet reasonable assurance standards. Disclosure controls and
procedures cannot detect or prevent all error and fraud. Some inherent
limitations in disclosure controls and procedures include costs of
implementation, faulty decision-making, simple error and mistake. Additionally,
controls can be circumvented by the individual acts of some persons, by
collusion of two or more people, or by management override of the controls. The
design of any system of controls is based, in part, upon certain assumptions
about the likelihood of future events, and there can be no assurance that any
design will succeed in achieving its stated goals under all anticipated and
unanticipated future conditions. Over time, controls may become inadequate
because of changes in conditions, or the degree of compliance with established
policies or procedures.





Evaluation of internal control over
financial reporting





There
have been no changes in our internal control over financial reporting during the
three months ended June 30, 2010 that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.







23
 Table of Contents








PART II - OTHER INFORMATION





Item 1.  Legal Proceedings





In the
ordinary course of conducting our business, we may be subject to certain claims,
suits and complaints filed against us.  In our Manager’s opinion, the
outcome of such matters, if any, will not have a material impact on our
consolidated financial position, cash flows or results of
operations.  We are not aware of any material legal proceedings that
are currently pending against us or against any of our assets.





Item 1A. Risk Factors





There
have been no material changes from the risk factors disclosed in “Item 1A. Risk
Factors” of our Annual Report on Form 10-K for the year ended December 31,
2009.





Item 2.  Unregistered Sales of Equity Securities and Use
of Proceeds





We did
not sell or repurchase any Shares during the three months ended June 30,
2010.





Item 3.  Defaults Upon Senior Securities





Not
applicable.





Item 4.  (Removed and Reserved)





Item 5.  Other Information





Not
applicable.








24
 Table of Contents







Item 6. Exhibits




3.1
              Certificate
      of Formation of Registrant (Incorporated by reference to Exhibit 3.1
      to Registrant’s Registration Statement on Form S-1 filed with the SEC on
      February 28, 2003 (File No.
  333-103503)).4.1
              Amended
      and Restated Operating Agreement of Registrant (Incorporated by
      reference to Exhibit 4.1 to Pre-Effective Amendment No. 3 to Registrant’s
      Registration Statement on Form S-1 filed with the SEC on June 2, 2003
      (File No. 333-103503)).10.1
              Commercial
      Loan Agreement, dated as of August 31, 2005, by and among California Bank
      & Trust and ICON Income Fund Eight B L.P., ICON Income Fund Nine,
      LLC, ICON Income Fund Ten, LLC and ICON Leasing Fund Eleven, LLC
      (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report
      on Form 8-K dated August 31, 2005).10.2
              Loan
      Modification Agreement, dated as of December 26, 2006, between California
      Bank & Trust and ICON Income Fund Eight B L.P., ICON Income Fund
      Nine, LLC, ICON Income Fund Ten, LLC and ICON Leasing Fund Eleven, LLC
      (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report
      on Form 8-K dated December 26, 2006).10.3
              Loan
      Modification Agreement, dated as of June 20, 2007, between California Bank
      & Trust, ICON Income Fund Eight B L.P., ICON Income Fund Nine, LLC,
      ICON Income Fund Ten, LLC, ICON Leasing Fund Eleven, LLC and ICON Leasing
      Fund Twelve, LLC (Incorporated by reference to Exhibit 10.3 to
      Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended
      September 30, 2009, filed November 12,
      2009).10.4
              Third
      Loan Modification Agreement, dated as of May 1, 2008, between
      California Bank & Trust, ICON Income Fund Eight B L.P., ICON
      Income Fund Nine, LLC, ICON Income Fund Ten, LLC, ICON Leasing Fund
      Eleven, LLC and ICON Leasing Fund Twelve, LLC (Incorporated by reference
      to Exhibit 10.4 to Registrant’s Quarterly Report on Form 10-Q for the
      quarterly period ended March 31, 2008, filed May 19,
      2008).10.5
              Fourth
      Loan Modification Agreement, dated as of August 12, 2009, between
      California Bank & Trust, ICON Income Fund Eight B L.P., ICON Income
      Fund Nine, LLC, ICON Income Fund Ten, LLC, ICON Leasing Fund Eleven, LLC,
      ICON Leasing Fund Twelve, LLC and ICON Equipment and Corporate
      Infrastructure Fund Fourteen, L.P. (Incorporated by reference to Exhibit
      10.4 to Registrant’s Quarterly Report on Form 10-Q for the quarterly
      period ended June 30, 2009, filed August 14,
      2009).31.1
              Rule
      13a-14(a)/15d-14(a) Certification of Co-Chief Executive
      Officer.31.2
              Rule
      13a-14(a)/15d-14(a) Certification of Co-Chief Executive
      Officer.31.3
              Rule
      13a-14(a)/15d-14(a) Certification of Chief Financial
    Officer.32.1
              Certification
      of Co-Chief Executive Officer pursuant to 18 U.S.C. §1350,
      as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
      2002.32.2
              Certification
      of Co-Chief Executive Officer pursuant to 18 U.S.C. §1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of
  2002.32.3
              Certification
      of Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of
  2002.




25
 Table of Contents







SIGNATURES





Pursuant
to the requirements 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.





ICON
Income Fund Ten, LLC
 (Registrant)
 
 By: ICON
Capital Corp.
 (Manager
of the Registrant)





August
12, 2010
  /s/ Michael A. Reisner Michael
A. Reisner
 Co-Chief
Executive Officer and Co-President
 (Co-Principal
Executive Officer)




August
12, 2010


/s/ Mark Gatto
 Mark
Gatto
 Co-Chief
Executive Officer and Co-President
 (Co-Principal
Executive Officer)





August
12, 2010
 /s/ Anthony J. Branca


Anthony
J. Branca


Chief
Financial Officer


(Principal
Accounting and Financial Officer)




26