----

----

| For the quarterly period ended | September 30, 2010 |   |
|--------------------------------|--------------------|--------|

| For the transition period from |   | to |   |
|--------------------------------|--------|----|--------|

| Commission_File_Number_ | 000-51916 |   |
|-------------------------|-----------|--------|

| ICON Leasing Fund Eleven, LLC                          |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| Delaware                                                       |  20-1979428                     |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| 100 Fifth Avenue, 4th Floor, New York, New York | 10011      |
|-------------------------------------------------|------------|
| (Address of principal executive offices)        | (Zip code) |

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

----

| ICON Leasing Fund Eleven, LLCTable of Contents                                    |
|--------------------------------------------------------------------------------------------------|
|                                                                                             |   |   |
|                                                                                             |   |   |
| PART I - FINANCIAL INFORMATION                                                                   | Page |
|                                                                                             |   |   |
| Item 1. Consolidated Financial Statements                                                   | 1 |
|                                                                                             |   |   |
| Consolidated Balance Sheets                                                                      | 1 |
|                                                                                             |   |   |
| Consolidated Statements of Operations                                                            | 2 |
|                                                                                             |   |   |
| Consolidated Statements of Changes in Equity                                                     | 3 |
|                                                                                             |   |   |
| Consolidated Statements of Cash Flows                                                            | 4 |
|                                                                                             |   |   |
| Notes to Consolidated Financial Statements                                                       | 6 |
|                                                                                             |   |   |
| Item 2. Manager’s Discussion and Analysis of Financial Condition and Results of Operations | 21 |
|                                                                                             |   |   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                               | 32 |
|                                                                                             |   |   |
| Item 4. Controls and Procedures                                                                  | 32 |
|                                                                                             |   |   |
| PART II – OTHER INFORMATION                                                                |   |
|                                                                                             |   |   |
| Item 1. Legal Proceedings                                                                        |   | 33 |
|                                                                                             |   |   |
| Item 1A. Risk Factors                                                                            |   | 33 |
|                                                                                             |   |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                              | 33 |
|                                                                                             |   |   |
| Item 3. Defaults Upon Senior Securities                                                          | 33 |
|                                                                                             |   |   |
| Item 4. (Removed and Reserved)                                                                   | 33 |
|                                                                                             |   |   |
| Item 5. Other Information                                                                        |   | 33 |
|                                                                                             |   |   |
| Item 6. Exhibits                                                                                 |   | 34 |
|                                                                                             |   |   |
| Signatures                                                                                       |   | 35 |

----

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1.  Consolidated Financial Statements

| ICON Leasing Fund Eleven, LLC                                             |   |
|---------------------------------------------------------------------------|--------|
| (A Delaware Limited Liability Company)                                    |   |
| Consolidated Balance Sheets                                               |   |
|                                                                      |   |
| Assets                                                                    |   |
|                                                                      |   | September 30, |   |   |   |   |
|                                                                      |   | 2010 |   |   | December 31, |   |
|                                                                      |   | (unaudited) |   |   | 2009 |   |
|  Current assets:                                                     |   |   |   |   |   |   |
|  Cash and cash equivalents                                           |   | $ | 7,929,675 |   |   | $ | 18,615,323 |   |
|  Current portion of net investment in finance leases                 |   |   | 6,460,766 |   |   |   | 9,448,439 |   |
|  Accounts receivable, net                                            |   |   | 976,893 |   |   |   | 594,082 |   |
|  Current portion of note receivable                                  |   |   | - |   |   |   | 725,049 |   |
|  Assets held for sale, net                                           |   |   | 35,421,197 |   |   |   | 3,813,647 |   |
|  Other current assets                                                |   |   | 1,236,489 |   |   |   | 1,514,555 |   |
|                                                                      |   |   |   |   |   |   |   |   |
|  Total current assets                                                |   |   | 52,025,020 |   |   |   | 34,711,095 |   |
|                                                                      |   |   |   |   |   |   |   |   |
|  Non-current assets:                                                 |   |   |   |   |   |   |   |   |
|  Net investment in finance leases, less current portion              |   |   | 11,459,687 |   |   |   | 15,232,713 |   |
|  Leased equipment at cost (less accumulated depreciation of          |   |   |   |   |   |   |   |   |
|      $91,484,962 and $158,488,912, respectively) |   |   | 108,584,820 |   |   |   | 183,614,179 |   |
|  Mortgage note receivable                                            |   |   | 12,722,006 |   |   |   | 12,722,006 |   |
|  Note receivable, less current portion                               |   |   | - |   |   |   | 9,289,951 |   |
|  Investments in joint ventures                                       |   |   | 8,941,667 |   |   |   | 11,578,687 |   |
|  Deferred income taxes, net                                          |   |   | 1,115,314 |   |   |   | 943,053 |   |
|  Other non-current assets, net                                       |   |   | 15,258,981 |   |   |   | 4,029,168 |   |
|                                                                      |   |   |   |   |   |   |   |   |
|  Total non-current assets                                            |   |   | 158,082,475 |   |   |   | 237,409,757 |   |
|                                                                      |   |   |   |   |   |   |   |   |
|  Total Assets                                                        |   | $ | 210,107,495 |   |   | $ | 272,120,852 |   |
|                                                                      |   |   |   |   |   |   |   |   |
| Liabilities and Equity                                                    |   |
|                                                                      |   |
|  Current liabilities:                                                |   |   |   |   |   |   |   |   |
|  Current portion of non-recourse long-term debt                      |   | $ | 22,379,331 |   |   | $ | 43,603,558 |   |
|  Revolving line of credit, recourse                                  |   |   | - |   |   |   | 2,260,000 |   |
|  Derivative instruments                                              |   |   | 2,895,758 |   |   |   | 5,049,327 |   |
|  Deferred revenue                                                    |   |   | 26,635 |   |   |   | 148,098 |   |
|  Due to Manager and affiliates                                       |   |   | 160,226 |   |   |   | 300,223 |   |
|  Accrued expenses and other liabilities                              |   |   | 4,013,360 |   |   |   | 5,841,639 |   |
|                                                                      |   |   |   |   |   |   |   |   |
|  Total current liabilities                                           |   |   | 29,475,310 |   |   |   | 57,202,845 |   |
|                                                                      |   |   |   |   |   |   |   |   |
|  Non-current liabilities:                                            |   |   |   |   |   |   |   |   |
|  Non-recourse long-term debt, less current portion                   |   |   | 83,958,462 |   |   |   | 71,335,500 |   |
|                                                                      |   |   |   |   |   |   |   |   |
|  Total Liabilities                                                   |   |   | 113,433,772 |   |   |   | 128,538,345 |   |
|                                                                      |   |   |   |   |   |   |   |   |
|  Commitments and contingencies (Note 15)                             |   |   |   |   |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   |   |
|  Equity:                                                             |   |   |   |   |   |   |   |   |
|  Members' Equity:                                                    |   |   |   |   |   |   |   |   |
|  Additional members                                                  |   |   | 94,746,338 |   |   |   | 139,684,262 |   |
|  Manager                                                             |   |   | (2,270,929 | ) |   |   | (1,820,378 | ) |
|  Accumulated other comprehensive loss                                |   |   | (925,562 | ) |   |   | (1,485,640 | ) |
|                                                                      |   |   |   |   |   |   |   |   |
|  Total Members' Equity                                               |   |   | 91,549,847 |   |   |   | 136,378,244 |   |
|                                                                      |   |   |   |   |   |   |   |   |
|  Noncontrolling Interests                                            |   |   | 5,123,876 |   |   |   | 7,204,263 |   |
|                                                                      |   |   |   |   |   |   |   |   |
|  Total Equity                                                        |   |   | 96,673,723 |   |   |   | 143,582,507 |   |
|                                                                      |   |   |   |   |   |   |   |   |
|  Total Liabilities and Equity                                        |   | $ | 210,107,495 |   |   | $ | 272,120,852 |   |

----

Table of Contents

| ICON Leasing Fund Eleven, LLC                                         |   |
|-----------------------------------------------------------------------|--------|
| (A Delaware Limited Liability Company)                                |   |
| Consolidated Statements of Operations                                 |   |
| (unaudited)                                                           |   |
|                                                                  |   |
|                                                                  |   |
|                                                                  |   | Three Months EndedSeptember 30, |   |   | Nine Months EndedSeptember 30, |   |
|                                                                  |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|  Revenue:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|  Rental income                                                   |   | $ | 9,134,541 |   |   | $ | 15,070,264 |   |   | $ | 27,747,200 |   |   | $ | 54,049,093 |   |
|  Time charter revenue                                            |   |   | 2,571,479 |   |   |   | 2,722,356 |   |   |   | 8,282,958 |   |   |   | 3,023,317 |   |
|  Finance income                                                  |   |   | 390,285 |   |   |   | 609,698 |   |   |   | 1,363,824 |   |   |   | 1,988,295 |   |
|  Income (loss) from investments in joint ventures                |   |   | 216,134 |   |   |   | (1,209,275 | ) |   |   | 71,782 |   |   |   | 77,021 |   |
|  Gain (loss) on settlement of interfund agreement (Note 7)       |   |   | 1,141,214 |   |   |   | - |   |   |   | (214,524 | ) |   |   | - |   |
|  Net gain on sales of leased equipment                           |   |   | - |   |   |   | 120,919 |   |   |   | - |   |   |   | 196,104 |   |
|  Loss on assets held for sale                                    |   |   | - |   |   |   | - |   |   |   | (120,168 | ) |   |   | - |   |
|  Net (loss) gain on lease termination                            |   |   | - |   |   |   | (478,925 | ) |   |   | (218,890 | ) |   |   | 25,659,491 |   |
|  Interest and other income                                       |   |   | 789,553 |   |   |   | 911,292 |   |   |   | 2,985,123 |   |   |   | 2,556,319 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Total revenue                                                   |   |   | 14,243,206 |   |   |   | 17,746,329 |   |   |   | 39,897,305 |   |   |   | 87,549,640 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Expenses:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Management fees - Manager                                       |   |   | - |   |   |   | 170,170 |   |   |   | 541,090 |   |   |   | 2,185,858 |   |
|  Administrative expense reimbursements - Manager                 |   |   | 277,723 |   |   |   | 321,758 |   |   |   | 1,122,718 |   |   |   | 1,607,232 |   |
|  General and administrative                                      |   |   | 2,098,488 |   |   |   | 406,028 |   |   |   | 3,710,490 |   |   |   | 1,603,889 |   |
|  Vessel operating expense                                        |   |   | 3,034,607 |   |   |   | 5,678,590 |   |   |   | 9,652,665 |   |   |   | 5,992,455 |   |
|  Interest                                                        |   |   | 1,731,381 |   |   |   | 2,469,289 |   |   |   | 5,808,188 |   |   |   | 7,795,762 |   |
|  Depreciation and amortization                                   |   |   | 10,618,410 |   |   |   | 25,497,158 |   |   |   | 31,341,166 |   |   |   | 54,509,925 |   |
|  Impairment loss                                                 |   |   | 8,318,669 |   |   |   | 36,381,554 |   |   |   | 8,836,101 |   |   |   | 36,381,554 |   |
|  Gain on financial instruments                                   |   |   | (269,864 | ) |   |   | (54,790 | ) |   |   | (1,862,430 | ) |   |   | (76,773 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Total expenses                                                  |   |   | 25,809,414 |   |   |   | 70,869,757 |   |   |   | 59,149,988 |   |   |   | 109,999,902 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Loss before income taxes                                        |   |   | (11,566,208 | ) |   |   | (53,123,428 | ) |   |   | (19,252,683 | ) |   |   | (22,450,262 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  (Provision) benefit for income taxes                            |   |   | (96,420 | ) |   |   | 47,583 |   |   |   | (201,659 | ) |   |   | 173,201 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net loss                                                        |   |   | (11,662,628 | ) |   |   | (53,075,845 | ) |   |   | (19,454,342 | ) |   |   | (22,277,061 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Less: Net income attributable to noncontrolling interests       |   |   | 200,309 |   |   |   | 516,769 |   |   |   | 595,427 |   |   |   | 1,573,664 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net loss attributable to Fund Eleven                            |   | $ | (11,862,937 | ) |   | $ | (53,592,614 | ) |   | $ | (20,049,769 | ) |   | $ | (23,850,725 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net loss attributable to Fund Eleven allocable to:              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Additional Members                                              |   | $ | (11,744,308 | ) |   | $ | (53,056,688 | ) |   | $ | (19,849,272 | ) |   | $ | (23,612,218 | ) |
|  Manager                                                         |   |   | (118,629 | ) |   |   | (535,926 | ) |   |   | (200,497 | ) |   |   | (238,507 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | $ | (11,862,937 | ) |   | $ | (53,592,614 | ) |   | $ | (20,049,769 | ) |   | $ | (23,850,725 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Weighted average number of additional shares of                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  limited liability company interests outstanding                 |   |   | 362,654 |   |   |   | 363,120 |   |   |   | 362,681 |   |   |   | 363,153 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net loss attributable to Fund Eleven per weighted               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  average additional share of limited liability company interests |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  outstanding                                                     |   | $ | (32.38 | ) |   | $ | (146.11 | ) |   | $ | (54.73 | ) |   | $ | (65.02 | ) |

----

Table of Contents

| ICON Leasing Fund Eleven, LLC                                   |   |
|-----------------------------------------------------------------|--------|
| (A Delaware Limited Liability Company)                          |   |
| Consolidated Statements of Changes in Equity                    |   |
|                                                            |   |
|                                                            |   |
|                                                            |   | Members' Equity |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   | Additional Shares of |   |   |   |   |   |   |   |   | Accumulated Other |   |   |   |   |   |   |   |   |   |   |
|                                                            |   | Limited LiabilityCompany Interests |   |   | AdditionalMembers |   |   | Manager |   |   | Comprehensive Income (Loss) |   |   | TotalMembers' Equity |   |   | NoncontrollingInterests |   |   | TotalEquity |   |
|  Balance, December 31, 2009                                |   |   | 363,093 |   |   | $ | 139,684,262 |   |   | $ | (1,820,378 | ) |   | $ | (1,485,640 | ) |   | $ | 136,378,244 |   |   | $ | 7,204,263 |   |   | $ | 143,582,507 |   |
|  Comprehensive (loss) income:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net (loss) income                                         |   |   | - |   |   |   | (2,146,341 | ) |   |   | (21,680 | ) |   |   | - |   |   |   | (2,168,021 | ) |   |   | 227,345 |   |   |   | (1,940,676 | ) |
|  Change in valuation of derivative instruments             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 286,189 |   |   |   | 286,189 |   |   |   | - |   |   |   | 286,189 |   |
|  Currency translation adjustments                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (573,772 | ) |   |   | (573,772 | ) |   |   | - |   |   |   | (573,772 | ) |
|  Total comprehensive (loss) income                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (287,583 | ) |   |   | (2,455,604 | ) |   |   | 227,345 |   |   |   | (2,228,259 | ) |
|  Shares of limited liability company interests repurchased |   |   | (439 | ) |   |   | (333,216 | ) |   |   | - |   |   |   | - |   |   |   | (333,216 | ) |   |   | - |   |   |   | (333,216 | ) |
|  Cash distributions                                        |   |   | - |   |   |   | (8,254,346 | ) |   |   | (83,377 | ) |   |   | - |   |   |   | (8,337,723 | ) |   |   | (883,910 | ) |   |   | (9,221,633 | ) |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, March 31, 2010 (unaudited)                             |   |   | 362,654 |   |   |   | 128,950,359 |   |   |   | (1,925,435 | ) |   |   | (1,773,223 | ) |   |   | 125,251,701 |   |   |   | 6,547,698 |   |   |   | 131,799,399 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Comprehensive (loss) income:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net (loss) income                                         |   |   | - |   |   |   | (5,958,623 | ) |   |   | (60,188 | ) |   |   | - |   |   |   | (6,018,811 | ) |   |   | 167,773 |   |   |   | (5,851,038 | ) |
|  Change in valuation of derivative instruments             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 74,993 |   |   |   | 74,993 |   |   |   | - |   |   |   | 74,993 |   |
|  Currency translation adjustments                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (810,110 | ) |   |   | (810,110 | ) |   |   | - |   |   |   | (810,110 | ) |
|  Total comprehensive (loss) income                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (735,117 | ) |   |   | (6,753,928 | ) |   |   | 167,773 |   |   |   | (6,586,155 | ) |
|  Cash distributions                                        |   |   | - |   |   |   | (8,250,668 | ) |   |   | (83,340 | ) |   |   | - |   |   |   | (8,334,008 | ) |   |   | (882,148 | ) |   |   | (9,216,156 | ) |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, June 30, 2010 (unaudited)                              |   |   | 362,654 |   |   |   | 114,741,068 |   |   |   | (2,068,963 | ) |   |   | (2,508,340 | ) |   |   | 110,163,765 |   |   |   | 5,833,323 |   |   |   | 115,997,088 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Comprehensive (loss) income:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net (loss) income                                         |   |   | - |   |   |   | (11,744,308 | ) |   |   | (118,629 | ) |   |   | - |   |   |   | (11,862,937 | ) |   |   | 200,309 |   |   |   | (11,662,628 | ) |
|  Change in valuation of derivative instruments             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 709,149 |   |   |   | 709,149 |   |   |   | - |   |   |   | 709,149 |   |
|  Currency translation adjustments                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 873,629 |   |   |   | 873,629 |   |   |   | - |   |   |   | 873,629 |   |
|  Total comprehensive income (loss)                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,582,778 |   |   |   | (10,280,159 | ) |   |   | 200,309 |   |   |   | (10,079,850 | ) |
|  Cash distributions                                        |   |   | - |   |   |   | (8,250,422 | ) |   |   | (83,337 | ) |   |   | - |   |   |   | (8,333,759 | ) |   |   | (909,756 | ) |   |   | (9,243,515 | ) |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, September 30, 2010 (unaudited)                         |   |   | 362,654 |   |   | $ | 94,746,338 |   |   | $ | (2,270,929 | ) |   | $ | (925,562 | ) |   | $ | 91,549,847 |   |   | $ | 5,123,876 |   |   | $ | 96,673,723 |   |

----

Table of Contents

| ICON Leasing Fund Eleven, LLC                                                        |   |
|--------------------------------------------------------------------------------------|--------|
| (A Delaware Limited Liability Company)                                               |   |
| Consolidated Statements of Cash Flows                                                |   |
| (unaudited)                                                                          |   |
|                                                                                 |   |
|                                                                                 |   | Nine Months EndedSeptember 30, |   |
|                                                                                 |   | 2010 |   |   | 2009 |   |
|  Cash flows from operating activities:                                          |   |   |   |   |   |   |
|  Net loss                                                                       |   | $ | (19,454,342 | ) |   | $ | (22,277,061 | ) |
|  Adjustments to reconcile net loss to net cash                                  |   |   |   |   |   |   |   |   |
|   provided by operating activities:                                        |   |   |   |   |   |   |   |   |
|  Rental income paid directly to lenders by lessees                              |   |   | (9,180,000 | ) |   |   | (9,248,000 | ) |
|  Finance income                                                                 |   |   | (1,363,824 | ) |   |   | (1,988,295 | ) |
|  Income from investments in joint ventures                                      |   |   | (71,782 | ) |   |   | (77,021 | ) |
|  Net gain on sales of leased equipment                                          |   |   | - |   |   |   | (196,104 | ) |
|  Loss on assets held for sale                                                   |   |   | 120,168 |   |   |   | - |   |
|  Net loss (gain) on lease termination                                           |   |   | 218,890 |   |   |   | (14,145,129 | ) |
|  Depreciation and amortization                                                  |   |   | 31,341,166 |   |   |   | 54,509,925 |   |
|  Impairment loss                                                                |   |   | 8,836,101 |   |   |   | 36,381,554 |   |
|  Amortization of deferred time charter expense                                  |   |   | 466,331 |   |   |   | 1,591,708 |   |
|  Interest expense on non-recourse financing paid directly to lenders by lessees |   |   | 2,614,921 |   |   |   | 3,096,692 |   |
|  Interest expense from amortization of debt financing costs                     |   |   | 209,585 |   |   |   | 258,308 |   |
|  Gain on financial instruments                                                  |   |   | (1,862,430 | ) |   |   | (485,773 | ) |
|  Loss on settlement of interfund agreement                                      |   |   | 214,524 |   |   |   | - |   |
|  Deferred tax benefit                                                           |   |   | (152,367 | )  |   |   | (661,804 | ) |
|  Changes in operating assets and liabilities:                                   |   |   |   |   |   |   |   |   |
|  Collection of finance leases                                                   |   |   | 8,011,233 |   |   |   | 7,399,878 |   |
|  Accounts receivable                                                            |   |   | (418,341 | ) |   |   | (3,009,587 | ) |
|  Other assets, net                                                              |   |   | (11,963,985 | ) |   |   | (2,486,947 | ) |
|  Payables, deferred revenue and other current liabilities                       |   |   | (481,541 | ) |   |   | 882,091 |   |
|  Due to/from Manager and affiliates                                             |   |   | (165,482 | ) |   |   | 102,158 |   |
|  Distributions from joint ventures                                              |   |   | 788,828 |   |   |   | 1,877,938 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
|  Net cash provided by operating activities                                      |   |   | 7,707,653 |   |   |   | 51,524,531 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
|  Cash flows from investing activities:                                          |   |   |   |   |   |   |   |   |
|  Proceeds from sales of new and leased equipment                                |   |   | 217,600 |   |   |   | 590,832 |   |
|  Repayments of note receivable                                                  |   |   | 10,015,000 |   |   |   | - |   |
|  Other assets                                                                   |   |   | (517 | ) |   |   | - |   |
| Change in restricted cash                                                            |   |   | - |   |   |   | (1,330,299 | ) |
|  Distributions received from joint ventures in excess of profits                |   |   | 2,971,175 |   |   |   | 3,979,014 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
|  Net cash provided by investing activities                                      |   |   | 13,203,258 |   |   |   | 3,239,547 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
|  Cash flows from financing activities:                                          |   |   |   |   |   |   |   |   |
|  Repayments of non-recourse long-term debt                                      |   |   | (1,335,000 | ) |   |   | (29,190,000 | ) |
|  Proceeds from revolving line of credit, recourse                               |   |   | - |   |   |   | 2,260,000 |   |
|  Repayments of revolving line of credit, recourse                               |   |   | (2,260,000 | ) |   |   | - |   |
|  Shares of limited liability company interests repurchased                      |   |   | (333,216 | ) |   |   | (116,387 | ) |
|  Cash distributions to members                                                  |   |   | (25,005,490 | ) |   |   | (25,036,804 | ) |
|  Distributions to noncontrolling interests                                      |   |   | (2,675,814 | ) |   |   | (4,775,743 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |
|  Net cash used in financing activities                                          |   |   | (31,609,520 | ) |   |   | (56,858,934 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |
|  Effects of exchange rates on cash and cash equivalents                         |   |   | 12,961 |   |   |   | (69,977 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |
|  Net decrease in cash and cash equivalents                                      |   |   | (10,685,648 | ) |   |   | (2,164,833 | ) |
|  Cash and cash equivalents, beginning of period                                 |   |   | 18,615,323 |   |   |   | 7,670,929 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
|  Cash and cash equivalents, end of period                                       |   | $ | 7,929,675 |   |   | $ | 5,506,096 |   |

----

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| ICON Leasing Fund Eleven, LLC                                                 |   |
|-------------------------------------------------------------------------------|--------|
| (A Delaware Limited Liability Company)                                        |   |
| Consolidated Statements of Cash Flows                                         |   |
| (unaudited)                                                                   |   |
|                                                                          |   |
|                                                                          |   |
|                                                                          |   | Nine Months EndedSeptember 30, |   |
|                                                                          |   | 2010 |   |   | 2009 |   |
|  Supplemental disclosure of cash flow information:                       |   |   |   |   |   |   |
|  Cash paid during the period for interest                                |   | $ | 2,197,536 |   |   | $ | 4,151,161 |   |
|                                                                          |   |   |   |   |   |   |   |   |
|  Supplemental disclosure of non-cash investing and financing activities: |   |   |   |   |   |   |   |   |
|  Principal and interest paid on non-recourse long-term debt              |   |   |   |   |   |   |   |   |
|  directly to lenders by lessees                                          |   | $ | 9,180,000 |   |   | $ | 9,248,000 |   |
|                                                                          |   |   |   |   |   |   |   |   |
|  Deconsolidation of noncontrolling interest in connection with           |   |   |   |   |   |   |   |   |
|  the sale of a controlling interest in ICON Global Crossing, LLC         |   | $ | - |   |   | $ | 3,442,066 |   |
|                                                                          |   |   |   |   |   |   |   |   |
|  Deconsolidation of the carrying value of leased equipment in connection |   |   |   |   |   |   |   |   |
|  with the sale of a controlling interest in ICON Global Crossing, LLC    |   | $ | - |   |   | $ | 3,370,458 |   |
|                                                                          |   |   |   |   |   |   |   |   |
|  Receivable from the redemption of a controlling interest in             |   |   |   |   |   |   |   |   |
|  ICON Global Crossing, LLC                                               |   | $ | - |   |   | $ | 5,493,000 |   |
|                                                                          |   |   |   |   |   |   |   |   |
|  Investment in ICON MW, LLC                                              |   | $ | 1,051,201 |   |   | $ | - |   |

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Table of Contents

ICON Leasing Fund Eleven, LLC

| (1)   | Organization |
|-----------------|--------------|

| (2)   | Basis of Presentation and Consolidation |
|-----------------|-----------------------------------------|

----

Table of Contents

| (2)   | Basis of Presentation and Consolidation - continued |
|-----------------|-----------------------------------------------------|

----

Table of Contents

| (2)   | Basis of Presentation and Consolidation - continued |
|-----------------|-----------------------------------------------------|

| (3)   | Net Investment in Finance Leases |
|-----------------|----------------------------------|

|                                                            |   | September 30, |       |   | December 31, |   |
|-----------------------------------------------------------------|--------|---------------|------------|--------|--------------|--------|
|                                                            |   | 2010          |       |   | 2009         |   |
|  Minimum rents receivable                                  |   | $             | 16,300,552 |   |         | $      | 24,311,785 |   |
|  Estimated residual values                                 |   |          | 3,070,295  |   |         |   | 3,070,295 |   |
|  Initial direct costs, net                                 |   |          | 248,609    |   |         |   | 361,899 |   |
|  Unearned income                                           |   |          | (1,699,003 | )      |         |   | (3,062,827 | ) |
|                                                            |   |          |       |   |         |   |   |   |
|  Net investment in finance leases                          |   |          | 17,920,453 |   |         |   | 24,681,152 |   |
|                                                            |   |          |       |   |         |   |   |   |
|  Less: Current portion of net investment in finance leases |   |          | 6,460,766  |   |         |   | 9,448,439 |   |
|                                                            |   |          |       |   |         |   |   |   |
|  Net investment in finance leases, less current portion    |   | $             | 11,459,687 |   |         | $      | 15,232,713 |   |

| (4)   | Leased Equipment at Cost |
|-----------------|--------------------------|

|                                 |   | September 30, |        |   | December 31, |   |
|--------------------------------------|--------|---------------|-------------|--------|--------------|--------|
|                                 |   | 2010          |        |   | 2009         |   |
|  Marine vessels                 |   |          |        |   |         |   |
|  Container vessels              |   | $             | -           |   |         | $      | 107,353,324 |   |
|  Handymax product tankers       |   |          | 78,043,573  |   |         |   | 109,270,860 |   |
|  Aframax product tankers        |   |          | 90,798,632  |   |         |   | 90,798,632 |   |
|  Manufacturing equipment        |   |          | 25,648,079  |   |         |   | 29,100,777 |   |
|  Telecommunications equipment   |   |          | 5,579,498   |   |         |   | 5,579,498 |   |
|                                 |   |          |        |   |         |   |   |   |
|                                 |   |          | 200,069,782 |   |         |   | 342,103,091 |   |
|  Less: Accumulated depreciation |   |          | 91,484,962  |   |         |   | 158,488,912 |   |
|                                 |   |          |        |   |         |   |   |   |
|                                 |   | $             | 108,584,820 |   |         | $      | 183,614,179 |   |

----

Table of Contents

| (4)   | Leased Equipment at Cost- continued |
|-----------------|-------------------------------------|

----

Table of Contents

| (5)   | Assets Held for Sale |
|-----------------|----------------------|

----

Table of Contents

| (6)   | Promissory Note |
|-----------------|-----------------|

| (7)   | Investments in Joint Ventures |
|-----------------|-------------------------------|

| (8)   | Non-Recourse Long-Term Debt |
|-----------------|-----------------------------|

|                                                          |   | September 30, |        |   | December 31, |   |
|---------------------------------------------------------------|--------|---------------|-------------|--------|--------------|--------|
|                                                          |   | 2010          |        |   | 2009         |   |
|                                                          |   |          |        |   |         |   |
|  ICON European Container, LLC                            |   | $             | 18,882,179  |   |         | $      | 19,112,200 |   |
|  ICON European Container II, LLC                         |   |          | 26,885,232  |   |         |   | 26,905,800 |   |
|  ICON Senang, LLC                                        |   |          | 17,535,191  |   |         |   | 21,210,529 |   |
|  ICON Sebarok, LLC                                       |   |          | 17,535,191  |   |         |   | 21,210,529 |   |
|  ICON Doubtless, LLC                                     |   |          | 6,375,000   |   |         |   | 6,625,000 |   |
|  ICON Spotless, LLC                                      |   |          | 6,375,000   |   |         |   | 6,625,000 |   |
|  ICON Faithful, LLC                                      |   |          | 6,375,000   |   |         |   | 6,625,000 |   |
|  Isomar Marine Company Limited                           |   |          | 6,375,000   |   |         |   | 6,625,000 |   |
|                                                          |   |          |        |   |         |   |   |   |
|  Total non-recourse long-term debt                       |   |          | 106,337,793 |   |         |   | 114,939,058 |   |
|                                                          |   |          |        |   |         |   |   |   |
|  Less: Current portion of non-recourse long-term debt    |   |          | 22,379,331  |   |         |   | 43,603,558 |   |
|                                                          |   |          |        |   |         |   |   |   |
|  Total non-recourse long-term debt, less current portion |   | $             | 83,958,462  |   |         | $      | 71,335,500 |   |

----

Table of Contents

| (8)   | Non-Recourse Long-Term Debt - continued |
|-----------------|-----------------------------------------|

| For the period October 1 to December 31, 2010 |   | $      | 16,012,293  |   |
|-----------------------------------------------|--------|--------|-------------|--------|
| For the year ending December 31, 2011         |   |   | 17,366,800  |   |
| For the year ending December 31, 2012         |   |   | 36,685,700  |   |
| For the year ending December 31, 2013         |   |   | 5,325,000   |   |
| For the year ending December 31, 2014         |   |   | 30,948,000  |   |
|                                          |   | $      | 106,337,793 |   |

| (9)   | Revolving Line of Credit, Recourse |
|-----------------|------------------------------------|

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Table of Contents

| (10)   | Foreign Income Taxes |
|------------------|----------------------|

| (11)   | Transactions with Related Parties |
|------------------|-----------------------------------|

----

Table of Contents

| (11)   | Transactions with Related Parties - continued |
|------------------|----------------------------------------------------|

|                                                                                                                                                                                           |   |           |   |                                            |   | Three Months Ended September 30, |    |   | Nine Months Ended September 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|-------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
|  Entity                                                                                                                                                                                   |   |  Capacity |   |  Description                               |   | 2010                             |    |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
|  ICON Capital Corp.                                                                                                                                                                       |   |  Manager  |   |  Management fees (1) (2)                   |   | $                                | -       |   |                            | $      | 170,170 |   |   | $ | 541,090 |   |   | $ | 2,185,858 |   |
|  ICON Capital Corp.                                                                                                                                                                       |   |  Manager  |   |  Administrative expense reimbursements (1) |   |                             | 277,723 |   |                            |   | 321,758 |   |   |   | 1,122,718 |   |   |   | 1,607,232 |   |
|                                                                                                                                                                                           |   |           |   |                                            |   | $                                | 277,723 |   |                            | $      | 491,928 |   |   | $ | 1,663,808 |   |   | $ | 3,793,090 |   |
|                                                                                                                                                                                           |   |
| (1) Charged directly to operations.                                                                                                                                                       |   |
| (2) The Manager suspended the collection of a portion of its management fees in the amount of $552,161 and $1,044,850 during the three and nine months ended September 30, 2010, respectively. |   |

| (12)   | Derivative Financial Instruments |
|------------------|----------------------------------|

----

Table of Contents

| (12)   | Derivative Financial Instruments - continued |
|------------------|----------------------------------------------|

----

Table of Contents

| (12)   | Derivative Financial Instruments - continued |
|------------------|----------------------------------------------|

|                                                                                              |                     |   | Asset Derivatives |   |   |         | Liability Derivatives |                   |
|---------------------------------------------------------------------------------------------------|--------------------------|--------|-------------------|--------|--------|--------------|-----------------------|------------------------|
|                                                                                              |                     |   | September 30,     |   |   | December 31, |                  |                   |   | September 30, |   |   | December 31, |   |
|                                                                                              |                     |   | 2010              |   |   | 2009         |                  |                   |   | 2010 |   |   | 2009 |   |
|                                                                                              | Balance Sheet Location   |   | Fair Value        |   |   | Fair Value   |                  | Balance Sheet Location |   | Fair Value |   |   | Fair Value |   |
|  Derivatives designated as hedging instruments:                                         |                     |   |              |   |   |         |                  |                   |   |   |   |   |   |   |
|              Interest rate swaps |                     |   | $                 | -      |   |         | $                     | -                      |   | Derivative instruments |   | $ | 2,323,055 |   |   | $ | 3,942,837 |   |
|                                                                                              |                     |   |              |   |   |         |                  |                   |   |   |   |   |   |   |   |   |   |   |
|  Derivatives not designated as hedging instruments:                                     |                     |   |              |   |   |         |                  |                   |   |   |   |   |   |   |   |   |   |   |
|              Interest rate swaps |                     |   | $                 | -      |   |         | $                     | -                      |   | Derivative instruments |   | $ | 572,703 |   |   | $ | 1,106,490 |   |
|              Warrants            | Other non-current assets |   | $                 | 72,962 |   |         | $                     | 79,371                 |   |   |   | $ | - |   |   | $ | - |   |

| Three Months Ended September 30, 2010 |   |                                                                      |    |                                                                          |                   |                                                                   |   |                                                                                                                            |   |
|---------------------------------------|--------|---------------------------------------------------------------------------|---------|-------------------------------------------------------------------------------|------------------------|------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   |                                                                      |    |                                                                          |                   |                                                                   |   |                                                                                                                            |   |   |   |
| Derivatives                           |   | Amount of Gain (Loss) Recognizedin AOCI on Derivative (Effective Portion) |    | Location of Gain (Loss) Reclassifiedfrom AOCI into Income (Effective Portion) |                   | Gain (Loss) Reclassified fromAOCI into Income (Effective Portion) |   | Location of Gain (Loss) Recognized in Incomeon Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing) |   | Gain (Loss) Recognized in Incomeon Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing) |   |
|                                  |   |                                                                      |    |                                                                          |                   |                                                                   |   |                                                                                                                            |   |   |   |
| Interest rate swaps                   |   | $                                                                         | (30,195 | )                                                                             |  Interest expense |                                                                   | $      | (739,344                                                                                                                        | )      |  Gain (loss) on financial instruments |   | $ | - |   |

| Nine Months Ended September 30, 2010 |   |                                                                      |       |                                                                          |                   |                                                                   |   |                                                                                                                            |   |
|--------------------------------------|--------|---------------------------------------------------------------------------|------------|-------------------------------------------------------------------------------|------------------------|------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|
|                                 |   |                                                                      |       |                                                                          |                   |                                                                   |   |                                                                                                                            |   |   |   |
| Derivatives                          |   | Amount of Gain (Loss) Recognizedin AOCI on Derivative (Effective Portion) |       | Location of Gain (Loss) Reclassifiedfrom AOCI into Income (Effective Portion) |                   | Gain (Loss) Reclassified fromAOCI into Income (Effective Portion) |   | Location of Gain (Loss) Recognized in Incomeon Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing) |   | Gain (Loss) Recognized in Incomeon Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing) |   |
|                                 |   |                                                                      |       |                                                                          |                   |                                                                   |   |                                                                                                                            |   |   |   |
| Interest rate swaps                  |   | $                                                                         | (1,280,796 | )                                                                             |  Interest expense |                                                                   | $      | (2,351,127                                                                                                                      | )      |  Gain (loss) on financial instruments |   | $ | - |   |

----

Table of Contents

| (12)   | Derivative Financial Instruments - continued |
|------------------|----------------------------------------------|

| Three Months Ended September 30, 2009 |   |                                                                      |     |                                                                          |                   |                                                                   |   |                                                                                                                            |   |
|---------------------------------------|--------|---------------------------------------------------------------------------|----------|-------------------------------------------------------------------------------|------------------------|------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   |                                                                      |     |                                                                          |                   |                                                                   |   |                                                                                                                            |   |   |   |
| Derivatives                           |   | Amount of Gain (Loss) Recognizedin AOCI on Derivative (Effective Portion) |     | Location of Gain (Loss) Reclassifiedfrom AOCI into Income (Effective Portion) |                   | Gain (Loss) Reclassified fromAOCI into Income (Effective Portion) |   | Location of Gain (Loss) Recognized in Incomeon Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing) |   | Gain (Loss) Recognized in Incomeon Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing) |   |
|                                  |   |                                                                      |     |                                                                          |                   |                                                                   |   |                                                                                                                            |   |   |   |
| Interest rate swaps                   |   | $                                                                         | (246,172 | )                                                                             |  Interest expense |                                                                   | $      | (920,242                                                                                                                        | )      |  Gain (loss) on financial instruments |   | $ | - |   |
|                                  |   |                                                                      |     |                                                                          |                   |                                                                   |   |                                                                                                                            |   |   |   |   |   |   |

| Nine Months Ended September 30, 2009 |   |                                                                      |     |                                                                          |                   |                                                                   |   |                                                                                                                            |   |
|--------------------------------------|--------|---------------------------------------------------------------------------|----------|-------------------------------------------------------------------------------|------------------------|------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|
|                                 |   |                                                                      |     |                                                                          |                   |                                                                   |   |                                                                                                                            |   |   |   |
| Derivatives                          |   | Amount of Gain (Loss) Recognizedin AOCI on Derivative (Effective Portion) |     | Location of Gain (Loss) Reclassifiedfrom AOCI into Income (Effective Portion) |                   | Gain (Loss) Reclassified fromAOCI into Income (Effective Portion) |   | Location of Gain (Loss) Recognized in Incomeon Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing) |   | Gain (Loss) Recognized in Incomeon Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing) |   |
|                                 |   |                                                                      |     |                                                                          |                   |                                                                   |   |                                                                                                                            |   |   |   |
| Interest rate swaps                  |   | $                                                                         | (166,073 | )                                                                             |  Interest expense |                                                                   | $      | (3,687,880                                                                                                                      | )      |  Gain (loss) on financial instruments |   | $ | - |   |
|                                 |   |                                                                      |     |                                                                          |                   |                                                                   |   |                                                                                                                            |   |   |   |   |   |   |

----

Table of Contents

| (12)   | Derivative Financial Instruments - continued |
|------------------|----------------------------------------------|

| (13)   | Accumulated Other Comprehensive Loss |
|------------------|--------------------------------------|

| (14)   | Fair Value Measurements |
|------------------|-------------------------|

| ·   | 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. |
|--------------------|----------------------------------------------------------------------------------------------------|

----

Table of Contents

| (14)   | Fair Value Measurements - continued |
|------------------|-------------------------------------|

|                                                                                                   |   | Level 1 |   |   | Level 2 |   |      | Level 3 |   |   | Total  |   |
|--------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|---------|--------|-----------|---------|--------|--------|--------|--------|
| Assets:                                                                                                |   |    |   |   |    |   |      |    |   |   |   |   |
|                                                                                                   |   |    |   |   |    |   |      |    |   |   |   |   |
| Warrants                                                                                               |   | $       | -      |   |    | $      | 72,962    |    |   | $      | -      |   |   | $ | 72,962 |   |
|                                                                                                   |   |    |   |   |    |   |      |    |   |   |   |   |   |   |   |   |
| Liabilities:                                                                                           |   |    |   |   |    |   |      |    |   |   |   |   |   |   |   |   |
|                                                                                                   |   |    |   |   |    |   |      |    |   |   |   |   |   |   |   |   |
| Derivative liabilities                                                                                 |   | $       | -      |   |    | $      | 2,895,758 |    |   | $      | -      |   |   | $ | 2,895,758 |   |
|                                                                                                   |   |    |   |   |    |   |      |    |   |   |   |   |   |   |   |   |
|                                                                                                   |   |    |   |   |    |   |      |    |   |   |   |   |   |   |   |   |
| (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.                                                        |   |

|                                                                                                   |   | September 30, 2010 |       |   | Level 1 |   |   | Level 2 |   |   | Level 3   |   |   | Total Impairment Loss |       |
|--------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|---------|--------|--------|---------|--------|--------|-----------|--------|--------|-----------------------|------------|
| Assets held for sale, net                                                                              |   | $                  | 7,916,826  |   |    | $      | -      |    |   | $      | 7,916,826 |   |   | $                     | -          |   |   | $ | 919,686 |   |
| Leased equipment at cost                                                                               |   |               | 19,831,641 |   |    |   | -      |    |   |   | -         |   |   |                  | 19,831,641 |   |   |   | 7,916,415 |   |
|                                                                                                   |   |               |       |   |    |   |   |    |   |   |      |   |   |                  |       |   |   |   |   |   |
| (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. |   |               |       |   |    |

----

Table of Contents

| (14)   | Fair Value Measurements - continued |
|------------------|-------------------------------------|

|                                  |   | September 30, 2010 |       |
|---------------------------------------|--------|--------------------|------------|
|                                  |   | Carrying Amount    |       |   | Fair Value |   |
|                                  |   |               |       |   |   |   |
| Non-recourse long-term debt           |   | $                  | 7,070,422  |   |   | $ | 7,010,714 |   |
| Mortgage note and interest receivable |   | $                  | 13,968,180 |   |   | $ | 17,235,692 |   |

| (15)   | Commitments and Contingencies |
|------------------|-------------------------------|

| (16)   | Subsequent Event |
|------------------|------------------|

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

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|                                                   |   | Three Months Ended September 30, |       |   |   |   |
|--------------------------------------------------------|--------|----------------------------------|------------|--------|--------|--------|
|                                                   |   | 2010                             |       |   | 2009   |   |   | Change |   |
|  Rental income                                    |   | $                                | 9,134,541  |   |   | $      | 15,070,264 |   |   | $ | (5,935,723 | ) |
|  Time charter revenue                             |   |                             | 2,571,479  |   |   |   | 2,722,356 |   |   |   | (150,877 | ) |
|  Finance income                                   |   |                             | 390,285    |   |   |   | 609,698 |   |   |   | (219,413 | ) |
|  Income (loss) from investments in joint ventures |   |                             | 216,134    |   |   |   | (1,209,275 | ) |   |   | 1,425,409 |   |
|  Gain on settlement of interfund agreement        |   |                             | 1,141,214  |   |   |   | - |   |   |   | 1,141,214 |   |
|  Net gain on sales of leased equipment            |   |                             | -          |   |   |   | 120,919 |   |   |   | (120,919 | ) |
|  Net loss on lease termination                    |   |                             | -          |   |   |   | (478,925 | ) |   |   | 478,925 |   |
|  Interest and other income                        |   |                             | 789,553    |   |   |   | 911,292 |   |   |   | (121,739 | ) |
|                                                   |   |                             |       |   |   |   |   |   |   |   |   |   |
|  Total revenue                                    |   | $                                | 14,243,206 |   |   | $      | 17,746,329 |   |   | $ | (3,503,123 | ) |

|                                                  |   | Three Months Ended September 30, |       |   |   |   |
|-------------------------------------------------------|--------|----------------------------------|------------|--------|--------|--------|
|                                                  |   | 2010                             |       |   | 2009   |   |   | Change |   |
|  Management fees - Manager                       |   | $                                | -          |   |   | $      | 170,170 |   |   | $ | (170,170 | ) |
|  Administrative expense reimbursements - Manager |   |                             | 277,723    |   |   |   | 321,758 |   |   |   | (44,035 | ) |
|  General and administrative                      |   |                             | 2,098,488  |   |   |   | 406,028 |   |   |   | 1,692,460 |   |
|  Vessel operating expense                        |   |                             | 3,034,607  |   |   |   | 5,678,590 |   |   |   | (2,643,983 | ) |
|  Interest                                        |   |                             | 1,731,381  |   |   |   | 2,469,289 |   |   |   | (737,908 | ) |
|  Depreciation and amortization                   |   |                             | 10,618,410 |   |   |   | 25,497,158 |   |   |   | (14,878,748 | ) |
|  Impairment loss                                 |   |                             | 8,318,669  |   |   |   | 36,381,554 |   |   |   | (28,062,885 | ) |
|  Gain on financial instruments                   |   |                             | (269,864   | )      |   |   | (54,790 | ) |   |   | (215,074 | ) |
|                                                  |   |                             |       |   |   |   |   |   |   |   |   |   |
|  Total expenses                                  |   | $                                | 25,809,414 |   |   | $      | 70,869,757 |   |   | $ | (45,060,343 | ) |

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|                                            |   | Nine Months Ended September 30, |       |   |   |   |
|-------------------------------------------------|--------|---------------------------------|------------|--------|--------|--------|
|                                            |   | 2010                            |       |   | 2009   |   |   | Change |   |
|  Rental income                             |   | $                               | 27,747,200 |   |   | $      | 54,049,093 |   |   | $ | (26,301,893 | ) |
|  Time charter revenue                      |   |                            | 8,282,958  |   |   |   | 3,023,317 |   |   |   | 5,259,641 |   |
|  Finance income                            |   |                            | 1,363,824  |   |   |   | 1,988,295 |   |   |   | (624,471 | ) |
|  Income from investments in joint ventures |   |                            | 71,782     |   |   |   | 77,021 |   |   |   | (5,239 | ) |
|  Loss on settlement of interfund agreement |   |                            | (214,524   | )      |   |   | - |   |   |   | (214,524 | ) |
|  Net gain on sales of leased equipment     |   |                            | -          |   |   |   | 196,104 |   |   |   | (196,104 | ) |
|  Loss on assets held for sale              |   |                            | (120,168   | )      |   |   | - |   |   |   | (120,168 | ) |
|  Net (loss) gain on lease termination      |   |                            | (218,890   | )      |   |   | 25,659,491 |   |   |   | (25,878,381 | ) |
|  Interest and other income                 |   |                            | 2,985,123  |   |   |   | 2,556,319 |   |   |   | 428,804 |   |
|                                            |   |                            |       |   |   |   |   |   |   |   |   |   |
|  Total revenue                             |   | $                               | 39,897,305 |   |   | $      | 87,549,640 |   |   | $ | (47,652,335 | ) |

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|                                                  |   | Nine Months Ended September 30, |       |   |   |   |
|-------------------------------------------------------|--------|---------------------------------|------------|--------|--------|--------|
|                                                  |   | 2010                            |       |   | 2009   |   |   | Change |   |
|  Management fees - Manager                       |   | $                               | 541,090    |   |   | $      | 2,185,858 |   |   | $ | (1,644,768 | ) |
|  Administrative expense reimbursements - Manager |   |                            | 1,122,718  |   |   |   | 1,607,232 |   |   |   | (484,514 | ) |
|  General and administrative                      |   |                            | 3,710,490  |   |   |   | 1,603,889 |   |   |   | 2,106,601 |   |
|  Vessel operating expense                        |   |                            | 9,652,665  |   |   |   | 5,992,455 |   |   |   | 3,660,210 |   |
|  Interest                                        |   |                            | 5,808,188  |   |   |   | 7,795,762 |   |   |   | (1,987,574 | ) |
|  Depreciation and amortization                   |   |                            | 31,341,166 |   |   |   | 54,509,925 |   |   |   | (23,168,759 | ) |
|  Impairment loss                                 |   |                            | 8,836,101  |   |   |   | 36,381,554 |   |   |   | (27,545,453 | ) |
|  Gain on financial instruments                   |   |                            | (1,862,430 | )      |   |   | (76,773 | ) |   |   | (1,785,657 | ) |
|                                                  |   |                            |       |   |   |   |   |   |   |   |   |   |
|  Total expenses                                  |   | $                               | 59,149,988 |   |   | $      | 109,999,902 |   |   | $ | (50,849,914 | ) |

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|                                                   |   | Nine Months Ended September 30, |        |
|--------------------------------------------------------|--------|---------------------------------|-------------|
|                                                   |   | 2010                            |        |   | 2009 |   |
|                                                   |   |                            |        |   |   |   |
| Net cash provided by (used in):                        |   |                            |        |   |   |   |
|                                                   |   |                            |        |   |   |   |
| Operating activities                                   |   | $                               | 7,707,653   |   |   | $ | 51,524,531 |   |
| Investing activities                                   |   |                            | 13,203,258  |   |   |   | 3,239,547 |   |
| Financing activities                                   |   |                            | (31,609,520 | ) |   |   | (56,858,934 | ) |
| Effects of exchange rates on cash and cash equivalents |   |                            | 12,961      |   |   |   | (69,977 | ) |
|                                                   |   |                            |        |   |   |   |   |   |
| Net decrease in cash and cash equivalents              |   | $                               | (10,685,648 | ) |   | $ | (2,164,833 | ) |

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Item 4. Controls and Procedures

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PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

Item 1A.  Risk Factors

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

Item 3.  Defaults Upon Senior Securities

Item 4.  (Removed and Reserved)

Item 5.  Other Information

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Item 6. Exhibits

| 3.1        | Certificate of Formation of Registrant (Incorporated by reference to Exhibit 3.1 to Amendment No. 1 to the Registration Statement on Form S-1 filed with the SEC on February 15, 2005 (File No. 333-121790)).                                                                                                                                                                                                                                                                                     |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.1        | Amended and Restated Limited Liability Company Agreement of Registrant (Incorporated by reference to Exhibit 4.1 to Amendment No. 1 to the Registration Statement on Form S-1 filed with the SEC on June 29, 2006 (File No. 333-133730)).                                                                                                                                                                                                                                                         |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.2   | Amendment No. 1 to the Amended and Restated Limited Liability Company Agreement of Registrant (Incorporated by reference to Exhibit 4.3 to Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006, filed August 23, 2006).                                                                                                                                                                                                                                 |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 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 16, 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 10.3 to Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2008, filed June 6, 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.                                                                                                                                                                                                                                                                                                                                                  |

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SIGNATURES

| By: /s/ Michael A. Reisner                                                                                                                                      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        Michael A. Reisner                                                                                                    |
|        Co-Chief Executive Officer and Co-President       (Co-Principal Executive Officer) |

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

| By: /s/ Anthony J. Branca                                                                                                                               |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|        Anthony J. Branca                                                                                             |
|        Chief Financial Officer       (Principal Accounting and Financial Officer) |

| 35 |
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