Document:

Exhibit 10.2

                                                                  EXECUTION COPY

                            INDEMNIFICATION AGREEMENT

                                      among

                       FINANCIAL SECURITY ASSURANCE INC.,

                    LONG BEACH ACCEPTANCE RECEIVABLES CORP.,

                          CITIGROUP GLOBAL MARKETS INC.

                                       and

                         GREENWICH CAPITAL MARKETS, INC.

                         Dated as of September 20, 2006

               Long Beach Acceptance Auto Receivables Trust 2006-B

                $100,000,000 5.37% Asset Backed Notes, Class A-1,
                $137,000,000 5.34% Asset Backed Notes, Class A-2,
                $147,000,000 5.17% Asset Backed Notes, Class A-3,
                $116,000,000 5.18% Asset Backed Notes, Class A-4
<PAGE>

Section 1.  Definitions ...................................................... 1

Section 2.  Representations, Warranties and Agreements of
            Financial Security ................................................3

Section 3.  Representations, Warranties and Agreements of
            the Underwriters ..................................................6

Section 4.  Indemnification .................................................. 7

Section 5.  Indemnification Procedures ....................................... 8

Section 6.  Contribution ..................................................... 9

Section 7.  Miscellaneous ................................................... 10

EXHIBIT A - Opinion of Associate General Counsel
<PAGE>

                            INDEMNIFICATION AGREEMENT

            INDEMNIFICATION AGREEMENT, dated as of September 20, 2006, among
FINANCIAL SECURITY ASSURANCE INC. ("Financial Security"), LONG BEACH ACCEPTANCE
RECEIVABLES CORP. (the "Company"), CITIGROUP GLOBAL MARKETS INC., ("Citigroup")
and GREENWICH CAPITAL MARKETS, INC. ("RBS GC" and, together with Citigroup, the
"Underwriters"):

            Section 1. Definitions. For purposes of this Agreement, the
following terms shall have the meanings provided below:

            "Agreement" means this Indemnification Agreement, as the same may be
amended, supplemented or otherwise modified from time to time in accordance with
the terms hereof.

            "Commission" means the Securities and Exchange Commission.

            "Company Party" means any of the Company, its parent, subsidiaries
and affiliates and any shareholder, director, officer, employee, agent or
"controlling person" (as such term is used in the Securities Act) of any of the
foregoing.

            "Federal Securities Laws" means the Securities Act, the Securities
Exchange Act of 1934, the Trust Indenture Act of 1939, the Investment Company
Act of 1940, the Investment Advisers Act of 1940 and the Public Utility Holding
Company Act of 1935, each as amended from time to time, and the rules and
regulations in effect from time to time under such Acts.

            "Financial Security Agreements" means this Agreement, the Spread
Account Agreement and the Insurance Agreement.

            "Financial Security Information" has the meaning provided in Section
2(g) hereof.

            "Financial Security Party" means any of Financial Security, its
parent, subsidiaries and affiliates, and any shareholder, director, officer,
employee, agent or "controlling person" (as such term is used in the Securities
Act) of any of the foregoing.

            "Free Writing Prospectus" means the Free Writing Prospectus dated
September 18, 2006 relating to the Securities.

            "Indemnified Party" means any party entitled to any indemnification
pursuant to Section 4 hereof.

            "Indemnifying Party" means any party required to provide
indemnification pursuant to Section 4 hereof.
<PAGE>

            "Insurance Agreement" means the Insurance and Indemnity Agreement,
dated as of September 1, 2006, among Financial Security, the Company and LBAC,
and Long Beach Acceptance Auto Receivables Trust 2006-B as the same may be
amended, supplemented or otherwise modified from time to time in accordance with
the terms thereof.

            "LBAC" means Long Beach Acceptance Corp., a Delaware Corporation.

            "Losses" means (a) any actual out-of-pocket damages incurred by the
party entitled to indemnification or contribution hereunder, (b) any actual
out-of-pocket costs or expenses incurred by such party, including reasonable
fees or expenses of its counsel and other expenses incurred in connection with
investigating or defending any claim, action or other proceeding which entitle
such party to be indemnified hereunder (subject to the limitations set forth in
Section 5 hereof), to the extent not paid, satisfied or reimbursed from funds
provided by any other Person other than an affiliate of such party (provided
that the foregoing shall not create or imply any obligation to pursue recourse
against any such other Person), plus (c) interest on the amount paid by the
party entitled to indemnification or contribution from the date of such payment
to the date of payment by the party who is obligated to indemnify or contribute
hereunder at the statutory rate applicable to judgments for breach of contract.

            "Offering Document" means the Prospectus, Prospectus Supplement, the
Free Writing Prospectus and any other material or documents delivered by the
Underwriters or any Underwriter Party to any Person in connection with the offer
or sale of the Securities.

            "Person" means any individual, partnership, joint venture,
corporation, trust, unincorporated organization, limited liability company,
limited liability partnership or other organization or entity (whether
governmental or private).

            "Policy" means the financial guaranty insurance policy delivered by
Financial Security with respect to the Securities.

            "Prospectus" means, collectively, the Prospectus relating to the
Securities dated March 31, 2006, and the Prospectus Supplement.

            "Prospectus Supplement" means the Prospectus Supplement dated
September 25, 2006 relating to the Securities.

            "Rating Agencies" has the meaning provided in the last paragraph of
Section 2 hereof.

            "Representative" means Citigroup as representative of the
Underwriters.

            "Securities" means the Long Beach Acceptance Auto Receivables Trust
2006-B $100,000,000 5.37% Asset Backed Notes, Class A-1, $137,000,000 5.34%
Asset

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<PAGE>

Backed Notes, Class A-2, $147,000,000 5.17% Asset Backed Notes, Class A-3, and
$116,000,000 5.18% Asset Backed Notes, Class A-4, each as described in the
Prospectus Supplement and covered by the Policy.

            "Securities Act" means the Securities Act of 1933, as amended from
time to time, and any rule or regulation in effect from time to time under such
Act.

            "Spread Account Agreement" means the Master Spread Account
Agreement, dated as of September 1, 2006 among the Company, the Collateral Agent
specified therein, Financial Security and the Trustee specified therein, as the
same may be amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof.

            "Underwriters" means Citigroup and RBS GC.

            "Underwriter Information" has the meaning provided in Section 3(c)
hereof.

            "Underwriter Party" means any of the Underwriters, its respective
parent, subsidiaries and affiliates and any shareholder, director, officer,
employee, or agent of the "controlling person" (as such item is used in the
Securities Act) of any of the foregoing.

            "Underwriting Agreement" means the Underwriting Agreement dated as
of September 20, 2006 among the Company, LBAC and the Underwriters with respect
to the offer and sale of the Securities, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with the
terms thereof.

            Section 2. Representations, Warranties and Agreements of Financial
Security. Financial Security represents, warrants and agrees with the parties
hereto as follows:

                  (a) Organization, Etc. Financial Security is a stock insurance
            company duly organized, validly existing and authorized to transact
            financial guaranty insurance business under the laws of the State of
            New York.

                  (b) Authorization, Etc. The Policy and the Financial Security
            Agreements have been duly authorized, executed and delivered by
            Financial Security.

                  (c) Validity, Etc. The Policy and the Financial Security
            Agreements constitute valid and binding obligations of Financial
            Security, enforceable against Financial Security in accordance with
            their terms, subject, as to the enforcement of remedies, to
            bankruptcy, insolvency, reorganization, rehabilitation, moratorium
            and other similar laws affecting the enforceability of creditors'
            rights generally applicable in the event

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<PAGE>

            of the bankruptcy or insolvency of Financial Security and to the
            application of general principles of equity and subject, in the case
            of this Agreement, to principles of public policy limiting the right
            to enforce the indemnification provisions contained herein.

                  (d) Exemption From Registration. The Policy is exempt from
            registration under the Securities Act.

                  (e) No Conflicts. Neither the execution or delivery by
            Financial Security of the Policy or the Financial Security
            Agreements, nor the performance by Financial Security of its
            obligations thereunder, will conflict with any provision of the
            certificate of incorporation or the bylaws of Financial Security nor
            result in a breach of, or constitute a default under, any material
            agreement or other instrument to which Financial Security is a party
            or by which any of its property is bound nor violate any judgment,
            order or decree applicable to Financial Security of any governmental
            or regulatory body, administrative agency, court or arbitrator
            having jurisdiction over Financial Security (except that, in the
            published opinion of the Securities and Exchange Commission, the
            indemnification provisions of this Agreement, insofar as they relate
            to indemnification for liabilities arising under the Securities Act,
            are against public policy as expressed in the Securities Act and are
            therefore unenforceable).

                  (f) Financial Information. The consolidated balance sheets of
            Financial Security as of December 31, 2005 and December 31, 2004 and
            the related consolidated statements of income, changes in
            shareholder's equity and cash flows for the fiscal years then ended,
            and the interim consolidated balance sheets for Financial Security
            as of March 31, 2006 and June 30, 2006, and the related statements
            of income, changes in shareholders equity and cash flows for the
            interim period then ended, furnished by Financial Security to the
            Underwriters fairly present in all material respects the financial
            condition of Financial Security as of such dates and for such
            periods in accordance with generally accepted accounting principles
            consistently applied (subject as to interim statements to normal
            year-end adjustments) and since the date of the most current interim
            consolidated balance sheet referred to above there has been no
            change in the financial condition of Financial Security which would
            materially and adversely affect its ability to perform its
            obligations under the Policy.

                  (g) Financial Security Information. The information in the
            Prospectus Supplement set forth under the caption "THE INSURER" (as
            revised from time to time in accordance with the provisions hereof,
            the "Financial Security Information") is limited and does not
            purport to provide the scope of disclosure required to be included
            in a prospectus

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<PAGE>

            with respect to a registrant in connection with the offer and sale
            of securities of such registrant registered under the Securities
            Act. Within such limited scope of disclosure, however, as of the
            date of the Prospectus Supplement and as of the date hereof, the
            Financial Security Information does not contain any untrue statement
            of a material fact, or omit to state a material fact necessary to
            make the statements contained therein, in the light of the
            circumstances under which they were made, not misleading.

                  (h) Additional Information. Financial Security will furnish to
            the Underwriters or the Company, upon request of the Underwriters or
            the Company, as the case may be, copies of Financial Security's most
            recent financial statements (annual or interim, as the case may be)
            which fairly present in all material respects the financial
            condition of Financial Security as of the dates and for the periods
            indicated, in accordance with generally accepted accounting
            principles consistently applied except as noted therein (subject, as
            to interim statements, to normal year-end adjustments). In addition,
            if the delivery of a Prospectus relating to the Securities is
            required at any time prior to the expiration of nine months after
            the time of issuance of the Prospectus in connection with the
            offering or sale of the Securities, the Company or the Underwriters
            will notify Financial Security of such requirement to deliver a
            Prospectus and Financial Security will promptly provide the
            Underwriters and the Company with any revisions to the Financial
            Security Information that are in the judgment of Financial Security
            reasonably necessary to prepare a supplement to the Prospectus.

                  (i) Opinion of Counsel. Financial Security will furnish to the
            Underwriters and the Company, on the closing date for the sale of
            the Securities, an opinion of its Assistant General Counsel, to the
            effect set forth in Exhibit A attached hereto, dated such closing
            date and addressed to the Company and the Underwriters.

                  (j) Consents and Reports of Independent Accountants. Financial
            Security will furnish to the Underwriters and the Company, upon
            request, as comfort from its independent accountants in respect of
            its financial condition (i) at the expense of the Person specified
            in the Insurance Agreement, a copy of the Prospectus, including
            either a manually signed consent or a manually signed report of
            Financial Security's independent accountants and (ii) the quarterly
            review letter by Financial Security's independent accountants in
            respect of the most recent interim financial statements of Financial
            Security.

            Nothing in this Agreement shall be construed as a representation or
warranty by Financial Security concerning the rating of its insurance financial
strength by Fitch Ratings, Moody's Investors Service, Inc., Standard & Poor's
and Rating and Investment Information, Inc. or any other rating assigned by a
rating agency (collectively, the

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<PAGE>

"Rating Agencies"). The Rating Agencies, in assigning such ratings, take into
account facts and assumptions not described in the Prospectus and the facts and
assumptions which are considered by the Rating Agencies, and the ratings issued
thereby, are subject to change over time.

            Section 3. Representations, Warranties and Agreements of the
Underwriters. Each of the Underwriters represents, warrants and agrees with the
parties hereto as follows:

                  (a) Compliance With Laws. Such Underwriter will comply in all
            material respects with all legal requirements in connection with
            offers and sales of the Securities and make such offers and sales in
            the manner provided in any Offering Document.

                  (b) Offering Document. Such Underwriter will not use, or
            distribute to other broker-dealers for use, any Offering Document in
            connection with the offer and sale of the Securities unless such
            Offering Document includes such information as has been furnished by
            Financial Security for inclusion therein and the information therein
            concerning Financial Security has been approved by Financial
            Security in writing. Financial Security hereby consents to the
            information in respect of Financial Security included in the Free
            Writing Prospectus and the Prospectus Supplement. Each Offering
            Document will include the following statement:

      "The Policy is not covered by the property/casualty insurance security
      fund specified in Article 76 of the New York Insurance Law".

      Each Offering Document including financial statements (other than
financial information included in the Financial Security Information) with
respect to Financial Security prepared in accordance with generally accepted
accounting principles will include the following statement immediately preceding
such financial statements:

      "The New York State Insurance Department recognizes only statutory
      accounting practices for determining and reporting the financial condition
      and results of operations of an insurance company, for determining its
      solvency under the New York Insurance Law, and for determining whether its
      financial condition warrants the payment of a dividend to its
      stockholders. No consideration is given by the New York State Insurance
      Department to financial statements prepared in accordance with generally
      accepted accounting principles in making such determinations."

                  (c) Underwriter Information. With respect to any Underwriter,
            all material provided by such Underwriter for inclusion in any
            Offering Document (as revised from time to time and certified by
            such Underwriter in writing to constitute Underwriter Information,
            the "Underwriter

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<PAGE>

            Information"), insofar as such information relates to such
            Underwriter, is true and correct in all material respects. In
            respect of the Prospectus Supplement, the Underwriter Information
            with respect to such Underwriter is limited to the information
            relating to such Underwriter set forth (i) in the body of the
            Prospectus Supplement under the caption "Method of Distribution" the
            first, second and last paragraph and (ii) any other information
            certified in writing by such Underwriter to be Underwriter
            Information.

            Section 4. Indemnification.

                  (a) Financial Security agrees, upon the terms and subject to
            the conditions provided herein, to indemnify, defend and hold
            harmless each Company Party and each Underwriter Party against (i)
            any and all Losses incurred by them with respect to the offer and
            sale of the Securities and resulting from Financial Security's
            breach of any of its representations, warranties or agreements set
            forth in Section 2 hereof and (ii) any and all Losses to which any
            Company Party or Underwriter Party may become subject, under the
            Securities Act or otherwise, insofar as such Losses arise out of or
            result from an untrue statement of a material fact contained in any
            Offering Document or the omission to state therein a material fact
            required to be stated therein or necessary to make the statements
            therein not misleading, in each case to the extent, but only to the
            extent, that such untrue statement or omission was made in the
            Financial Security Information included therein in accordance with
            the provisions hereof.

                  (b) Each of the Underwriters agrees, severally and not
            jointly, upon the terms and subject to the conditions provided
            herein, to indemnify, defend and hold harmless each Financial
            Security Party against (i) any and all Losses incurred by them with
            respect to the offer and sale of the Securities and resulting from
            such Underwriter's breach of any of its representations, warranties
            or agreements set forth in Section 3 hereof and (ii) any and all
            Losses to which any Financial Security Party may become subject,
            under the Securities Act or otherwise, insofar as such Losses arise
            out of or result from an untrue statement of a material fact
            contained in any Offering Document or the omission to state therein
            a material fact required to be stated therein or necessary to make
            the statements therein not misleading, in each case to the extent,
            but only to the extent, that such untrue statement or omission was
            made in the Underwriter Information with respect to such Underwriter
            included therein.

                  (c) Upon the incurrence of any Losses for which a party is
            entitled to indemnification hereunder, the Indemnifying Party shall
            reimburse the

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<PAGE>

            Indemnified Party promptly upon establishment by the Indemnified
            Party to the Indemnifying Party of the Losses incurred.

            Section 5. Indemnification Procedures. Except as provided below in
Section 6 with respect to contribution, the indemnification provided herein by
an Indemnifying Party shall be the exclusive remedy of any and all Indemnified
Parties for the breach of a representation, warranty or agreement hereunder by
an Indemnifying Party; provided, however, that each Indemnified Party shall be
entitled to pursue any other remedy at law or in equity for any such breach so
long as the damages sought to be recovered shall not exceed the Losses incurred
thereby resulting from such breach. In the event that any action or regulatory
proceeding shall be commenced or claim asserted which may entitle an Indemnified
Party to be indemnified under this Agreement, such party shall give the
Indemnifying Party written or telegraphic notice of such action or claim
reasonably promptly after receipt of written notice thereof. The Indemnifying
Party shall be entitled to participate in and, upon notice to the Indemnified
Party, assume the defense of any such action or claim in reasonable cooperation
with, and with the reasonable cooperation of, the Indemnified Party. The
Indemnified Party shall have the right to employ separate counsel in any such
action and to participate in the defense thereof at the expense of the
Indemnified Party; provided, however, that the fees and expenses of such
separate counsel shall be at the expense of the Indemnifying Party if (i) the
Indemnifying Party has agreed to pay such fees and expenses, (ii) the
Indemnifying Party shall have failed to assume the defense of such action or
proceeding and employ counsel satisfactory to the Indemnified Party in any such
action or proceeding or (iii) the named parties to any such action or proceeding
(including any impleaded parties) include both the Indemnified Party and the
Indemnifying Party, and the Indemnified Party shall have been advised by counsel
that (A) there may be one or more legal defenses available to it which are
different from or additional to those available to the Indemnifying Party and
(B) the representation of the Indemnifying Party and the Indemnified Party by
the same counsel would be inappropriate or contrary to prudent practice, in
which case, if the Indemnified Party notifies the Indemnifying Party in writing
that it elects to employ separate counsel at the expense of the Indemnifying
Party, the Indemnifying Party shall not have the right to assume the defense of
such action or proceeding on behalf of such Indemnified Party, it being
understood, however, that the Indemnifying Party shall not, in connection with
any one such action or proceeding or separate but substantially similar or
related actions or proceedings in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the reasonable fees and
expenses of more than one separate firm of attorneys at any time for all the
Company Parties, one such firm for all Underwriter Parties and one such firm for
all Financial Security Parties, as the case may be, which firm shall be
designated in writing by the Company in respect of the Company Parties, by the
Representative in respect of the Underwriter Parties and by Financial Security
in respect of the Financial Security Parties. The Indemnifying Party shall not
be liable for any settlement of any such claim or action unless the Indemnifying
Party shall have consented thereto or be in default in its obligations
hereunder. Any failure by an Indemnified Party to comply with the provisions of
this Section shall relieve

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<PAGE>

the Indemnifying Party of liability only if such failure is prejudicial to the
position of the Indemnifying Party and then only to the extent of such
prejudice.

            Section 6. Contribution.

                  (a) To provide for just and equitable contribution if the
            indemnification provided by any Indemnifying Party is determined to
            be unavailable for any Indemnified Party (other than due to
            application of this Section), each Indemnifying Party shall
            contribute to the Losses arising from any breach of any of its
            representations, warranties or agreements contained in this
            Agreement on the basis of the relative fault of each of the parties
            as set forth in Section 6(b) below; provided, however, that an
            Indemnifying Party shall in no event be required to contribute to
            all Indemnified Parties an aggregate amount in excess of the Losses
            incurred by such Indemnified Parties resulting from the breach of
            representations, warranties or agreements contained in this
            Agreement.

                  (b) The relative fault of each Indemnifying Party, on the one
            hand, and of each Indemnified Party, on the other, shall be
            determined by reference to, among other things, whether the breach
            of, or alleged breach of, any representations, warranties or
            agreements contained in this Agreement relates to information
            supplied by, or action within the control of, the Indemnifying Party
            or the Indemnified Party and the parties' relative intent,
            knowledge, access to information and opportunity to correct or
            prevent such breach.

                  (c) The parties agree that Financial Security shall be solely
            responsible for the Financial Security Information, each Underwriter
            shall be solely responsible for the Underwriter Information with
            respect to such Underwriter and that the balance of each Offering
            Document shall be the responsibility of LBAC and the Company.

                  (d) Notwithstanding anything in this Section 6 to the
            contrary, no Underwriter shall be required to contribute an amount
            in excess of the amount by which the total principal balance of the
            Securities underwritten by such Underwriter exceeds the amount of
            any damages that such Underwriter has otherwise been required to pay
            in respect of any breach by such Underwriter of its representations
            or warranties contained in Section 3 hereof.

                  (e) No Person guilty of fraudulent misrepresentation (within
            the meaning of Section 11(f) of the Securities Act) shall be
            entitled to contribution from any Person who was not guilty of such
            fraudulent misrepresentation.

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<PAGE>

                  (f) Upon the incurrence of any Losses entitled to contribution
            hereunder, the contributor shall reimburse the party entitled to
            contribution promptly upon establishment by the party entitled to
            contribution to the contributor of the Losses incurred.

            Section 7. Miscellaneous.

                  (a) Notices. All notices and other communications provided for
            under this Agreement shall be delivered to the address set forth
            below or to such other address as shall be designated by the
            recipient in a written notice to the other party or parties hereto:

            If to Financial Security:

                              Financial Security Assurance Inc.
                              31 West 52nd Street
                              New York, NY 10019
                              Attention: Senior Vice President--Transaction
                              Oversight Department (with a copy to the Attention
                              of the General Counsel)

                              Re: Long Beach Acceptance Auto Receivables Trust
                              2006-B
                              Policy No. 51759-N

                              Confirmation: (212) 826-0100
                              Facsimile Nos.: (212) 339-3518, (212) 339-3529 (in
                              each case in which notice or other communication
                              to Financial Security refers to an Event of
                              Default, a claim on the Policy or with respect to
                              which failure on the part of Financial Security to
                              respond shall be deemed to constitute consent or
                              acceptance, then a copy of such notice or other
                              communication should also be sent to the attention
                              of each of the General Counsel and the
                              Head-Financial Guaranty Group and shall be marked
                              to indicate "URGENT MATERIAL ENCLOSED.")

            If to the Company:

                              Long Beach Acceptance Receivables Corp.
                              One Mack Centre Drive
                              Paramus, NJ 07652
                              Attention: General Counsel
                              Facsimile No.: (201) 262-6868
                              Confirmation: (201) 262-5222

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<PAGE>

            If to the Citigroup:

                              Citigroup Global Markets Inc.
                              390 Greenwich Street, 6th Floor
                              New York, NY 10013
                              Attention: Asset Backed Finance
                              Facsimile No.: (212) 723-8591
                              Confirm No. (212) 723-9566
                              Phone: (212) 723-9562

            If to the RBS GC:

                              Greenwich Capital Markets, Inc.
                              600 Steamboat Road
                              Greenwich, CT 06830
                              Attention: Asset-Backed Finance
                              Facsimile No: (203) 618-2164
                              Confirm No: (203) 622-5666

                  (b) Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
            ACCORDANCE WITH, AND THIS AGREEMENT AND ALL MATTERS ARISING OUT OF
            OR RELATING IN ANY WAY TO THIS AGREEMENT SHALL BE GOVERNED BY, THE
            LAW OF THE STATE OF NEW YORK.

                  (c) Assignments. This Agreement may not be assigned by any
            party without the express written consent of each other party. Any
            assignment made in violation of this Agreement shall be null and
            void.

                  (d) Amendments. Amendments of this Agreement shall be in
            writing signed by each party hereto.

                  (e) Survival, Etc. The indemnity and contribution agreements
            contained in this Agreement shall remain operative and in full force
            and effect, regardless of (i) any investigation made by or on behalf
            of any Indemnifying Party, (ii) the issuance of the Securities or
            (iii) any termination of this Agreement or the Policy. The
            indemnification provided in this Agreement will be in addition to
            any liability which the parties may otherwise have and shall in no
            way limit any obligations of LBAC or the Company under the
            Underwriting Agreement or under the Insurance Agreement.

                  (f) Counterparts. This Agreement may be executed in
            counterparts by the parties hereto, and all such counterparts shall
            constitute one and the same instrument.

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<PAGE>

            [Remainder of Page Intentionally Blank]

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<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and delivered as of the date first above written.

                                               FINANCIAL SECURITY ASSURANCE INC.

                                               By:______________________________
                                                  Name:
                                                  Title:

                                               LONG BEACH ACCEPTANCE
                                               RECEIVABLES CORP.

                                               By:______________________________
                                                  Name:
                                                  Title:

                                               CITIGROUP GLOBAL MARKETS INC.

                                               By:______________________________
                                                  Name:
                                                  Title:

                                               GREENWICH CAPITAL MARKETS, INC.

                                               By:______________________________
                                                  Name:
                                                  Title:

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<PAGE>

                                    EXHIBIT A

                      OPINION OF ASSOCIATE GENERAL COUNSEL

            Based upon the foregoing, I am of the opinion that:

            1. Financial Security is a stock insurance company duly organized,
validly existing and authorized to transact financial guaranty insurance
business under the laws of the State of New York.

            2. The Policy, the Insurance Agreement and the Indemnification
Agreement been duly authorized, executed and delivered by Financial Security.

            3. The Policy, the Insurance Agreement and the Indemnification
Agreement constitute valid and binding obligations of Financial Security,
enforceable against Financial Security in accordance with their terms, subject,
as to the enforcement of remedies, to bankruptcy, insolvency, reorganization,
rehabilitation, moratorium and other similar laws affecting the enforceability
of creditors' rights generally applicable in the event of the bankruptcy or
insolvency of Financial Security and to the application of general principles of
equity and subject, in the case of the Indemnification Agreement, to principles
of public policy limiting the right to enforce the indemnification provisions
contained therein insofar as they relate to indemnification for liabilities
arising under applicable securities laws.

            4. The Policy is exempt from registration under the Securities Act
of 1933, as amended (the "Act").

            5. Neither the execution or delivery by Financial Security of the
Policy or the Insurance Agreement or the Indemnification Agreement, nor the
performance by Financial Security of its obligations thereunder, will conflict
with any provision of the certificate of incorporation or the bylaws of
Financial Security or, to the best of my knowledge, result in a breach of, or
constitute a default under, any agreement or other instrument to which Financial
Security is a party or by which it or any of its property is bound or, to the
best of my knowledge, violate any judgment, order or decree applicable to
Financial Security of any governmental or regulatory body, administrative
agency, court or arbitrator having jurisdiction over Financial Security (except
that in the published opinion of the Securities and Exchange Commission the
indemnification provisions of the Indemnification Agreement, insofar as they
relate to indemnification for liabilities arising under the Act, are against
public policy as expressed in the Act and are therefore unenforceable).

            6. In addition, please be advised that I have reviewed the
description of Financial Security under the caption "THE INSURER" in the
Prospectus Supplement dated September 25, 2006 and in the Free Writing
Prospectus dated September 18, 2006 (each, an "Offering Document") of the
Company with respect to the Securities. The information provided in each
Offering Document with respect to Financial Security is

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<PAGE>

limited and does not purport to provide the scope of disclosure required to be
included in a prospectus with respect to a registrant under the Securities Act
of 1933, as amended, in connection with the public offer and sale of securities
of such registrant. Within such limited scope of disclosure, however, there has
not come to my attention any information which would cause me to believe that
the description of Financial Security referred to above, as of the date of the
Free Writing Prospectus, the date of the Prospectus Supplement or the date
hereof, contained any untrue statement of a material fact or omitted to state a
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading (except that no opinion
is rendered with respect to any financial statements or other financial
information contained or referred to therein).

                                       15exv10w1

 

Exhibit 10.1

FIRST AMENDMENT TO AMENDED AND RESTATED PROGRAM AGREEMENT

     THIS FIRST AMENDMENT TO AMENDED AND RESTATED PROGRAM AGREEMENT (this “Amendment”) dated as of
October 11, 2006, by and among GENERAL ELECTRIC CAPITAL CORPORATION (“GE”), GE CAPITAL INFORMATION
TECHNOLOGY SOLUTIONS, INC. (“GECITS”), and IKON OFFICE SOLUTIONS, INC. (“IKON”).

BACKGROUND

A. GE, GECITS and IKON have executed and delivered that certain Amended and Restated Program
Agreement dated as of April 1, 2006 (the “Program Agreement”).

B. GE, GECITS and IKON desire to amend the terms and conditions of the Program Agreement, upon and
subject to the terms and conditions of this Amendment.

C. All capitalized terms not otherwise defined herein will have the meanings set forth in the
Program Agreement.

NOW, THEREFORE, in consideration of the above premises and the representations, warranties,
covenants and indemnities contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally
bound, hereby agree as follows:

     1. Amendments.

     (a) Section 3.3 of the Program Agreement is hereby amended by adding the following
parenthetical to clause (y) of the first proviso thereof, after “rejected by GE on behalf of
GECITS”:

          “(which determination GECITS agrees to make in accordance with its normal business
practices and after which rejection GECITS agrees to promptly release such proposed transaction
to IKON’s syndication desk)”

     (b) Section 3.6(b)(ii) of the Program Agreement is hereby amended by changing “90 days” to
“60 days”.

     (c) Section 3.6 of the Program Agreement is hereby amended by adding the following new
subsection (d) thereto:

     (d) Property Tax Servicing. GECITS will service for IKON the personal
property taxes associated with Purchased Financing Contracts and Acquired Financing
Contracts to the extent such personal property taxes constitute Excluded Liabilities as
defined in the Asset Purchase Agreement or the 2006 Purchase Agreement (“Personal Property
Taxes”). IKON will remain responsible for paying any personal property taxes associated
with Financing Contracts owned by IKON on and after April 1, 2006. GECITS will pay all
Personal Property Tax assessments within the statutorily allowed time frame, and will use
commercially reasonable efforts to pay no earlier than 30 days prior to the due date.
GECITS will reimburse IKON for all penalty and interest incurred by IKON in connection with
Personal Property Taxes to the extent attributable to any act, or failure to act, by GECITS
and not to any act, or failure to act, by IKON. On a monthly basis, GECITS will provide
IKON with a spreadsheet containing all unbilled Personal Property Taxes, by period and
jurisdiction. IKON and GECITS will work together to implement a process to estimate the
amount of Personal Property Taxes due from the related Obligors and bill such Obligors when
the Personal Property Tax is unbilled 120 days after payment of the Personal Property Tax to
the applicable jurisdiction. The parties acknowledge that revisions to the applicable lease
documents may be required to accommodate this process. The parties expect

 

 

that this process will involve the following: (i) the IKON Tax Department will provide
notice that IKON desires to estimate certain aged Personal Property Taxes for purposes of
end user billing. IKON will provide the period, amount and jurisdiction, and recommended
allocation percentages; (ii) GECITS will review the information and respond to IKON with its
concurrence or reason for rejection within 15 Business Days of GECITS’s receipt of IKON’s
notice; and (iii) upon agreement between GECITS and IKON on the estimation process for a
particular property tax jurisdiction, period and amount, GECITS will use commercially
reasonable efforts to load estimates into IKONICS within 30 Business Days of such agreement.
IKON agrees that there may be circumstances where the estimation process detailed above may
not be approved by GECITS. In these situations, GECITS will prioritize, subject to the
cooperation of the applicable taxing jurisdiction, these Personal Property Tax amounts to
speed the resolution and billing of the applicable Personal Property Tax as soon as
practicable.

     (d) Section 4.1(a) of the Program Agreement is hereby amended by changing the notice
requirement in the 2nd sentence thereof from “60 days” to “30 days” and by adding the
following additional language to the end thereof:

     “Notwithstanding the foregoing, the parties hereby agree that in the event that the
actual funding rate is either 25 bps greater or 25 bps lower than the targeted yield
calculated pursuant to Exhibit J hereto (the “Target Rate”) for a period (the “Rate
Adjustment Period”) of ten (10) consecutive days (funding rate for all 10 days greater or
funding rate for all 10 days lower than Target Rate) at any time during the Term, then
immediately following the 30 day notice required above, the Target Rate shall (without any
further act or notice) automatically be adjusted to equal the average of the 3 yr/4yr swap
rates for the last four (4) days of the Rate Adjustment Period plus 625 bps;
provided, however, that no change in the Target Rate may be implemented
during the first or last week of any calendar month.”

     (e) Section 5.7(a)(iii) of the Program Agreement is hereby amended by restating the second
parenthetical thereof in its entirety to be and read as follows:

     “(except as otherwise provided above, in the Federal Assignment Agreement or with
respect to a Queue Funding)”

     (f) Section 5.7(a) of the Program Agreement is hereby amended by adding the following new
clause (v) to the end thereof:

     “(v) Notwithstanding anything to the contrary in this Section 5.7(a), on the Transfer
Date with respect to any Equipment (and any related IKON originated Financing Contract, SLG
Financing Contract, Program Stream Financing and Purchased Assets (as applicable)) subject
to a Queue Funding, GECITS agrees to pay the Purchase Price of all such Equipment (and any
related IKON Originated Financing Contract, SLG Financing Contract, Program Stream Financing
and Purchased Assets) in accordance with and subject to the terms and conditions set forth
in Exhibit P attached hereto.”

     (g) Section 5.14 of the Program Agreement is hereby amended by adding the following as the
third sentence thereof:

     “GECITS shall also provide a monthly reporting to IKON of the percentage of reliance
and/or recourse available, along with a description of the basis for any change in available
percentage from the prior month.”

     (h) Section 6.2(b) of the Program Agreement is hereby amended in its entirety to be read as
follows:

 

 

     “(b) During the Term, GE and GECITS shall have the right to refurbish and/or remarket
any and all Equipment (other than Equipment subject to Program Financing Contracts, Program
Stream Financings or Closing Date IKON Retained Financing Contract which IKON has caused to
be upgraded or refinanced prior to the respective stated contractual terms) as may be
subject or related to a Program Financing Contract, Program Stream Financing or Closing Date
IKON Retained Financing Contract serviced by GE or GECITS, in such manner as GE or GECITS
determines, in its sole discretion.

          (i) In the event that GE or GECITS determines to utilize remarketing and refurbishment
services of IKON, GE or GECITS shall notify IKON of such determination, and IKON shall be
entitled to accept or decline (in IKON’s sole discretion) GE’s or GECITS’ request for
remarketing and refurbishment services. If IKON elects to accept GE’s or GECITS’s request
for remarketing and refurbishment of such Equipment, the purchase price payable to GE or
GECITS, as applicable, for such Equipment will be equal to: (x) if the Equipment is set
forth on the Wholesale Equipment Price List, the applicable price set forth on the Wholesale
Equipment Price List; or (y) if the Equipment is not set forth on the Wholesale Equipment
Price List, a mutually negotiated price. Notwithstanding anything to the contrary herein,
the parties acknowledge and agree that IKON’s pick-up of any Equipment (excluding Equipment
picked up in connection with an upgrade) shall not be deemed or constitute an election by GE
or GECITS to have IKON remarket or refurbish such Equipment.

          (ii) In the event that IKON picks up any Equipment (excluding Equipment picked up in
connection with an upgrade), whether or not such Equipment is listed on the Wholesale
Equipment Price List, for which GE or GECITS has not requested IKON refurbish or remarket
such Equipment, if GE or GECITS has requested that IKON pick-up the Equipment, IKON will
deliver the Equipment to a location specified by GE or GECITS at GE’s or GECITS’s expense,
as applicable. In the event that IKON picks up any Equipment (excluding Equipment picked up
in connection with an upgrade), whether or not such Equipment is listed on the Wholesale
Equipment Price List, for which GE or GECITS has not requested IKON refurbish or remarket
such Equipment and GE or GECITS has not requested that IKON pick up the Equipment, IKON will
either: (x) deliver the Equipment to a location specified by GE or GECITS at IKON’s expense
within sixty (60) days of the pick-up; or (y) purchase such Equipment for a purchase price
equal to (i) if the Equipment is listed on the Wholesale Equipment Price List (and is not
otherwise remarketed through the retail distribution channel), the amount on such list (the
“Wholesale Equipment Price”), (ii) if the Equipment is not listed on the Wholesale Equipment
Price List (and is not otherwise remarketed through the retail distribution channel), an
amount agreed by the parties based on what GE or GECITS would have received for such
Equipment from its remarketing practices for such type of Equipment (the “Agreed Equipment
Price”), or (iii) if the Equipment will be remarketed through IKON’s retail distribution
channel, an amount equal to the product (the “Retail Equipment Price”) of (a) the Wholesale
Equipment Price (if listed on the Wholesale Equipment Price List) or the Agreed Equipment
Price (if not listed on the Wholesale Equipment Price List), multiplied by (b) 3.15
(the “Remarketing Premium Factor”). In the event that IKON picks-up any Equipment that will
be remarketed through its retail channel but does not sell such Equipment within 60 days
from the date of pick-up, then the applicable purchase price for such Equipment shall be the
Wholesale Equipment Price (if listed on the Wholesale Equipment Price List) or the Agreed
Equipment Price (if not listed on the Wholesale Equipment Price List).

          (iii) All Equipment purchased by IKON pursuant to this Section 6.2(b) shall be
affected by means of the purchase by IKON from GECITS or GE of the Equipment (other than
Equipment subject to a Closing Date IKON Retained Financing Contract that has not been
purchased by GE or GECITS pursuant to Section 10.6), at the applicable purchase
price set forth above within 60 days of the date of pick-up, on an “AS-IS, WHERE-IS” basis
and without

 

 

representation
or warranty of any kind, other than Agreed Warranties. IKON shall
provide GECITS with a semi-annual report (“Remarketing Report”) setting forth the total
aggregate assets purchased by IKON from GECITS or GE through the upgrade process (the
“GECITS’ Equipment”) and the aggregate Equipment that was refurbished and/or remarketed by
IKON’s retail channel during the covered six-month period (the “Remarketed Equipment”). In
the event that the amount of Remarketed Equipment exceeds the amount of comparable GECITS’
Equipment contained on such report, then IKON shall pay GECITS, promptly following its
delivery of the Remarketing Report, an amount equal to the Retail Equipment Price for each
item of Remarketed Equipment in excess of the comparable GECITS’ Equipment, less any amounts
previously paid by IKON to GECITS or GE for such Equipment. In addition, if IKON has
previously paid GE or GECITS the Wholesale Equipment Price or Agreed Equipment Price for any
Remarketed Equipment, then IKON will pay GECITS the difference, if any, between the Retail
Equipment Price and the Wholesale Equipment Price or Agreed Equipment Price, as applicable,
promptly following delivery of the Remarketing Report. In no event shall IKON pay more than
the Retail Equipment Price for any Equipment.”

     (i) Section 9.4 of the Program Agreement is hereby amended and restated in its entirety to
be and read as follows:

     “9.4. Purchase of Program Financing Contracts, Program Stream Financings and
Equipment. In the event of a material breach by IKON of any representation, warranty or
covenant (i) set forth in Sections 8.2, 8.3(c) or 8.3(i) or, (ii)
with respect to a Performance Cancellation Contract that is terminated by the Obligor due to
any IKON Company’s failure to comply with its related Equipment Service Obligations,
8.3(a), in any such case relating to an event or circumstance affecting a particular
Program Financing Contract, Program Stream Financing, Purchased Personal Property Tax
Receivable or Equipment subject or related to any such Program Financing Contract or Program
Stream Financing, GE or GECITS may give written notice to IKON specifying the nature of such
breach in reasonable detail, and if within thirty (30) days after IKON’s receipt of such
notice, IKON has not cured or caused to be cured such breach, then without limiting or
otherwise waiving any of its other rights or remedies as may be available in law or in
equity including claims for Damages arising in connection with any Third Party Action, GE or
GECITS may require IKON to purchase (and IKON shall purchase) (x) such Program Financing
Contract or Program Stream Financing (as applicable) and, in the case of clause (ii) below,
any related Equipment at a price equal to the Net Book Value thereof; provided,
however, that the purchase price for any Performance Cancellation Contract and, in
the case of clause (ii) only, any related Equipment shall equal: (i) until such time as the
net present value of the aggregate Residuals in respect of the Equipment subject to
Performance Cancellation Contracts terminated by the Obligor due to any IKON Company’s
failure to comply with its Equipment Service Obligations (hereafter “Performance
Cancellation Losses”) exceeds $20,000,000, the Net Book Value thereof, less the net present
value of the Residual in respect of the Equipment subject to such Performance Cancellation
Contract, discounted at the Discount Rate applicable thereto (the “Adjusted Net Book
Value”), or (ii) after Performance Cancellation Losses exceed $20,000,000, the full Net Book
Value of such Performance Cancellation Contract, and/or (y) such Purchased Personal Property
Tax Receivable at a price equal to the Repurchase Price thereof (as applicable), in each
case, as of the date of such notice. Upon receipt of such amount, GECITS shall transfer the
applicable Program Financing Contract or Program Stream Financing and any Equipment subject
thereto (other than in connection with any repurchase of a Performance Cancellation Contract
for a purchase price equal to the Adjusted Net Book Value) or the Purchased Personal
Property Tax Received, to IKON on an “AS-IS, WHERE-IS” basis, without any representation or
warranty whatsoever (other than Agreed Warranties with respect thereto). Any such
repurchase shall occur on a date specified by GE or GECITS, which date shall not be less
than three (3) nor more than thirty (30) days after the expiration of such 30-day period.
In the event of any repurchase of a Performance Cancellation Contract for a purchase price
equal to

 

 

the Adjusted Net Book Value, the Equipment proceeds, and any Residual in respect of the
Equipment subject thereto, shall be allocated in accordance with the provisions of this
Agreement, including, without limitation, Schedule 1 hereto.”

     (j) The Program Agreement is hereby amended by adding the following new Section 9.9
thereto:

     “9.9 SLG Bid Risk. In the event that any SLG Financing Contract entered into
on or after the Original Effective Date is alleged by the applicable Obligor or its
representative to be void or voidable or otherwise unenforceable (other than as a result of
a breach of Section 8.2(a)(v) or 8.3(c), which shall only apply to acts, or failures to act,
of any IKON Company, as opposed to the Obligor, and shall be governed by the provisions of
Section 9.4 hereof) and the applicable Obligor elects to terminate such SLG Financing
Contract due to the Obligor’s failure to comply with any legal, statutory, administrative,
procurement or other requirement applicable to the entering into, bidding, execution,
delivery or performance of the SLG Financing Contract (hereinafter, a “Bid Risk”), then all
“Net Bid Risk Losses” (as hereinafter defined) associated with such Bid Risk will be
allocated and resolved in accordance with the provisions of this Section 9.9. As used
herein, “Net Bid Risk Losses” shall mean, with respect to any SLG Financing Contract, (a)
the Net Book Value of such SLG Financing Contract, minus (b) the net present value
of the Residual in respect of the Equipment subject to such SLG Financing Contract
discounted at the Discount Rate applicable thereto, minus (c) the recovery, if any,
from the applicable Obligor of such SLG Financing Contract.

     GECITS and IKON will each promptly notify the other party in writing, and provide
copies of any related notices, of any asserted Bid Risk of which it receives notice or has
knowledge. Upon its receipt of notice of an asserted Bid Risk, GECITS will undertake a
preliminary statutory review to determine whether, in its sole discretion, it believes such
allegation is not frivolous. If GECITS believes that the asserted Bid Risk is not
frivolous, then GECITS will notify IKON of such allegation and IKON will have a period of
ninety (90) days from the date of such notice (the “Cure Period”) to resolve the Bid Risk.
If IKON has not resolved the Bid Risk to the reasonable satisfaction of GECITS within the
Cure Period, then the Net Bid Risk Loss associated with the SLG Financing Contract as a
result of the Bid Risk will be allocated to IKON or GECITS in accordance with the following:
(i) IKON shall be responsible for the first $14,000,000 in cumulative Net Bid Risk Losses,
(ii) GECITS shall be responsible for the cumulative Net Bid Risk Losses between $14,000,000
and $21,000,000 and (iii) IKON shall be responsible for all Net Bid Risk Losses over
$21,000,000 in the aggregate (the amount of Net Bid Risk Losses allocable to IKON being
herein referred to as the “IKON Bid Risk Liability” and the amount of Net Bid Risk Losses
allocable to GECITS being herein referred to as the “GECITS Bid Risk Liability”). Payment of
Bid Risk Losses for which a party has Bid Risk Liability shall be made in accordance with
the following provisions of this Section 9.9.

     In the event that IKON fails to resolve a Bid Risk for an SLG Financing Contract
entered into on or after the Original Effective Date to the reasonable satisfaction of
GECITS within the applicable Cure Period, GECITS may require IKON to purchase (and IKON
shall purchase) immediately following the end of such Cure Period and effective as of such
time such SLG Financing Contract at a purchase price (the “Bid Risk Loss”) equal to the
difference of (i) the Net Book Value of such SLG Financing Contract, minus (ii) the
net present value of the Residual in respect of the Equipment subject to such SLG Financing
Contract discounted at the Discount Rate applicable thereto, as of the date of such
purchase, provided, however, that such purchase obligation shall only apply to Net Bid Risk
Loss for which IKON is responsible for the associated Net Bid Risk pursuant to the
immediately preceding paragraph. GECITS shall transfer the applicable SLG Financing
Contract and any Equipment subject thereto to IKON on an “AS-IS, WHERE-IS” basis, without
any representation or warranty whatsoever (other than Agreed

 

 

Warranties with respect thereto). The payment for any such purchase shall be made within
thirty (30) days after the end of any Program Year unless and until aggregate Bid Risk
Losses allocable to IKON exceed $5,000,000 in any Program Year, in which case IKON shall pay
GECITS all Bid Risk Losses which are an IKON Bid Risk Liability thirty (30) days after
expiration of the applicable Cure Period.

     GECITS will bear all Bid Risk Losses that are a GECITS Bid Risk Liability and shall not
make any claim against IKON therefor. The party responsible for Bid Risk Loss shall be
responsible for any expenses incurred in connection with the enforcement of the SLG
Financing Contract and/or recovery of its loss, and shall retain any recovery from the
Obligor of the SLG Financing Contract as mitigation of damages, regardless of when such
actual recovery is received. The Residual associated with any Equipment subject to an SLG
Financing for which either party incurs a Bid Risk Liability shall be allocated between the
parties in accordance with the applicable provisions of the Program Agreement, including,
without limitation, Schedule 1 thereto.

     The provisions of this Section 9.9 shall not be applicable to any Purchased Financing
Contract or Acquired Financing Contract, which shall be governed solely by the provisions of
the Asset Purchase Agreement and 2006 Purchase Agreement, respectively. “

     (k) Exhibit P attached hereto is hereby incorporated into and made a part of the
Program Agreement as Schedule P to the Program Agreement.

     (l) The definition of “IKON Off-Lease Equipment” in Annex A to the Program
Agreement is hereby deleted in its entirety and replaced with the following:

          “IKON Off-Lease Equipment” means Equipment (other than Defaulted Equipment) which
has (a) (i) previously been subject or related to an Acquired Financing Contract, Purchased
Financing Contract or Program FM Stream Financing (to the extent purchased by GECITS (directly
or indirectly) pursuant to the Asset Purchase Agreement) repurchased by IKON from GE pursuant to
any of Section 5.7(a), 6.1(b), 6.1(d), 8.3(c) or 9.4
hereof or Section 2.07(a) or 5.04(b)(v) of the Asset Purchase Agreement or
Section 2.07(a) or 5.04(b)(v) of the 2006 Purchase Agreement or (ii) previously
been subject to a Closing Date IKON Retained Financing Contract not sold pursuant to the 2006
Purchase Agreement (in each case, other than a Written-Off Financing Contract) and (b) been
returned to IKON, repossessed by (or on behalf of) IKON, purchased by the Obligor thereunder or
otherwise ceased to be subject to such Acquired Financing Contract, Purchased Financing
Contract, Program Facilities Management Agreement or Closing Date IKON Retained Financing
Contract (as applicable).

     (m) The following new definition is added to Annex A to the Program
Agreement:

     “Queue Funding” has the meaning assigned to such term in Exhibit P attached
hereto.”

     (n) The term “Systems Facilitation Date” is hereby deleted from Annex A to the Program
Agreement.

     (o) The definition of “Wholesale Fair Market Value” in Annex A to the Program
Agreement is hereby deleted in its entirety and replaced with the following:

          “Wholesale Fair Market Value” means, for any item of Equipment, (a) the wholesale fair
market value thereof as set forth on the Wholesale Equipment Price List, or (b) if such
Equipment is not set forth on the Wholesale Equipment Price List and IKON shall have agreed to
perform remarketing and refurbishment services in respect thereof, such other value as shall be
mutually agreed between IKON and GE.

 

 

     (p) The definitions of “GE Equipment Proceeds”, “IKON Equipment Proceeds” and “GE Defaulted
Equipment Proceeds” set forth in Schedule 1 to the Program Agreement are each hereby deleted in
their entirety and replaced with the following definitions, respectively:

          “GE Equipment Proceeds” means, with respect to any item of Off-Lease Equipment, at
any time after the Original Effective Date (i) with respect to any item of Off-Lease Equipment
for which GE elects, pursuant to Section 6.2(b), to utilize IKON to remarket either: (a)
if the Off-Lease Equipment is set forth on the Wholesale Equipment Price List, the Wholesale
Equipment Price (net an agreed refurbishment charge); or (b) $0, (ii) with respect to any item
of Off-Lease Equipment for which IKON remarkets such Off-Lease Equipment pursuant to Section
6.2(b)(iii): (a) if the Off-Lease Equipment is listed on the Wholesale Equipment Price List (and
is not otherwise remarketed through the retail distribution channel), the Wholesale Equipment
Price, (b) if the Off-Lease Equipment is not listed on the Wholesale Equipment Price List (and
is not otherwise remarketed through the retail distribution channel), the Agreed Equipment
Price, or (iii) if the Off-Lease Equipment will be remarketed through IKON’s retail distribution
channel, the “Retail Equipment Price”, or (iii) with respect to any item of Off-Lease Equipment
for which GE elects to remarket (other than through IKON) pursuant to Section 6.2
(whether or not set forth on the Wholesale Equipment Price List), the proceeds for such
Off-Lease Equipment (net of all out-of-pocket sales, disposition and other costs and expenses
(which shall be deemed to be 30% of gross sales proceeds for such Off-Lease Equipment)
plus an agreed refurbishment charge) actually received by GE (including amounts received
from an Original ABS Entity or, after the Amendment Effective Date, a Purchased ABS Entity) in
respect of any sale, re-lease, remarketing or other disposition of such Off-Lease Equipment
(whether such disposition is to the Obligor under the former Financing Contract or another third
party).

          “IKON Equipment Proceeds” means, with respect to any item of IKON Off-Lease
Equipment, at any time after the Original Effective Date (i) with respect to any item of IKON
Off-Lease Equipment for which GE elects, pursuant to Section 6.2(b), to utilize IKON to
remarket either: (a) if the IKON Off-Lease Equipment is set forth on the Wholesale Equipment
Price List, the Wholesale Equipment Price (net an agreed refurbishment charge); or (b) $0, (ii)
with respect to any item of IKON Off-Lease Equipment for which IKON remarkets such IKON
Off-Lease Equipment pursuant to Section 6.2(b)(iii): (a) if the IKON Off-Lease Equipment is
listed on the Wholesale Equipment Price List (and is not otherwise remarketed through the retail
distribution channel), the Wholesale Equipment Price, (b) if the IKON Off-Lease Equipment is not
listed on the Wholesale Equipment Price List (and is not otherwise remarketed through the retail
distribution channel), the Agreed Equipment Price, or (iii) if the IKON Off-Lease Equipment will
be remarketed through IKON’s retail distribution channel, the “Retail Equipment Price”, or (iii)
with respect to any item of IKON Off-Lease Equipment for which GE elects to remarket (other than
through IKON) pursuant to Section 6.2 (whether or not set forth on the Wholesale
Equipment Price List), the proceeds for such IKON Off-Lease Equipment (net of all out-of-pocket
sales, disposition and other costs and expenses (which shall be deemed to be 30% of gross sales
proceeds for such Off-Lease Equipment) plus an agreed refurbishment charge) actually
received by GE and remitted to IKON (for itself or, on or prior to the Amendment Effective Date,
for the benefit of a non-Purchased Securitization Party) in respect of any sale, re-lease,
remarketing or other disposition of such IKON Off-Lease Equipment (whether such disposition is
to the Obligor under the former Financing Contract or another third party).

          “GE Defaulted Equipment Proceeds” means, with respect to any item of Defaulted
Equipment, at any time after the Original Effective Date (i) with respect to any item of
Defaulted Equipment for which GE elects, pursuant to Section 6.2(b), to utilize IKON to
remarket either: (a) if the Defaulted Equipment is set forth on the Wholesale Equipment Price
List, the Wholesale Equipment Price (net an agreed refurbishment charge); or (b) $0, (ii) with
respect to any item of Defaulted Equipment for which IKON remarkets such Defaulted Equipment
pursuant to Section 6.2(b)(iii): (a) if the Defaulted Equipment is listed on the Wholesale
Equipment Price List (and is not otherwise remarketed through the retail distribution channel),
the Wholesale Equipment Price, (b) if

 

 

the Defaulted Equipment is not listed on the Wholesale Equipment Price List (and is not
otherwise remarketed through the retail distribution channel), the Agreed Equipment Price, or
(iii) if the Defaulted Equipment will be remarketed through IKON’s retail distribution channel,
the “Retail Equipment Price”, or (iii) with respect to any item of Defaulted Equipment for which
GE elects to remarket (other than through IKON) pursuant to Section 6.2 (whether or not
set forth on the Wholesale Equipment Price List), the proceeds for such Defaulted Equipment (net
of all out-of-pocket sales, disposition and other costs and expenses (which shall be deemed to
be 30% of gross sales proceeds for such Defaulted Equipment) plus an agreed
refurbishment charge) actually received by GE (for itself or for the benefit of an Original ABS
Entity or, after the Amendment Effective Date, a Purchased ABS Entity) in respect of any sale,
re-lease, remarketing or other disposition of such Defaulted Equipment (whether such disposition
is to the Obligor under the former Financing Contract or another third party.

          (q)  Exhibit Q attached hereto is hereby incorporated into and made a part of the
Program Agreement as Exhibit Q to the Program Agreement.

     2. Effective Date. This Amendment is executed to be effective as of August 25, 2006,
and is incorporated into and made a part of the Program Agreement.

     3. Effect of Amendment. All terms and conditions of the Program Agreement not
expressly modified hereby remain in full force and are hereby ratified by the parties. To the
extent of any inconsistency between the terms of this Amendment and the Program Agreement, the
terms and conditions of this Amendment will prevail.

     4. Counterparts. This Amendment may be executed in one or more counterparts, all of
which shall be considered one and the same agreement, and shall become effective when one or more
counterparts have been signed by each party hereto and delivered to the other parties hereto.

          IN WITNESS WHEREOF, the duly authorized representatives of the parties have executed this
Amendment on the dates set forth below but effective for all purposes as of the Effective Date.

	 	 	 	 	 	 	 	 	 
	GENERAL ELECTRIC CAPITAL	 	 	 	GE CAPITAL INFORMATION
	CORPORATION	 	 	 	TECHNOLOGY SOLUTIONS, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 

	 	 
	 	 	 	

	Title:

	 	 	 	 	 	Title:	 	 
	 

	 	 

	 	 
	 	 	 	

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	IKON OFFICE SOLUTIONS, INC.	 	 	 	 	 	 
	 
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	Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]