Exhibit 10.3

 

ESCROW AGREEMENT

 

This ESCROW AGREEMENT, dated as of April 8, 2004, (this “Agreement”), is by and
among Internet Capital Group, Inc., a Delaware corporation (the “Company”), J.P.
Morgan Trust Company, National Association, a national banking association, as
escrow agent (the “Escrow Agent”) and the parties set forth on Schedule I to
this Agreement (each a “Buyer” and collectively, the “Buyers”). The Company and
the Buyers are collectively referred to herein as the “Escrow Parties”.

 

WHEREAS, the Company and the Buyers have entered into that certain Securities
Purchase Agreement, dated as of March 31, 2004 (the “Securities Purchase
Agreement”);

 

WHEREAS, subject to the terms and conditions of the Securities Purchase
Agreement, the Company has agreed to sell to each Buyer, and each Buyer has
agreed to purchase from the Company, the aggregate principal amount of the
Company’s 5% Senior Convertible Notes (the “Notes”) set forth opposite such
Buyer’s name under the heading “Principal Amount” on Schedule II hereto (which
aggregate principal amount for all Buyers equals $60,000,000);

 

WHEREAS, subject to the terms and conditions of the Securities Purchase
Agreement, as consideration for the issuance of the Notes, each Buyer has agreed
to pay to the Company the purchase price set forth opposite such Buyer’s name
under the heading “Purchase Price” on Schedule I hereto (which aggregate
principal amount for all Buyers equals $60,000,000) (the “Purchase Price”);

 

WHEREAS, the Company has agreed to use a portion of the proceeds from the sale
of the Notes to redeem the Company’s outstanding 5 1/2% Convertible Subordinated
Notes due 2004 issued pursuant to the Indenture, dated as of December 21, 1999
(the “Indenture”), between the Company and J.P. Morgan Trust Company, National
Association (successor by merger to Chase Manhattan Trust Company, National
Association), as trustee (the “Trustee”);

 

WHEREAS, the Closing (as defined in the Securities Purchase Agreement) is
conditioned upon certain matters discussed in Section 7 of the Securities
Purchase Agreement;

 

WHEREAS, the Securities Purchase Agreement provides that JPMorgan Chase Bank
shall act as “escrow agent”; however, the parties now desire that the Escrow
Agent serve as the escrow agent under the Securities Purchase Agreement; and

 

WHEREAS, the Escrow Parties hereto desire the Escrow Agent to receive, hold and
dispose of the Escrow (as defined below) in accordance with the terms,
conditions and provisions of this Agreement, and the Escrow Agent desires to do
so.

 

NOW THEREFORE, in consideration of the representations, warranties and covenants
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

 

1. Appointment and Agreement of Escrow Agent. The Escrow Parties hereby jointly
appoint the Escrow Agent to serve hereunder and the Escrow Agent hereby accepts
such appointment and agrees to perform all duties that are expressly set forth
in this Agreement to be performed by it.

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2. Securities Purchase Agreement; Definitions.

 

(a) The Escrow Agent hereby acknowledges receipt of a copy of the Securities
Purchase Agreement; however, except for reference thereto for definitions of
certain words or terms not defined herein, the Escrow Agent is not charged with
knowledge of the terms thereof, or with any duties or responsibilities with
respect thereto except as stated expressly herein. Capitalized terms used but
not defined herein have the respective meanings set forth in the Securities
Purchase Agreement.

 

(b) The Escrow Parties hereby agree that all references in the Securities
Purchase Agreement to the “Escrow Agent” shall be deemed to be references to the
Escrow Agent as defined in this Agreement. The Escrow Parties hereby further
agree that all references in the Securities Purchase Agreement to “Langley
Capital, L.P., as a representative of the Buyers” shall be deemed to be
references to “Langley Partners, L.P., as a representative of the Buyers” and
Langley Partners, L.P. shall have all rights provided to Langley Capital, L.P.
in the Securities Purchase Agreement.

 

3. Delivery of Escrow; Investment of Escrow.

 

(a) The Escrow Agent hereby acknowledges (i) receipt from each Buyer of the
purchase price set forth opposite such Buyers name under the heading “Purchase
Price” on Schedule I hereto (collectively, the “Cash Escrow”), (ii) receipt from
the Company of the Notes set forth on Schedule II hereto, duly executed by the
Company and issued in the name of the parties set forth on Schedule II hereto in
the principal amount set forth on Schedule II hereto (the “Note Escrow”) and
(iii) receipt from the Company of a duly executed and undated notice of
redemption pursuant to Article XI of the Indenture notifying the Trustee of the
Company’s intention to redeem all of the Existing Notes then outstanding (the
“Notice Escrow”, and together with the Cash Escrow and the Note Escrow, the
“Escrow”). The Escrow Agent shall establish at its offices located at One
Liberty Place, Philadelphia, Pennsylvania 19103 an escrow account (the “Escrow
Account”) in which it shall hold the Cash Escrow and a secure location in which
it shall hold the Note Escrow and the Notice Escrow. The Escrow Agent agrees to
hold and dispose of the Escrow, and to act as Escrow Agent, in accordance with
all the terms, conditions and provisions of this Agreement. The Escrow Agent
shall have the right to liquidate any investments held in escrow in order to
provide funds necessary to make required payments under this Agreement. The
Escrow Agent in its capacity as escrow agent hereunder shall not have any
liability for any decrease in value or loss sustained as a result of any
investment made pursuant hereto or the failure of the Escrow Parties to give the
Escrow Agent investment or reinvestment instructions.

 

(b) During the term of this Agreement, the Cash Escrow shall be invested and
reinvested by the Escrow Agent in a trust account with JPMorgan Trust Company
earning compensation at the average 30 day LIBOR less 35 basis points. Periodic
statements will be provided to the Escrow Parties reflecting transactions
executed on behalf of and related to the Cash Escrow. The Escrow Agent shall
have a right to liquidate any investments held in order to provide funds
necessary to make required payments under this Agreement.

 

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4. Interest. The Escrow Agent shall create separate accounts for each Buyer’s
deposit for the purpose of allocating to each deposit all interest that accrues
on such deposit. Upon distribution of any portion of the Cash Escrow, in
accordance with Section 5 hereof, the Escrow Agent shall deliver and pay to the
party receiving such distribution all of the interest accrued on the portion of
the Cash Escrow allocated to the portion of the Cash Escrow distributed to such
party. The Escrow Agent shall file any Internal Revenue Service forms as may be
required to report payment of any such interest, and the party receiving such
interest shall execute and deliver any documents reasonably requested by the
Escrow Agent in connection therewith. Simultaneous with the execution of this
Agreement, the Buyers and the Company shall each provide the Escrow Agent with a
fully executed W-8 or W-9 IRS form, which shall include the Buyers’ and the
Company’s TIN.

 

5. Escrow. The Escrow Agent shall not release any of the Escrow, except in
accordance with and subject to the following terms and conditions:

 

(a) Escrow Release. Immediately following the receipt by the Escrow Agent of a
notice in substantially the form of Annex I hereto (a “Escrow Release Notice”)
duly executed by the Company and Langley Partners, L.P., as representative of
the Buyers, the Escrow Agent shall:

 

(i) release and deliver to each Buyer the Escrow Notes registered to such Buyer;

 

(ii) release and deliver to the Trustee the Notice of Redemption, which the
Escrow Agent shall date as of the date of the delivery of such Notice of
Redemption;

 

(iii) release and deliver to the Trustee (or to the paying agent specified in
the Escrow Release Notice (if any) the amount of money specified in the Escrow
Release Notice (such amount, the “Redemption Amount”); and

 

(iv) release and deliver to the Company an amount equal to the balance of the
Cash Escrow (including all interest that has accrued on the Cash Escrow) minus
the Redemption Amount.

 

(b) Escrow Termination. Immediately following the earlier to occur of (1) the
delivery to the Escrow Agent of a notice in substantially the form of Annex II
hereto (a “Escrow Termination Notice”) duly executed by the Company and Langley
Partners, L.P., as representative of the Buyers, and (2) the failure of the
Escrow Agent to receive either the Escrow Release Notice or the Escrow
Termination Notice prior to 9:00 a.m. (New York City time) on June 22, 2004, the
Escrow Agent shall:

 

(i) release and deliver to each Buyer the portion of the Cash Escrow deposited
by such Buyer with the Escrow Agent (plus all interest that has accrued on such
amount); and

 

(ii) release and deliver to the Company the Notice of Redemption and the Notes.

 

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6. Payments; Deliveries.

 

(a) Any amount of cash to be paid to an Escrow Party pursuant to this Agreement
shall be paid to such Escrow Party pursuant to the instructions set forth for
such Escrow Party in Schedule III hereto and any further written instructions
given by such Escrow Party. Any amount of cash to be paid to the Trustee
pursuant to this Agreement shall be paid to the Trustee (or, if specified in the
Escrow Release Notice, the paying agent designated by the Trustee) in accordance
with the instructions set forth in the Escrow Release Notice.

 

(b) Any items to be delivered to the Company pursuant to this Agreement shall be
delivered by a nationally recognized overnight courier, or delivered by hand
against written receipt, to the address for the Company set forth in Section 8,
or at such other address as it shall have furnished to the Escrow Agent and the
Buyers in writing. Any items to be delivered to a Buyer pursuant to this
Agreement shall be delivered by a nationally recognized overnight courier, or
delivered by hand against written receipt, to the address for such Buyer set
forth in Schedule I hereto, or at such other address as it shall have furnished
to the Escrow Agent and the Company in writing. Any items to be delivered to the
Trustee pursuant to this Agreement shall be delivered by a nationally recognized
overnight courier, or delivered by hand against written receipt, to the address
for the Trustee set forth in the Escrow Release Notice.

 

7. The Escrow Agent.

 

(a) The Escrow Agent shall have no duties or obligations hereunder except those
specifically set forth herein and such duties and obligations shall be
determined solely by the express provisions of this Agreement. The Escrow Agent
shall have no liability under and no duty to inquire as to the provisions of any
agreement other than this Escrow Agreement. In connection with its duties
hereunder, the Escrow Agent shall be protected in acting or refraining from
acting upon any written notice, request, consent, certificate, order, affidavit,
letter, telegram or other document furnished to it hereunder and believed by it
to be genuine and to have been signed or sent by the proper party or parties. In
the administration of the Escrow Account, the Escrow Agent may execute any of
its powers and perform its duties hereunder directly or through agents or
attorneys and may consult with counsel, accountants and other skilled persons to
be selected and retained by it. The Escrow Agent shall not be liable for the
performance of agents selected by it with reasonable care or for anything done,
suffered or omitted in good faith by it in accordance with the advice or opinion
of any such counsel, accountants or other skilled persons. The Escrow Agent
shall have no duty to solicit any payments that may be due it hereunder. The
Escrow Agent shall not be liable for any action taken or omitted by it in good
faith unless a court of competent jurisdiction determines that the Escrow
Agent’s gross negligence or willful misconduct was the primary cause of the loss
to an Escrow Party. The Escrow Agent shall not incur any liability for following
the instructions set forth in this Agreement or written instructions given by
the Escrow Parties in accordance with this Agreement.

 

(b) In the event the Escrow Agent shall be uncertain as to its duties or rights
under this Agreement or shall receive any instruction, claim or demand that, in
the opinion of the Escrow Agent, is in conflict with the provisions of this
Agreement (any of the foregoing, an “Escrow Agent Dispute”), the Escrow Agent
shall be entitled to refrain from taking any action with respect to such Escrow
Agent Dispute until it shall be directed otherwise by a final and nonappealable
order of a court of competent jurisdiction or by an instrument signed by all of
the Escrow Parties. In the event of any Escrow Agent Dispute, the Escrow Agent
shall be entitled to

 

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petition a court of competent jurisdiction in the County of New York, State of
New York to resolve such Escrow Agent Dispute, and each of the Escrow Parties
consent to the jurisdiction of any such court with respect to any such Escrow
Agent Dispute.

 

(c) The Escrow Agent shall be reimbursed for all reasonable fees and expenses,
including without limitation those fees set forth on Schedule IV hereto,
reasonable counsel fees and disbursements, incurred by the Escrow Agent in
connection with the performance of its duties and obligations under this
Agreement and reasonable courier fees incurred by the Escrow Agent in connection
with any deliveries required to be made by the Escrow Agent in connection with
the performance of its duties and obligations under this Agreement. The Company
shall be responsible for all such reasonable fees and expenses. The Company
shall be liable for the payment of all such fees and expenses incurred by the
Escrow Agent, except for such fees and expenses incurred by the Escrow Agent due
to (i) the failure of an Escrow Party to comply with any of its obligations
hereunder or (ii) the requirement by an Escrow Party that the Escrow Agent
perform duties outside the scope of this Agreement, which fees and expenses set
forth in the immediately preceding clauses (i) and (ii) shall be paid by the
applicable Escrow Party.

 

(d) The Escrow Agent may resign at any time by giving at least 30 days’ prior
written notice to the Company and Langley Partners, L.P., as representative of
the Buyers, which resignation shall become effective upon the acceptance of
appointment by the successor Escrow Agent as provided in this Section 6(d). The
resigning Escrow Agent may appoint a successor Escrow Agent, reasonably
acceptable to the Escrow Parties. If a successor Escrow Agent shall not have
been appointed within 20 days after such notice of resignation, any of the
Escrow Parties or the Escrow Agent, at the expense of the Escrow Parties, may
apply to any court of competent jurisdiction to appoint a successor Escrow
Agent. Notwithstanding the foregoing, any successor Escrow Agent shall be a
financial institution organized under the laws of the United States of America
and having a combined capital and surplus of not less than US $100,000,000. Any
successor Escrow Agent, however appointed, shall execute and deliver to the
predecessor Escrow Agent, with a copy to each of the Escrow Parties, an
instrument accepting such appointment, and thereupon such successor Escrow Agent
shall, without further act, become fully vested with all the rights, powers,
obligations and duties of the predecessor Escrow Agent hereunder with the same
effect as if originally named the Escrow Agent herein. The Escrow Agent shall
have the right to withhold an amount equal to any amount due and owing to the
Escrow Agent, plus any reasonable costs and expenses the Escrow Agent reasonably
believes may be incurred by the Escrow Agent in connection with termination of
this Agreement.

 

8. Notices. All notices, requests and other communications to any party
hereunder shall be in writing and shall be deemed to be effective and to have
been duly given only if delivered by a nationally recognized overnight courier,
or delivered by hand against written receipt, or sent by facsimile (other than
periodic statements to be delivered pursuant to Section 3(b) hereof, which shall
be delivered by first class mail), addressed or sent as follows:

 

(a) if to the Company, addressed to it at the following address or sent to it at
the following facsimile number, or at such other address or facsimile number as
it shall have furnished to the Escrow Agent and the Buyers in writing:

 

Internet Capital Group, Inc.

690 Lee Road, Suite 310

Wayne, Pennsylvania 19087

Telephone:  (610) 727-6900

Facsimile:    (610) 727-6901

Attention:    General Counsel and

                    Vice President, Treasury and Tax

 

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with a copy to:

 

Dechert LLP

1717 Arch Street

Philadelphia, Pennsylvania 19103

Telephone:  (215) 994-4000

Facsimile:    (215) 994-2222

Attention:    Henry N. Nassau, Esq.

                      and Christopher G. Karras, Esq.

 

(b) If to Escrow Agent, addressed to it at the following address or sent to it
at the following facsimile number, or at such other address or facsimile number
as it shall have furnished to the Escrow Parties in writing:

 

J.P. Morgan Trust Company, National Association

One Liberty Place

Suite 5210

Philadelphia, Pennsylvania 19103

Telephone:  (215) 988-1328

Facsimile:    (215) 972-8372

Attention:    Catherine Lenhardt

 

(c) If to a Buyer, addressed to it at the address set forth for such Buyer on
Schedule I to this Agreement or sent to it at the facsimile number set forth for
such Buyer on Schedule I to this Agreement (or at such other address or
facsimile number as it shall have furnished to the Escrow Agent and the Company
in writing) with a copy to such Buyer’s representatives as set forth on the
Schedule I hereto and (for informational purposes only) a copy to:

 

Morgan, Lewis & Bockius LLP

1701 Market Street

Philadelphia, Pennsylvania 19103

Telephone:  (215) 963-5000

Facsimile:    (215) 963-5001

Attention:    Richard A. Silfen, Esq.

                      and Robert G. Robison, Esq.

 

9. Assignment. This Agreement shall be binding upon and inure to the benefit of
and be enforceable by the parties hereto and their respective successors, legal
representatives, executors, administrators and permitted assigns. None of the
Escrow Parties nor (except as otherwise provided in Section 7(d) and Section 17
hereof) the Escrow Agent may assign,

 

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delegate or otherwise transfer any of its rights or obligations under this
Agreement without prior written consent of the other Escrow Party or, in the
case of the Escrow Agent, the Escrow Parties.

 

10. Amendments; No Waivers.

 

(a) Any provision of this Agreement may be amended or waived only if such
amendment or waiver is in writing and signed, in the case of an amendment, by
the Escrow Agent and all of the Escrow Parties or, in the case of a waiver, by
the Escrow Party against whom the waiver is to be enforced.

 

(b) No failure or delay by any party hereto in exercising any right, power or
privilege hereunder shall operate as a waiver thereof nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. The rights and remedies herein
provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

 

11. Descriptive Headings. The descriptive headings of the Sections and
subsections of this Agreement are inserted for convenience only and do not
constitute a part of this Agreement.

 

12. Governing Law; Waiver of Jury Trial. This Agreement shall be governed by and
construed and interpreted in accordance with the substantive Laws of the State
of New York, without giving effect to any choice of Law or conflicts of Law
provision or rule that would cause the application of the Laws of any
jurisdiction other than the State of New York. Each party hereto irrevocably
waives any objection on the grounds of venue, forum non-conveniens or any
similar grounds and irrevocably consents to service of process by mail or in any
other manner permitted by applicable Law and consents to the jurisdiction of the
courts located in the State of New York. THE PARTIES FURTHER HEREBY WAIVE ANY
RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY LAWSUIT OR JUDICIAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

13. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which together shall
together constitute one and the same instrument. All signatures of the parties
hereto may be transmitted by facsimile and such facsimile will, for all
purposes, be deemed to be the original signature of the party whose signature it
reproduces and will be binding upon such party.

 

14. Entire Agreement. This Agreement and, as between the Escrow Parties, the
Securities Purchase Agreement sets forth the sole and entire agreement between
the parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings, whether written or oral, with respect to
such subject matter. The Schedules and Annexes to this Agreement are hereby
incorporated by reference into and made a part of this Agreement for all
purposes.

 

15. Indemnification. The Escrow Parties shall jointly and severally indemnify,
defend and hold harmless the Escrow Agent and its directors, officers, employees
and agents from any loss, liability or expense incurred by the Escrow Agent
(including the fees and expenses of in-house or outside counsel) arising out of
or in connection with (a) its execution and

 

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performance of this Agreement, except to the extent that such loss, liability or
expense is due to the gross negligence or willful misconduct of the Escrow
Agent, or (b) its following any instructions or other directions from the Escrow
Parties, except to the extent that its following any such instruction or
direction is expressly forbidden by the terms hereof. Anything in this Agreement
to the contrary notwithstanding, in no event shall the Escrow Agent be liable
for special, indirect or consequential loss or damage of any kind whatsoever
(including but not limited to lost profits), even if the Escrow Agent has been
advised of the likelihood of such loss or damage and regardless of the form of
action. The parties hereto acknowledge that the foregoing indemnities shall
survive the resignation or removal of the Escrow Agent and the termination of
this Agreement. The Escrow Parties hereby grant the Escrow Agent a lien on,
right of set-off against and security interest in the Escrow for the payment of
any claim for indemnification, compensation, expenses and amounts due hereunder.

 

16. Compliance. Upon execution of this Agreement, the Escrow Parties shall
provide the Escrow Agent with a fully executed W-8 or W-9 Internal Revenue
Service form for each of the Escrow Parties. All interest or other income earned
under this Agreement shall be allocated and paid as provided herein and reported
by the recipient to the Internal Revenue Service as having been so allocated and
paid.

 

17. Successor Corporations. Any corporation or association into which the Escrow
Agent in its individual capacity may be merged or converted or with which it may
be consolidated, or any corporation or association resulting from any merger,
conversion or consolidation to which the Escrow Agent in its individual capacity
shall be a party, or any corporation or association to which substantially all
the corporate trust business of the Escrow Agent in its individual capacity may
be transferred, shall constitute the Escrow Agent under this Agreement without
further act.

 

18. Call-Backs; Reliance.

 

(a) In the event funds transfer instructions are given (other than in writing at
the time of execution of the Agreement), whether in writing, by facsimile or
otherwise, the Escrow Agent is authorized to seek confirmation of such
instructions by telephone call-back to the person or persons designated on
Schedule V hereto, and the Escrow Agent may rely upon the confirmations of
anyone purporting to be the person or persons so designated. The persons and
telephone numbers for call-backs may be changed only in a writing actually
received and acknowledged by the Escrow Agent. The Escrow Parties acknowledge
that such security procedure is commercially reasonable.

 

(b) It is understood that the Escrow Agent and the beneficiary’s bank in any
funds transfer may rely solely upon any account numbers or similar identifying
number provided by such beneficiary to identify (i) the beneficiary, (ii) the
beneficiary bank or (iii) an intermediary bank. The Escrow Agent may apply any
of the applicable escrowed funds for any payment order it executes using any
such identifying number, even where its use may result in a person other than
the beneficiary being paid, or the transfer of funds to a bank other than the
beneficiary’s bank or an intermediary bank designated.

 

19. Force Majeure. In the event that the Escrow Agent is unable to perform its
obligations under the terms of this Agreement because of acts of God, strikes,
equipment or

 

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transmission failure or damage reasonably beyond its control or other cause
reasonably beyond its control, the Escrow Agent shall not be liable for damages
to the other parties for any unforeseeable damages resulting from such failure
to perform or otherwise from such causes. In such event, performance by the
Escrow Agent under this Agreement shall resume when the Escrow Agent is able to
perform substantially its duties.

 

[Signature page follows.]

 

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the date first written above.

 

THE COMPANY:

INTERNET CAPITAL GROUP, INC.

By:

 

/s/ Anthony P. Dolanski

--------------------------------------------------------------------------------

Name:

 

Anthony P. Dolanski

Title:

 

Chief Financial Officer

ESCROW AGENT:

JPMORGAN TRUST COMPANY, NATIONAL ASSOCIATION

By:

 

/s/ Catherine Lenhardt

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Name:

 

Catherine Lenhardt

Title:

 

Vice President

BUYERS:

BEAR STEARNS SECURITIES CORP.

CUSTODIAN FOR JEFFREY THORP IRA ROLLOVER

By:

 

/s/ Jeffrey Thorp

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Name:

 

Jeffrey Thorp

COHANZICK ABSOLUTE RETURN MASTER FUND, LTD.

By:

 

/s/ David K. Sherman

--------------------------------------------------------------------------------

Name:

 

David K. Sherman

Title:

 

Authorized Agent

COHANZICK CREDIT OPPORTUNITIES FUND, LTD.

By:

 

/s/ David K. Sherman

--------------------------------------------------------------------------------

Name:

 

David K. Sherman

Title:

 

Authorized Agent

--------------------------------------------------------------------------------

COHANZICK HIGH YIELD PARTNERS, L.P.

By:

 

/s/ David K. Sherman

--------------------------------------------------------------------------------

Name:

 

David K. Sherman

Title:

 

Authorized Agent

GABRIEL CAPITAL, L.P.

By:

 

/s/ David K. Sherman

--------------------------------------------------------------------------------

Name:

 

David K. Sherman

Title:

 

Authorized Agent

JMB CAPITAL PARTNERS, LP

By:

 

/s/ Ron Silverton

--------------------------------------------------------------------------------

Name:

 

Ron Silverton

Title:

   

JMG CAPITAL PARTNERS, LP

By:

 

/S/    JONATHAN GLASER

--------------------------------------------------------------------------------

Name:

   

Title:

   

JMG TRITON OFFSHORE FUND, LTD

By:

 

/S/    JONATHAN GLASER

--------------------------------------------------------------------------------

Name:

   

Title:

   

--------------------------------------------------------------------------------

LANGLEY PARTNERS, L.P.

by:

 

Langley Capital, LLC, its General Partner

By:

 

/s/ Jeffrey Thorp

--------------------------------------------------------------------------------

Name:

 

Jeffrey Thorp

Title:

 

Managing Member

MANCHESTER SECURITIES CORPORATION

By:

 

/s/ Paul Singer

--------------------------------------------------------------------------------

Name:

 

Paul Singer

Title:

 

President

MASON CAPITAL, LP

MASON CAPITAL, LTD

GUGGENHEIM PORTFOLIO COMPANY X, LLC

By:

 

Mason Capital Management LLC,

   

Investment Manager

By:

 

/s/ John C. Grizzetti

--------------------------------------------------------------------------------

Name:

 

John C. Grizzetti

Title:

 

Chief Financial Officer

NORTHWOOD CAPITAL PARTNERS LP

By:

 

NwCapital Management LP, its General Partner

By:

 

/s/ Robert A. Berlacher

--------------------------------------------------------------------------------

Name:

 

Robert A. Berlacher

Title:

 

Managing Member

PORTSIDE GROWTH AND OPPORTUNITY FUND

By:

 

/s/ Jeffrey Smith

--------------------------------------------------------------------------------

Name:

 

Jeffrey Smith

Title:

 

Authorized Signatory

--------------------------------------------------------------------------------

SCOGGIN CAPITAL MANAGEMENT, LP II

By:

 

S&E Partners, LP, its general partner

By:

 

Scoggin, Inc., its general partner

By:

 

/s/ Craig Effron

--------------------------------------------------------------------------------

Name:

 

Craig Effron

Title:

 

President

SCOGGIN INTERNATIONAL FUND, LTD.

By:

 

Scoggin, LLC, its trading advisor

By:

 

/s/ Craig Effron

--------------------------------------------------------------------------------

Name:

 

Craig Effron

Title:

 

Managing Member

TOPAZ PARTNERS LP

By:

 

/s/ Kevin Schweitzer

--------------------------------------------------------------------------------

Name:

 

Kevin Schweitzer

Title:

 

Portfolio Manager

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Schedule I

 

Schedule of Buyers

 

Buyer

--------------------------------------------------------------------------------

  

Address and Facsimile Number

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Representative

--------------------------------------------------------------------------------

   Purchase Price

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Bear Stearns Securities Corp. Custodian for Jeffrey Thorp IRA Rollover   

535 Madison Avenue

7th Floor

New York, NY 10022

Fax: 212-850-7589

Attn: Jeffrey Thorp

  

Morgan, Lewis & Bockius LLP

1701 Market Street

Philadelphia, PA 19103

Fax: 215-963-5001

Attn: Richard A. Silfen, Esq. and Robert G. Robison, Esq.

   $ 7,000,000 Cohanzick Credit Opportunities Fund, Ltd.   

427 Bedford Road

Suite 260

Pleasantville, NY 10570

Fax: 914-992-9817

Attn: David K. Sherman

  

Nixon Peabody LLP

100 Summer Street

Boston, MA 02110

Fax: 866-382-6139

Attn: Richard Stein

   $ 3,400,000 Cohanzick High Yield Partners, L.P.   

427 Bedford Road

Suite 260

Pleasantville, NY 10570

Fax: 914-992-9817

Attn: David K. Sherman

  

Nixon Peabody LLP

100 Summer Street

Boston, MA 02110

Fax: 866-382-6139

Attn: Richard Stein

   $ 2,500,000 Cohanzick Absolute Return Master Fund, Ltd.   

427 Bedford Road

Suite 260

Pleasantville, NY 10570

Fax: 914-992-9817

Attn: David K. Sherman

  

Nixon Peabody LLP

100 Summer Street

Boston, MA 02110

Fax: 866-382-6139

Attn: Richard Stein

   $ 201,000 Gabriel Capital, L.P.   

450 Park Avenue

32nd Floor

New York, NY 10022

Fax: 914-992-9817

Attn: David K. Sherman

 

with copy to:

450 Park Avenue

Suite 3201

New York, NY 10022

Fax: 212-759-0368

Attn: Mark Weiner

  

Nixon Peabody LLP

100 Summer Street

Boston, MA 02110

Fax: 866-382-6139

Attn: Richard Stein

   $ 3,900,000 Guggenheim Portfolio Company X, LLC   

110 East 59th Street

30th Floor

New York, NY 10022

Fax: 212-644-4264

Attn: John C. Grizzetti

  

Thelen Reid & Priest

875 Third Avenue

New York, NY 10022

212-603-6783

Fax: 212-603-2001

Attn: Richard Swanson

   $ 1,309,000 JMB Capital Partners, LP   

1999 Avenue of the Stars

Suite 2040

Los Angeles, CA 90067

Fax: 310-286-6662

Attn: Ron D. Silverton

  

Latham & Watkins LLP

633 West Fifth Street

Suite 4000

Los Angeles, CA 90071

Fax: 213-891-8763

Attn: Michael A. Treska

   $ 5,000,000

--------------------------------------------------------------------------------

JMG Capital Partners, LP   

1999 Avenue of the Stars

Suite 2530

Los Angeles, CA 90067

Fax: 310-201-2759

Attn: Noelle Newton

   None.    $ 2,500,000 JMG Triton Offshore Fund, Ltd   

1999 Avenue of the Stars

Suite 2530

Los Angeles, CA 90067

Fax: 310-201-2759

Attn: Noelle Newton

   None.    $ 2,500,000 Langley Partners, LP   

535 Madison Avenue

7th Floor

New York, NY 10022

Fax: 212-850-7589

Attn: Jeffrey Thorp

  

Morgan, Lewis & Bockius LLP

1701 Market Street

Philadelphia, PA 19103

Fax: 215-963-5001

Attn: Richard A. Silfen, Esq. and Robert G. Robison, Esq.

   $ 3,000,000 Manchester Securities Corporation   

c/o Elliott Management Corporation

712 5th Ave

35th floor

New York, NY 10019

Fax: 212-974-2092

attn: Elliot Greenberg (back office), Brett Cohen and Nadav Manham

  

Kleinberg, Kaplan, Wolff, & Cohen, P.C.

551 Fifth Avenue

New York, NY 10176

Fax: 212-986-8866

Attn: Larry Hui

   $ 3,500,000 Mason Capital, LP   

110 East 59th Street

30th Floor

New York, NY 10022

Fax: 212-644-4264

Attn: John C. Grizzetti

  

Thelen Reid & Priest

875 Third Avenue

New York, NY 10022

212-603-6783

Fax: 212-603-2001

Attn: Richard Swanson

   $ 5,070,000 Mason Capital, Ltd   

110 East 59th Street

30th Floor

New York, NY 10022

Fax: 212-644-4264

Attn: John C. Grizzetti

  

Thelen Reid & Priest

875 Third Avenue

New York, NY 10022

212-603-6783

Fax: 212-603-2001

Attn: Richard Swanson

   $ 8,620,000 Northwood Capital Partners LP   

1150 First Avenue

Suite 600

King of Prussia, PA 19406

Fax: 610-783-4788

Attn: Bob Berlacher

   None.    $ 1,000,000 Portside Growth and Opportunity Fund   

c/o Ramius Capital Group, LLC

666 Third Avenue,

26th Floor

New York, NY 10017

Fax: 212-845-7999

Attn: Jeff Smith and

Roger Anscher

   None.    $ 3,500,000

--------------------------------------------------------------------------------

Scoggin Capital Management, LP II   

660 Madison Avenue

20th Floor

NY, NY 10021

Fax: 212-355-7480

Attn: Craig Efron

   None.    $ 1,000,000 Scoggin International Fund, Ltd.   

660 Madison Avenue

20th Floor

NY, NY 10021

Fax: 212-355-7480

Attn: Craig Efron

   None.    $ 1,000,000 Topaz Partners LP   

c/o Jemmco Capital Corp

900 Third Avenue

11th Floor

New York, N.Y. 10022

Fax: 212-644-1175

Attn: Kevin Schweitzer

  

Akin Gump

900 Third Avenue

11th Floor

NY, NY 10022

Fax: 212-872-1002

Attn: Lorne Smith

   $ 5,000,000

--------------------------------------------------------------------------------

Schedule II

 

Schedule of Notes

 

Buyer

--------------------------------------------------------------------------------

   Note Number

--------------------------------------------------------------------------------

   Principal Amount

--------------------------------------------------------------------------------

Bear Stearns Securities Corp. Custodian For Jeffrey Thorp IRA Rollover

   1    $ 7,000,000

Cohanzick Credit Opportunities Fund, Ltd.

   2    $ 3,400,000

Cohanzick High Yield Partners, L.P.

   3    $ 2,500,000

Cohanzick Absolute Return Master Fund, Ltd.

   4    $ 201,000

Gabriel Capital, L.P.

   5    $ 3,900,000

Guggenheim Portfolio Company X, LLC

   6    $ 1,309,000

JMB Capital Partners, LP

   7    $ 1,000,000

JMB Capital Partners, LP

   8    $ 1,000,000

JMB Capital Partners, LP

   9    $ 1,000,000

JMB Capital Partners, LP

   10    $ 1,000,000

JMB Capital Partners, LP

   11    $ 1,000,000

JMG Capital Partners, LP

   12    $ 2,500,000

JMG Triton Offshore Fund, Ltd

   13    $ 2,500,000

Langley Partners, LP

   14    $ 3,000,000

Manchester Securities Corporation

   15    $ 1,000,000

Manchester Securities Corporation

   16    $ 1,000,000

Manchester Securities Corporation

   17    $ 1,000,000

Manchester Securities Corporation

   18    $ 500,000

Mason Capital, LP

   19    $ 5,070,000

Mason Capital, Ltd

   20    $ 8,620,000

Northwood Capital Partners LP

   21    $ 1,000,000

--------------------------------------------------------------------------------

Buyer

--------------------------------------------------------------------------------

   Note Number

--------------------------------------------------------------------------------

   Principal Amount

--------------------------------------------------------------------------------

Portside Growth and Opportunity Fund

   22    $ 2,500,000

Portside Growth and Opportunity Fund

   23    $ 1,000,000

Scoggin Capital Management, LP II

   24    $ 1,000,000

Scoggin International Fund, Ltd.

   25    $ 1,000,000

Topaz Partners LP

   26    $ 3,000,000

Topaz Partners LP

   27    $ 2,000,000