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                                                                   Exhibit 10.32

July 28, 2005

Mr. Douglas Alexander
80 Amherst Court
Phoenixville, PA 19460

Dear Doug:

The Board of Directors and I recognize you as a valuable contributor to Internet
Capital Group ("ICG"). We place a high priority upon retaining your services to
ICG and in rewarding you for your commitment, dedication, and hard work. I am,
therefore, very pleased to reaffirm the severance package that will be made
available to you should you be terminated other than for cause prior to December
31, 2008. A summary of these severance benefits is listed below.

     -    SEVERANCE PAY - ICG will pay you at the date of termination of
          employment a lump sum payment equal to 12 months of base salary plus
          target bonus at the rate existing at termination of employment.

     -    ANNUAL BONUS - ICG will pay you at the same time, under the same terms
          and conditions as other employees, a pro-rated bonus for service
          through your termination date, based on your individual performance
          and ICG's performance for that period as determined by the Board of
          Directors.

     -    EMPLOYEE BENEFITS - ICG will continue to provide you and your family
          medical and dental insurance at the same percent of premium payment
          existing at the time of termination until the earlier of (A) 12 months
          after termination of employment; or (B) your eligibility for any of
          these benefits under another employer's or spouse's employer's plan.

     -    OUTPLACEMENT - ICG will provide you career counseling until the
          earlier of (A) 12 months after termination of employment; or (B) your
          employment with a subsequent employer.

     -    EQUITY - ICG Management will recommend to the Compensation Committee
          of the Board of Directors that your stock options and restricted stock
          be subject to the better of the following: (A) credit for an
          additional 12 months service (compared to your actual service with
          ICG); or (B) application of the terms of the relevant option or
          restricted stock agreement. Such options shall be exercisable after
          your termination of employment to the earlier of 1) twenty-four months
          or 2) 12 months after the ICG share price is maintained at $16 for 20
          trading days.
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     -    CHANGE IN CONTROL - In the event of an involuntary termination caused
          by a change in control as defined in the summary plan description, you
          will receive 100% acceleration of all equity grants. The term to
          exercise any option grant shall be extended to the remaining term of
          the option.

     -    RELEASE - Availability of these severance benefits will be conditioned
          upon your executing, and not rescinding or breaching, upon termination
          of employment a release of liability in a form acceptable to ICG. If
          you elect not to sign a release of liability, you will be eligible for
          the standard severance package applicable at that time. That package
          currently consists of one month's pay plus two week's pay per year of
          completed service and paid medical and dental insurance for you and
          your family for the standard severance period.

In addition, in connection with the equity grant that was approved by the Board
on July 22nd, the Board has also adopted stock ownership guidelines for the
senior management of ICG. Under these guidelines, you are expected to own the
lesser of (1) 40% of any restricted stock granted to you that vests after July
22, 2005, or (2) stock worth at least 150% of your base salary.

We trust that our commitment to protect the financial security of you and your
family will strengthen your loyalty to ICG. Our sincere belief is that the
current ICG team, including you, is outstanding and will drive our success
against the new business plan. This success will provide meaningful financial
rewards to our shareholders and employees.

This letter is not intended to modify your status as an at-will employee of ICG
and all other employment terms and conditions remain the same.

Sincerely,

/s/ Walter Buckley
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Walter Buckley
Chairman and Chief Executive Officer

cc: Employee file

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