Document:

<PAGE>
                                                                    Exhibit 10.4

                           1999 INTERNET CAPITAL L.P.

     AGREEMENT OF LIMITED PARTNERSHIP, effective as of ___________, 1999 (the
"Effective Date"), among ICG Holdings, Inc. ("General Partner"), and the persons
and/or entities identified on Exhibit I attached hereto as Limited Partners, and
such other persons as shall, from time to time, become limited partners as
provided herein (the "Limited Partners"). The General Partner and the Limited
Partners are sometimes referred to herein collectively as the "Partners" or
individually as a "Partner".

     The parties, in consideration of their mutual covenants herein contained,
agree to become partners and to form a limited partnership (the "Partnership")
as follows:

                                    ARTICLE I

                           Formation; Name and Office;
                      Purpose; Powers; Term and Dissolution
                      -------------------------------------

     Section 1.1. Formation. The Partners hereby form the Partnership pursuant
                  ---------
to the provisions of the Act by executing this Agreement of Limited Partnership
and filing a Certificate of Limited Partnership in the office of the Secretary
of State of the State of Delaware.

     Section 1.2. Name and Office. The Partnership shall be conducted under the
                  ---------------
name 1999 Internet Capital L.P.

     (a) The General Partner shall have the power at any time to (i) change the
name of the Partnership and (ii) qualify the Partnership to do business under
any name when the Partnership's name is unavailable for use in a particular
jurisdiction. The General Partner shall use its best efforts to qualify the
Partnership to do business in each jurisdiction where the activities of the
Partnership make such qualification necessary. The General Partner shall give
prompt notice of any change of the Partnership's name to each Partner.

     (b) The registered office of this Partnership in the State of Delaware is
103 The Springer Building, 3411 Silverside Road, Wilmington, Delaware 19801, c/o
Cindy Conner or such other place as may from time to time be designated by the
General Partner. The General Partner shall give prompt notice of any such change
to each Partner.

     (c) The principal office of the Partnership shall be at 103 The Springer
Building, 3411 Silverside Road, Wilmington, Delaware 19801, c/o Cindy Conner or
such other place as may from time to time be designated by the General Partner.
The General Partner shall give prompt notice of any such change to each Partner.

     Section 1.3. Purpose. The Partnership is being organized for the purpose of
                  -------
investing in Securities, to engage in such activities as may be permitted hereby
or are incidental hereto and for engaging in any and all lawful business
activities in which limited partnerships formed in the State of Delaware under
the Act may participate.
<PAGE>

     Section 1.4. Powers. In furtherance of the purpose of the Partnership as
                  ------
specified in Section 1.3, the Partnership shall have all powers available to it
as a limited partnership under the laws of the State of Delaware that are
reasonably necessary to enable it to perform its functions and conduct its
activities, including, without limitation, (i) the power to make and perform all
contracts and engage in all activities and transactions necessary or advisable
to carry out the purpose of the Partnership, (ii) the power to purchase, sell,
transfer, pledge and exercise all rights, privileges and incidents of ownership
or possession with respect to Securities and other Partnership Assets and (iii)
the power to form other limited partnerships and to make capital contributions
to such partnerships.

     Section 1.5. Term and Dissolution. The Partnership shall continue in full
                  --------------------
force and effect indefinitely until the Partnership is dissolved pursuant to the
provisions of Article VII.

                                   ARTICLE II

                                Limited Partners
                                ----------------

     Section 2.1. Initial Limited Partners. The initial Limited Partners are
                  ------------------------
listed on Exhibit I hereto. Additional Limited Partners may be admitted by the
General Partner from time to time pursuant to Section 2.2 below.

     Section 2.2. Admission of Limited Partners. One or more additional Limited
                  -----------------------------
Partners shall be admitted to the Partnership and shall become a party to this
Agreement upon (i) each signing a counterpart of this Agreement and delivering
such counterpart to the General Partner in such manner and at such time as the
General Partner shall determine and (ii) acceptance thereof by the General
Partner, at the discretion of the General Partner. Each additional Limited
Partner so admitted to this Partnership shall be bound by all the provisions of
this Agreement. Following an amendment pursuant to Article VIII, the General
Partner is authorized to revise this Agreement as appropriate and, if required
by the Act, to file amendments to the Certificate of Limited Partnership from
time to time.

     Section 2.3. Liability of Limited Partners. Except as otherwise provided
                  -----------------------------
under the Act, no Limited Partner, in his capacity as such, shall be liable for
any debts, liabilities, contracts or obligations of the Partnership. No Limited
Partner, in his capacity as such, shall be liable for any debts, liabilities,
contracts or obligations of any other Partner.

                                      -2-
<PAGE>

                                   ARTICLE III

                              Capital Contributions
                              ---------------------

     Section 3.1. Contribution of General Partner. The General Partner shall
                  -------------------------------
contribute in cash or Securities in respect of its interest in the Partnership
in the amount set forth opposite its name on Exhibit I attached hereto. The
General Partner may make additional Capital Contributions from time to time in
cash or Securities, and Exhibit I shall be accordingly amended, but the
inadvertent failure to amend such Exhibit I shall not affect the calculations of
Capital Contributions.

     Section 3.2. Contributions of Limited Partners. A Limited Partner shall not
                  ---------------------------------
be required to make any Capital Contribution in connection with the Limited
Partner's admission to the Partnership, and a Limited Partner shall not be
required to make any additional Capital Contributions to the Partnership. Upon
admission to the Partnership, each Limited Partner shall be assigned a portion
of the capital of the Partnership, which shall be credited to the Limited
Partner's Capital Account, as set forth on Exhibit 1 attached hereto.

     Section 3.3. Withdrawal of Capital. A Partner shall not be entitled to
                  ---------------------
bring an action for partition against the Partnership, or to demand or receive
any distribution of or with respect to his Capital Contribution except as is
specifically provided in this Agreement.

                                   ARTICLE IV

                Rights, Powers and Duties of the General Partner
                -------------------------------------------------

Section 4.1.    Management of Partnership.  The General Partner shall have sole
                  -----------------------
and exclusive right to manage, control and conduct the affairs of the
Partnership and to do any and all acts on behalf of the Partnership.  All
decisions with respect to Securities including, without limitation, the
investment or reinvestment, holding, disposition, distribution to Partners or
any similar investment-related decisions will be made solely by the General
Partner.  The General Partner may delegate responsibility over any right or
obligation to any of the General Partner's agents or representatives as the
General Partner in its sole discretion, deems appropriate.  The General Partner
will possess all of the powers and rights of a general partner under the Act.

Section 4.2.    Authorized Acts.  The General Partner is authorized and
                  -------------
empowered to carry out and implement the purpose of the Partnership, as provided
in Section 1.3, and to exercise the powers of the Partnership, as provided in
Section 1.4, for, in the name of, and on behalf of, the Partnership.

Section 4.3.    Powers of the Limited Partners.  The Limited Partners shall take
                  ----------------------------
no part in the control, management or conduct of the affairs of the Partnership
nor shall the Limited Partners have any authority to vote on Partnership matters
or to act for or on behalf of the Partnership except as otherwise required by
law.

                                      -3-
<PAGE>

     Section 4.4. Liabilities of the General Partner. The General Partner shall
                  ----------------------------------
not be liable, responsible or accountable, in damages or otherwise, to any other
Partner or to the Partnership for any act or omission taken by such General
Partner, except for its own gross negligence or willful misconduct, nor shall
the General Partner be liable, responsible or accountable for the gross
negligence or willful misconduct (including dishonesty or bad faith) of any
employee, broker or other agent of the Partnership which the General Partner
shall have selected with reasonable care. The General Partner shall be entitled
to rely upon the advice of counsel and public accountants, and shall not be
liable, responsible or accountable, in damages or otherwise, to any other
Partner or to the Partnership, for any act or omission which he shall take in
good faith in reliance on such advice.

     Section 4.5. Indemnification.
                  ---------------

                  (a)   The Partnership shall indemnify, to the fullest extent
permitted by law, the General Partner and its officers, directors, employees,
partners and agents ("Indemnified Parties") from and against all costs and
expenses, including attorneys' fees, judgments, fines, settlements and/or
liabilities incurred by or imposed upon any Indemnified Party in connection
with, or resulting from, investigating, preparing or defending any action, suit
or proceeding, whether civil, criminal, legislative or otherwise (or any appeal
thereof), to which any Indemnified Party may be made a party or become otherwise
involved or with which any Indemnified Party may be threatened, in each case by
reason of, or in connection with, the Indemnified Party being or having been
associated with or otherwise acting for the Partnership, or having acted as a
director, officer, employee, partner or agent of any Entity in which the
Partnership had invested, or by reason of any action or alleged action, omission
or alleged omission by any Indemnified Party in any such capacity, provided that
the Indemnified Party is not ultimately adjudged to have engaged in gross
negligence or willful misconduct, and provided further that the Indemnified
Party acted in a manner that he reasonably believed to be in, or not opposed to,
the best interests of the Partnership.

                  (b)   The Partnership shall pay the expenses incurred by an
Indemnified Party in investigating, preparing or defending any civil or criminal
action, suit or proceeding, in advance of the final disposition thereof, upon
receipt of (i) an undertaking by the Indemnified Party to repay such payment if
there is a final determination that he is not entitled to indemnification as
provided herein and (ii) satisfactory evidence that the Indemnified Party has
sufficient financial resources to satisfy any such undertaking.

                  (c)   The Partnership shall make all indemnification provided
for pursuant to this Section 4.5 solely out of Partnership Assets and only to
the extent of such Partnership Assets. Except as provided aforesaid, no Limited
Partner shall have any personal liability for any indemnification required or
permitted pursuant to this Section 4.5. None of the provisions of this Section
4.5 shall be deemed to create or grant any rights in favor of Indemnified
Parties which cannot be discharged out of Partnership Assets, except as provided
aforesaid, or in favor of anyone other than Indemnified Parties; this provision
excludes, among others, any right of subrogation in favor of any insurer or
surety. The rights of indemnification granted hereunder shall survive the
termination, dissolution and winding up of the Partnership.

                                      -4-
<PAGE>

                                   ARTICLE V

                 Capital Accounts; Allocations and Distributions
                 -----------------------------------------------

     Section 5.1. Capital Accounts.
                  ----------------

                  (a)   There shall be established for each Partner a separate
Capital Account.

     Section 5.2. Allocations.
                  -----------

                  (a)   After giving effect to the special allocations, if any,
set forth in Section 5.5, Net Income or Net Loss for any Accounting Period shall
be allocated among the Partners in accordance with the following provisions:

                        (i)   Net Income derived from the Partnership's interest
in each Investment Position shall be allocated as follows:

                              (A)  First, 100% to the General Partner until (1)
                        the cumulative amount of Net Income from a particular
                        Investment Position allocated pursuant to this Section
                        5.2(a)(i)(A)(1) for the current Accounting Period and
                        all prior Accounting Periods equals the cumulative
                        amount of Net Loss, if any, derived from such Investment
                        Position and allocated pursuant to Section 5.2(a)(ii)
                        for all prior Accounting Periods and (2) the cumulative
                        amount of Net Income allocated to the General Partner
                        pursuant to this Section 5.2(a)(i)(A)(2) equals 100% of
                        the General Partner's Threshold Amount minus its Equity
                        Cost Basis in such Investment Position.

                              (B)  Second, 100% to the Limited Partners (to be
                        divided among them pro rata in accordance with their
                        Vested Profit Percentages) until the Net Profits
                        allocated to them pursuant to this Section 5.2(a)(i)(B)
                        is equal to the aggregate Limited Partners' Vested
                        Profit Percentages multiplied by the sum of (a) the
                        Equity Cost Basis and (b) the amount allocated pursuant
                        to this Section 5.2(a)(i)(B) and Section 5.2(a)(i)(A)(2)
                        above with respect to such Investment Position, and

                              (C)  Third, pro rata among the Partners in
                        accordance with their Vested Profit Percentages.

                        (ii)  Net Loss with respect to an Investment Position
shall first be allocated in a manner that reverses the allocated Net Income with
respect to such Investment Position in Section 5.2(a)(i) above, reversing
allocations first under subsection (C) and then subsection (B) and then
subsection (A) of Section 5.2(a)(i) above and then to the Partners in accordance
with Capital Percentages.

                                      -5-
<PAGE>

                        (iii) Short-term Investment Income and Short-term
Investment Loss shall be allocated to the Partners in accordance with Capital
Percentages.

                  (b)   Upon the admission of any additional Limited Partner
during 1999, the General Partner shall assign a Profit Percentage to such
additional Limited Partner, which shall dilute the Profit Percentages of the
Limited Partners to the extent that the aggregate Profit Percentage of all
Limited Partners would otherwise exceed twelve percent (12%) and Exhibit III
shall be amended to reflect such new Profit Percentages.

                  (c)   The allocations agreed to be made pursuant to Section
5.2(a) hereto shall, for purposes of determining Capital Account balances, be
deemed allocated prior to a distribution in kind (giving effect to such
distribution in kind).

                  (d)   If an interest in the Partnership is transferred during
a taxable year, Net Income or Net Loss (and any item of income, gain, loss,
deduction or credit) for such taxable year allocable to the transferred interest
shall be allocated between the transferor and the transferee on an interim
closing of the books basis, based upon that portion of such taxable year during
which each was recognized as owning such interest; provided, that such
allocation must be in accordance with a method permissible under section 706 of
the Code and Treasury Regulations thereunder.

     Section 5.3. Distributions.
                  -------------

                  (a)   Except as otherwise provided in this Section 5.3, from
time to time the General Partner shall cause the Partnership to distribute to
the Partners all or part of the Investment Assets, the proceeds from a
Disposition or Dispositions or other income and proceeds attributable to the
Partnership's interest in any of the Investment Positions. Any Investment Assets
distributed by the Partnership shall be valued at their Gross Asset Value and
treated for Capital Account purposes as if sold immediately prior to
distribution. Distributions of different types or classes of property or
securities need not be made pro rata to all Partners, so long as the Gross Asset
Value of all distributions is allocated in accordance with this Section 5.3.

                  (b)   In the case of any distribution respect to an Investment
Position, distributions shall be made among the Partners in the following
manner:

                        (i)   First, the General Partner shall receive an amount
equal to the cumulative amount, if any, of the Net Loss with respect to the
Investment Position previously allocated to the General Partner;

                        (ii)  Then:

                              (1) Each Limited Partner shall receive an amount
equal to such Limited Partner's Vested Profit Percentage in the balance of such
distribution; and

                              (2) The General Partner shall receive the balance.

                                      -6-
<PAGE>

                  (c)   In the case of a distribution attributable to a
disposition of Securities that occurred in a prior calendar year, the
distribution shall be treated, for purposes of this Section 5.3, as taking place
in such prior calendar year.

                  (d)   Distributions with respect to Short-term Investment
Income shall be made at such times as the General Partner shall determine in
proportion to the Partners' Capital Percentages.

                  (e)   Notwithstanding the foregoing provisions of this Section
5.3, in no event shall a distribution be made to a Limited Partner to the extent
that such distribution would cause such Limited Partner (after taking into
account any allocations of Net Income or Net Loss attributable to such
distribution) to have a deficit balance in such Limited Partner's Capital
Account. In the event that a distribution is restricted pursuant to this Section
5.3(e), the Partnership shall, as promptly as possible, make a special
distribution to such Limited Partner of an amount subject to restriction under
this Section 5.3(e) at such time, if any, as such distribution would not cause
such Limited Partners to have a deficit balance in such Limited Partner's
Capital Account.

     Section 5.4. Tax Withholdings. To the extent the Partnership is required by
                  ----------------
federal, state or local law or any tax treaty to withhold or to make tax
payments on behalf of or with respect to any Partner, the General Partner shall
withhold such amounts or make such tax payments as so required. The amount of
such payments shall constitute an advance by the Partnership to such Partner
bearing interest at the lowest applicable federal rate for such advance and, if
such Partner shall not have reimbursed the Partnership for such amount, such
amount, plus interest, if any, shall be repaid to the Partnership by reducing
the amount of the current or next succeeding distribution or distributions which
would otherwise have been made to such Partner or, if such distributions are not
sufficient for that purpose, by so reducing the proceeds of liquidation
otherwise payable to such Partner and if such proceeds are insufficient, such
Partner shall pay to the Partnership the amount of such insufficiency.

     Section 5.5. Special Allocation - Qualified Income Offset. In the event
                  --------------------------------------------
that any Partner unexpectedly received any adjustments, allocations or
distributions described in Treasury Regulations Sections
1.704-1(b)(2)(ii)(d)(4), 1.704- 1(b)(2)(ii)(d)(5) or 1.704-1(b)(2)(ii)(d)(6),
items of Partnership income and gain shall be specifically allocated to each
Partner in an amount and manner sufficient to eliminate, to the extent required
by the Treasury Regulations, the deficit Capital Account of such Partner as
quickly as possible, provided that an allocation pursuant to this Section 5.5
shall be made if and only to the extent that such Partner would have a deficit
Capital Account after all other allocations provided for in this Article V have
been tentatively made as if this Section 5.5 were not in this Agreement.

     Section 5.6. Allocations for Tax Purposes.
                  -----------------------------

                  (a)   Items of Partnership taxable income, gain, loss,
deduction, or credit shall be determined according to Code Section 703, and
except as otherwise required under Code Section 704 or the Treasury Regulations
promulgated thereunder, the Partners' distributive shares of each such item for
purposes of Code Section 702 shall be determined by allocating such item in the
same manner as its correlative item of "book" income, gain, loss,

                                      -7-
<PAGE>

deduction or credit has been allocated pursuant to this Agreement.

                  (b)   Items of the Partnership's taxable income, gain and
deduction with respect to any property contributed to the capital of the
Partnership shall be allocated among the Partners in accordance with Code
Section 704(c) so as to take account of any variation between the adjusted basis
of such property to the Partnership for federal income tax purposes and its
Gross Asset Value using the traditional method of Treas. Reg. (S)1.704-2(b)(2).

                  (c)   If the Gross Asset Value of a Partnership asset is
adjusted, subsequent allocations of items of taxable income, gain, loss, and
deduction with respect to such asset shall take account of the variation between
the adjusted basis of such asset for federal income tax purposes and its Gross
Asset Value in the same manner as under Code Section 704(c).

                  (d)   Allocations pursuant to this Section 5.6 are solely for
purposes of federal, state and local taxes and shall not effect, or in any way
be taken into account in computing, a Partner's Capital Account of share of
income, gains, losses, deductions distributions or other Partnership items
pursuant to these provisions.

                                   ARTICLE VI

                               Vesting Provisions
                               ------------------

     Section 6.1. Vested Profit Percentage. For purposes of this Partnership,
                  ------------------------
the term "Vested Profit Percentage" of a Limited Partner with respect to an
Investment Position shall be the product obtained by multiplying the following
three factors: (1) such Limited Partner's Profit Percentage, (2) the Threshold
Requirement Percentage applicable to such Investment Position, and (3) the
Performance Requirement Percentage applicable to all Investments Positions of
the Partnership.

     Section 6.2. Determining the Profit Percentage. For purposes of determining
                  ---------------------------------
a Limited Partner's Vested Profit Percentage, the term "Profit Percentage" shall
mean, with respect to any given Measurement Period, the percentage set forth on
Section 1 of Exhibit II, as may be adjusted pursuant to this Agreement.

     Section 6.3. Determining the Threshold Requirement Percentage. On the date
                  ------------------------------------------------
of any distribution with respect to an Investment Position, the Threshold
Requirement shall be considered satisfied and the "Threshold Requirement
Percentage" shall equal one hundred percent if (i) in connection with the sale
or other disposition of such Investment Position the Threshold Amount with
respect to such Investment Position was reached as of the time of such sale or
disposition or (ii) in connection with a distribution in-kind of an Investment
Position the Threshold Amount has been reached for at least three (3) of the six
(6) immediately preceding calendar months, determined on the last business day
of each such month, prior to the date of such distribution; provided that, if
the Threshold Requirement would have been met with respect to an Investment
Position prior to the end of a calendar year of the Partnership, and the Board
does not make a contemporaneous determination of whether the Performance
Requirement would have been satisfied as of that point in time during the
calendar year, the Threshold Requirement shall be deemed to be satisfied as of
such later date that the Board determines

                                      -8-
<PAGE>

whether the Performance Requirement has been satisfied. For any Investment
Position for which the Threshold Requirement is not satisfied pursuant to the
preceding sentence, the Threshold Requirement Percentage shall equal zero (0).

     Section 6.4. Determining the Performance Requirement Percentage.
                  --------------------------------------------------

                  (a)   With respect to all Investment Positions of the
Partnership on a given date, the Performance Requirement shall be considered
satisfied for the relevant Measurement Period if the Aggregate Return equals or
exceeds fifteen per cent (15%) and the Performance Requirement Percentage shall
therefore be equal to one hundred per cent (100%). If the Performance
Requirement has not been satisfied, the Performance Requirement Percentage shall
equal zero (0).

                  (b)   For purposes of this Section 6.4, the term "Measurement
Period" means the period beginning on the date hereof and ending (i) on the last
day of each calendar year and (ii) such other date as the Board shall from time
to time decide is appropriate for determining whether the Performance
Requirement has been satisfied.

                  (c)   As of a given date, each Investment Position shall be
valued as follows: (1) if an Investment Position has been sold or otherwise
disposed of prior to such date, the value of the consideration received by the
Partnership as a result of such sale or disposition, (2) in the event that no
such sale or disposition has occurred, if an Investment Position has received
third-party financing within the twelve month period prior to such date, the
value of the Investment Position determined in connection with such financing,
or (3) in the event that no such sale, disposition or financing has occurred,
the value of an Investment Position shall be determined by an independent
appraiser chosen in good faith by the General Partner.

                  (d)   In determining whether the Performance Requirement has
been satisfied for any Measurement Period, the "Aggregate Return" shall mean the
weighted average percentage appreciation in the value of the Investment Assets
of the Partnership over such Measurement Period, taking into account the size of
each investment and the length of time held by the Partnership, expressed on an
annualized basis, without regard to compounding.

     Section 6.5. Board Discretion. Notwithstanding that the Performance
                  ----------------
Requirement or the Threshold Requirement has not been satisfied in accordance
with the provisions of Section 6.3 or Section 6.4 as of any particular point in
time, the Board reserves the right to determine that such requirements have been
met in full or in part as of such time.

                                   ARTICLE VII

                 Dissolution and Winding-Up of the Partnership;
                       Withdrawal and Removal of Partners
                       ----------------------------------

     Section 7.1. Events of Dissolution. The Partnership shall be dissolved, and
                  ---------------------
its affairs wound up, upon the happening of any of the following events:

                  (a)   the determination for any reason by the General Partner
that the

                                      -9-
<PAGE>

Partnership should be dissolved and its affairs wound up;

                  (b)   the dissolution of the General Partner or the entry of
an order amounting to a stay of proceedings against the General Partner under
the federal bankruptcy laws or rules;

                  (c)   the sale or distribution of all or substantially all of
the assets held by the Partnership;

                  (d)   any other event that would cause a dissolution of a
limited partnership under the Act; or

                  (e)   December 31, 2004.

     Section 7.2. Winding Up. Upon the occurrence of (i) a Dissolution Event or
                  ----------
(ii) the determination by a court of competent jurisdiction that the Partnership
has dissolved prior to the occurrence of a Dissolution Event, the Partnership
shall continue solely for the purposes of winding up its affairs in an orderly
manner, liquidating its assets, and satisfying the claims of its creditors and
Partners, and no Partner shall take any action that is inconsistent with, or not
necessary to or appropriate for, the winding up of the Partnership's business
and affairs, provided that all covenants contained in this Agreement shall
continue to be fully binding upon the Partners until such time as the assets of
the Partnership have been fully distributed pursuant to this Section 7.2 and the
Certificate has been canceled pursuant to the Act. The General Partner shall be
responsible for overseeing the winding up and dissolution of the Partnership and
the determining the time, manner and terms of sale or other disposition of the
Partnership's assets. The winding up and dissolution shall be completed within
ninety (90) days of the occurrence of the Dissolution Event. The completion of
the winding up and dissolution shall operate as the Limited Partners' release of
any and all of their claims against both the Partnership and the General
Partner. The General Partner shall take full account of the Partnership's
liabilities and property and shall cause the property or the proceeds from the
sale thereof, to the extent sufficient therefor, to be applied and distributed,
to the maximum extent permitted by law, in the following order:

                  (a)   First to creditors (including Partners who are
creditors, to the extent otherwise permitted by law) in satisfaction of all of
the Partnership's debts and other liabilities (whether by payment of the making
of reasonable provision for payment thereof);

                  (b)   The balance, if any, to the Partners in accordance with
the positive balances in their Capital Accounts, after giving effect to all
contributions, distributions and allocations for all periods. Such distribution
shall, to the greatest extent possible, be made among the Partners in a manner
consistent with the manner in which distributions shall be made among the
Partners pursuant to Section 5.3.

     Section 7.3. Deficit Capital Accounts. If any Limited Partner has a deficit
                  ------------------------
balance in his Capital Account (after giving effect to all contribution,
distributions and allocations for all Fiscal Years, including the Fiscal Year in
which such liquidation occurs), such Limited Partner shall have no obligation to
make any contribution to the capital of the Partnership with respect to such
deficit, and such deficit shall not be considered a debt owed to the Partnership
or to any

                                      -10-
<PAGE>

other person for any purpose whatsoever.

     Section 7.4. Voluntary Removal of a Limited Partner. A Limited Partner may,
                  -----------------------------
at such Partner's option exercised upon written notice to the General Partner,
voluntarily remove himself or herself as a Limited Partner as of the last day of
a calendar month (a "Voluntary Removal") (the last business day immediately
preceding the effective date of a Voluntary Removal or an Involuntary Removal
pursuant to Section 7.5 shall be herein referred to as the "Termination Date.").

     Section 7.5. Involuntary Removal of a Limited Partner. Effective upon
                  -----------------------------
written notice to a Limited Partner from the General Partner, the Limited
Partner named in such notice shall be involuntarily removed for any reason or
for no reason as a Limited Partner (an "Involuntary Removal"). A Voluntary
Removal under Section 7.4 or an Involuntary Removal under this Section 7.5 shall
not dissolve the Partnership, the business of which shall be carried on by the
remaining Partner(s). (A Limited Partner who is removed as a Partner pursuant to
Section 7.4 or this Section 7.5 may be referred to herein as a "Removed
Partner".)

     Section 7.6. Treatment of Interest of Withdrawn or Removed Partner.
                  -----------------------------------------------------

                  (a)   From and after the Termination Date, a Removed Partner's
Capital Account shall be eliminated and all items of Net Income and Net Loss
previously allocated to such Partner's Capital Account shall be reallocated to a
special Capital Account which shall be established for the benefit of such
Removed Partner. The Net Income or Net Loss realized following a Termination
Date with respect to the Removed Partner's portion of any Investment Position at
the Removed Partner's Termination Date shall be allocated solely to the General
Partner.

                  (b)   A Removed Partner shall be entitled to receive only the
balance, if any, in such Removed Partner's Capital Account at the Removed
Partner's Termination Date. From and after the Termination Date, the Removed
Partner shall not be deemed a Partner for any purpose except for the purposes of
Section 4.5 and Section 5.4, and any interest that a Removed Partner would have
had in Investment Positions acquired subsequent to the Termination Date shall,
unless allocated by the General Partner to one or more other Limited Partners,
be allocated solely to the General Partner.

                  (c)   In each instance of a Removed Partner, the General
Partner may make the election under Code Section 754, and adjust the basis of
the Partnership property pursuant to Code Sections 734 or 743, as may be
applicable.

                                  ARTICLE VIII

                                   Amendments
                                   ----------

     Section 8.1. This Agreement may be amended only by the General Partner;
provided, however, that prompt written notice thereof shall be delivered to the
other Partners and that any amendment to this Agreement which (a) increases the
liability of any Partner (b) affects vesting or (c) amends this Article VIII,
shall require the prior approval of a majority in interest of the

                                      -11-
<PAGE>

Partners so affected.

                                  ARTICLE IX

                    Limitations on Transfers of Interests;
            Additional Partners; Adjustments to Distributive Shares
            -------------------------------------------------------

     Section 9.1. Transfer by General Partner. The General Partner may assign,
                  ---------------------------
pledge, mortgage or otherwise hypothecate, sell or dispose of any part or all of
its Partnership Interest without the consent of the Limited Partners.

     Section 9.2. Limitations on Transfers of Interests of Limited Partners. No
                  ---------------------------------------------------------
Limited Partner shall assign, pledge, mortgage, or otherwise hypothecate, sell,
or dispose of any part or all of his Partnership Interest without the prior
written consent of the General Partner.

     Section 9.3. Effect of Authorized and Unauthorized Transfers. Any
                  -----------------------------------------------
transferee of a Partnership Interest transferred in accordance with this
Agreement shall succeed to all the rights and liabilities of the transferor
provided for under this Agreement, but shall only become a Substituted Limited
Partner if the permission required by Section 9.4 is granted. Any attempted
transfer of a Limited Partner's Partnership Interest without compliance with the
provisions of this Agreement shall be void and ineffectual and shall not be
binding upon the Partnership, and the Partnership may refuse to recognize such
attempted transfer for all purposes.

     Section 9.4. Substituted Limited Partners. The General Partner may, in its
                  ----------------------------
sole discretion, permit an assignee or transferee of a Partnership Interest to
become a Substituted Limited Partner in the Partnership entitled to all the
rights and benefits under this Agreement of the assignor or transferor. No such
assignee or transferee shall become a Substituted Limited Partner unless and
until the General Partner has given such permission. Each Limited Partner hereby
consents to such admission and authorizes the General Partner to amend Exhibit I
or II and, if required by the Act, the Certificate of Limited Partnership of the
Partnership to reflect such admission.

     Section 9.5. Additional Limited Partners. The General Partner may from time
                  ---------------------------
to time admit one or more Persons as additional Limited Partners. Upon admission
of such Person(s), the Profit Percentage of each Partner will be adjusted as
provided below. Subject to the last sentence of this Section 9.5, the General
Partner shall assign such additional Limited Partners a Profit Percentage, and
any Profit Percentage assigned to such additional Limited Partners will dilute
the Profit Percentage of the existing Limited Partners in proportion to their
Profit Percentages to the extent that the aggregate Profit Percentages of all
Limited Partners would otherwise exceed twelve percent (12%), unless the General
Partner elects to have such assignment of Profit Percentage dilute the General
Partner. No Limited Partner shall participate in any Investment Asset acquired
by the Partnership prior to the time such Limited Partner became a Limited
Partner, unless expressly provided by the General Partner.

                                   ARTICLE X

                                      -12-
<PAGE>

                         Fiscal Year; Records; Reports
                         -----------------------------

     Section 10.1. Fiscal Year. "Fiscal Year," as used in this Agreement, means
                   -----------
the period beginning on January 1 and ending on December 31 of each year.

     Section 10.2. Records. At all times the General Partner shall keep books of
                   -------
account of the Partnership. Such books of account, together with a copy of this
Agreement and the Certificate of Limited Partnership and any amendments thereto
and restatements thereof, shall at all times be maintained at the principal
office of the Partnership, and shall be open to inspection at any reasonable
time by the Partners.

     Section 10.3. Reports. As promptly as possible after the close of each
                   -------
Fiscal Year, but in any event within 90 days after the close of each Fiscal
Year, the General Partner shall distribute K-1 tax returns and a report on the
Investment Positions held by the Partnership to each Partner. Within 90 days
after the close of each Fiscal Year, the Partnership shall transmit to each
Partner a report indicating his share of the income or losses of the Partnership
for such Fiscal Year for federal income tax purposes. Such report shall contain
a separate accounting for such tax purposes of each of the following four items:
realized capital gains, realized capital losses, ordinary income, and ordinary
losses.

     Section 10.4. Accounting Decisions. All decisions as to accounting
                   --------------------
treatment of any items of Partnership business, when made by the General Partner
in accordance with generally accepted accounting principles, shall have
conclusive effect upon the Partnership and the Partners.

     Section 10.5. Tax Matters Partner. The General Partner shall be the tax
                   -------------------
matters partner for the Partnership for all federal income tax purposes set
forth in the Code, with the power and authority to take all actions and do such
things as required or as he shall deem appropriate under the Code or regulations
promulgated thereunder.

                                  ARTICLE XI

                                 Miscellaneous
                                 -------------

     Section 11.1. Counterparts. This Agreement may be executed by the Partners
                   ------------
in counterparts, all of which taken together shall be deemed one original.

     Section 11.2. Further Assurances. The Partners will execute, acknowledge,
                   ------------------
and deliver such further instruments and do such further acts and things as may
be required to carry out the intent and purpose of this Agreement.

     Section 11.3. Captions. The descriptive headings contained in this
                   --------
Agreement are inserted only as a matter of convenience and shall not control or
affect the meaning or construction of any provision of this Agreement.

     Section 11.4. Binding Effect. Except to the extent required under the Act
                   --------------
and except for fees, rights to reimbursement and indemnity, and other
compensation, none of the provisions of

                                      -13-
<PAGE>

this Agreement shall be for the benefit of or enforceable by any creditor of the
Partnership, as such. The provisions of this Agreement shall be binding upon and
shall inure to the benefit of the successors and permitted assigns, if any, of
the respective Partners, except as otherwise provided in this Agreement.

     Section 11.5. Partial Invalidity. The invalidity or unenforceability of a
                   ------------------
portion of this Agreement will not affect the validity or enforceability of the
remainder hereof.

     Section 11.6. Integration. This Agreement and its Schedules and Exhibits
                   -----------
constitutes the entire understanding and agreement among the parties pertaining
to the subject matter of this Agreement and supersedes all prior agreements and
understandings of the parties in connection with this Agreement.

     Section 11.7. Notices. All notices provided for or permitted hereunder
                   -------
shall be made in writing by hand-delivery, registered or certified first-class
mail, telex, telecopier or air courier guaranteeing overnight delivery and
directed if to a Partner, at its address set forth under its signature below,
and if to the Partnership, to the General Partner at its address set forth below
under its signature. All such notices shall be deemed to have been duly given:
when delivered by hand, if personally delivered; five business days after being
deposited in the mail, postage prepaid, if mailed; when answered back, if
telexed; when receipt acknowledged, if telecopied; and on the next business day,
if timely delivered to an air courier guaranteeing overnight delivery.

     Section 11.8. English Usage. Words of gender or neuter may be read as
                   -------------
masculine, feminine or neuter, as required by context, and the word "persons"
shall include individuals, trusts, Entities, and all other forms of association.

     Section 11.9. References. Article and Section references in this Agreement
                   ----------
are, unless otherwise indicated, references to the Articles or Sections, as the
case may be, of this Agreement which are so numbered, as such may be amended.
All references to numbered or lettered Exhibits are references to the Exhibits
so numbered or lettered which are appended to this Agreement, as such Exhibits
may be amended from time to time. Such references to Exhibits are to be
construed as incorporating by reference the contents of each Exhibit to which
such reference is made, as though such contents were set out in full at the
place in this Agreement where such reference is made.

     Section 11.10. Action by General Partner. Any action, approval or consent
                    -------------------------
to be taken or given by the General Partner hereunder shall be valid only if
taken or given by a member of the Board of Directors of the General Partner who
is acting on behalf of a majority of the members of such Board of Directors.

     Section 11.11. No Right to Employment. The establishment or existence of
                    ----------------------
the Agreement shall not confer upon any individual the right to continue as a
Limited Partner or as an employee of any entity, including, without limitation,
the General Partner.

                                  ARTICLE XII

                                 Defined Terms
                                 -------------

                                      -14-
<PAGE>

     The following terms, when used in this Agreement, have the following
meanings, unless otherwise expressly indicated:

     "Accounting Period" means a Fiscal Year or, if during a Fiscal Year there
shall be one or more interim closings of the Partnership's books, means the
period from the beginning of such Fiscal Year to the date of the first such
closing, the period(s) between any such closings, and the period from the last
such closing to the end of such Fiscal Year.

     "Act" means the Delaware Revised Uniform Limited Partnership Act and any
successor statute, as amended from time to time.

     "Affiliate" means any member of a person's immediate family and any entity
controlled by, controlling or under common control with such person.

     "Aggregate Return" has the meaning ascribed to it in Section 6.4(d).

     "Agreement" means this Agreement of Limited Partnership, with the Exhibits
which are appended to and referred to in this Agreement, as such Agreement and
Exhibits may be amended, modified or restated at any time and from time to time.

     "Board" means the Board of Directors of the General Partner.

     "Capital Account" means, for each Partner, the sum of (a) such Partner's
Capital Contribution(s), plus (b) the aggregate amount of Net Income (including
deemed gains only to the extent arising pursuant to this Agreement) allocated to
such Partner pursuant to Article V, minus (c) the aggregate amount of cash
distributed to such Partner pursuant to Article V, minus (d) the aggregate
amount of Net Losses (including deemed losses only to the extent arising
pursuant to this Agreement), minus (e) the aggregate amount of expenses
allocated to such Partner pursuant to Article VII, minus (f) the value, as
determined pursuant to Section 5.3, of such Partner's allocable share of
Partnership Assets distributed to such Partner in kind and (g) otherwise in
accordance with Treasury Regulations (S) 1.704-1.  All such allocations and
distributions shall be credited or charged, as the case may be, to the Capital
Accounts of the Partners to whom they apply, as of the time as of which they are
determined.

     "Capital Contribution" means, for each Partner, the amount shown as the
Capital Contribution for such Partner, as from time to time increased pursuant
to Article III.

     "Capital Percentages" mean (a) with respect to each Limited Partner, the
Capital Account initially established for such Limited Partners divided by the
sum of (i) the Capital Accounts initially established for all Limited Partners
upon their admission to the Partnership and (ii) the aggregate Capital
Contributions made by the General Partners and (b) with respect to the General
Partner, the aggregate Capital Contributions made by the General Partner divided
the sum of (i) the Capital Accounts initially established by the Limited
Partners upon their admission to the Partnership and (ii) the aggregate Capital
Contributions made by the General Partner.

     "Code" means the Internal Revenue Code of 1986, as amended, or any
successor statute.

     "Cost Basis" means the amount paid, or deemed paid, by the Partnership for
a Security or

                                      -15-
<PAGE>

as set forth on Exhibit III.

     "Disposition" means the sale of all or a portion of any of an Investment
Position; in the case of a partial Disposition, such Disposition shall be
treated as a Disposition of a separate asset to which shall be attributed, for
purposes of this Agreement, a pro rata portion of the Partner's Capital
Contributions made with respect to the entire Capital Contribution attributable
to such Investment Position.

     "Dissolution Event" shall mean an event of dissolution specified in Section
7.1.

     "Entity" means any business corporation, partnership, unincorporated
association, firm, organization, or any other business entity having one or more
leaders or managerial figures.

     "Equity Cost Basis" means the Cost Basis of equity Securities or Securities
convertible into or exercisable into equity Securities.

     "Fair Market Value" means the market price of publicly traded Securities,
if publicly traded, or the fair market value determined by the General Partner
otherwise.

     "Fiscal Year" has the meaning ascribed to it in Section 10.1.

     "General Partner" means ICG Holdings, Inc. or any person who succeeds its
interest as the general partner under this Agreement.

     "Gross Asset Value" means with respect to any asset, the asset's adjusted
basis for federal income tax purposes, except as follows:

          (i)     The initial Gross Asset Value of any asset contributed by a
Partner to the Partnership shall be the Fair Market Value of such asset;

          (ii)    The Gross Asset Values of all Partnership assets shall be
adjusted to equal their respective Fair Market Values as of the following times:
(A) the acquisition of an additional interest in the Partnership by any new or
existing Partner in exchange for more than a de minimis Capital Contribution;
                                             ----------
(B) the distribution by the Partnership to a Partner of more than a de minimis
                                                                    ----------
amount of Partnership property as consideration for an interest in the
Partnership; and (C) the liquidation of the Partnership within the meaning of
Regulations Section 1.704-1(b)(2)(ii)(g),  provided, however, that an adjustment
described in clauses (A) and (B) of this paragraph shall be made only if the
General Partner reasonably determines that such adjustment is necessary or
appropriate to reflect the relative economic interests of the Partners in the
Partnership;

          (iii)   The Gross Asset Value of any Partnership assets distributed to
any Partner shall be adjusted to equal the Fair Market Value of such asset on
the date of distribution; and

          (iv)    The Gross Asset Values of Partnership assets shall be
increased (or decreased) to reflect any adjustments to the adjusted basis of
such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to
the extent that such adjustments are taken into account in determining Capital
Accounts pursuant to Regulations Section

                                      -16-
<PAGE>

1.704-1(b)(2)(iv)(m) clause (vi) of the definition of "Net Income" and "Net
Loss"; provided, however, that Gross Asset Values shall not be adjusted pursuant
to this subparagraph (iv) to the extent that an adjustment pursuant to
subparagraph (ii) is required in connection with a transaction that would
otherwise result in an adjustment pursuant to this subparagraph (iv).

     "Indebtedness" means all obligations, direct or contingent, for the payment
of cash or cash equivalents, including, without limitation, obligations with
respect to borrowed money, accounts payable, checks, drafts bills of exchange,
letters of credit, margin accounts, short sales, reverse purchase agreements,
futures contracts, and other recognized commercial transactions, instruments
involving the extension of credit, and all obligations incurred as surety or
guarantor of the obligations of others.

     "Indemnified Parties" has the meaning ascribed to it in Section 4.5.

     "Investment Assets," directly or indirectly, means and include all
Securities, rights and other tangible and intangible property acquired by the
Partnership for the purpose of producing a profit in the ordinary course of
business.

     "Investment Position" means an Investment Asset and all Securities or other
property which may be exchanged for or distributed with respect to such
Investment Asset, whether by the issuer of the Investment Asset or related group
of Entities or any successor or successors thereto.

     "Involuntary Removal" has the meaning ascribed to it in Section 7.5.

     "Limited Partners" means all and only those persons who are so designated
in Exhibit I hereto, a copy of which shall be kept on file by the General
Partner and principal executive offices of the Partnership.

     "Limited Partnership Interest" means the Limited Partner's ownership
interest in the Partnership received in exchange for his or her Capital
Contribution.

     "Limited Partners Profit Percentage" means the aggregate Profit Percentage
of all of the Limited Partners.

     "Measurement Period" has the meaning ascribed to it in Section 6.4(b).

     "Net Income" and "Net Loss" mean, for each Accounting Period, an amount
equal to the Partnership's taxable income or loss for such Accounting Period,
with the following adjustments:

          (i)     Any income of the Partnership that is exempt from federal
income tax and not otherwise taken into account in computing Net Income or Net
Loss shall be added to such taxable income or loss;

          (ii)    Any expenditures of the Partnership described in Code Section
705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to
Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account
in computing Net Income or Net Loss shall be subtracted from such taxable income
or loss;

                                      -17-
<PAGE>

          (iii)   In the event the Gross Asset Value of any Partnership asset is
adjusted pursuant to clauses (ii) or (iii) of the definition of Gross Asset
Value, the amount of such adjustment shall be taken into account as gain or loss
from the disposition of such asset for purposes of computing Net Income or Net
Loss;

          (iv)    Gain or loss resulting from any disposition of property with
respect to which gain or loss is recognized for federal income tax purposes
shall be computed by reference to the Gross Asset Value of the property disposed
of, notwithstanding that the adjusted tax basis of such property differs from
its Gross Asset Value;

          (v)     To the extent an adjustment to the adjusted tax basis of any
Partnership asset pursuant to Code Section 734(b) or Code Section 743(b) is
required pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken
into account in determining Capital Accounts as a result of a distribution other
than in liquidation of a Partner's interest in the Partnership, the amount of
such adjustment shall be treated as an item of gain or loss from the disposition
of such asset and shall be taken into account for purposes of computing Net
Income or Net Loss; and

          (vi)    Notwithstanding any other provision of this definition, any
items which are specially allocated pursuant to Section 2 of Exhibit II shall
not be taken into account in computing Net Income or Net Loss.

     "Partners" means the General Partner and Limited Partners individually or
collectively, as the context requires.

     "Partnership" means 1999 Internet Capital L.P.

     "Partnership Assets" means all assets and property of the Partnership of
any and every kind.

     "Partnership Interest" means any Partner's interest in the Partnership.

     "Person" has the meaning ascribed to it in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934.

     "Profit Percentage" means the percentage set forth on Exhibit II.

     "Removed Partner" has the meaning ascribed to it in Section 7.5.

     "Securities" means any of one or more of the following:  (a) capital stock
(both common and preferred); partnership interests (both limited and general);
limited liability company interests; interests in any acquisition, venture
capital or other investment funds; notes; bonds; debentures; other obligations,
instruments or evidences of indebtedness (whether convertible or otherwise); and
other securities and equity interests of whatever kind of any Person, whether
readily marketable or not; (b) any rights to acquire any of the Securities
described in clause (a) above (including, without limitation, options, warrants,
rights or other interests or other Securities convertible into any such
Securities); or (c) any Securities received by the Partnership upon conversion
of, in exchange for, as proceeds from the disposition of, as interest on, or
stock

                                      -18-
<PAGE>

dividend or other distribution from, any of the Securities described in
clauses (a) or (b) above.

     "Short-term Investment Income" means all items of Net Income, other than
Net Income with respect to an Investment Position.

     "Short-term Investment Loss" means all items of Net Loss, other than Net
Loss with respect to an Investment Position.

     "Substituted Limited Partner" means any transferee or assignee of a Limited
Partner's Partnership Interest who is then admitted to the Partnership as a
Limited Partner pursuant to Section 9.4 hereof.

     "Termination Share" means the payments a Removed Partner is entitled to
receive from the Partnership from and after the date such Partner ceases to be a
Partner.

     "Threshold Amount" means an amount equal to three hundred percent (300%) of
the Equity Cost Basis of an Investment Position, unless otherwise provided
Exhibit III.

     "Treasury Regulation" means the income tax regulations promulgated under
the Code and effective as of the date hereof.  Unless the General Partner
determines otherwise after consultation with the Limited Partner, such term
shall be deemed to include any amendments to such regulations and any
corresponding provisions of succeeding regulations.

     "Vested Profit Percentage" has the meaning specified in Section 6.1.

     "Voluntary Removal" has the meaning ascribed to it in Section 7.4.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement of
Limited Partnership of the ____ day of ______________, 1999.

                                    GENERAL PARTNER:

                                    ICG HOLDINGS, INC.

                                    By:____________________________________

                                    Title:_________________________________

                                    LIMITED PARTNERS:

                                    [See counterpart signature pages]
                                    ---------------------------------

                                      -19-
<PAGE>

                                   EXHIBIT I

                                      to

                       Agreement of Limited Partnership

                                      of

                          1999 Internet Capital L.P.

Partners                       Capital Contribution/Capital Accounts
--------                       -------------------------------------

General Partner:               Capital Contribution
----------------               --------------------

                               Securities described in Exhibit III as amended
                               from time to time or purchase price of such
                               securities, but not less than [$_] million in
                               aggregate value.

Limited Partners:              Initial Capital Account
-----------------              ---------------------------------

                               Schedule on file with the General Partner.

                                      -20-
<PAGE>

                                  EXHIBIT II

                                      to

                       Agreement of Limited Partnership

                                      of

                          1999 Internet Capital L.P.

                      Limited Partner's Profit Percentage
                      -----------------------------------

Section 1.  General Profit Allocations
--------------------------------------

     -------------------------------------------------------------------------
           Limited Partners                    Profit Percentage
     -------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                                 Dated as of:  December __, 1999

                                      -21-
<PAGE>

Section 2.  Special Allocations
-------------------------------

     -------------------------------------------------------------------------
           Limited Partners                    Profit Percentage
     -------------------------------------------------------------------------

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

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

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

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

                                                 Dated as of:  December __, 1999

                                      -22-
<PAGE>

                                  EXHIBIT III

                        Cost Basis and Threshold Amount
                        -------------------------------

           Securities           Equity Cost Basis        Threshold Amount
--------------------------------------------------------------------------------

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

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

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

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

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

--------------------------------------------------------------------------------<PAGE>

                                                                 Exhibit 10.15.2

                              AMENDED AND RESTATED
                                 AMENDMENT NO. 2

          AMENDED AND RESTATED AMENDMENT NO. 2, dated as of December 10, 1999
(this "Amendment"), to the Credit Agreement, dated as of April 30, 1999 (the
       ---------
"Agreement"), among INTERNET CAPITAL GROUP, INC., a Delaware corporation
----------
("ICG"), INTERNET CAPITAL GROUP OPERATIONS, INC., a Delaware corporation ("ICG
  ---                                                                      ---
Operations" and together with ICG, each a "Borrower" and collectively the
----------                                 --------
"Borrowers"), the BANKS (as defined therein) and PNC BANK, NATIONAL ASSOCIATION,
----------
in its capacity as agent for the Banks (the "Agent"), as amended by that certain
                                             -----
Amendment No. 1, dated as of October 27, 1999 ("Amendment No. 1") and that
                                                ---------------
certain Amendment No. 2, dated as of November 22, 1999 ("Amendment No. 2"), each
                                                         ---------------
by and among ICG, ICG Operations, the Banks and the Agent (the Agreement, as
amended by Amendment No. 1 and Amendment No. 2, being collectively referred to
herein as the "Credit Agreement").
               ----------------

                                    RECITALS

          The Borrowers have advised the Agent and the Banks that they currently
propose to (i) engage in a $575,000,000 public offering of ICG's common stock,
par value $.001 per share (the "Public Offering"), (ii) a $600,000,000 public
                                ---------------
offering of convertible subordinated debt securities (the "Public Debt
                                                           -----------
Offering", and together with the Public Stock Offering, the "Public Offerings")
                                                             ----------------
and (iii) make certain additional Investments.  In connection with the proposed
Public Offerings, the issuance of the subordinated debt and the making of
certain additional Investments, the Borrowers have requested the Agent and the
Banks to agree to amend certain provisions of the Credit Agreement as set forth
in this Amendment.  The Agent and the Banks parties hereto are willing to agree
to such amendments, but only on the terms and subject to the conditions set
forth in this Amendment.

          NOW, THEREFORE, in consideration of the premises and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrowers and the Agent and the Banks parties hereto hereby
agree as follows:

     1.  Defined Terms.  Unless otherwise defined herein, terms defined in the
         -------------
Credit Agreement are used herein as therein.

     2.  Amendments.
         ----------

         (a)   Section 1.1 of the Credit Agreement is hereby amended by adding
the following new definitions thereto in the appropriate alphabetical order:

         "Additional $50,000,000 Investment Entity" shall mean one of up to
         -----------------------------------------
     four (4) Investment Entities of any Borrower in whom such Borrower has made
     an Investment permitted in accordance with the provisions of subclause (c)
     of Section 7.1.15.
<PAGE>

          "Additional $50,000,000 Investment Entities" shall mean collectively
           ------------------------------------------
     all Additional $50,000,000 Investment Entities.

          "Additional $75,000,000 Investment Entity" shall mean one, and only
           ----------------------------------------
     one, Investment Entity of any Borrower in whom such Borrower has made an
     Investment permitted in accordance with the provisions of subclause (d) of
     Section 7.1.15.

          "Amendment No. 2" shall mean Amended and Restated Amendment No. 2,
           ---------------
     dated as of December 10, 1999, to the Credit Agreement.

          "1999 Subordinated Debt" shall mean any unsecured Indebtedness of a
           ----------------------
     Borrower, including any 1999 Subordinated Loans, no part of the principal
     of which is stated to be payable or is required to be paid (whether by way
     of mandatory sinking fund, mandatory redemption, mandatory prepayment or
     otherwise) prior to May 1, 2000, and the payment of the principal of and
     interest on which and other obligations of any Borrower in respect thereof
     are subordinated to the prior payment in full of the principal of and
     interest (including post-petition interest) on the Notes and all other
     obligations and liabilities of such Borrower to the Agent and the Banks
     hereunder on terms and conditions substantially as set forth in Exhibit
                                                                     -------
     1.1(D)(2) attached hereto.
     ---------

          "1999 Subordinated Lender" shall mean any Person who makes a loan to
           ------------------------
     any Loan Party to the extent such loan constitutes 1999 Subordinated Debt
     hereunder, together with such Person's successors and assigns.

          "1999 Subordinated Loans" shall mean up to $600,000,000 of 1999
           -----------------------
     Subordinated Loans, inclusive of the loans evidenced by the 1999
     Subordinated Notes, made by the 1999 Subordinated Lender(s) to ICG pursuant
     to the 1999 Subordinated Loan Documents.

          "1999 Subordinated Loan Documents" shall mean (a) any and all
           --------------------------------
     instruments, certificates or documents delivered or contemplated to be
     delivered in connection with any 1999 Subordinated Debt and (b) the 1999
     Subordinated Notes and all other instruments, certificates or documents
     delivered or contemplated to be delivered thereunder or in connection
     therewith, as the same may be supplemented or amended from time to time in
     accordance herewith.

          "1999 Subordinated Note(s)" shall mean the convertible note(s) of ICG
           -------------------------
     payable to the 1999 Subordinated Lenders, each of which shall be executed
     and delivered substantially in the form of Exhibit 1.1(C)(2) hereof.
                                                -----------------

          "Public Offerings" shall have the meaning ascribed thereto in the
           ----------------
     recitals to Amendment No. 2.

          "Second Supplemental Closing Date" shall have the meaning ascribed to
           --------------------------------
     such term in Section 3 hereof.

                                      -2-
<PAGE>

          (b)   Section 1.1 of the Credit Agreement is hereby amended by
amending the definition of "Borrowing Base" by deleting the last sentence
                            --------------
thereof and replacing it with the following:

                "Notwithstanding anything to the contrary contained herein, when
determining the Borrowing Base, (i) no more than $25,000,000 of the Borrowing
Base shall be attributed to Pledged Collateral issued by any individual
Investment Entity other than eMerge, any Additional $50,000,000 Investment
Entity or the Additional $75,000,000 Investment Entity, (ii) no more than
$50,000,000 of the Borrowing Base shall be attributed to eMerge Pledged
Collateral issued by eMerge; provided, however, that in no event shall any
                             --------  -------
advance be made hereunder based on the value of the eMerge Preferred Stock which
exceeds the amount then paid by or on behalf of ICG pursuant to the eMerge Note,
(iii) no more than $50,000,000 of the Borrowing Base shall be attributable to
Pledged Collateral issued by any Additional $50,000,000 Investment Entity and
(iv) no more than $75,000,000 of the Borrowing Base shall be attributable to
Pledged Collateral issued by the Additional $75,000,000 Investment Entity."

          (c)   Section 5.1.2 is hereby amended by deleting such Section in its
entirety and substituting in lieu thereof a new Section 5.1.2 to read as
follows:

  "5.1.2  Capitalization and Ownership
          ----------------------------

          (i)   As of December 10, 1999, the authorized capital stock of ICG
consists of (x) Three Hundred and Ten Million (310,000,000) shares of common
stock, of which Two Hundred Fifty Three Million Fourteen Thousand and Eighty Six
(253,014,086) shares (referred to herein as the "ICG Shares") are issued and
outstanding and (y) Ten Million (10,000,000) shares of preferred stock, none of
which shares (referred to herein as the "ICG Preferred Shares") are issued and
outstanding, all as more particularly described on Schedule 5.1.2. All of the
                                                   --------------
ICG Shares have been validly issued and are fully paid and nonassessable. As of
December 10, 1999, there are no options, warrants or other rights outstanding to
purchase any such ICG Shares or ICG Preferred Shares except as indicated on
Schedule 5.1.2.
--------------

          (ii)  As of December 10, 1999, the authorized capital stock of ICG
Operations consists of One Thousand (1,000) shares of common stock, of which One
Hundred (100) shares (referred to herein as the "ICG Operations Shares") are
issued and outstanding, all as more particularly described on Schedule 5.1.2.
                                                              --------------
All of the ICG Operations Shares have been validly issued are fully paid and
nonassessable.  As of the Closing Date, there are no options, warrants or other
rights outstanding to purchase any such shares except as indicated on Schedule
                                                                      --------
5.1.2."
-----

          (d)   A new Section 5.1.29 is hereby added to the Credit Agreement as
follows:

               "Validity and Binding Effect of the 1999 Subordinated Loan
                ---------------------------------------------------------
Documents.
---------

                The 1999 Subordinated Loan Documents have been, or will be, duly
and validly executed and delivered by the parties thereto and constitute, or
will constitute, the legal, valid and binding obligations of the parties
thereto, enforceable against them in accordance with their respective terms,
except to the extent that enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the
enforceability of creditors' rights generally or by laws or judicial decisions
limiting the right of specific

                                      -3-
<PAGE>

performance. All representations and warranties of any Loan Party contained in
the 1999 Subordinated Loan Documents will be true and correct in all material
respects as of the date made. There exists no default, nor any circumstance
which, after notice or lapse of time or both would cause or permit the
acceleration of any 1999 Subordinated Debt under any 1999 Subordinated Loan
Documents and there exists no lien, set-off, claim or, to the knowledge of any
Loan Party after due inquiry, other impairment of the validity or enforceability
of such documents. The 1999 Subordinated Loan Documents constitute the entire
agreement between each Borrower and the holders of the 1999 Subordinated Debt
and there are no other agreements with respect to the 1999 Subordinated Debt."

            (e) Section 7.1.15 of the Credit Agreement is hereby amended by
deleting such Section in its entirety and substituting in lieu thereof a new
Section 7.1.15 to read as follows:

     "7.1.15    Investments.
                -----------

            The Borrowers may make Investments in other Persons in addition to
Investments existing on the Closing Date and disclosed in Schedules 1.1(A-1),
1.1(A-2) and 1.1(A-3) attached hereto; provided, however, that (a) the Borrowers
                                       --------  -------
may only invest a maximum of $25,000,000 in Cash and Cash Equivalents per
calendar year in any Investment Entity other than eMerge, the Additional
$50,000,000 Investment Entities and the Additional $75,000,000 Investment
Entity, (b) the Borrowers may only invest a maximum of (x) an aggregate of
$75,000,000 in Cash and Cash Equivalents in eMerge for calendar years 1999 and
2000, and (y) $25,000,000 in Cash and Cash Equivalents in eMerge in any calendar
year subsequent to 2000, (c) the Borrowers may only invest a maximum of
$50,000,000 in Cash and Cash Equivalents per calendar year in any Additional
$50,000,000 Investment Entity, (d) the Borrowers may only invest a maximum of
$75,000,000 in Cash and Cash Equivalents per calendar year in the Additional
$75,000,000 Investment Entity and (e) the Borrowers will promptly, and in any
event within five (5) Business Days of the making of any such Investment provide
to the Agent and the Banks an updated Annex A to the Letter Agreement reflecting
any such additional Investment."

              (f)  A new Section 7.1.23 and 7.1.24 are hereby added to the
Credit Agreement as follows:

     "7.1.23  Updated Capitalization and Ownership.
              ------------------------------------

              Immediately prior to or on the effective date of the proposed
Public Offerings, the Borrower shall provide the Agent and the Banks in writing
with such revisions to the representation contained in Section 5.1.2 as may be
necessary to update or correct such representation to reflect changes to the
capitalization and ownership effected by the proposed Public Offerings.

                                      -4-
<PAGE>

     7.1.24  1999 Subordinated Loan Documents.
             --------------------------------

             The Administrative Borrower shall deliver to the Agent for delivery
to the Banks a true and correct copy of the 1999 Subordinated Loan Documents and
any amendments, waivers and other documents executed in connection therewith
(including all exhibits and schedules to such documents) within sixty (60)
calendar days of the execution thereof by the parties thereto."

             (g)     Section 7.2.1 of the Credit Agreement is hereby amended by
deleting the word "and" at the subclause (iv), adding the word "and" at the end
of subclause (v) and adding a new subclause (vi) to read as follows:

             "(vi)   1999 Subordinated Debt in an aggregate principal amount not
             to exceed $600,000,000 at any time outstanding."

             (h)     Section 7.2.5 of the Credit Agreement is hereby amended by
deleting such Section in its entirety and substituting in lieu thereof a new
Section 7.2.5 to read as follows:

             "7.2.5  Dividends and Related Distributions.
                     -----------------------------------

                     Each of the Loan Parties shall not, and shall not permit
any of its Subsidiaries to, make or pay, or agree to become or remain liable to
make or pay, any dividend or other distribution of any nature (whether in cash,
property, securities or otherwise) on account of or in respect of its shares of
capital stock, partnership interests or limited liability company interests on
account of the purchase, redemption, retirement or acquisition of its shares of
capital stock (or warrants, options or rights therefor), partnership interests
or limited liability company interests, except (i) dividends or other
distributions payable to another Loan Party and (ii) the issuance of up to
$1,000,000,000 of ICG's common stock in connection with the proposed Public
Offering; provided, however, that notwithstanding anything to the contrary
provided in any Loan Document, in no event shall such proposed Public Offering
be permitted hereunder if (i) after giving effect to such proposed Public
Offering, a Potential Default or Event of Default shall exist hereunder, (ii)
such Public Offering shall violate any Law or (iii) such Public Offering of
ICG's common stock shall exceed $1,000,000,000."

             (i)   Section 7.2.15 of the Credit Agreement is hereby amended by
renumbering such Section as Section 7.2.15(A) and adding thereto a new Section
7.2.15(B) to read as follows:

                                      -5-
<PAGE>

    "7.2.15(B)  Amendment or Waiver of 1999 Subordinated Debt; Payment or
                ---------------------------------------------------------
Prepayment of 1999 Subordinated Debt.
------------------------------------

    Each of the Loan Parties shall not, and shall not permit any of its
Subsidiaries to:

    (i)   without the prior written consent of the Required Banks, agree
to any amendment or other change to, or waiver of any of its rights under, the
1999 Subordinated Debt, the 1999 Subordinated Loan Documents or any other
evidences of such 1999 Subordinated Debt which shall cause:

          (A)   any payment by any of the Loan Parties to become due prior to
the date such payment is due consistent with the terms and conditions set forth
on Exhibit 1.1(D)(2) hereto;
   -----------------

          (B)   any advancement of the maturity date under any 1999 Subordinated
Loan Document;

          (C)   any increase in the aggregate principal amount outstanding under
the 1999 Subordinated Debt to an amount which exceeds $600,000,000; or

          (D)   any increase in the interest rate applicable to any 1999
Subordinated Debt; or

    (ii)  amend, change, waive or otherwise modify any of the terms and
provisions set forth in Exhibit 1.1(D)(2) to the extent any such amendment,
                        -----------------
change or waiver or other modification of any of the terms and provisions set
forth in Exhibit 1.1(D)(2) would result in the terms of the 1999 Subordinated
         -----------------
Debt being less favorable to the holders of the Senior Indebtedness; or

    (iii) directly or indirectly, by deposit of monies or otherwise, prepay,
purchase, redeem, retire, defease or otherwise acquire, or make any payment on
account of any principal of, premium or interest payable in connection with the
payment, prepayment, redemption, defeasance or retirement of any 1999
Subordinated Debt."

    (j)   Section 7.2.17 of the Credit Agreement is hereby amended by deleting
such Section in its entirety and substituting in lieu thereof a new Section
7.2.17 to read as follows:

    "7.2.17  Maximum Leverage Ratio.
             ----------------------

             The Loan Parties shall not at any time permit the ratio of
consolidated total liabilities (excluding Subordinated Debt and the 1999
Subordinated Debt) of the Borrowers and their respective Subsidiaries to
Consolidated Tangible Net Worth to exceed the ratio as set forth below:

             Period                              Ratio
             ------                              -----

             Closing Date and thereafter         .50 to 1.0"

                                      -6-
<PAGE>

          (k) A new Section 8.1.13A is hereby added to the Credit Agreement as
follows:

          "8.1.13A.  Breach of 1999 Subordination Loan Documents Terms.
                     -------------------------------------------------

          Any agreement to subordinate the right of payment in respect of the
1999 Subordinated Debt to the Indebtedness arising out of or under the Loan
Documents, at any time and for any reason, ceases to be in full force and effect
or is declared to be null and void; or any holder of such 1999 Subordinated Debt
repudiates or disavows such subordination or denies that it has further
liability or obligation under such subordination agreement or gives notice to
such effect; or any default or event of default shall have occurred and be
continuing under the 1999 Subordinated Loan Documents."

     3.  Effectiveness.  The effectiveness of this Amendment, is subject to the
         -------------
satisfaction of the following conditions precedent (the date of such
satisfaction being herein referred to as the "Second Supplemental Closing
                                              ---------------------------
Date"):

          (a) Amendment; 1999 Subordinated Notes.  The Agent shall have received
              ----------------------------------
     this Amendment, executed and delivered by a duly authorized officer of each
     of the Borrowers, with a counterpart for each Bank and a copy of the form
     of the 1999 Subordinated Note(s), with a copy for each Bank.

          (b) Borrowing Base Certificate.  On or prior to the Second
              --------------------------
     Supplemental Closing Date, the Agent and the Banks shall have received and
     the Agent and the Banks shall be satisfied (both as to form and substance)
     with a pro forma Borrowing Base Certificate in the form set forth in
            --- -----
     Exhibit 1.1(B) to the Credit Agreement which shall be prepared as of a date
     prior to the Second Supplemental Closing Date.

          (c) Proceedings of the Borrower.  The Agent shall have received, with
              ---------------------------
     a counterpart for each Bank, a copy of the resolutions, in form and
     substance satisfactory to the Agent, of each of the Borrowers authorizing
     the execution, delivery and performance of this Amendment and the other
     Amendment Documents to which it is a party, certified by the Secretary or
     an Assistant Secretary of each of the Borrowers as of the Second
     Supplemental Closing Date, which certificate shall be in form and substance
     satisfactory to the Agent and shall state that the resolutions thereby
     certified have not been amended, modified, revoked or rescinded.

          (d) Borrower Incumbency Certificate.  The Agent shall have received,
              -------------------------------
     with a counterpart for each Bank, a certificate of each of the Borrowers,
     dated the Second Supplemental Closing Date, as to the incumbency and
     signature of the officers of each of the Borrowers executing this Amendment
     or the other Amendment Documents to which each of the Borrowers is a party,
     satisfactory in form and substance to the Agent, executed by an Authorized
     Officer of each of the Borrowers.

          (e) Representations and Warranties.  Each of the representations and
              ------------------------------
     warranties made by each of the Borrowers and the other Loan Parties in or
     pursuant to the Loan Documents shall be true and correct in all material
     respects on and as of the Second Supplemental Closing Date as if made on
     and as of such Second Supplemental Closing

                                      -7-
<PAGE>

     Date (and after giving effect to the amendments provided for in this
     Amendment) (or, if any such representation or warranty is expressly stated
     to have been made as of a specific date, as of such specific date).

          (f) No Default.  No Potential Default or Event of Default shall have
              ----------
     occurred and be continuing on the Second Supplemental Closing Date or after
     giving effect to the amendments provided for in this Amendment.

          (g) Additional Matters.  All corporate and other proceedings, and all
              ------------------
     documents, instruments and other legal matters in connection with the
     transactions contemplated by this Agreement, the other Loan Documents and
     the 1999 Subordinated Loan Documents shall be satisfactory in form and
     substance to the Agent, and the Agent shall have received such other
     documents and legal opinions in respect of any aspect or consequence of the
     transactions contemplated hereby or thereby as it shall reasonably request.

     4.  Representations and Warranties.  To induce the Agent and the Banks to
         ------------------------------
enter into this Amendment, the Borrowers hereby represent and warrant to the
Agent and the Banks that, after giving effect to the amendments provided for
herein, the representations and warranties contained in the Credit Agreement and
the other Loan Documents will be true and correct in all material respects as if
made on and as of the date hereof and that no Potential Default or Event of
Default will have occurred and be continuing (or, if any such representation or
warranty is expressly stated to have been made as of a specific date, as of such
specific date).

     5.  No Other Amendments.  Except as expressly amended hereby, the Credit
         -------------------
Agreement, the Notes and the other Loan Documents shall remain in full force and
effect in accordance with their respective terms, without any waiver, amendment
or modification of any provision thereof.

     6.  Counterparts.  This Amendment may be executed by one or more of the
         ------------
parties hereto on any number of separate counterparts and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

     7.  Expenses.  The Borrowers agree to pay and reimburse the Agent for all
         --------
of the out-of-pocket costs and expenses incurred by the Agent in connection with
the preparation, execution and delivery of this Amendment, including, without
limitation, the reasonable fees and disbursements of Buchanan Ingersoll
Professional Corporation, counsel to the Agent.

     8.  Applicable Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
         --------------
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE COMMONWEALTH OF PENNSYLVANIA.

                                      -8-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amended and
Restated Amendment No. 2 to be duly executed and delivered as of the day and
year first above written.

                              INTERNET CAPITAL GROUP, INC.

                              By:  /s/  John N. Nickolas
                                   ---------------------
                                   Name:   John N. Nickolas
                                   Title:  Managing Director

                              INTERNET CAPITAL GROUP OPERATIONS,
                              INC.

                              By:  /s/  John N. Nickolas
                                   ---------------------
                                   Name:   John N. Nickolas
                                   Title:  Managing Director

                              PNC BANK, NATIONAL ASSOCIATION,
                              individually and as Agent

                              By:  /s/  Wayne D. Lavelle
                                   ---------------------
                                   Name:   Wayne D. Lavelle
                                   Title:  Vice President

                              BANK OF AMERICA, N.A., formerly known as
                              BANK OF AMERICA NATIONAL TRUST AND
                              SAVINGS ASSOCIATION

                              By:  /s/  Jouni Korhonen
                                   ---------------------
                                   Name:   Jouni Korhonen
                                   Title:  Principal

                                      -9-
<PAGE>

                              COMERICA BANK-CALIFORNIA

                              By:  /s/  Alan Jepsen
                                   ---------------------
                                   Name:   Alan Jepsen
                                   Title:  Vice President & Asst. Group Mgr.

                              IMPERIAL BANK

                              By:  /s/  April L. Young
                                   ---------------------
                                   Name:   April L. Young
                                   Title:  SVP & Mgr., Mid-Atlantic

                              PROGRESS BANK

                              By:  /s/  Liz A. Lambert
                                   ---------------------
                                   Name:   Liz A. Lambert
                                   Title:  Vice President

                                      -10-
<PAGE>

                                EXHIBIT 1.1(C)(2)
                               TO AMENDMENT NO. 2

                         FORM OF 1999 SUBORDINATED NOTE

       To be provided on or prior to the Second Supplemental Closing Date.

                                      -11-
<PAGE>

                                EXHIBIT 1.1(D)(2)
                               TO AMENDMENT NO. 2

                                  SUBORDINATION

The notes will be unsecured obligations of Internet Capital Group, Inc. ("ICG")
                                                                          ---
and will be subordinated in right of payment, as provided in the Indenture, to
the prior payment in full in cash or other payment satisfactory to holders of
Senior Indebtedness, of all ICG's existing and future Senior Indebtedness.

At [                        ], ICG had $[                   ] million of senior
indebtedness outstanding, and our subsidiary had no indebtedness outstanding.
The Indenture does not restrict the incurrence by ICG or its subsidiaries of
indebtedness or other obligations.

The term "Senior Indebtedness" means:

 .    the principal, premium, if any, interest and all other amounts owed in
respect of all of ICG's

     -    indebtedness for money borrowed and

     -    indebtedness evidenced by securities, debentures, bonds or other
          similar instruments

 .    all of ICG's capital lease obligations

 .    all obligations issued or assumed by ICG as the deferred purchase price of
     property, all of ICG's conditional sale obligations and all of ICG's
     obligations under any title retention agreement, but excluding trade
     accounts payable arising in the ordinary course of business

 .    all of ICG's obligations for the reimbursement of any letter of credit,
     banker's acceptance, security purchase facility or similar credit
     transaction

 .    all obligations of the type referred to in each of the above bullet points
     of other persons for the payment of which ICG is responsible or liable as
     obligor, guarantor or otherwise and

 .    all obligations of the type referred to in each of the above bullet points
     of other persons secured by any lien on any of our properties or assets,
     whether or not such obligation is assumed by ICG

except for:

 .    any such indebtedness that is by its terms subordinated to or pari passu
     with the notes and

                                      -12-
<PAGE>

 .    any indebtedness between or among ICG or its affiliates, including all
     other debt securities and guarantees in respect of those debt securities
     issued to any trust, or trustees of any trust, partnership or other entity
     affiliated with ICG that is, directly or indirectly, a financing vehicle
     used by ICG in connection with the issuance by that financing vehicle of
     preferred securities or other securities that rank pari passu with, or
     junior to, the notes

Any Senior Indebtedness will continue to be Senior Indebtedness and will be
entitled to the benefits of the subordination provisions irrespective of any
amendment, modification or waiver of any of its terms.

By reason of the application of the subordination provisions, in the event of
dissolution, insolvency, bankruptcy or other similar proceedings, upon any
distribution of ICG's assets:

 .    the holders of the notes are required to pay over their share of that
     distribution to the trustee in bankruptcy, receiver or other person
     distributing ICG's assets for application to the payment of all Senior
     Indebtedness remaining unpaid, to the extent necessary to pay all holders
     of Senior Indebtedness in full in cash or other payment satisfactory to the
     holders of Senior Indebtedness and

 .    unsecured creditors of ours who are not holders of notes or holders of
     Senior Indebtedness of ICG's may recover less, ratably, than holders of
     Senior Indebtedness of ICG's, and may recover more, ratably, than the
     holders of notes

In addition, ICG may not pay the principal amount, Redemption Price, Change in
Control Purchase Price or interest with respect to any notes, and ICG may not
acquire any notes for cash or property, except as provided in the Indenture, if:

(1)  any payment default on any Senior Indebtedness has occurred and is
     continuing beyond any applicable grace period or

(2)  any default, other than a payment default with respect to Senior
     Indebtedness occurs and is continuing that permits the acceleration of the
     maturity of that Senior Indebtedness and that default is either the subject
     of judicial proceedings or ICG receives a written notice of that default (a
     "Senior Indebtedness Default Notice").

Notwithstanding the foregoing, payments with respect to the notes may resume and
ICG may acquire notes for cash when:

        (a)  the default with respect to the Senior Indebtedness is cured or
             waived or ceases to exist or

        (b)  in the case of a default described in (2) above, 179 or more days
             pass after notice of the default is received by us, provided that
             the terms of the Indenture otherwise permit the payment or
             acquisition of the notes at that time.

                                      -13-
<PAGE>

If ICG receives a Senior Indebtedness Default Notice, then a similar notice
received within nine months after receiving that Senior Indebtedness Default
Notice relating to the same default on the same issue of Senior Indebtedness
will not be effective to prevent the payment or acquisition of the notes as
provided above.  In addition, no payment may be made on the notes if any notes
are declared due and payable prior to their Stated Maturity by reason of the
occurrence of an Event of Default until the earlier of:

     .    120 days after the date of acceleration of the maturity of that Senior
          Indebtedness or

     .    the payment in full of all Senior Indebtedness but only if payment on
          the notes is then otherwise permitted under the terms of the
          Indenture.

Upon any payment or distribution of ICG's assets to creditors upon any
dissolution, winding up, liquidation or reorganization of ICG, whether voluntary
or involuntary, or in bankruptcy, insolvency, receivership or other similar
proceedings, the holders of all the Senior Indebtedness will first be entitled
to receive payment in full, in cash or other payment satisfactory to the holders
of Senior Indebtedness, of all amounts due or to become due on that Senior
Indebtedness, or payment of those amounts must have been provided for, before
the holders of the notes will be entitled to receive any payment or distribution
with respect to any notes.

The notes are effectively subordinated to all existing and future liabilities of
ICG's subsidiaries.  Any right of ICG to receive assets of any of ICG's
subsidiaries upon their liquidation or reorganization, and the consequent right
of the holders of the notes to participate in those assets, will be subject to
the claims of that subsidiary's creditors, including trade creditors, except to
the extent that ICG itself is recognized as a creditor of that subsidiary, in
which case ICG's claims would still be subordinate to any security interests in
the assets of that subsidiary and any indebtedness of that subsidiary senior to
that held by ICG.

                                      -14-
<PAGE>

                                 Schedule 5.1.2

                                 CAPITALIZATION

          The following table sets forth our capitalization on an Actual basis
as of September 30, 1999.

          The table also sets forth our capitalization on an As Adjusted basis
as if the following events occurred on September 30, 1999:

          .    the issuance and sale of 6,000,000 shares of our common stock in
     this offering;

          .    the issuance and sale of $250,000,000 of our _____% convertible
     subordinated notes due 2004 in the concurrent offering;

          .    the issuance and sale to AT&T Corp. of 609,533 shares of our
     common stock for $50 million; and

          .    the issuance and sale to Internet Assets, Inc. upon closing of
     this offering of $20 million of our common stock in a private placement,
     equaling 248,447 shares based on the split-adjusted closing price of our
     common stock on December 2, 1999 of $80.50.

          The table below includes deductions for estimated underwriting
discounts and commissions, and for estimated offering expenses.

     Common stock data is as of November 30, 1999 and excludes:

          .    the shares of common stock issuable upon conversion of the
     convertible notes being offering concurrently with this offering;

          .    the exercise of the underwriters' over-allotment options in
     connection with this offering and the concurrent offering;

          .    options to purchase 5,114,000 shares of common stock under our
     equity plans at a weighted average exercise price of $21.88 per share;

          .    1,381,032 shares of common stock issuable upon exercise of
     options reserved for grant;

          .    the warrants outstanding to purchase 2,976,493 shares at a
     weighted average exercise price of $5.87 per share; and

          .    1,049,425 shares of our common stock issuable upon exercise of an
     option under an agreement related to the acquisition of a partner company
     ownership interest.

<TABLE>
<CAPTION>
                                                                    September 30, 1999
                                                                Actual        As Adjusted(1)
<S>                                                          <C>             <C>
Long-term debt                                               $  1,633,360    $    1,633,360
Convertible subordinated notes                                         --       250,000,000
Shareholders' equity:
     Preferred Stock, $.01 par value; 10,000,000 shares
     authorized; none issued and outstanding-actual, and
     as adjusted                                                       --                --
     Common Stock, $.001 par value; 300,000,000 shares
     authorized; 253,014,086 shares issued and
     outstanding-actual; 259,872,066 shares issued and
     outstanding as adjusted                                      253,014           259,872
Additional paid-in capital                                    510,325,881     1,041,407,742
Retained earnings (accumulated deficit)                        (3,165,920)       (3,165,920)
Unamortized deferred compensation                             (14,371,190)      (14,371,190)
Notes receivable - shareholders                               (81,147,592)      (81,147,592)
Accumulated other comprehensive income                          6,622,404         6,622,404
                                                             ------------    --------------
     Total shareholders' equity                               418,516,597       949,605,316
                                                             ------------    --------------
          Total capitalization                               $420,149,957    $1,201,238,676
                                                             ============    ==============
</TABLE>

1      Completion of the convertible note offering is not a condition to the
completion of this offering. If we do not complete the issuance and sale of
$250,000,000 of our convertible notes in the concurrent offering, as adjusted
long-term debt would be $1,633,360 and as adjusted total capitalization would be
$951,238,676.

                                      -15-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]