Free Declaration - District Court of Arizona - Arizona

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Case 2:02-cv—O2099-RCB Document 345-61 Filed O3/10/2006 Page10f3

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Panrweas wirn MANAGEMENT tw Pmvnre Equirv
F ebruary 27, 2001
A Ms. Christine V. Kirk .
Chief Executive Officer
LeapSource, inc.
51 West Third Street
A Suite 501
j Tempe, Arizona 85281
» V Dear Chris:
i We are writing to inform you that GTCR Fund VI, L.P., GTCR VI Executive
Fund, L.P., and GTCR Associates Vl (collectively, “GTCR”) have decided that they will
no longer provide ongoing funding to LeapSource pursuant to the terms of the Purchase
Agreement between GTCR and LeapSource dated September 27, 1999. This decision
has been made after a thorough consideration of all of the relevant facts and
circumstances surrounding LeapSource, its current financial condition, and its future
business prospects. As you know, GTCR has been concemed for some time with the
financial results of the company, its ongoing failure to meet the financial and other
projections presented to us, and its failure to meet the objectives in its business plan upon T
which we originally made our decision to fund the company. Among the important
issues with which we have been, and continue to be, dissatisifed are the following:
- l
1. The continued level of expenses incurred by the company which greatly i
exceed the company’s revenues, resulting in continuing negative cash
_ flows.
‘··· 2. The dissatisfaction expressed by the company’s clients with the nature and
— level of services provided by the company. ·
3. A management team which does not appear to be cohesive, efficiently
functioning or in etfective control ofthe business.
As a result of these factors, among others, GTCR will not continue to support the
operations ofthe company by making further capital contributions to the company.
The company’s board of directors will necessarily be required to consider the
alternatives if the company cannot survive on its own revenues without GTCR funding.
csrca 002282
GTCR GOLDER RAUNER, LLC · 6100 Sears Tower · Chicago, Iliinois 60606-6402
Phone 312.382.22DO · Fax 3]2.3ll2.2201 · wv/w.gtcr.e¤m
PO `el 6§6€ZU6()8l’I6 O.L TOZZ ESE ZIE HEINITVH HEICTIOD HIJLU Hd EVTII IOOZ 82 Elfilel
Case 2:02-cv-02099-RCB Document 345-61 Filed O3/10/2006 Page 2 ofE%(OO93_OO1

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Very truly yours,
GTCR FUND VI, L.P.
By: GTCR Partners VI, L.P.
I; Its: Genera] Partner
By: GTCR Golder Rauner, L.L.C.
Its: General Partner
= Name: JiIlhg2@l(I¢2}l?1I£
Its: Princip
` GTCR VI EXECUTIVE FUND, L.P.
By: GTCR Partners VI, L.P.
Its: General Partner
By: GTCR Gelder Rauner, L.L,C.
Its: General Farmer
By:
Nm. amtlikrétmmlz g
· Its: Princi al
T r:`< av ri GTCR ASSOCIATES VI
U By: GTCR Partners VI, L.P.
Its: Managing General Partner
By: GTCR Gelder Rauner, L.L.C.
Its: General Partner
ny; gi iv A · 4
Name: II\ll¥?IL'l(|.E'}Hi@'
Its: Principe n
ercn 002204
GTCR Gomez Raunzn. ux: - 6100 Sean Tower- Chicago, Illinois 60606-6402
Phone 312.382.22DO · Fax 312382.220] · www.gr¤·.cc}m
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