Free Motion for Summary Judgment - District Court of Arizona - Arizona

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Case 2:02-cv—02099-RCB Document 475-15 Filed 06/06/2007 Page10f3

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GTCR ‘ V ‘--’ t Q2?

PARTNERS wtrn Mixurtctzmstw iw Ptuvare Equrrv
February 27, 200l
Ms. Christine V. Kirk .
Chief Executive Otiicer
LeapSource, Inc.
51 West Third Street
Suite SOI
Tempe, Arizona 85281
. Dear Chris:
Q
We are writing to inform you that GTCR Fund Vl, 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 alter a thorough consideration of all of the relevant facts and
circumstances sturounding LeapSource, its current tinancial 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 ilnancial and other
projections presented to us, and its failure to meet the objectives in its business plan upon
which we originally made our decision to fund the company.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. Theicontinued level of expenses incurred by the company which greatly
exceed the company’s revenues, resulting in continuing negative cash
y flows.
t"irV1~i`ié
i` i»~· 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, efiiciently
timctioning or in effective control of the business.
As a result of these factors, among others, GTCR will not continue to support the
operations ofthe company by making t`urther capital contributions to the company.
The company’s board of directors will necessarily be required to consider the
altematives if the company cannot survive on its own revenues without GTCR Binding.
GTCR 002283
GTCR GOLDBR KAUNZI, Ll£ · 6100 Sens Tower · Chicago, Illinois 606066402
Phone ZH2382.2200 · Fu $12.3821201 · www.gtcr.com
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Case 2:02—cv—02099-RCB Document 475 15 Filed 06/06/ g EXOO93_0O1

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Very truly yours,
GTCR FUND VI, L.P.
By: GTCR Parmers VI, L.P.
Its: General Partner
By: GTCR Golder Rmmer, L.L.C.
Its: General Partner
By: . __ I
é Name; Ji¥Ihr2@lnr2II‘PlE
Its: Priucip
l GTCR VI EXECUTIVE FUND, L.P.
By: GTCR Partners VI, L.P.
Its: General Partner
By: GTCR Gelder Rauncr, L.L,C.
Its: General Partner
Name. JITIIIALLGIIEEFIE
‘ Its: Princi al
gl- V— vi GTCR ASSOCIATES VI
U By: GTCR Partners VI, L.P.
Its: Managing General Partner
By: GTCR Golder Rauncr, L.I..C.
Its: Gcncrul Partner
W / _.
. 1 I
, " I I
Name; II\!IY9l}I(|!•'l}F1E'
Its: Princip · U
GTCR 002284
GTCR Gcwzn Raunn, u.c · 6100 Scan Tower · Chicago, Illinois 60606-6402
Plume $12382.2200 · Fu $12.382.220] · www.grcr.cdm
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