Exhibit 2.1

 

RECAPITALIZATION AGREEMENT

 

This Recapitalization Agreement (this “Agreement”), is entered into as of July 14, 2004, by and among Monitronics International, Inc., a Texas corporation (the “Company”), the holders of Preferred Stock listed on the Schedule of Preferred Holders attached hereto (the “Preferred Holders”), the holders of Class A Common Warrants (“Warrants”) listed on the Schedule of Warrant Holders attached hereto (the “Warrant Holders”), the holders of the Company’s Class A Common Stock, $0.01 par value (“Class A Common Stock”), listed on the Schedule of Common Holders attached hereto (the “Common Holders”), New York Life Capital Partners II, L.P., a Delaware limited partnership (“NY Life”), and PPM America Private Equity Fund LP, a Delaware limited partnership (“PPM” and together with the Preferred Holders, Warrant Holders, Common Holders and NY Life, the “Shareholders”).

 

RECITALS

 

A. Each Preferred Holder owns the number of shares of the Company’s Series A Preferred Stock, $0.01 par value (“Series A Preferred”), Series B Preferred Stock, $0.01 par value (“Series B Preferred”), Series C Preferred Stock, $0.01 par value (“Series C Preferred”), Series C-1 Preferred Stock, $0.01 par value (“Series C-1 Preferred”), and Series D-1 Preferred Stock, $0.01 par value (“Series D-1 Preferred”), set forth opposite its name on Exhibit D hereto.

 

B. Each Warrant Holder owns Warrants to purchase the number of shares of Class A Common Stock set forth opposite its name on Exhibit D hereto.

 

C. The parties hereto desire to enter into a series of transactions (the “Recapitalization”) pursuant to which:

 

(i) the Company will amend and restate its Articles of Incorporation (a) to eliminate its Series A Preferred, Series B Preferred, Series C Preferred, Series C-1 Preferred, Series D-1 Preferred and Series D-2 Preferred Stock, $0.01 par value (“Series D-2 Preferred”) (collectively, the Series A Preferred, Series B Preferred, Series C Preferred, Series C-1 Preferred, Series D-1 Preferred and Series D-2 Preferred are hereinafter referred to as the “Preferred Stock”), and (b) establish a new Series A Preferred Stock, $0.01 par value (the “New Series A Preferred”);

 

(ii) each of ABRY Partners IV, L.P. (“ABRY L.P.”) and ABRY Investment Partnership, L.P. (“ABRY Investment”) will exchange the Series D-1 Preferred Stock held by it for shares of Class A Common Stock;

 

(iii) each of Austin Ventures III-A, L.P. and Austin Ventures III-B, L.P. will exchange the Series A Preferred and Class A Common Stock held by it for shares of New Series A Preferred;

 

(iv) each of Austin Ventures V, L.P. and Austin Ventures V Affiliates Fund, L.P. (Austin Ventures III-A, L.P., Austin Ventures III-B, L.P., Austin Ventures V, L.P., and Austin Ventures V Affiliates Fund, L.P. being collectively referred to herein as the “AV Parties”) will exchange the Series B Preferred and Warrants held by it for shares of New Series A Preferred;

 


(v) Capital Resource Lenders II, L.P. (“Capital Resource”) will exchange the Series B Preferred Stock, Series C Preferred Stock, Series C-1 Preferred Stock, Series D-1 Preferred Stock and Warrants held by it for shares of Class A Common Stock;

 

(vi) Windward Capital LP II, LLC, a Delaware limited liability company (“Windward LLC”), will exchange 69,162 shares of the Series C Preferred held by it and 12,338 shares of the Series C-1 Preferred held by it for an aggregate of 432,333 shares of Class A Common Stock (the “Windward LLC Common Shares”) and $290,882.50 in cash (the “Windward LLC Cash Amount”);

 

(vii) Windward Capital Partners II, L.P., a Delaware limited partnership (“Windward LP”), will exchange 1,264,031 shares of the Series C Preferred held by it and 225,492 shares of the Series C-1 Preferred held by it for an aggregate of 7,901,000 shares of Class A Common Stock (the “Windward LP Common Shares”) and $5,319,106.90 in cash (the “Windward LP Cash Amount”);

 

(viii) immediately following its receipt of the Windward LLC Common Shares, Windward LLC will sell, assign, transfer and convey the Windward LLC Common Shares to NY Life and PPM pursuant to the Stock Purchase Agreement in substantially the form attached hereto as Exhibit A (the “Stock Purchase Agreement”); and

 

(ix) immediately following its receipt of the Windward LP Common Shares, Windward LP will sell, assign, transfer and convey the Windward LP Common Shares to NY Life and PPM pursuant to the Stock Purchase Agreement (such transactions, together with the transactions set forth in paragraph C(viii) above, the “Share Purchase”).

 

D. In connection with the Recapitalization, the Company and the Shareholders desire to amend and restate the Fourth Amended and Restated Shareholders Agreement, dated January 18, 2002, by and among the Company and the Company’s security holders identified therein (the “Old Shareholders Agreement”) with the Fifth Amended and Restated Shareholders Agreement among the Company and the security holders identified therein, in substantially the form attached hereto as Exhibit B (the “Restated Shareholders Agreement”).

 

E. In connection with the Recapitalization, the Company and the Shareholders desire to amend and restate the Fourth Amended and Restated Registration Agreement, dated January 18, 2002, by and among the Company and the security holders identified therein (the “Old Registration Agreement”) with the Fifth Amended and Restated Registration Agreement among the Company and the security holders identified therein, in substantially the form attached hereto as Exhibit C (the “Restated Registration Agreement”).

 

F. In connection with the Recapitalization, the Company and the Shareholders desire to reconstitute the Board of Directors of the Company (the “Board”) and certain Committees of the Board.

 

2


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

 

1. Capitalization.

 

The Company represents and warrants to the Shareholders that the capitalization of the Company immediately prior to the Closing (as hereinafter defined) is as set forth on Exhibit D hereto. The Company represents and warrants to the Shareholders that the capitalization of the Company immediately after the Closing shall be as set forth on Exhibit E hereto.

 

2. The Recapitalization.

 

The Company and the Shareholders, as applicable, hereby agree to take all of the following actions in connection with the Recapitalization, subject to the terms and conditions of this Agreement and in reliance on the representations and warranties set forth in this Agreement. Unless otherwise stated in this Section 2 or Section 3, the Recapitalization Documents (as hereinafter defined) will all be deemed to have been executed simultaneously at the Closing, and all of the transactions contemplated by the Recapitalization Documents shall be deemed to have happened simultaneously at the Closing.

 

(a) Amended and Restated Articles of Incorporation. Each Shareholder and the Company hereby agree that it is in the best interest of the Company to amend and restate the Company’s Articles of Incorporation, and each Shareholder will take all actions, whether in his or its capacity as a shareholder, officer or director of the Company, necessary to adopt, prior to the Closing, amended and restated Articles of Incorporation, substantially in the form attached hereto as Exhibit F (the “Amended and Restated Articles of Incorporation”).

 

(b) Exchange of Class A Common Stock. At the Closing, Austin Ventures III-A, L.P. and Austin Ventures III-B, L.P. shall transfer to the Company good and valid title to all of the shares of Class A Common Stock held by each of them, and the Company shall issue shares of the New Series A Preferred to each of them at the Closing such that when added to the shares of New Series A Preferred issued to them pursuant to Section 2(c)(i), they shall hold immediately after the Closing the number of shares of New Series A Preferred in the amount set forth opposite each of their names on Exhibit E hereto.

 

(c) Exchange of Preferred Stock.

 

(i) At the Closing, each Preferred Holder (other than Windward LP and Windward LLC) shall transfer to the Company good and valid title to all of the shares of Preferred Stock held by such Preferred Holder, and the Company shall issue shares of Class A Common Stock or New Series A Preferred to such Preferred Holder at the Closing such that immediately after the Closing, such Preferred Holder holds the number of shares of Class A Common Stock or New Series A Preferred in the amount set forth opposite such Preferred Holder’s name on Exhibit E hereto.

 

(ii) At the Closing, each of Windward LP and Windward LLC shall transfer to the Company good and valid title to all of the shares of Series C Preferred and Series C-1 Preferred Stock held by it, and the Company shall (A) issue to Windward LLC and Windward LP the Windward LLC Common Shares and the Windward LP Common Shares, respectively, and (B) pay to Windward LLC and Windward LP the Windward LLC Cash Amount and the Windward LP Cash Amount, respectively.

 

(d) Stock Purchase Agreement. At the Closing, the Company, Windward LP, Windward LLC, NY Life and PPM shall (i) execute and deliver the Stock Purchase Agreement,

 

3


providing for the Share Purchase and (ii) subject to the terms of the Stock Purchase Agreement, including the conditions precedent to the obligations of the parties thereto, take all actions necessary to effect the Share Purchase as contemplated by the Stock Purchase Agreement (except those actions that cannot by their terms be satisfied prior to the Share Purchase).

 

(e) Exchange of Warrants. At the Closing, each Warrant Holder (other than The Northwestern Mutual Life Insurance Company (“Northwestern”)) shall transfer to the Company good and valid title to all of the Warrants held by such Warrant Holder, and the Company shall issue shares of Class A Common Stock or New Series A Preferred to such Warrant Holder at the Closing such that when added to the shares of Class A Common Stock or New Series A Preferred issued to them pursuant to Section 2(c)(i), immediately after the Closing, the Warrant Holder holds the number of shares of Class A Common Stock or New Series A Preferred in the amount set forth opposite such Warrant Holder’s name on Exhibit E hereto.

 

(f) Recapitalization Documents. This Agreement, the Amended and Restated Articles of Incorporation, the Stock Purchase Agreement, the Restated Shareholders Agreement and the Restated Registration Agreement are collectively referred to herein as the “Recapitalization Documents.”

 

(g) Reconstitution of the Board. At the Closing, the Board shall be reconstituted, so that the Board shall consist of the following individuals: Erik Brooks, Jay Grossman, James R. Hull, Brent Stone, Blaine Wesner and Royce Yudkoff as provided in the Restated Shareholders Agreement.

 

(h) Post-Closing Adjustment.

 

(i) The parties hereto have agreed to the consideration to be received by each Preferred Holder (other than Windward LP and Windward LLC) in exchange for the Preferred Stock and Class A Common Stock held by such holders immediately prior to the effectiveness hereof based upon an assumed price per share of Class A Common Stock on a fully-diluted as if converted basis of $6.00 per share (the “Assumed Price Per Share”). In order to maintain the agreed percentage ownership of the Company’s equity, the Company shall issue additional shares of Class A Common Stock and/or Series A Preferred Stock to the extent necessary and in the manner described below upon the occurrence of a Tax Valuation Event (as defined herein). The number of additional shares of Class A Common Stock and/or Series A Preferred Stock, as applicable, to be issued to each shareholder entitled to receive such additional shares of Class A Common Stock and/or Series A Preferred Stock, as applicable, shall be the number of shares of Class A Common Stock or Series A Preferred Stock, as applicable, that when added to the number of shares of Class A Common Stock or Series A Preferred Stock, as applicable, held by such shareholder on the date hereof as set forth in the shaded column on the attached spreadsheet labeled Exhibit G, shall result in such shareholder holding the number of shares of Class A Common Stock or Series A Preferred Stock, as applicable, set forth opposite such shareholder’s name in the shaded column on the spreadsheet attached as Exhibit H which contains the appropriate Revised Price Per Share (as defined below) resulting from the Tax Valuation Event. In order to determine the Revised Price Per Share, the Assumed Price Per Share shall be adjusted by subtracting from such Assumed Price Per Share an amount equal to the product of (x) $0.70 multiplied by (y) the difference between (i) the number of years greater than ten (10) that the Internal Revenue Service successfully determines (whether through adjudication or settlement

 

4


with the Company) to be the correct amortizable life of the Company’s subscriber accounts and (ii) ten (10) (such resulting price per share, the “Revised Price Per Share”). In no event whatsoever will the Revised Price Per Share be less than $2.50 per share. Notwithstanding anything to the contrary above, if the Revised Price Per Share is an amount that is between two Revised Price Per Share amounts listed on Exhibit H, the number of shares of Class A Common Stock and/or Series A Preferred Stock, as applicable, to be issued to each shareholder entitled to receive additional shares of Class A Common Stock and/or Series A Preferred Stock, as applicable, shall be adjusted on a linear basis to equal an amount between the number of shares of Class A Common Stock or Series A Preferred Stock, as applicable, that would be issued to such shareholder on the closest two Revised Per Share Amounts listed on Exhibit H. In the event that a holder of Series A Preferred Stock shall have converted such shares into shares of Class A Common Stock prior to the occurrence of a Tax Valuation Event then, upon occurrence of a Tax Valuation Event, such holder shall be issued shares of Class A Common Stock in lieu of shares of Series A Preferred Stock for such shares of Series A Preferred Stock that have been previously converted.

 

(ii) “Tax Valuation Event” means an audit of the Company or its Subsidiaries (as defined in the Amended and Restated Articles of Incorporation) conducted by the Internal Revenue Service which results in (A) a final determination by the Internal Revenue Service that the Company or its Subsidiaries have improperly amortized the life of subscriber accounts over a 10 year period and should have amortized the life of subscriber accounts over a period greater than 10 years and (B) requirements that the Company (1) restate its tax returns to increase the length of time over which it amortizes the life of subscriber accounts to a period greater than 10 years and (2) amortize the life of subscriber accounts on future tax returns over a period greater than 10 years; provided that the Company or such Subsidiary receives notification from the Internal Revenue Service of such audit within two years following the date hereof and subject to the provisions of Section 2(h)(iii) below.

 

(iii) The Company agrees to furnish to a representative of the AV Parties copies of all correspondence received from any Governmental Entity in connection with any audit, litigation or other proceedings relating to the tax returns of the Company or any of its Subsidiaries. The Company agrees to keep a representative of the AV Parties informed on a timely basis of all contacts and discussions with any Governmental Entity regarding any audit, litigation or other proceeding described in the foregoing sentence. The AV Parties shall have the right to consult with the Company regarding any determination, contest and or any assessment, notice of deficiency or other adjustment or proposed adjustment relating to or with respect to taxes or tax returns of the Company or any of its Subsidiaries. The Company shall use its reasonable best efforts to defend positions taken on tax returns and shall keep the AV Parties informed of the progress of any such proceedings. The rights of the AV Parties under this section shall terminate two years following the date of this Agreement; provided that the rights of the AV Parties under this section shall continue beyond such period with respect to any notification from the Internal Revenue Service received by the Company or any of its Subsidiaries within two years following the date of this Agreement.

 

3. The Closing.

 

The closing of the transactions contemplated by this Agreement (the “Closing”) shall be held at the offices of Vinson & Elkins L.L.P., 3700 Trammell Crow Center, 2001 Ross Avenue,

 

5


Dallas, Texas 75201, on the date hereof or such other date and location as the Company and the Shareholders may mutually agree (the date of such Closing, the “Closing Date”); provided that the transactions contemplated under Sections 2(a), (b), (c) and (e) hereof shall be deemed to have occurred immediately prior to the transactions contemplated under Section 2(d) hereof; provided, further, that the transactions contemplated under Sections 2(a), (b), (c) and (e) hereof shall in no event occur unless and until the full satisfaction of the transactions contemplated under Section 2(d). At the Closing:

 

(a) each Preferred Holder will deliver to the Company the certificates representing all of the Preferred Stock held by such Preferred Holder, free and clear of any lien, pledge or security interest, except for those imposed pursuant to the Credit Agreement, dated as of August 25, 2003, by and among the Company and the several banks and other lenders parties thereto (the “Credit Agreement”), together with separate stock powers duly endorsed in blank, and any other documents that in the reasonable judgment of the Company are necessary to the Company’s good and valid title to the Preferred Stock held by the Preferred Holder;

 

(b) each Warrant Holder (other than Northwestern) will deliver to the Company the certificates representing all of the Warrants held by each such Warrant Holder, free and clear of any lien, pledge or security interest, except for those imposed pursuant to the Credit Agreement, and any other documents that in the reasonable judgment of the Company are necessary to the Company’s good and valid title to the Warrant held by such Warrant Holder;

 

(c) each of Austin Ventures III-A, L.P. and Austin Ventures III-B, L.P. will deliver to the Company the certificates representing all of the Class A Common Stock held by it, free and clear of any lien, pledge or security interest, except for those imposed pursuant to the Credit Agreement, and any other documents that in the reasonable judgment of the Company are necessary to the Company’s good and valid title to such shares of Class A Common Stock;

 

(d) the Company will issue shares of Class A Common Stock or New Series A Preferred to each Preferred Holder (other than Windward LLC and Windward LP) and Warrant Holder (other than Northwestern) such that, immediately after the Closing, such Preferred Holder or Warrant Holder holds the number of shares of Class A Common Stock or New Series A Preferred in the amount set forth opposite each Shareholder’s name on Exhibit E;

 

(e) the Company shall (i) issue to (a) Windward LLC the Windward LLC Common Shares and (b) Windward LP the Windward LP Common Shares and (ii) pay to (a) Windward LLC the Windward LLC Cash Amount and (b) Windward LP the Windward LP Cash Amount, in each case, by wire transfer of immediately available funds pursuant to wire transfer instructions delivered to the Company;

 

(f) each of Windward LP and Windward LLC will sell, assign, transfer and convey the Windward LP Common Shares and the Windward LLC Common Shares, respectively, to NY Life and PPM in accordance with the terms of the Stock Purchase Agreement;

 

(g) each party will execute and deliver the Recapitalization Documents (other than this Agreement) to which such party is a signatory; and

 

6


(h) the parties will undertake any actions and deliver any documents necessary to effect the transactions contemplated by the Recapitalization Documents and the other transactions contemplated by this Agreement.

 

4. Shareholder’s Representations and Warranties.

 

Each Shareholder hereby represents and warrants, as to itself only and not with respect to any other Shareholder, to the Company and to each other Shareholder as follows:

 

(a) Organization. If the Shareholder is not an individual, such Shareholder has been duly organized and is validly existing as a corporation, limited partnership or limited liability company in good standing under the laws of the jurisdiction in which it is chartered or organized.

 

(b) Authorization; Enforcement. The Shareholder has all requisite power and authority to authorize, execute, deliver and perform this Agreement and the other Recapitalization Documents to which it is a party. The execution, delivery and performance by the Shareholder of this Agreement and the other Recapitalization Documents to which it is a party, and the consummation by the Shareholder of the transactions contemplated hereby and thereby, have been duly authorized by all necessary corporate, limited partnership or limited liability company action on the part of the Shareholder, and no further consent or authorization thereafter is presently required by the Shareholder. This Agreement and the other Recapitalization Documents to which the Shareholder is a party have been duly and validly executed and delivered by the Shareholder and, assuming the due authorization, execution and delivery by the other parties hereto, constitute the valid and binding obligations of the Shareholder, enforceable against the Shareholder in accordance with their respective terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles regardless of whether enforcement is sought in equity or at law.

 

(c) No Conflicts. The execution and delivery of this Agreement and the other Recapitalization Documents to which it is a party by the Shareholder do not, and the performance by the Shareholder of its obligations hereunder and thereunder will not, constitute a violation of, conflict with or result in a default under the articles of incorporation, bylaws, limited liability company agreement, limited partnership agreement or similar organizational documents, as the case may be, of the Shareholder or any contract to which the Shareholder is a party or by which the Shareholder is bound or any judgment, decree or order applicable to the Shareholder.

 

(d) No Violations. Neither the execution and delivery of this Agreement nor the other Recapitalization Documents to which it is a party, nor the performance by the Shareholder of its obligations hereunder or thereunder, will violate in any material respect any provision of law applicable to the Shareholder.

 

(e) Consents; Approvals. Neither the execution, delivery or performance by the Shareholder of this Agreement or any other Recapitalization Document to which it is a party, nor the consummation by it of the obligations and transactions contemplated hereby or thereby, requires any consent or approval of, authorization by, exemption from, filing with or notice to any national, federal, state, municipal, local, territorial, foreign or other government or any

 

7


department, commission, board, bureau, agency, exchange, regulatory authority or instrumentality thereof, or any court, judicial, administrative or arbitral body or public or private tribunal (each, a “Governmental Entity”) or any other individual, corporation, partnership, joint venture, trust, unincorporated organization, limited liability company or partnership, or a government or any agency or political subdivision thereof (each, a “Person”), except with respect to each of ABRY LP and ABRY Investment any filings required under the Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), and the expiration or termination of any waiting period in connection therewith, which have been duly made or obtained.

 

(f) Acquisition for Own Account. If the Shareholder is acquiring Class A Common Stock or New Series A Preferred as part of the Recapitalization, the Shareholder is acquiring the Class A Common Stock or New Series A Preferred for its own account, for investment and not with a view toward distribution in a manner which would violate the Securities Act; provided, however, that by making the representations herein, the Shareholder does not agree to hold any of the shares of Class A Common Stock or the New Series A Preferred for any minimum or other specific term and reserves the right to dispose of such shares at any time, subject to the transfer restrictions contained in the Restated Shareholders Agreement and in accordance with or pursuant to an effective registration statement under the Securities Act or in a transaction exempt from or not subject to the registration requirements of the Securities Act.

 

(g) Access to Information. If the Shareholder is acquiring Class A Common Stock or New Series A Preferred as part of the Recapitalization, the Shareholder acknowledges that it has reviewed and discussed the Company’s business and affairs with such officers of the Company and others as it has deemed appropriate or desirable in connection with the transactions contemplated by this Agreement. The Shareholder further acknowledges that it has requested, received and reviewed such information, undertaken such investigation and made such further inquiries of officers of the Company and others as it has deemed appropriate or desirable in connection with such transactions.

 

(h) Ability to Bear Economic Risk. If the Shareholder is acquiring Class A Common Stock or New Series A Preferred as part of the Recapitalization, the Shareholder understands that it must bear the economic risk of its investment for an indefinite period of time because neither the Class A Common Stock nor the New Series A Preferred are, and will not be, registered under the Securities Act or any applicable state securities laws, except as may be provided in the Restated Registration Agreement, and may not be resold unless subsequently registered under the Securities Act and such other laws or unless an exemption from such registration is available.

 

(i) Accredited Investor. If the Shareholder is acquiring Class A Common Stock or New Series A Preferred as part of the Recapitalization, the Shareholder represents that it has knowledge and experience in financial and business matters and that it is capable of evaluating the merits and risks of its investment in the Class A Common Stock or the New Series A Preferred. The Shareholder (other than ABRY Investment) further represents that it is an “accredited investor” as such term is defined in Rule 501 of Regulation D under the Securities Act with respect to the acquisition of the Class A Common Stock or the New Series A Preferred.

 

(j) Brokers. No Person has or will have, as a result of the transactions contemplated by this Agreement, any rights, interest or valid claim against or upon the Company or the

 

8


Shareholders for any commission, fee or other compensation as a finder or broker because of any written agreement made by the Shareholder to pay any such compensation.

 

(k) Legends. The Shareholder hereby acknowledges that each certificate representing the Class A Common Stock or New Series A Preferred and any other securities issued in respect of such shares upon any stock split, stock dividend, recapitalization, merger or similar event (unless no longer required in the written opinion of counsel, which opinion of counsel shall be reasonably satisfactory to the Company, it being agreed that Vinson & Elkins L.L.P., Kirkland & Ellis LLP, Jenkens & Gilchrist, P.C., Testa, Hurwitz & Thibeault, LLP or Arnold & Porter LLP shall be satisfactory) shall bear a legend substantially in the following form:

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD OR TRANSFERRED WITHOUT COMPLIANCE WITH THE REGISTRATION OR QUALIFICATION PROVISIONS OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR APPLICABLE EXEMPTIONS THEREFROM.

 

(l) Title to Securities. The Shareholder is the sole record and beneficial owner of, and has good and valid title to, the security or securities listed opposite its or his name on Exhibit D hereto, free and clear of any lien, pledge, security interest or any restriction on transfer, except for restrictions on transfer imposed by applicable securities laws, the Credit Agreement, the Old Shareholders Agreement and the Third Amended and Restated Co Sale Agreement, dated January 18, 2002, by and among the Company and the shareholders party thereto. Immediately prior to the Closing, the Shareholder will not hold, beneficially or of record, any securities of the Company other than the securities listed opposite its or his name on Exhibit D hereto. The Shareholder (other than Windward LLC and Windward LP in connection with the Stock Purchase Agreement) is not a party to any option, warrant, purchase right or other contract or commitment that (i) will not be terminated at the Closing and (ii) requires the Shareholder to sell, transfer or otherwise dispose of any capital stock of the Company.

 

5. Company Representations and Warranties.

 

The Company hereby represents and warrants to each Shareholder as follows:

 

(a) Organization. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Texas and has all requisite corporate power and authority for the ownership and operation of its properties and for the carrying on of its business as now conducted and as now proposed to be conducted. The Company is duly licensed or qualified and in good standing as a foreign corporation authorized to do business in all jurisdictions wherein the character of the property owned or leased, or the nature of the activities conducted, by it makes such licensing or qualification necessary, except where the failure to be so licensed or qualified, either individually or in the aggregate, would not have (or be reasonably likely to have) a material adverse effect on the business, assets, liabilities, condition (financial or otherwise) or results of operations of the Company or the Company’s ability to perform its obligations under this Agreement or the other Recapitalization Documents to which it is a party.

 

9


The Company does not own, directly or indirectly, any capital stock or other equity or ownership or proprietary interest in any Person.

 

(b) Authorization; Enforcement. The Company has all requisite power and authority to authorize, execute, deliver and perform this Agreement and the other Recapitalization Documents to which it is a party. The execution, delivery and performance by the Company of this Agreement and the other Recapitalization Documents to which it is a party, and the consummation by the Company of the transactions contemplated hereby and thereby, have been duly authorized by all necessary corporate action on the part of the Company and no further consent or authorization therefore is presently required by the Company. This Agreement and the Recapitalization Documents to which it is a party have been duly and validly executed and delivered by the Company and, assuming the due authorization, execution and delivery by the other parties hereto, constitute the valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles regardless of whether enforcement is sought in equity or at law.

 

(c) Duly Authorized, Fully Paid and Non-assessable. The Class A Common Stock and the New Series A Preferred have been duly authorized and, upon issuance in accordance with the terms of this Agreement and the Amended and Restated Articles of Incorporation, all such Class A Common Stock and the New Series A Preferred will be duly authorized, validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and other encumbrances except for those imposed by the Credit Agreement, and will not be subject to preemptive rights or other similar rights of shareholders of the Company and will not impose personal liability upon the holders thereof.

 

(d) No Conflicts. The execution and delivery of this Agreement and the other Recapitalization Documents to which it is a party by the Company does not, and the performance by the Company of its obligations hereunder and thereunder will not, constitute a violation of, conflict with or result in a default under the Amended and Restated Articles of Incorporation, the bylaws of the Company or any contract to which the Company is a party or by which the Company is bound or any judgment, decree or order applicable to the Company.

 

(e) No Violations. Neither the execution and delivery of this Agreement or the other Recapitalization Documents to which it is a party nor the performance by the Company of its obligations hereunder or thereunder will violate in any material respect any provision of law applicable to the Company.

 

(f) Consents; Approvals. Neither the execution, delivery or performance by the Company of this Agreement or any other Recapitalization Document to which it is a party, nor the consummation by it of the obligations and transactions contemplated hereby or thereby, requires any consent or approval of, authorization by, exemption from, filing with or notice to any Governmental Entity or any other Person other than (i) the filing of the Amended and Restated Articles of Incorporation with the Secretary of State of the State of Texas, (ii) the consent of the lenders required under the Credit Agreement, (iii) the consent of Northwestern under the Subordinated Note and Warrant Purchase Agreement, dated January 18, 2002, as amended (the “Northwestern Agreement”), and (iv) any filings required under the HSR Act and

 

10


the expiration or termination of any waiting period in connection therewith, all of which have been duly made or obtained.

 

(g) Brokers. There is no broker, investment banker, financial advisor, finder or other Person which has been retained by or is authorized to act on behalf of the Company who might be entitled to any fee or commission for which the Company or the Shareholders will be liable in connection with the execution, delivery or performance by the Company of this Agreement or any of the other Recapitalization Documents to which it is a party.

 

(h) No Other Conversion, Preemptive Rights. After the Closing Date (as hereinafter defined), except for (i) the warrants issued to Heller Financial, Inc., a Delaware corporation (“Heller”), pursuant to the Warrant Agreement, dated as of November 10, 1994, by and between the Company and Heller, as amended, (ii) the warrants issued to Northwestern pursuant to the Northwestern Agreement, (iii) the New Series A Preferred, to be issued in the Recapitalization and (iv) options to purchase 92,000 shares of Class A Common Stock issued pursuant to the Company’s 1999 Stock Option Plan, there will be no securities outstanding that are convertible or exchangeable for the Company’s Common Stock, and there will be no other options, warrants, conversion privileges or other rights (including preemptive rights and rights of first refusal or similar rights other than as described in the Restated Shareholders Agreement) outstanding to purchase any of the authorized but unissued stock of the Company.

 

6. Further Assurances.

 

The Company and each Shareholder shall take or cause to be taken all such actions as may be necessary or reasonably desirable in order expeditiously to consummate the transactions contemplated by this Agreement, the other Recapitalization Documents to which they are a party and any other agreements necessary to consummate the Recapitalization, including, without limitation, executing, acknowledging and delivering consents, assignments, waivers and other documents or instruments; voting in favor of such transaction; furnishing information and copies of documents; filing applications, reports, returns, filings and other documents or instruments with Governmental Entities; and otherwise cooperating with the Company.

 

7. Certain Conditions.

 

(a) The obligation of the Company to consummate the Recapitalization shall be subject to the satisfaction or waiver by the Company of the following conditions:

 

(i) the representations and warranties made by each Shareholder in Section 4 hereof shall be true and correct in all material respects at the Closing Date as if made on the Closing Date and each Shareholder shall have performed in all material respects all obligations and conditions required herein or by any other Recapitalization Document to have been performed or complied with by it on or prior to the Closing;

 

(ii) each of the Recapitalization Documents shall have been executed and delivered by each other party thereto;

 

(iii) the Company shall have filed the Amended and Restated Articles of Incorporation with the Secretary of State of the State of Texas, which Amended and Restated Articles of Incorporation shall be in full force and effect on the Closing Date;

 

11


(iv) no action, suit, proceeding or investigation by any Governmental Entity shall be pending or, so far as is known to the Company or the Shareholders, be threatened, and no Governmental Entity shall have enacted an order or injunction which is in effect, which, in the case of such action, suit, proceeding, investigation, order or injunction, challenges the transactions contemplated by this Agreement or any other Recapitalization Document or seeks to restrain or prevent the consummation of the transactions contemplated hereunder or thereunder; and

 

(v) the Company shall have obtained any and all consents (including the consent of the lenders required pursuant to the Credit Agreement and of Northwestern pursuant to the Northwestern Agreement), permits and waivers necessary or appropriate for consummation of the transactions contemplated by this Agreement and the other Recapitalization Documents.

 

(b) The obligation of each Shareholder to consummate the Recapitalization shall be subject to the satisfaction or waiver by such Shareholder of the following conditions:

 

(i) the representations and warranties made by each other Shareholder or the Company in Section 4 or Section 5 hereof shall be true and correct in all material respects at the Closing Date, as if made on the Closing Date, and the Company and each other Shareholder shall have performed in all material respects all obligations and conditions required herein or by any other Recapitalization Document to have been performed or complied with by it on or prior to the Closing under this Agreement;

 

(ii) each of the Recapitalization Documents shall have been executed and delivered by each party thereto other than such Shareholder;

 

(iii) the Company shall have filed the Amended and Restated Articles of Incorporation with the Secretary of State of the State of Texas, which Amended and Restated Articles of Incorporation shall be in full force and effect on the Closing Date;

 

(iv) no action, suit, proceeding or investigation by any Governmental Entity shall be pending or, so far as is known to the Company or the Shareholders, be threatened, and no Governmental Entity shall have enacted an order or injunction which is in effect, which, in the case of such action, suit, proceeding, investigation, order or injunction, challenges the transactions contemplated by this Agreement or any other Recapitalization Document or seeks to restrain or prevent the consummation of the transactions contemplated hereunder or thereunder;

 

(v) the Company shall have obtained any and all consents (including the consent of the lenders required pursuant to the Credit Agreement and of Northwestern pursuant to the Northwestern Agreement), permits and waivers necessary or appropriate for consummation of the transactions contemplated by this Agreement and the other Recapitalization Documents;

 

(vi) each of the conditions set forth in Section 6 of the Stock Purchase Agreement (other than the conditions set forth in Section 6(a)(vii) and Section 6(b)(ix)) shall have been satisfied; and

 

12


(vii) each of Windward LP and Windward LLC shall have received federal funds reference numbers or other confirmation satisfactory to it evidencing that the purchase price to be received by it from PPM and NY Life for the Share Purchase as provided in the Stock Purchase Agreement have been sent by wire transfer of immediately available funds.

 

8. Specific Performance.

 

The parties hereto acknowledge and agree that in the event of any breach of this Agreement, the other parties hereto would be irreparably and immediately harmed and could not be made whole by monetary damages. It is accordingly agreed that, in addition to any other remedy to which the parties hereto may be entitled at law or in equity, each of the parties hereto shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and/or to compel specific performance of this Agreement in any action.

 

9. Expenses.

 

The Company will pay all fees and expenses of the parties hereto incurred in connection with the negotiation, preparation and execution of this Agreement and the other Recapitalization Documents and in connection with the consummation of the transactions contemplated hereby and thereby, including, without limitation, legal fees.

 

10. Miscellaneous.

 

(a) Entire Agreement. This Agreement, including all exhibits and schedules hereto, and the other Recapitalization Documents constitute the entire agreement and supersede all prior agreements and understandings, whether oral or written, between the parties hereto with respect to the subject matter hereof and thereof.

 

(b) Representations and Warranties. None of the parties has made nor is making any representation, warranty, covenant or agreement, express or implied, other than the explicit representations, warranties, covenants and agreements set forth herein. No promise or inducement for this Agreement has been made to any party hereto except as set forth herein. This Agreement is being executed by each party freely and voluntarily, and without reliance upon any statement or representation by any other party, any of such other party’s affiliates or any of their attorneys or agents except as set forth herein. Each party acknowledges and agrees that it is legally competent to enter into this Agreement and accepts full responsibility therefor and has been represented by counsel in the course of the negotiation of this Agreement.

 

(c) Successors and Assigns; Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, successors and permitted assigns. This Agreement may not be assigned by the Company without the prior written consent of all Shareholders. This Agreement may not be assigned by any Shareholder without the prior written consent of the Company and all other Shareholders.

 

(d) Section Headings. Section headings contained in this Agreement are for convenience of reference only and shall not affect the meaning or interpretation of this Agreement.

 

13


(e) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall, when executed, be deemed to be an original and all of which shall be deemed to be one and the same instrument.

 

(f) Governing Law. This agreement shall be governed by and construed and enforced in accordance with the laws of the state of Texas, without reference to the conflict of laws principles thereof.

 

(g) Notices. All notices, requests, demands and other communications provided for hereunder shall be in writing and mailed (by first class registered or certified mail, postage prepaid), telegraphed, sent by express overnight courier service or electronic facsimile transmission with a copy by mail, or delivered to the applicable party at the addresses indicated below:

 

If to the Company:

 

Monitronics International, Inc.

12801 Stemmons Freeway

Suite 821

Dallas, Texas 75234

Attention: James R. Hull

Facsimile No.: (972) 919-1985

 

(with copies to):

 

Vinson & Elkins L.L.P.

2001 Ross Avenue

Suite 3700

Dallas, Texas 75201

Attention: Christine A. Hathaway

Facsimile No.: (214) 999-7714

 

If to a Shareholder:

 

To the address of such Shareholder

specified on the signature pages attached hereto

 

or, as to each of the foregoing, at such other address as shall be designated by such Person in a written notice to the other party complying as to delivery with the terms of this Section. All such notices or requests, demands and other communications shall, when mailed, telegraphed or sent, respectively, be effective (i) two days after being deposited in the mail or (ii) one day after being delivered to the telegraph company, deposited with the express overnight courier service or sent by electronic facsimile transmission (with receipt confirmed), respectively, addressed as aforesaid.

 

(h) Waiver. Any waiver by any party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. The failure of a party to insist upon strict

 

14


adherence to any term of this Agreement or one or more sections shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

 

(i) Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

(j) Tax-free Reorganization. The Company and each Shareholder agree to regard the exchange of the Preferred Shares, the Class A Common Stock and the Warrants for the New Series A Preferred and Class A Common Stock of the Company as a reorganization under Section 368(a)(1)(E) of the Internal Revenue Code of 1986, as amended, for reporting and other positions, including tax reporting.

 

[The remainder of this page is intentionally left blank.]

 

15


IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the date first above written.

 

       

MONITRONICS INTERNATIONAL, INC.

            By:  

/s/ James R. Hull

               

James R. Hull

President

Address:

 

12801 Stemmons Freeway

Suite 821

     

HULL FAMILY LIMITED PARTNERSHIP, L.P.

    Dallas, Texas 75234       By:   James R. Hull Management Trust, its General Partner
            By:  

/s/ James R. Hull

               

James R. Hull

Trustee

Address:

 

12801 Stemmons Freeway

     

/s/ Robert N. Sherman

   

Suite 821

Dallas, Texas 75234

     

Robert N. Sherman

Address:

 

12801 Stemmons Freeway

     

/s/ Michael Meyers

   

Suite 821

Dallas, Texas 75234

     

Michael Meyers

Address:

 

12801 Stemmons Freeway

     

/s/ Stephen Hedrick

   

Suite 821

Dallas, Texas 75234

     

Stephen Hedrick

Address:

 

12801 Stemmons Freeway

     

/s/ Michael Gregory

   

Suite 821

Dallas, Texas 75234

     

Michael Gregory

 

S-1


Address:

 

300 West 6th Street

Suite 2300

     

AUSTIN VENTURES III-A, L.P.

    Austin, Texas 78701       By:  

AV Partners III, L.P.,

its General Partner

            By:  

/s/ Blaine F. Wesner

               

Blaine F. Wesner

Authorized Signatory

Address:

 

300 West 6th Street

Suite 2300

     

AUSTIN VENTURES III-B, L.P.

    Austin, Texas 78701       By:  

AV Partners III, L.P.,

its General Partner

            By:  

/s/ Blaine F. Wesner

               

Blaine F. Wesner

Authorized Signatory

Address:

 

300 West 6th Street

Suite 2300

     

AUSTIN VENTURES V, L.P.

    Austin, Texas 78701       By:  

AV Partners V, L.P.,

its General Partner

            By:  

/s/ Blaine F. Wesner

               

Blaine F. Wesner

General Partner

Address:

 

300 West 6th Street

Suite 2300

      AUSTIN VENTURES V AFFILIATES FUND, L.P.
    Austin, Texas 78701       By:  

AV Partners V, L.P.,

               

its General Partner

            By:  

/s/ Blaine F. Wesner

               

Blaine F. Wesner

General Partner

 

S-2


Address:

 

85 Merrimac Street

Suite 200

     

CAPITAL RESOURCE LENDERS II, L.P.

    Boston, Massachusetts 02114       By:  

Capital Resource Partners II, L.P.,

its General Partner

            By:  

/s/ Robert C. Ammerman

            Name:  

Robert C. Ammerman

            Title:  

General Partner

Address:

 

111 Huntington Avenue

Boston, Massachusetts 02199

     

ABRY PARTNERS IV, L.P.

            By:  

ABRY Capital Partners, L.P.,

its General Partner

                By:  

ABRY Capital Partners, L.P.,

its General Partner

                By:  

/s/ Jay M. Grossman

                Name:  

Jay M. Grossman

                Title:    

Address:

 

111 Huntington Avenue

Boston, Massachusetts 02199

     

ABRY INVESTMENT PARTNERSHIP, L.P.

            By:  

ABRY Investment GP, LLC,

its General Partner

            By:  

/s/ Jay M. Grossman

            Name:  

Jay M. Grossman

            Title:    

Address:

 

712 Fifth Avenue

21st Floor

     

WINDWARD CAPITAL PARTNERS II, L.P.

    New York, New York 10019       By:  

Windward Capital GP II, LLC,

its General Partner

            By:  

/s/ Peter S. Macdonald

               

Peter S. Macdonald

               

Managing Member

 

S-3


Address:

 

712 Fifth Avenue

21st Floor

     

WINDWARD CAPITAL PARTNERS II, LLC

    New York, New York 10019       By:  

/s/ Peter S. Macdonald

               

Peter S. Macdonald

               

Managing Member

Address:

 

720 East Wisconsin Avenue

Milwaukee, Wisconsin 53202

     

THE NORTHWESTERN MUTUAL

LIFE INSURANCE COMPANY

            By:  

/s/ David A. Barras

            Name:  

David A. Barras

            Title:  

Its Authorized Representative

Address:

 

51 Madison Avenue

Suite 3009 (30th Floor)

     

NEW YORK LIFE CAPITAL PARTNERS II, L.P.

   

New York, New York 10010

Attn: John Schumacher

      By:  

NYLCAP Manager LLC,

its Investment Manager

            By:  

/s/ John E. Schumacher

            Name:  

John E. Schumacher

            Title:  

President and CEO

Address:

 

225 W. Wacker Drive

Suite 1200

     

PPM AMERICA PRIVATE EQUITY FUND LP

   

Chicago, Illinois 60606

Attn: Bruce Saewitz

      By:  

PPM America Capital Partners, LLC,

its general partner

            By:  

/s/ Bruce Saewitz

            Name:  

Bruce Saewitz

            Title:  

Senior Partner

            By:  

/s/ Austin Krumpfes

            Name:  

Austin Krumpfes

            Title:  

Associate

 

S-4


SCHEDULE OF PREFERRED HOLDERS

 

Austin Ventures III-A, L.P.

Austin Ventures III-B, L.P.

Austin Ventures V, L.P.

Austin Ventures V Affiliates Fund, L.P.

Capital Resource Lenders II, L.P.

Windward Capital Partners II, L.P.

Windward Capital LP II, LLC

ABRY Partners IV, L.P.

ABRY Investment Partnership, L.P.

 

Schedule of Preferred Holders-1


SCHEDULE OF WARRANT HOLDERS

 

Austin Ventures V, L.P.

Austin Ventures V Affiliates Fund, L.P.

Capital Resource Lenders II, L.P.

The Northwestern Mutual Life Insurance Company

 

Schedule of Warrant Holders-1


SCHEDULE OF COMMON HOLDERS

 

Austin Ventures III-A, L.P.

Austin Ventures III-B, L.P.

Capital Resource Lenders II, L.P.

Hull Family Limited Partnership, L.P.

Robert N. Sherman

Michael Meyers

Stephen Hedrick

Michael Gregory

 

Schedule of Common Holders-1


EXHIBIT A

 

Form of Stock Purchase Agreement

 

(see attachment)

 

A-1


EXHIBIT B

 

Form of Restated Shareholders Agreement

 

(see attachment)

 

B-1


EXHIBIT C

 

Form of Restated Registration Agreement

 

(see attachment)

 

C-1


EXHIBIT D

 

Capitalization Prior to the Closing

 

Shareholder


   Class of Shares

   # of Shares

  

# of Fully
Diluted
Common

Shares on

an “As
Converted”

Basis


  

Fully
Diluted

Ownership

Percentage


 

Austin Ventures III-A, L.P.

   Series A Preferred    2,168,400    2,713,213    17.181 %
     Class A Common    33,344    33,344    0.211 %

Austin Ventures III-B, L.P.

   Series A Preferred    1,831,600    2,291,792    14.513 %
     Class A Common    28,167    28,167    0.178 %

Austin Ventures V, L.P.

   Series B Preferred    3,809,525    —      —    

Austin Ventures V Affiliates Fund, L.P.

   Series B Preferred    190,476    —      —    

Capital Resource Lenders II, L.P.

   Series B Preferred    1,000,000    —      —    
     Series C Preferred    76,182    126,332    0.800 %
     Series C-1 Preferred    13,590    —      —    
     Series D-1 Preferred    5,000    238,328    1.509 %
     Class A Common    688,625    688,625    4.361 %

Windward Capital Partners II, L.P.

   Series C Preferred    1,264,031    2,096,116    13.274 %
     Series C-1 Preferred    225,492    —      —    

Windward Capital LP II, LLC

   Series C Preferred    69,162    114,690    0.726 %
     Series C-1 Preferred    12,338    —      —    

ABRY Partners IV, L.P.

   Series D-1 Preferred    64,959.90    3,096,356    19.608 %

ABRY Investment Partnership, L.P.

   Series D-1 Preferred    40.10    1,912    0.012 %

Hull Family Limited Partnership

   Class A Common    536,218    536,218    3.396 %

Other Management

   Class A Common    651,000    651,000    4.122 %

Other Holders

   Class A Common    321,101    321,101    2.034 %

Warrant Shares

                     

Austin Ventures V, L.P.

   Class A Common    732,724    961,327    6.088 %

Austin Ventures V Affiliates Fund, L.P.

   Class A Common    36,636    48,066    0.304 %

Capital Resource Lenders II, L.P.

   Class A Common    192,340    252,348    1.598 %

Northwestern Mutual Life Insurance Company

   Class A Common    1,133,328    1,133,328    7.177 %

General Electric Capital Corporation

   Class B Common    367,238    367,238    2.326 %

Options

                     

Management

   Class A Common    92,000    92,000    0.583 %
                   

                    100.000 %
                   

 

D-1


EXHIBIT E

 

Capitalization After the Closing

 

Shareholder


   Class of Shares

  # of Shares

  

Fully
Diluted

Ownership

Percentage


 

Austin Ventures III-A, L.P.

   Series A Preferred   3,353,621    8.5  

Austin Ventures III-B, L.P.

   Series A Preferred   2,832,733    7.2  

Austin Ventures V, L.P.

   Series A Preferred   1,905,449    4.8  

Austin Ventures V Affiliates Fund, L.P.

   Series A Preferred   95,272    .2  

ABRY Partners IV, L.P.

   Class A Common   17,121,419    43.2  

ABRY Investment Partnership, L.P.

   Class A Common   10,570    —    

Capital Resource Lenders II, L.P.

   Class A Common   2,964,585    7.5  

New York Life Capital Partners II, L.P.

   Class A Common   5,000,000    12.6  

PPM America Private Equity Fund L.P.

   Class A Common   3,333,333    8.4  

Hull Family Limited Partnership

   Class A Common   536,218    1.4  

Other Management

   Class A Common   651,000    1.6  

Other Holders

   Class A Common   321,101    0.8  

General Electric Capital Corporation

   Class B Common(1)   366,626    0.9  
        
  

         38,491,927       

Warrant Shares

               

Northwestern Mutual Life Insurance Company

   Class A Common   1,133,328    2.9  
        
  

         39,625,255    100.0 %
        
  

Options

               

Management (2)

   Class A Common   92,000       

 

(1) The Class B Common is nonvoting and convertible into an equal number of shares of Class A Common at the option of the holder. Assumes the exercise of the warrant originally held by Heller Financial, Inc. on a cashless exercise basis following the closing of the Recapitalization.

 

(2) All of the management stock options are currently exercisable. Of these options, 25,000 have an exercise price of $1.00 per share and 67,000 have an exercise price of $20.00 per share.

 

E-1


EXHIBIT F

 

Form of Amended and Restated Articles of Incorporation

 

(see attachment)

 

F-1


    EXHIBIT G   10 years; $6.00/share

 

    

Original Equity

Investment


   Shares Owned

  

Percent

Ownership


    Accumulated
Dividends As Of
6/30/03


   Accumulated Value
of Preferred As Of
6/30/03


   Accumulated Value
of Preferred As Of
6/30/O4 (1)


   Principal

 

Series A

                                                   

Austin Ventures III-A, L.P.

   $ 2,168,400      2,713,213      20.3 %   $ 1,473,983.96    $ 3,642,383.96    $ 3,642,383.96         

Austin Ventures III-B, L.P.

   $ 1,831,600      2,291,792      17.2 %   $ 1,245,041.97    $ 3,076,641.97    $ 3,076,641.97         
    

  

  


 

  

  

  


Total

   $ 4,000,000      5,005,005      37.5 %   $ 2,719,025.93    $ 6,719,025.93    $ 6,719,025.93         

Series B

                                                   

Austin Ventures V, L.P.

   $ 3,809,524      959,725      7.2 %   $ 1,864,822.73    $ 5,674,346.73    $ 5,674,346.73         

Austin Ventures V Affiliates Fund, L.P.

   $ 190,476      47,986      0.4 %   $ 93,241.04    $ 283,717.04    $ 283,717.04         

Capital Resources Lenders II, L.P.

   $ 1,000,000      251,927      1.9 %   $ 489,515.94    $ 1,489,515.94    $ 1,489,515.94         
    

  

  


 

  

  

  


Total

   $ 5,000,000      1,259,638      9.4 %   $ 2,447,579.71    $ 7,447,579.71    $ 7,447,579.71         

Series C

                                                   

Windward Capital Partners II, L.P.

   $ 24,888,237.87                   $ 14,442,711.66    $ 39,330,949.53    $ 45,137,262.98      ($24,888,237.87 )

Windward Capital L.P. II, LLC

   $ 1,361,770.64                   $ 790,239.18    $ 2,152,009.82    $ 2,469,704.76      ($1,361,770.64 )

Capital Resources Lenders II, L.P.

   $ 1,499,991.49      —        0.00 %   $ 870,449.11    $ 2,370,440.60    $ 2,370,440.60         
    

  

  


 

  

  

  


Total

   $ 27,750,000.00      —        0.00 %   $ 16,103,399.95    $ 43,853,399.95    $ 49,977,408.34      ($26,250,008.51 )

Series C-1

                                                   

Windward Capital Partners II, L.P.

   $ 4,439,842.55                   $ 1,818,395.09    $ 6,258,237.64    $ 7,294,032.76      ($4,439,842.22 )

Windward Capital L.P. II, LLC

   $ 242,930.03                   $ 99,495.14    $ 342,425.17    $ 399,099.64      ($242,930.03 )

Capital Resources Lenders II, L.P.

   $ 267,581.37                   $ 109,591.43    $ 377,172.80    $ 377,172.80         
    

  

  


 

  

  

  


Total

   $ 4,950,353.95                   $ 2,027,481.66    $ 6,977,835.61    $ 8,070,305.20      ($4,682,772.25 )

Series D

                                                   

Abry Partners IV, L.P.

   $ 64,959,900.00      3,096,356      23.2 %   $ 19,190,478.02    $ 84,150,378.02    $ 84,150,378.02         

Abry Investment Partnership, L.P.

   $ 40,100.00      1,912      0.0 %   $ 11,850.12    $ 51,950.12    $ 51,950.12         

Capital Resources Lenders II, L.P.

   $ 5,000,000.00      238,328      1.8 %   $ 1,477,102.16    $ 6,477,102.16    $ 6,477,102.16         
    

  

  


 

  

  

  


Total

   $ 70,000,000.00      3,336,596      25.0 %   $ 20,679,430.30    $ 90,679,430.30    $ 90,679,430.30         

Sub Debt

                                                   

Austin Ventures III-A, L.P.

            33,344      0.2 %                             

Austin Ventures III-B, L.P.

            28,167      0.2 %                             

Capital Resources Lenders II, L.P.

            688,625      5.2 %                             

Northwestern Mutual

            1,133,328      8.5 %                             
           

  


                            

Total

            1,883,464      14.1 %                             

Other

                                                   

Management

            1,187,218      8.9 %                             

Other Holders

            321,101      2.4 %                             

Heller Financial Warrant

            366,626      2.7 %                             

New York Life Capital Partners II, L.P.

                                              $ 30,000,000.00  

PPM America Private Equity Fund, L.P.

                                              $ 20,000,000.00  
    

  

  


 

  

  

  


Total

     111,700,353.95      13,359,648      100.00 %   $ 43,976,917.55    $ 155,677,271.50    $ 162,893,749.48      119,067,219.24  
    

  

  


 

  

  

  


Total By Sponsor

                                                   

Austin Ventures III-A, L.P.

   $ 2,168,400.00      2,746,557      20.6 %   $ 1,473,983.96    $ 3,642,383.96    $ 3,642,383.96    $ 0.00  

Austin Ventures III-B, L.P.

   $ 1,831,600.00      2,319,959      17.4 %   $ 1,245,041.97    $ 3,076,641.97    $ 3,076,641.97    $ 0.00  

Austin Ventures V, L.P.

   $ 3,809,524.00      959,725      7.2 %   $ 1,864,822.73    $ 5,674,346.73    $ 5,674,346.73    $ 0.00  

Austin Ventures V Affiliates Fund, L.P.

   $ 190,476.00      47,986      0.4 %   $ 93,241.04    $ 283,717.04    $ 283,717.04    $ 0.00  

Capital Resources Lenders II, L.P.

   $ 7,767,572.86      1,178,880      8.8 %   $ 2,946,658.64    $ 10,714,231.50    $ 10,714,231.50    $ 0.00  

Windward Capital Partners II, L.P.

   $ 29,328,080.42      —        0.0 %   $ 16,261,106.75    $ 45,589,187.17    $ 52,431,295.74      ($29,328,080.09 )

Windward Capital L.P. II, LLC

   $ 1,604,700.67      —        0.0 %   $ 889,734.32    $ 2,494,434.99    $ 2,868,804.40      ($1,604,700.67 )

Abry Partners IV, L.P.

   $ 64,959,900.00      3,096,356      23.2 %   $ 19,190,478.02    $ 84,150,378.02    $ 84,150,378.02    $ 0.00  

Abry Investment Partnership, L.P.

   $ 40,100.00      1,912      0.0 %   $ 11,850.12    $ 51,950.12    $ 51,950.12    $ 0.00  

Northwestern Mutual

   $ 0.00      1,133,328      8.5 %   $ 0.00    $ 0.00    $ 0.00      0.00  

Management

   $ 0.00      1,187,218      8.9 %   $ 0.00    $ 0.00    $ 0.00      0.00  

Other Holders

   $ 0.00      321,101      2.4 %   $ 0.00    $ 0.00    $ 0.00      0.00  

Heller Financial Warrant

   $ 0.00      366,626      2.7 %   $ 0.00    $ 0.00    $ 0.00      0.00  

New York Life Capital Partners II, L.P.

   $ —      $ —      $ —       $ —      $ —      $ —      $ 30,000,000.00  

PPM America Private Equity Fund, L.P.

   $ 0.00      —        0.0 %   $ 0.00    $ 0.00    $ 0.00    $ 20,000,000.00  
    

  

  


 

  

  

  


Total

   $ 111,700,353.95      13,359,648      100.0 %   $ 43,976,917.55    $ 155,677,271.50    $ 162,893,749.48    $ 19,067,219.24  
    

  

  


 

  

  

  


 

     Restructuring
Dividends


    Equity

  

Total

Adjustments


    Accumulated Value
of Preferred As Of
6/30/04 (1)


  

New Preferred

Converted
Shares at
Closing


   New Common
Converted
Shares at
Closing


   New Total
Ownership
at Closing


      

Series A

                                                   

Austin Ventures III-A, L.P.

                  $ 0.00     $ 3,642,383.96    607,064    2,713,213    3,320,277       

Austin Ventures III-B, L.P.

                  $ 0.00     $ 3,076,641.97    512,774    2,291,792    2,804,566       
    


 

  


 

  
  
  
  

Total

                  $ 0.00     $ 6,719,025.93    1,119,838    5,005,005    6,124,843       

Series B

                                                   

Austin Ventures V, L.P.

                  $ 0.00     $ 5,674,346.73    945,724    959,725    1,905,449       

Austin Ventures V Affiliates Fund, L.P.

                  $ 0.00     $ 283.717.04    47,286    47,986    95,272       

Capital Resources Lenders II. L.P.

                  $ 0.00     $ 1,489,515.94    248,253    251,927    500,180       
    


 

  


 

  
  
  
  

Total

                  $ 0.00     $ 7,447,579.71    1,241,263    1,259,638    2,500,901       

Series C

                                                   

Windward Capital Partners II, L.P.

     ($20,249,025.11 )            ($45,137,262.98 )               0    0       

Windward Capital L.P. II, LLC

     ($1,107,934.12 )            ($2,469,704.76 )               0    0       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 2,370,440.60    395,073    0    395,073       
    


 

  


 

  
  
  
  

Total

   ($ 21,356,959.23 )            ($47,606,967.74 )   $ 2,370,440.60    395,073    0    395,073       

Series C-1

                                                   

Windward Capital Partners II, L.P.

     ($2,854,190.54 )            ($7,294,032.76 )               0    0       

Windward Capital L.P. II, LLC

     ($156,169.61 )            ($399,099.64 )               0    0       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 377,172.80    62,862    0    62,862       
    


 

  


 

  
  
  
  

Total

     ($3,010,360.15 )            ($7,693,132.40 )   $ 377,172.80    62,862    0    62,862       

Series D

                                                   

Abry Partners IV, L.P.

                  $ 0.00     $ 84,150,378.02    14,025,063    3,096,356    17,121,419       

Abry Investment Partnership, L.P.

                  $ 0.00     $ 51.950.12    8,658    1,912    10,570       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 6,477,102.16    1,079,517    238,328    1,317,845       
    


 

  


 

  
  
  
  

Total

                  $ 0.00     $ 90,679,430.30    15,113,238    3,336,596    18,449,834       

Sub Debt

                                                   

Austin Ventures III-A, L.P.

                                      33,344    33,344       

Austin Ventures III-B, L.P.

                                      28,167    28,167       

Capital Resources Lenders II, L.P.

                                      688,625    688,625       

Northwestern Mutual

                                      1,133,328    1,133,323       
                                       
  
      

Total

                                      1,883,464    1,883,464       

Other

                                                   

Management

                                      1,187,218    1,187,218       

Other Holders

                                      321,101    321,101       

Heller Financial Warrant

                                      366,626    366,626       

New York Life Capital Partners II, L.P.

                  $ 30,000,000.00     $ 30,000,000.00    5,000,000    0    5,000,000       

PPM America Private Equity Fund, L.P.

                  $ 20,000,000.00     $ 20,000,000.00    3,333,333    0    3,333,333       
    


 

  


 

  
  
  
      

Total

     ($24,367,319.38 )   $ 0.00      ($5,300,100.14 )   $ 157,593,649.34    26,265,608    13,359,648    39,625,256       
    


 

  


 

  
  
  
      

Total By Sponsor

                                                   

Austin Ventures III-A, L.P.

   $ 0.00     $ 0 00    $ 0.00     $ 3,642,383.96    607,064    2,746,557    3,353,621    8.5 %

Austin Ventures III-B, L.P.

   $ 0.00     $ 0 00    $ 0.00     $ 3,076,641.97    512,774    2,319,959    2,832,733    7.1 %

Austin Ventures V, L.P.

   $ 0.00     $ 0 00    $ 0.00     $ 5,674,346.73    945,724    959,725    1,905,449    4.8 %

Austin Ventures V Affiliates Fund, L.P.

   $ 0.00     $ 0 00    $ 0.00     $ 283,717.04    47,286    47,986    95,272    0.2 %

Capital Resources Lenders II, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 10,714,231.50    1,785,705    1,178,880    2,964,585    7.5 %

Windward Capital Partners II, L.P.

     ($23,103,215.65 )   $ 0.00      ($52,431,295.74 )   $ 0.00    —      —      —      0.0 %

Windward Capital L.P. II, LLC

     ($1,264,103.73 )   $ 0.00      ($ 2,868,804.40 )   $ 0.00    —      —      —      0.0 %

Abry Partners IV, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 84,150,378.02    14,025,063    3,096,356    17,121,419    43.2 %

Abry Investment Partnership, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 51,950.12    8,658    1,912    10,570    0.0 %

Northwestern Mutual

     0.00       0.00    $ 0.00       0.00    —      1,133,328    1,133,328    2.9 %

Management

     0.00       0.00    $ 0.00       0.00    —      1,187,218    1,187,218    3.0 %

Other Holders

     0.00       0.00    $ 0.00       0.00    —      321,101    321,101    0.8 %

Heller Financial Warrant

     0.00       0.00    $ 0.00       0.00    —      366,626    366,626    0.9 %

New York Life Capital Partners II, L.P.

   $ 0.00     $ 0.00    $ 30,000,000.00     $ 30,000,000.00    5,000,000    —      5,000,000    12.6 %

PPM America Private Equity Fund, L.P.

     0.00       0.00    $ 20,000,000.00     $ 20,000,000.00    3,333,333    —      3,333,333    8.4 %
    


 

  


 

  
  
  
  

Total

     ($24,367,319.38 )   $ 0.00      ($5,300,100.14 )   $ 157,593,649.34    26,265,608    13,359,648    39,625,256    100.0 %
    


 

                                    

 

(1) Only the figures included in the boxes in this column have been updated to reflect 6/30/04 accumulated dividends

 

G-1


EXHIBIT H

 

11 years; $5.30/share

 

    

Original

Equity

Investment


   Shares
Owned


  

Percent

Ownership


   

Accumulated
Dividends

As Of 6/30/03


  

Accumulated
Value

of Preferred

As Of 6/30/03


  

Accumulated
Value

of Preferred

As Of
6/30/04 (1)


   Principal

 

Series A

                                                   

Austin Ventures III-A, L.P.

   $ 2,168,400      2,713,213      20.3 %   $ 1,473,983.96    $ 3,642,383.96    $ 3,642,383.96         

Austin Ventures III-B, L.P.

   $ 1,831,600      2,291,792      17.2 %   $ 1,245,041.97    $ 3,076,641.97    $ 3,076,641.97         
    

  

  


 

  

  

        

Total

   $ 4,000,000      5,005,005      37.5 %   $ 2,719,025.93    $ 6,719,025.93    $ 6,719,025.93         

Series B

                                                   

Austin Ventures V, L.P.

   $ 3,809,524      959,725      7.2 %   $ 1,864,822.73    $ 5,674,346.73    $ 5,674,346.73         

Austin Ventures V Affiliates Fund, L.P.

   $ 190,476      47,986      0.4 %   $ 93,241.04    $ 283,717.04    $ 283,717.04         

Capital Resources Lenders II, L.P.

   $ 1,000,000      251,927      1.9 %   $ 489,515.94    $ 1,489,515.94    $ 1,489,515.94         
    

  

  


 

  

  

        

Total

   $ 5,000,000      1,259,638      9.4 %   $ 2,447,579.71    $ 7,447,579.71    $ 7,447,579.71         

Series C

                                                   

Windward Capital Partners II, L.P.

   $ 24,888,237.87                   $ 14,442,711.66    $ 39,330,949.53    $ 45,137,262.98      ($24,888,237.87 )

Windward Capital L.P. II, LLC

   $ 1,361,770.64                   $ 790,239.18    $ 2,152,009.82    $ 2,469,704.76      ($1,361,770.64 )

Capital Resources Lenders II, L.P.

   $ 1,499,991.49      —        0.00 %   $ 870,449.11    $ 2,370,440.60    $ 2,370,440.60         
    

  

  


 

  

  

  


Total

   $ 27,750,000.00      —        0.00 %   $ 16,103,399.95    $ 43,853,399.95    $ 49,977,408.34      ($26,250,008.51 )

Series C-1

                                                   

Windward Capital Partners II, L.P.

   $ 4,439,842.55                   $ 1,818,395.09    $ 6,258,237.64    $ 7,294,032.76      ($4,439,842.22 )

Windward Capital L.P. II, LLC

   $ 242,930.03                   $ 99,495.14    $ 342,425.17    $ 399,099.64      ($242,930.03 )

Capital Resources Lenders II, L.P.

   $ 267,581.37                   $ 109,591.43    $ 377,172.80    $ 377,172.80         
    

                 

  

  

  


Total

   $ 4,950,353.95                   $ 2,027,481.66    $ 6,977,835.61    $ 8,070,305.20      ($4,682,772.25 )

Series D

                                                   

Abry Partners IV, L.P.

   $ 64,959,900.00      3,096,356      23.2 %   $ 19,190,478.02    $ 84,150,378.02    $ 84,150,378.02         

Abry Investment Partnership, L.P.

   $ 40,100.00      1,912      0.0 %   $ 11,850.12    $ 51,950.12    $ 51,950.12         

Capital Resources Lenders II, L.P.

   $ 5,000,000.00      238,328      1.8 %   $ 1,477,102.16    $ 6,477,102.16    $ 6,477,102.16         
    

  

  


 

  

  

        

Total

   $ 70,000,000.00      3,336,596      25.0 %   $ 20,679,430.30    $ 90,679,430.30    $ 90,679,430.30         

Sub Debt

                                                   

Austin Ventures III-A, L.P.

            33,344      0.2 %                             

Austin Ventures III-B, L.P.

            28,167      0.2 %                             

Capital Resources Lenders II, L.P.

            688,625      5.2 %                             

Northwestern Mutual

            1,133,328      8.5 %                             
           

  


                            

Total

            1,883,464      14.1 %                             

Other

                                                   

Management

            1,187,218      8.9 %                             

Other Holders

            321,101      2.4 %                             

Heller Financial Warrant

            366,626      2.7 %                             

New York Life Capital Partners II, L.P.

                                              $ 30,000,000.00  

PPM America Private Equity Fund, L.P.

                                              $ 20,000,000.00  
    

  

  


 

  

  

  


Total

     111,700,353.95      13,359,648      100.00 %   $ 43,976,917.55    $ 155,677,271.50    $ 162,893,749.48    $ 19,067,219.24  
    

  

  


 

  

  

  


Total By Sponsor

                                                   

Austin Ventures III-A, L.P.

   $ 2,168,400.00      2,746,557      20.6 %   $ 1,473,983.96    $ 3,642,383.96    $ 3,642,383.96    $ 0.00  

Austin Ventures III-B, L.P.

   $ 1,831,600.00      2,319,959      17.4 %   $ 1,245,041.97    $ 3,076,641.97    $ 3,076,641.97    $ 0.00  

Austin Ventures V, L.P.

   $ 3,809,524.00      959,725      7.2 %   $ 1,864,822.73    $ 5,674,346.73    $ 5,674,346.73    $ 0.00  

Austin Ventures V Affiliates Fund, L.P.

   $ 190,476.00      47,986      0.4 %   $ 93,241.04    $ 283,717.04    $ 283,717.04    $ 0.00  

Capital Resources Lenders II, L.P.

   $ 7,767,572.86      1,178,880      8.8 %   $ 2,946,658.64    $ 10,714,231.50    $ 10,714,231.50    $ 0.00  

Windward Capital Partners II, L.P.

   $ 29,328,080.42      —        0.0 %   $ 16,261,106.75    $ 45,589,187.17    $ 52,431,295.74      ($29,328,080.09 )

Windward Capital L.P. II, LLC

   $ 1,604,700.67      —        0.0 %   $ 889,734.32    $ 2,494,434.99    $ 2,868,804.40      ($1,604,700.67 )

Abry Partners IV, L.P.

   $ 64,959,900.00      3,096,356      23.2 %   $ 19,190,478.02    $ 84,150,378.02    $ 84,150,378.02    $ 0.00  

Abry Investment Partnership, L.P.

   $ 40,100.00      1,912      0.0 %   $ 11,850.12    $ 51,950.12    $ 51,950.12    $ 0.00  

Northwestern Mutual

   $ 0.00      1,133,328      8.5 %   $ 0.00    $ 0.00    $ 0.00      0.00  

Management

   $ 0.00      1,187,218      8.9 %   $ 0.00    $ 0.00    $ 0.00      0.00  

Other Holders

   $ 0.00      321,101      2.4 %   $ 0.00    $ 0.00    $ 0.00      0.00  

Heller Financial Warrant

   $ 0.00      366,626      2.7 %   $ 0.00    $ 0.00    $ 0.00      0.00  

New York Life Capital Partners II, L.P.

   $ —      $ —      $ —       $ —      $ —      $ —      $ 30,000,000 00  

PPM America Private Equity Fund, L.P.

   $ 0.00      —        0.0 %   $ 0.00    $ 0.00    $ 0.00    $ 20,000,000. 00  
    

  

  


 

  

  

  


Total

   $ 111,700,353.95      13,359,648      100.0 %   $ 43,976,917.55    $ 155,677,271.50    $ 162,893,749.48    $ 19,067,219.24  
    

  

  


 

  

  

  


 

     Restructuring
Dividends


    Equity

  

Total

Adjustments


   

Adjusted

Accumulated
Value of
Preferred As
Of 6/30/04 (1)


  

New
Preferred

Converted
Shares at
Closing


   New
Common
Converted
Shares at
Closing


   New Total
Ownership
at Closing


      

Series A

                                                   

Austin Ventures III-A, L.P.

                  $ 0.00     $ 3,642,383.96    687,242    2,713,213    3,400,455       

Austin Ventures III-B L.P.

                  $ 0.00     $ 3,076,641.97    580,498    2,291,792    2,872,290       
    


 

  


 

  
  
  
      

Total

                  $ 0.00     $ 6,719,025.93    1,267,741    5,005,005    6,272,746       

Series B

                                                   

Austin Ventures V, L.P.

                  $ 0.00     $ 5,674,346.73    1,070,631    959,725    2,030,356       

Austin Ventures V Affiliates Fund, L.P.

                  $ 0.00     $ 283,717.04    53,532    47,986    101,518       

Capital Resources Lenders II, L.P

                  $ 0.00     $ 1,489,515.94    281,041    251,927    532,968       
    


 

  


 

  
  
  
      

Total

                  $ 0.00     $ 7,447,579.71    1,405,204    1,259,638    2,664,842       

Series C

                                                   

Windward Capital Partners II, L.P.

     ($20,249,025.11 )            ($45,137,262.98 )               0    0       

Windward Capital L.P. II, LLC

     ($1,107,934.12 )            ($2,469,704.76 )               0    0       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 2,370,440.60    447,253    0    447,253       
    


 

  


 

  
  
  
      

Total

     ($21,356,959.23 )            ($47,606,967.74 )   $ 2,370,440.60    447,253    0    447,253       

Series C-1

                                                   

Windward Capital Partners II, L.P.

     ($2,854,190.54 )            ($7,294,032.76 )               0    0       

Windward Capital L.P. II, LLC

     ($156,169.61 )            ($399,099.64 )               0    0       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 377,172.80    71,165    0    71,165       
    


 

  


 

  
  
  
      

Total

     ($3,010,360.15 )            ($7,693,132.40 )   $ 377,172.80    71,165    0    71,165       

Series D

                          $ 0.00                      

Abry Partners IV, L.P.

                  $ 0.00     $ 84,150,378.02    15,877,430    3,096,356    18,973,786       

Abry Investment Partnership, L.P.

                  $ 0.00     $ 51,950.12    9,802    1,912    11,714       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 6,477,102.16    1,222,095    238,328    1,460,423       
    


 

  


 

  
  
  
      

Total

                  $ 0.00     $ 90,679,430.30    17,109,326    3,336,596    20,445,922       

Sub Debt

                                                   

Austin Ventures III-A, L.P.

                                      33,344    33,344       

Austin Ventures III-B, L.P.

                                      28,167    28,167       

Capital Resources Lenders II, L.P.

                                      688,625    688,625       

Northwestern Mutual

                                      1,133,328    1,133,328       
                                       
  
      

Total

                                      1,883,464    1,883,464       

Other

                                                   

Management

                                      1,187,218    1,187,218       

Other Holders

                                      321,101    321,101       

Heller Financial Warrant

                                      366,626    366,626       

New York Life Capital Partners II, L.P.

                  $ 30,000,000.00     $ 30,000,000.00    5,660,377    0    5,660,377       

PPM America Private Equity Fund, L.P.

                  $ 20,000,000.00     $ 20,000,000.00    3,773,585    0    3,773,585       
    


 

  


 

  
  
  
      

Total

     ($24,367,319.38 )   $ 0.00      ($5,300,100.14 )   $ 157,593,649.34    29,734,651    13,359,648    43,094,299       
    


 

  


 

  
  
  
      

Total By Sponsor

                                                   

Austin Ventures III-A, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 3,642,383.96    687,242    2,746,557    3,433,799    8.0 %

Austin Ventures III-B, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 3,076,641.97    580,498    2,319,959    2,900,457    6.7 %

Austin Ventures V, L.P.

   $ 0 00     $ 0.00    $ 0.00     $ 5,674,346.73    1,070,631    959,725    2,030,356    4.7 %

Austin Ventures V Affiliates Fund, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 283,717.04    53,532    47,986    101,518    0.2 %

Capital Resources Lenders II, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 10,714,231.50    2,021,553    1,178,880    3,200,433    7.4 %

Windward Capital Partners II, L.P.

     ($23,103,215.65 )   $ 0.00      ($52,431,295.74 )   $ 0.00    —      —      —      0.0 %

Windward Capital L.P. II, LLC

     ($1,264,103.73 )   $ 0.00      ($2,868,804.40 )   $ 0.00    —      —      —      0.0 %

Abry Partners IV, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 84,150,378.02    15,877,430    3,096,356    18,973,786    44.0 %

Abry Investment Partnership, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 51,950.12    9,802    1,912    11,714    0.0 %

Northwestern Mutual

     0.00       0.00    $ 0.00       0.00    —      1,133,328    1,133,328    2.6 %

Management

     0.00       0.00    $ 0.00       0.00    —      1,187,218    1,187,218    2.8 %

Other Holders

     0.00       0.00    $ 0.00       0.00    —      321,101    321,101    0.7 %

Heller Financial Warrant

     0.00       0.00    $ 0.00       0.00    —      366,626    366,626    0.9 %

New York Life Capital Partners II, L.P.

   $ 0.00     $ 0.00    $ 30,000,000.00     $ 30,000,000.00    5,660,377    —      5,660,377    13.1 %

PPM America Private Equity Fund, L.P.

     0.00       0.00    $ 20,000,000.00     $ 20,000,000.00    3,773,585    —      3,773,585    8.8 %
    


 

  


 

  
  
  
  

Total

     ($24,367,319.38 )   $ 0.00      ($5,300,100.14 )   $ 157,593,649.34    29,734,651    13,359,648    43,094,299    100.0 %
    


 

                                    

 

(1) Only the figures included in the boxes in this column have been updated to reflect 6/30/04 accumulated dividends.

 

H-1


        12 years; $4.60/share

 

    

Original

Equity

Investment


  

Shares

Owned


  

Percent

Ownership


   

Accumulated

Dividends

As Of 6/30/03


  

Accumulated

Value

of Preferred

As Of 6/30/03


  

Accumulated

Value

of Preferred

As Of 6/30/04 (1)


   Principal

 

Series A

                                                   

Austin Ventures III-A, L.P.

   $ 2,168,400      2,713,213      20.3 %   $ 1,473,983.96    $ 3,642,383.96    $ 3,642,383.96         

Austin Ventures III-B, L.P.

   $ 1,831,600      2,291,792      17.2 %   $ 1,245,041.97    $ 3,076,641.97    $ 3,076,641.97         
    

  

  


 

  

  

        

Total

   $ 4,000,000      5,005,005      37.5 %   $ 2,719,025.93    $ 6,719,025.93    $ 6,719,025.93         

Series B

                                                   

Austin Ventures V, L.P.

   $ 3,809,524      959,725      7.2 %   $ 1,864,822.73    $ 5,674,346.73    $ 5,674,346.73         

Austin Ventures V Affiliates Fund, L.P.

   $ 190,476      47,986      0.4 %   $ 93,241.04    $ 283,717.04    $ 283,717.04         

Capital Resources Lenders II, L.P.

   $ 1,000,000      251,927      1.9 %   $ 489,515.94    $ 1,489,515.94    $ 1,489,515.94         
    

  

  


 

  

  

        

Total

   $ 5,000,000      1,259,638      9.4 %   $ 2,447,579.71    $ 7,447,579.71    $ 7,447,579.71         

Series C

                                                   

Windward Capital Partners II, L.P.

   $ 24,888,237.87                   $ 14,442,711.66    $ 39,330,949.53    $ 45,137,262.98      ($24,888,237.87 )

Windward Capital L.P. II, LLC

   $ 1,361,770.64                   $ 790,239.18    $ 2,152,009.82    $ 2,469,704.76      ($1,361,770.64 )

Capital Resources Lenders II, L.P.

   $ 1,499,991.49      —        0.00 %   $ 870,449.11    $ 2,370,440.60    $ 2,370,440.60         
    

  

  


 

  

  

  


Total

   $ 27,750,000.00      —        0.00 %   $ 16,103,399.95    $ 43,853,399.95    $ 49,977,408.34      ($26,250,008.51 )

Series C-1

                                                   

Windward Capital Partners II, L.P.

   $ 4,439,842.55                   $ 1,818,395.09    $ 6,258,237.64    $ 7,294,032.76      ($4,439,842.22 )

Windward Capital L.P. II, LLC

   $ 242,930.03                   $ 99,495.14    $ 342,425.17    $ 399,099.64      ($242,930.03 )

Capital Resources Lenders II, L.P.

   $ 267,581.37                   $ 109,591.43    $ 377,172.80    $ 377,172.80         
    

  

  


 

  

  

  


Total

   $ 4,950,353.95                   $ 2,027,481.66    $ 6,977,835.61    $ 8,070,305.20      ($4,682,772.25 )

Series D

                                                   

Abry Partners IV, L.P.

   $ 64,959,900.00      3,096,356      23.2 %   $ 19,190,478.02    $ 84,150,378.02    $ 84,150,378.02         

Abry Investment Partnership, L.P.

   $ 40,100.00      1,912      0.0 %   $ 11,850.12    $ 51,950.12    $ 51,950.12         

Capital Resources Lenders II, L.P.

   $ 5,000,000.00      238,328      1.8 %   $ 1,477,102.16    $ 6,477,102.16    $ 6,477,102.16         
    

  

  


 

  

  

        

Total

   $ 70,000,000.00      3,336,596      25.0 %   $ 20,679,430.30    $ 90,679,430.30    $ 90,679,430.30         

Sub Debt

                                                   

Austin Ventures III-A, L.P.

            33,344      0.2 %                             

Austin Ventures III-B, L.P.

            28,167      0.2 %                             

Capital Resources Lenders II, L.P.

            688,625      5.2 %                             

Northwestern Mutual

            1,133,328      8.5 %                             
           

  


                            

Total

            1,883,464      14.1 %                             

Other

                                                   

Management

            1,187,218      8.9 %                             

Other Holders

            321,101      2.4 %                             

Heller Financial Warrant

            366,626      2.7 %                             

New York Life Capital Partners II, L.P.

                                              $ 30,000,000.00  

PPM America Private Equity Fund, L.P.

                                              $ 20,000,000.00  
    

  

  


 

  

  

  


Total

     111,700,353.95      13,359,648      100.00 %   $ 43,976,917.55    $ 155,677,271.50    $ 162,893,749.48    $ 19,067,219.24  
    

  

  


 

  

  

  


Total By Sponsor

                                                   

Austin Ventures III-A, L.P.

   $ 2,168,400.00      2,746,557      20.6 %   $ 1,473,983.96    $ 3,642,383.96    $ 3,642,383.96    $ 0.00  

Austin Ventures III-B, L.P.

   $ 1,831,600.00      2,319,959      17.4 %   $ 1,245,041.97    $ 3,076,641.97    $ 3,076,641.97    $ 0.00  

Austin Ventures V, L.P.

   $ 3,809,524.00      959,725      7.2 %   $ 1,864,822.73    $ 5,674,346.73    $ 5,674,346.73    $ 0.00  

Austin Ventures V Affiliates Fund, L.P.

   $ 190,476.00      47,986      0.4 %   $ 93,241.04    $ 283,717.04    $ 283,717.04    $ 0.00  

Capital Resources Lenders II, L.P.

   $ 7,767,572.86      1,178,880      8.8 %   $ 2,946,658.64    $ 10,714,231.50    $ 10,714,231.50    $ 0.00  

Windward Capital Partners II, L.P.

   $ 29,328,080.42      —        0.0 %   $ 16,261,106.75    $ 45,589,187.17    $ 52,431,295.74      ($29,328,080.09 )

Windward Capital L.P. II, LLC

   $ 1,604,700.67      —        0.0 %   $ 889,734.32    $ 2,494,434.99    $ 2,868,804.40      ($1,604,700.67 )

Abry Partners IV, L.P.

   $ 64,959,900.00      3,096,356      23.2 %   $ 19,190,478.02    $ 84,150,378.02    $ 84,150,378.02    $ 0.00  

Abry Investment Partnership, L.P.

   $ 40,100.00      1,912      0.0 %   $ 11,850.12    $ 51,950.12    $ 51,950.12    $ 0.00  

Northwestern Mutual

   $ 0.00      1,133,328      8.5 %   $ 0.00    $ 0.00    $ 0.00      0.00  

Management

   $ 0.00      1,187,218      8.9 %   $ 0.00    $ 0.00    $ 0.00      0.00  

Other Holders

   $ 0.00      321,101      2.4 %   $ 0.00    $ 0.00    $ 0.00      0.00  

Heller Financial Warrant

   $ 0.00      366,626      2.7 %   $ 0.00    $ 0.00    $ 0.00      0.00  

New York Life Capital Partners II, L.P.

   $ —      $ —      $ —       $ —      $ —      $ —      $ 30,000,000.00  

PPM America Private Equity Fund, L.P.

   $ 0.00      —        0.0 %   $ 0.00    $ 0.00    $ 0.00    $ 20,000,000.00  
    

  

  


 

  

  

  


Total

   $ 111,700,353.95      13,359,648      100.0 %   $ 43,976,917.55    $ 155,677,271.50    $ 162,893,749.43    $ 19,067,219.24  
    

  

  


 

  

  

  


 

    

Restructuring

Dividends


    Equity

  

Total

Adjustments


   

Adjusted

Accumulated

Value

of Preferred

As Of 6/30/04 (1)


  

New

Preferred

Shares

at Closing


  

New

Common

Converted

Shares

at Closing


  

New Total

Ownership

at Closing


      

Series A

                                                   

Austin Ventures III-A, L.P.

                  $ 0.00     $ 3,642,383.96    791,823    2,713,213    3,505,036       

Austin Ventures III-B, L.P.

                  $ 0.00     $ 3,076,641.97    668,835    2,291,792    2,960,627       
    


 

  


 

  
  
  
      

Total

                  $ 0.00     $ 6,719,025.93    1,460,658    5,005,005    6,465,663       

Series B

                                                   

Austin Ventures V, L.P.

                  $ 0.00     $ 5,674,346.73    1,233,554    959,725    2,193,278       

Austin Ventures V Affiliates Fund, L.P.

                  $ 0.00     $ 283,717.04    61,678    47,986    109,664       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 1,489,515.94    323,808    251,927    575,735       
    


 

  


 

  
  
  
      

Total

                  $ 0.00     $ 7,447,579.71    1,619,039    1,259,638    2,878,677       

Series C

                                                   

Windward Capital Partners II, L.P.

     ($20,249,025.11 )            ($45,137,262.98 )               0    0       

Windward Capital L.P. II, LLC

     ($1,107,934.12 )            ($2,469,704.76 )               0    0       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 2,370,440.60    515,313    0    515,313       
    


 

  


 

  
  
  
      

Total

     ($21,356,959.23 )            ($47,606,967.74 )   $ 2,370,440.60    515,313    0    515,313       

Series C-1

                                                   

Windward Capital Partners II, L.P.

     ($2,854,190.54 )            ($7,294,032.76 )               0    0       

Windward Capital L.P. II, LLC

     ($156,169.61 )            ($399,099.64 )               0    0       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 377,172.80    81,994    0    81,994       
    


 

  


 

  
  
  
      

Total

     ($3,010,360.15 )            ($7,693,132.40 )   $ 377,172.80    81,994    0    81,994       

Series D

                          $ 0.00                      

Abry Partners IV, L.P.

                  $ 0.00     $ 84,150,378.02    18,293,560    3,096,356    21,389,916       

Abry Investment Partnership, L.P.

                  $ 0.00     $ 51,950.12    11,294    1,912    13,206       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 6,477,102.16    1,408,066    238,328    1,646,394       
    


 

  


 

  
  
  
      

Total

                  $ 0.00     $ 90,679,430.30    19,712,920    3,336,596    23,049,516       

Sub Debt

                                                   

Austin Ventures III-A, L.P.

                                      33,344    33,344       

Austin Ventures III-B, L.P.

                                      28,167    28,167       

Capital Resources Lenders II, L.P.

                                      688,625    688,625       

Northwestern Mutual

                                      1,133,328    1,133,328       
                                       
  
      

Total

                                      1,883,464    1,883,464       

Other

                                                   

Management

                                      1,187,218    1,187,218       

Other Holders

                                      321,101    321,101       

Heller Financial Warrant

                                      366,626    366,626       

New York Life Capital Partners II, L.P.

                  $ 30,000,000.00     $ 30,000,000.00    6,521,739    0    6,521,739       

PPM America Private Equity Fund, L.P.

                  $ 20,000,000.00     $ 20,000,000.00    4,347,826    0    4,347,826       
    


 

  


 

  
  
  
      

Total

     ($24,367,319.38 )   $ 0.00      ($5,300,100.14 )   $ 157,593,649.34    34,259,489    13,359,648    47,619,137       
    


 

  


 

  
  
  
      

Total By Sponsor

                                                   

Austin Ventures III-A, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 3,642,383.96    791,823    2,746,557    3,538,380    7.4 %

Austin Ventures III-B, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 3,076,641.97    668,835    2,319,959    2,988,794    6.3 %

Austin Ventures V, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 5,674,346.73    1,233,554    959,725    2,193,278    4.6 %

Austin Ventures V Affiliates Fund, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 283,717.04    61,678    47,986    109,664    0.2 %

Capital Resources Lenders II, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 10,714,231.50    2,329,181    1,178,880    3,508,061    7.4 %

Windward Capital Partners II, L.P.

     ($23,103,215.65 )   $ 0.00      ($52,431,295.74 )   $ 0.00    —      —      —      0.0 %

Windward Capital L.P. II, LLC

   $ 1,284,103.73     $ 0.00      ($2,868,804.40 )   $ 0.00    —      —      —      0.0 %

Abry Partners IV, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 84,150,378.02    18,293,560    3.096,356    21,389,916    44.9 %

Abry Investment Partnership, L.P.

   $ 0.00     $ 0.00    $ 0.00     $ 51,950.12    11,294    1,912    13,206    0.0 %

Northwestern Mutual

     0.00       0.00    $ 0.00       0.00    —      1,133,328    1,133,328    2.4 %

Management

     0.00       0.00    $ 0.00       0.00    —      1,187,218    1,187,218    2.5 %

Other Holders

     0.00       0.00    $ 0.00       0.00    —      321,101    321,101    0.7 %

Heller Financial Warrant

     0.00       0.00    $ 0.00       0.00    —      366,626    366,626    0.8 %

New York Life Capital Partners II, L.P.

   $ 0.00     $ 0.00    $ 30,000,000.00     $ 30,000,000.00    6,521,739    —      6,521,739    13.7 %

PPM America Private Equity Fund, L.P.

     0.00       0.00    $ 20,000,000.00     $ 20,000,000.00    4,347,826    —      4,347,826    9.1 %
    


 

  


 

  
  
  
  

Total

     ($24,367,319.38 )   $ 0.00      ($5,300,100.14 )   $ 157,593,649.34    34,259,489    13,359,648    47,619,137    100.0 %
    


 

                                    

 

(1) Only the figures included in the boxes in this column have been updated to reflect 6/30/04 accumulated dividends

 

H-2


        13 years, $3.90/share

 

     Original Equity
Investment


   Shares Owned

   Percent
Ownership


    Accumulated
Dividends As Of
6/30/03


  

Accumulated

Value of Preferred
As Of 6/30/03


   Accumulated Value
of Preferred As Of
6/30/04(1)


   Principal

 

Series A

                                                   

Austin Ventures III-A, L.P.

   $ 2,168,400      2,713,213      20.3 %   $ 1,473,983.96    $ 3,642,383.96    $ 3,642,383.96         

Austin Ventures III-B, L.P.

   $ 1,831,600      2,291,792      17.2 %   $ 1,245,041.97    $ 3,076,641.97    $ 3,076,641.97         
    

  

  


 

  

  

  


Total

   $ 4,000,000      5,005,005      37.5 %   $ 2,719,025.93    $ 6,719,025.93    $ 6,719,025.93         

Series B

                                                   

Austin Ventures V, L.P.

   $ 3,809,524      959,725      7.2 %   $ 1,864,822.73    $ 5,674,346.73    $ 5,674,346.73         

Austin Ventures V Affiliates Fund, L.P.

   $ 190,476      47,986      0.4 %   $ 93,241.04    $ 283,717.04    $ 283,717.04         

Capital Resources Lenders II, L.P.

   $ 1,000,000      251,927      1.9 %   $ 489,515.94    $ 1,489,515.94    $ 1,489,515.94         
    

  

  


 

  

  

  


Total

   $ 5,000,000      1,259,638      9.4 %   $ 2,447,579.71    $ 7,447,579.71    $ 7,447,579.71         

Series C

                                                   

Windward Capital Partners II, L.P.

   $ 24,888,237.87                   $ 14,442,711.66    $ 39,330,949.53    $ 45,137,262.98      ($24,888,237.87 )

Windward Capital L.P. II, LLC

   $ 1,361,770.64                   $ 790,239.18    $ 2,152,009.82    $ 2,469,704.76      ($1,361,770.64 )

Capital Resources Lenders II, L.P.

   $ 1,499,991.49      —        0.00 %   $ 870,449.11    $ 2,370,440.60    $ 2,370,440.60         
    

  

  


 

  

  

  


Total

   $ 27,750,000.00      —        0.00 %   $ 16,103,399.95    $ 43,853,399.95    $ 49,977,408.34      ($26,250,008.51 )

Series C-l

                                                   

Windward Capital Partners II, L.P.

   $ 4,439,842.55                   $ 1,818,395.09    $ 6,258,237.64    $ 7,294,032.76      ($4,439,842.22 )

Windward Capital L.P. II, LLC

   $ 242,930.03                   $ 99,495.14    $ 342,425.17    $ 399,099.64      ($242,930.03 )

Capital Resources Lenders II, L.P.

   $ 267,581.37                   $ 109,591.43    $ 377,172.80    $ 377,172.80         
    

  

  


 

  

  

  


Total

   $ 4,950,353.95                   $ 2,027,481.66    $ 6,977,835.61    $ 8,070,305.20      ($4,682,772.25 )

Series D

                                                   

Abry Partners IV, L.P.

   $ 64,959,900.00      3,096,356      23.2 %   $ 19,190,478.02    $ 84,150,378.02    $ 84,150,378.02         

Abry Investment Partnership, L.P.

   $ 40,100.00      1,912      0.0 %   $ 11,850.12    $ 51,950.12    $ 51,950.12         

Capital Resources Lenders II, L.P.

   $ 5,000,000.00      238,328      1.8 %   $ 1,477,102.16    $ 6,477,102.16    $ 6,477,102.16         
    

  

  


 

  

  

  


Total

   $ 70,000,000.00      3,336,596      25.0 %   $ 20,679,430.30    $ 90,679,430.30    $ 90,679,430.30         

Sub Debt

                                                   

Austin Ventures III-A, L.P.

            33,344      0.2 %                             

Austin Ventures III-B, L.P.

            28,167      0.2 %                             

Capital Resources Lenders II, L.P.

            688,625      5.2 %                             

Northwestern Mutual

            1,133,328      8.5 %                             
           

  


                            

Total

            1,883,464      14.1 %                             

Other

                                                   

Management

            1,187,218      8.9 %                             

Other Holders

            321,101      2.4 %                             

Heller Financial Warrant

            366,626      2.7 %                             

New York Life Capital Partners II, L.P.

                                              $ 30,000,000.00  

PPM America Private Equity Fund, L.P.

                                              $ 20,000,000.00  
    

  

  


 

  

  

  


Total

     111,700,353.95      13,359,648      100.00 %   $ 43,976,917.55    $ 155,677,271.50    $ 162,893,749.48    $ 19,067,219.24  
    

  

  


 

  

  

  


Total By Sponsor

                                                   

Austin Ventures III-A, L.P.

   $ 2,168,400.00      2,746,557      20.6 %   $ 1,473,983.96    $ 3,642,383.96    $ 3,642,383.96    $ 0.00  

Austin Ventures III-B, L.P.

   $ 1,831,600.00      2,319,959      17.4 %   $ 1,245,041.97    $ 3,076,641.97    $ 3,076,641.97    $ 0.00  

Austin Ventures V, L.P.

   $ 3,809,524.00      959,725      7.2 %   $ 1,864,822.73    $ 5,674,346.73    $ 5,674,346.73    $ 0.00  

Austin Ventures V Affiliates Fund, L.P.

   $ 190,476.00      47,986      0.4 %   $ 93,241.04    $ 283,717.04    $ 283,717.04    $ 0.00  

Capital Resources Lenders II, L.P.

   $ 7,767,572.86      1,178,880      8.8 %   $ 2,946,658.64    $ 10,714,231.50    $ 10,714,231.50    $ 0.00  

Windward Capital Partners II, L.P.

   $ 29,328,080.42      —        0.0 %   $ 16,261,106.75    $ 45,589,187.17    $ 52,431,295.74      ($29,328,080.09 )

Windward Capital L.P. II, LLC

   $ 1,604,700.67      —        0.0 %   $ 889,734.32    $ 2,494,434.99    $ 2,868,804.40      ($1,604,700.67 )

Abry Partners IV, L.P.

   $ 64,959,900.00      3,096,356      23.2 %   $ 19,190,478.02    $ 84,150,378.02    $ 84,150,378.02    $ 0.00  

Abry Investment Partnership, L.P.

   $ 40,100.00      1,912      0.0 %   $ 11,850.12    $ 51,950.12    $ 51,950.12    $ 0.00  

Northwestern Mutual

   $ 0.00      1,133,328      8.5 %   $ 0.00    $ 0.00    $ 0.00      0.00  

Management

   $ 0.00      1,187,218      8.9 %   $ 0.00    $ 0.00    $ 0.00      0.00  

Other Holders

   $ 0.00      321,101      2.4 %   $ 0.00    $ 0.00    $ 0.00      0.00  

Heller Financial Warrant

   $ 0.00      366,626      2.7 %   $ 0.00    $ 0.00    $ 0.00      0.00  

New York Life Capital Partners II, L.P.

   $ —      $ —      $ —       $ —      $ —      $ —      $ 30,000,000.00  

PPM America Private Equity Fund, L.P.

   $ 0.00      —        0.0 %   $ 0.00    $ 0.00    $ 0.00    $ 20,000,000.00  
    

  

  


 

  

  

  


Total

   $ 111,700,353.95      13,359,648      100.0 %   $ 43,976,917.55    $ 155,677,271.50    $ 162,893,749.48    $ 19,067,219.24  
    

  

  


 

  

  

  


 

     Restructuring
Dividends


    Equity

   Total Adjustments

    Adjusted
Accumulated Value
of Preferred As Of
6/30/04(1)


  

New
Preferred
Converted

Shares at
Closing


  

New
Common
Converted

Shares at
Closing


   New Total
Ownership at
Closing


      

Series A

                                                   

Austin Ventures III-A, L.P.

                  $ 0.00     $ 3,642,383.96    933,945    2,713,213    3,647,158       

Austin Ventures III-B, L.P.

                  $ 0.00     $ 3,076,641.97    788,883    2,291,792    3,080,675       
    


 

  


 

  
  
  
      

Total

                  $ 0.00     $ 6,719,025.93    1,722,827    5,005,005    6,727,832       

Series B

                                                   

Austin Ventures V, L.P.

                  $ 0.00     $ 5,674,346.73    1,454,961    959,725    2,414,686       

Austin Ventures V Affiliates Fund, L.P.

                  $ 0.00     $ 283,717.04    72,748    47,986    120,734       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 1,489,515.94    381,927    251,927    633,854       
    


 

  


 

  
  
  
      

Total

                  $ 0.00     $ 7,447,579.71    1,909,636    1,259,638    3,169,274       

Series C

                                                   

Windward Capital Partners II, L.P.

     ($20,249,025.11 )            ($45,137,262.98 )               0    0       

Windward Capital L.P. II, LLC

     ($1,107,934.12 )            ($2,469,704.76 )               0    0       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 2,370,440.60    607,805    0    607,805       
    


 

  


 

  
  
  
      

Total

     ($21,356,959.23 )            ($47,606,967.74 )   $ 2,370,440.60    607,805    0    607,805       

Series C-l

                                                   

Windward Capital Partners II, L.P.

     ($2,854,190.54 )            ($7,294,032.76 )               0    0       

Windward Capital L.P. II, LLC

     ($156,169.61 )            ($399,099.64 )               0    0       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 377,172.80    96,711    0    96,711       
    


 

  


 

  
  
  
      

Total

     ($3,010,360.15 )            ($7,693,132.40 )   $ 377,172.80    96,711    0    96,711       

Series D

                          $ 0.00                      

Abry Partners IV, L.P.

                  $ 0.00     $ 84,150,378.02    21,577,020    3,096,356    24,673,376       

Abry Investment Partnership, L.P.

                  $ 0.00     $ 51,950.12    13,321    1,912    15,233       

Capital Resources Lenders II, L.P.

                  $ 0.00     $ 6,477,102.16    1,660,795    238,328    1,899,123       
    


 

  


 

  
  
  
      

Total

                  $ 0.00     $ 90,679,430.30    23,251,136    3,336,596    26,587,732       

Sub Debt

                                                   

Austin Ventures III-A, L.P

                                      33,344    33,344       

Austin Ventures III-B, L.P.

                                      28,167    28,167       

Capital Resources Lenders II, L.P.

                                      688,625    688,625       

Northwestern Mutual

                                      1,133,328    1,133,328      &nb