INTERNET CAPITAL GROUP INC
LETTER AGREEMENT
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<TYPE>EX-10.2
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<DESCRIPTION>LETTER AGREEMENT
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<P align="right"><FONT size="2">Exhibit&nbsp;10.2
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<P align="left"><FONT size="2">June&nbsp;20, 2003
</FONT>
<P align="left"><FONT size="2">Henry Nassau<BR>
1695 Swedesford Road<BR>
Wilson Farm<BR>
Malvern, PA 19355
</FONT>
<P align="left"><FONT size="2">Dear Henry:
</FONT>
<P align="left"><FONT size="2">In connection with the termination of your employment with Internet Capital
Group (&#147;ICG&#148;), you and ICG desire to enter into this letter agreement (this
&#147;Letter Agreement&#148;) to confirm your rights and obligations under the Letter
Agreement between you and ICG dated September&nbsp;20, 2001, as amended (the &#147;2001
Agreement&#148;) and to otherwise specify the terms of your separation.
</FONT>

<P align="left"><FONT size="2">Your status as an employee of ICG terminated effective May&nbsp;30, 2003. You and
ICG agree that in full satisfaction of your rights under the 2001 Agreement and
contingent upon your execution of this Letter Agreement and upon your
executing, and not rescinding or breaching, a release in the form attached
hereto as Exhibit&nbsp;A (the &#147;Release&#148;) the following consideration shall be paid
to you on the terms and conditions set forth herein and that this letter
agreement sets forth the entire consideration to be paid to you in connection
with or as a result of the termination.
</FONT>

<P align="left"><FONT size="2"><B>Cash<BR></B>
ICG will make a lump sum payment to you in cash in the amount of $1.0&nbsp;million.
ICG shall make such payment (the &#147;Cash Payment&#148;), subject to the terms of this
Letter Agreement, on the eighth day following execution of the Release (the
&#147;Payment Date&#148;).
</FONT>

<P align="left"><FONT size="2">You and ICG agree that, notwithstanding anything in this Letter Agreement to
the contrary, the aggregate amount of cash to be paid pursuant to this section
shall be reduced (i)&nbsp;by all withholding taxes applicable to the Cash Payment,
(ii)&nbsp;all withholding taxes associated with the vesting of the restricted stock
described below and (iii)&nbsp;at your direction, which such direction is hereby
given, by $476,388 to repay the full recourse loan balance owed to ICG pursuant
to your promissory note dated December&nbsp;1, 2001 (the &#147;Note&#148;). ICG acknowledges
that this $476,388 payment will constitute full satisfaction of the personal
recourse portion of the Note, and that ICG shall, in accordance with the terms
of the related Pledge Agreement, use the shares of ICG common stock that it
holds and that were pledged by you to secure the Note as its sole recourse for
the satisfaction of the remaining balance of the Note. Otherwise, you have no
further liability of any nature under that Note or the related Share Pledge
Agreement.
</FONT>

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<P align="left"><FONT size="2"><B>Restricted Stock<BR></B>
All 575,000 shares of restricted stock granted to you in 2001 and otherwise due
to vest on August&nbsp;11, 2003 have been made entirely vested and transferable.
You will be responsible for payment to the Company of all applicable
withholding taxes, it being acknowledged and agreed that such taxes will be
deducted from the Cash Payment as provided above.
</FONT>

<P align="left"><FONT size="2"><B>Stock Options<BR></B>
You acknowledge and agree that the following Company stock options are hereby
cancelled:
</FONT>

<P align="left"><FONT size="2">&#151; October&nbsp;26, 2000 option with respect to 75,000 shares with a per share
exercise price of $12.0625
</FONT>

<P align="left"><FONT size="2">&#151; December&nbsp;8, 2000 option with respect to 75,000 shares with a per share
exercise price of $5.6562
</FONT>

<P align="left"><FONT size="2">&#151; December&nbsp;21, 2000 option with respect to 100,000 shares with a per share
exercise price of $3.0312
</FONT>

<P align="left"><FONT size="2">&#151; April&nbsp;23, 2001 option with respect to 278,953 shares with a per share
exercise price of 2.09 (this is a partial cancellation; full grant was with
respect to 575,000 shares and remainder survives as specified below).
</FONT>

<P align="left"><FONT size="2">In consideration of the option cancellations described above, the following
Company stock options will become fully exercisable (to the extent they were
not fully exercisable already) and will remain exercisable, notwithstanding the
termination of your employment, until the earlier of (i)&nbsp;May&nbsp;30, 2005, or (ii)
the one-year anniversary of the date the ICG share price is maintained at $10
for 20 trading days (such number to be adjusted for stock splits and the like):
</FONT>

<P align="left"><FONT size="2">&#151; April&nbsp;23, 2001 option with respect to 296,047 shares with a per share
exercise price of 2.09 (this is a partial survival; full grant was with respect
to 575,000 shares and remainder was cancelled as specified above).
</FONT>

<P align="left"><FONT size="2">&#151; July&nbsp;25, 2001 option with respect to 575,000 shares with a per share
exercise price of $1.40
</FONT>

<P align="left"><FONT size="2">&#151; October&nbsp;23, 2002 option with respect to 950,000 shares with a per share
exercise price of $0.23.
</FONT>

<P align="left"><FONT size="2">Upon any exercise of these options you will provide for the payment to the
Company of the applicable withholding taxes associated with such exercise
within three (3)&nbsp;days of the date of option exercise, it being acknowledged and
agreed that if you conduct an option exercise through a brokerage firm followed
immediately by a sale of the acquired shares, a portion of the proceeds from
the sale of such shares sufficient to pay applicable withholding taxes will be
paid to the Company directly and immediately upon settlement.
</FONT>

<P align="center"><FONT size="2">-2-</FONT>

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<P align="left"><FONT size="2"><B>Annual Bonus<BR></B>
If bonuses are paid to active executive officers of ICG in respect of 2003
performance, ICG will pay you a bonus attributable to the period of January&nbsp;1,
2003 through your date of termination. Determination of the amount of such
2003 bonus, if any, will (but for pro-ration to reflect your partial year of
service) be determined in the same manner as applicable to the determination of
2003 bonuses for active executive officers and shall take into account the
overall percentage of 2003 target bonus declared by ICG&#146;s Board of Directors in
2004 for other executive officers. Any such bonus will be paid to you promptly
after ICG&#146;s Board of Directors declares any bonus in respect of 2003
performance for the Company&#146;s active executive officers.
</FONT>

<P align="left"><FONT size="2"><B>Employee Benefits<BR></B>
ICG will continue to provide you and your family medical and dental insurance
at the same percent of premium payment existing at the time of termination, or
as in effect thereafter for the Company&#146;s executive officers from time to time
generally until the earlier of (A)&nbsp;eighteen (18)&nbsp;months after termination of
employment; or (B)&nbsp;your eligibility for these benefits under another employer&#146;s
or spouse&#146;s employer&#146;s plan at a cost to you less than or equal to your premium
payment existing at the time of termination. As soon as practicable following
the date hereof, ICG will assign to you the individual Provident Life and
Accident Insurance long term disability policy covering you (policy # 7623297).
All other employee benefits terminated as of May&nbsp;30, 2003.
</FONT>

<P align="left"><FONT size="2"><B>Additional Assistance<BR></B>
For a period of eighteen (18)&nbsp;months from the date hereof you agree to make
yourself available to ICG to respond to inquiries and provide guidance relating
to matters with which you were involved during the course of your employment.
ICG understands that you intend to seek and obtain other employment as soon as
is practicable. Accordingly, ICG agrees to provide reasonable advance notice
of the need for your assistance and will use reasonable efforts to schedule
such matters so as to avoid materially interfering with your personal and other
professional obligations.
</FONT>

<P align="left"><FONT size="2"><B>Indemnification<BR></B>
ICG agrees to continue to indemnify you against all claims arising out of
actions or omissions during your employment by ICG, to the same extent and on
the same terms and conditions provided for in Article&nbsp;VI of ICG&#146;s bylaws or
under the Delaware General Corporation Law, each as in effect on the date of
termination of your employment relationship. ICG agrees it will continue to
maintain officers&#146; and directors&#146; liability insurance to fund the indemnity
described above for so long as it maintains such coverage for the benefit of
its active officers and directors.
</FONT>

<P align="left"><FONT size="2"><B>Waiver of Rights; No Other Obligations<BR></B>
You agree that performance by ICG pursuant the terms set forth in this Letter
Agreement shall constitute full satisfaction of ICG&#146;s obligations to you
pursuant to the 2001 Letter and any and all existing severance arrangements.
Except as set forth herein, it is expressly agreed and understood by you that
ICG does not have, and will not have, any
</FONT>
<P align="center"><FONT size="2">-3-</FONT>

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<P align="left"><FONT size="2">obligation to provide you at any time in the future with any payments, benefits
or consideration.
</FONT>

<P align="left"><FONT size="2">If the foregoing terms are acceptable to you, please sign below and return a
signed original of this letter to me.
</FONT>

<P align="left"><FONT size="2">Sincerely,
</FONT>
<P align="left"><FONT size="2">/s/ Walter Buckley<BR>
<HR noshade size="1" width="25%" align="left">
Walter Buckley<BR>
Chairman and Chief Executive Officer
</FONT>


<P align="left"><FONT size="2">&nbsp;
</FONT>
<P align="left"><FONT size="2">Accepted and agreed this 20th day of June, 2003
</FONT>
<P align="left"><FONT size="2">&nbsp;
</FONT>
<P align="left"><FONT size="2">/s/ Henry N. Nassau<BR>
<HR align="left" size="1" width="25%" noshade>
Henry N. Nassau
</FONT>
<P align="center"><FONT size="2">-4-</FONT>

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<P align="center"><FONT size="2">Release
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS RELEASE (this &#147;Release&#148;) is made as of this &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;day of June, 2003, by
and between Internet Capital Group, Inc. (the &#147;Company&#148;) and Henry N. Nassau
(&#147;Executive&#148;).
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Executive&#146;s employment with the Company terminated effective May
30, 2003; and
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the parties mutually desire to amicably resolve any disputes
that may exist between them;
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the payments and other benefits
provided or to be provided to Executive pursuant to the attached letter
agreement between the Company and Executive dated June &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2003, which is
incorporated herein by reference (the &#147;Letter Agreement&#148;) the parties,
intending to be legally bound, hereby agree as follows:
</FONT>


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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Executive, intending to be legally bound, does hereby REMISE,
RELEASE AND FOREVER DISCHARGE the Company, its affiliates, subsidiaries,
parents, joint ventures, and its and their respective officers, directors,
shareholders, employees, and agents, and its and their respective successors
and assigns, heirs, executors, and administrators (collectively,
&#147;Releasees&#148;) from all causes of action, suits, debts, claims and demands
whatsoever in law or in equity, absolute or contingent, known or unknown,
which Executive ever had, now has, or hereafter may have, or which his
heirs, executors, or administrators may have, by reason of any matter, cause
or thing whatsoever, from the beginning of time up to and including the date
of this Release, and particularly, but without limitation of the foregoing
general terms, any claims arising from or relating in any way to his
employment relationship with Company, the terms and conditions of that
employment relationship, and the termination of that employment
relationship, including, but not limited to, any claims arising under the
Age Discrimination in Employment Act (&#147;ADEA&#148;), as amended, 29 U.S.C. &#167; 621
et seq., Title VII of The Civil Rights Act of 1964, as amended, 42 U.S.C. &#167;
2000e et seq., the Americans with Disabilities Act, 42 U.S.C. &#167; 12101 et
seq., the Family and Medical Leave Act of 1993 (&#147;FMLA&#148;), 29 U.S.C. &#167; 2601 et
seq., the Employee Retirement Income Security Act of 1974 (&#147;ERISA&#148;), 29
U.S.C. &#167; 1001 et seq., Pennsylvania Human Relations Act, and any other
claims under any federal, state or local common law, statutory, or
regulatory provision, now or hereafter recognized, and any claims for
attorneys&#146; fees and costs, and including claims to payments, benefits and
other rights set forth in the letter from the Company to Executive dated
September&nbsp;20, 2001, as amended by the letter from the Company to Executive
dated December&nbsp;11, 2002 but excluding any claims to (i)&nbsp;payments, benefits
and other rights set forth in the Letter Agreement, (ii)&nbsp;benefits under the
Company&#146;s 401(k) plan, (iii)&nbsp;indemnification by any affiliate (or any
&#147;partner company) of the Company for acts performed while serving as a
director of that</FONT></TD>
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<P align="center"><FONT size="2">-5-</FONT>

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    <TD><FONT size="2">affiliate (or &#147;partner company&#148;), (iv)&nbsp;rights as a direct or indirect
stockholder of the Company (or, if applicable any affiliate or &#147;partner
company&#148;), and (iv)&nbsp;rights with respect to equity incentives granted to
Executive by the Company and vested as of the date hereof or pursuant to the
Letter Agreement. This Release is effective without regard to the legal
nature of the claims raised and without regard to whether any such claims
are based upon tort, equity, implied or express contract or discrimination
of any sort. Except as specifically provided herein, it is expressly
understood and agreed that this Release shall operate as a clear and
unequivocal waiver by Employee of any claim for accrued or unpaid wages,
benefits or any other type of payment.</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Executive further agrees and recognizes that his employment
relationship with the Company has been permanently and irrevocably severed
and that the Company has no obligation to employ him in the future.</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Executive represents that he does not have in his possession any
records and business documents, whether on computer or hard copy, and other
materials (including but not limited to computer disks and tapes, computer
programs and software, office keys, correspondence, files, customer lists,
technical information, customer information, pricing information, business
strategies and plans, sales records and all copies thereof) (collectively,
the &#147;Corporate Records&#148;) provided by the Company and/or its predecessors,
subsidiaries or affiliates or obtained as a result of his prior employment
with the Company and/or its predecessors, subsidiaries or affiliates, or
created by Executive while employed by or rendering services to the Company
and/or its predecessors, subsidiaries or affiliates except such Corporate
Records as may be necessary for Executive to fulfill his obligations
pursuant to the Letter Agreement. Executive acknowledges that all such
Corporate Records are the property of the Company and acknowledges his
obligation to maintain the confidentiality of such Corporate Records in
accordance with the terms of the restrictive covenant agreement between
Executive and the Company. In addition, Executive shall promptly return in
good condition any and all computers, credit cards, cellular telephone
equipment, blackberry equipment and business cards supplied by the Company;
provided, however, that Executive may purchase the computer, cellular
telephone equipment and blackberry equipment used by Executive during the
course of his employment at a price to be mutually agreed upon by Executive
and the Company.</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The parties agree and acknowledge that this Release, and the
settlement and termination of any asserted or unasserted claims against the
Releasees or the Executive Releasees pursuant to this Release, are not and
shall not be construed to be an admission of any violation of any federal,
state or local statute or regulation by the Releasees or the Executive
Releasees, or of any duty owed by any of the Releasees to Executive or of
any duty owed by any of the Executive Releasees to the Company.</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Executive certifies and acknowledges as follows:</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;That he has read the terms of this Release, and that he understands
its terms and effects, including the fact that he has agreed to RELEASE AND</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">FOREVER DISCHARGE all Releasees from any legal action or other
liability of any type related in any way to the matters released pursuant to
this Release;</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;That he has signed this Release voluntarily and knowingly in
exchange for the consideration described herein, which he acknowledges is
adequate and satisfactory to him and which he acknowledges is in addition to
any other benefits to which he is otherwise entitled;</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;That he has been and is hereby advised in writing to consult with
an attorney prior to signing this Release;</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;That he does not waive rights or claims that may arise after the
date this Release is executed;</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;That the Company has provided him with a period of twenty-one (21)
days within which to consider this Release, and that Executive has signed on
the date set forth above after concluding that this Release is satisfactory
to him.</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;That he has the right to revoke this Release within seven (7)&nbsp;days
of its execution by giving written notice of such revocation by hand
delivery or fax to Internet Capital Group, Inc., 435 Devon Park Drive,
Building 600, Wayne, PA 19087, Fax: 610-989-0112, Attention: Walter W.
Buckley, III, within the seven (7)&nbsp;day period.</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. This Release will be governed by and construed according to the laws
of the Commonwealth of Pennsylvania. This Release is the final, complete
and exclusive agreement of the parties with respect to the subject matter
hereof and supersedes and merges all prior discussions and agreements
between the Company and Executive regarding the subject matter hereof, other
than any existing restrictive covenant agreement between the Company and
Executive and the Letter Agreement. No waiver by the Company of any right
under this Release shall be construed as a waiver of any other right. No
modification of or amendment to this Release, nor any waiver of any rights
under this Release, will be effective unless in writing and signed by the
party to be charged.</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. In the event that Executive materially breaches the terms of this
Agreement or the Letter Agreement, Executive agrees that he will repay the
benefits received pursuant to the Letter Agreement to the extent of the
Company&#146;s damages arising from such breach.</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Company, intending to be legally bound, does hereby REMISE,
RELEASE AND FOREVER DISCHARGE Executive and his heirs, executors and
administrators (collectively, &#147;Executive Releasees&#148;) from all causes of
action, suits, debts, claims and demands whatsoever in law or in equity,
absolute or contingent, known or unknown, which the Company or its
wholly-owned subsidiaries, ever had, now has, or hereafter may have, by
reason of any matter, cause or thing whatsoever, from the beginning of time
up to and including the date of this Release, but excluding any claims
arising or related to (i)&nbsp;the Letter Agreement, (ii)&nbsp;actions or omissions</FONT></TD>
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    <TD><FONT size="2">outside the scope of Executive&#146;s employment or (iii)&nbsp;fraudulent or
criminal activity This Release is effective without regard to the legal
nature of the claims raised and without regard to whether any such claims
are based upon tort, equity, implied or express contract or discrimination
of any sort.</FONT></TD>
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<P align="left"><FONT size="2">IN WITNESS WHEREOF Executive and the Company have executed this Release as of
the date set forth above.
</FONT>

<P align="left"><FONT size="2">&nbsp;
</FONT>

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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">Witness:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="3" valign="top"><HR size="1" noshade></TD>
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<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><FONT size="2">Henry N. Nassau</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
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    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
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<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><FONT size="2">INTERNET CAPITAL GROUP, INC.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
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    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
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    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
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<TR valign="bottom">
    <TD valign="top"><FONT size="2">By:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">Witness:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
<HR size="1" noshade>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><FONT size="2">Name: Walter W. Buckley, III<BR>
Title: Chief Executive Officer</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
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<P align="center"><FONT size="2">-8-</FONT>



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