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Prepared by MERRILL CORPORATION

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EXHIBIT 10.2    
  

 
  REGISTRATION RIGHTS AGREEMENT    
  

    THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is
entered into as of December 28, 2001, by and among US SEARCH.COM INC., a Delaware corporation (the
"Company"), and the several holders of the Company's Common Stock set forth on the signature page to this Agreement (each, a
"Holder" and, collectively, together with any assignee thereof in accordance with Section 2.8, the
"Holders"). 

 
 

Recitals    
  

    WHEREAS, the Shareholders will acquire shares of the Company's common stock, par value $0.001 per share (the
"Common Stock") pursuant to that certain Agreement and Plan of Merger, dated as of December 28, 2001, by and among the Company, US SEARCH
Screening Services, Inc., a Delaware corporation, Professional Resource Screening, Inc., a California corporation and the Shareholders (the "Merger
Agreement"); and 

    WHEREAS, in connection with the consummation of the transactions contemplated by the Merger Agreement, the parties desire to enter into
this Agreement in order to grant registration and other rights to the Holders as set forth below. 

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

SECTION 1. GENERAL.  

    1.1  Definitions.  Capitalized terms used herein and not otherwise defined herein shall have the meanings
set forth in the Merger Agreement. As used in this Agreement, the following terms shall have the following respective meanings: 

    "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated
thereunder. 

    "Register," "registered," and
"registration" refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the
declaration or ordering of effectiveness of such registration statement. 

    "Registrable Securities" shall mean (a) the Shares; (b) any security received or receivable as a dividend, stock split or
other distribution with respect to any Shares; (c) any security received in exchange for or in replacement of any other Registrable Securities; (d) any security issued or issuable with
respect to any other Registrable Securities as a result of a change or reclassification of Registrable Securities or any capital reorganization of the Company; and (e) any security received or
receivable by a holder in respect of other Registrable Securities as a result of a merger or consolidation of the Company. Notwithstanding the foregoing, Registrable Securities shall not include any
securities sold by a person to the public either pursuant to a registration statement or Rule 144 or sold in a private transaction in which the transferor's rights under this Agreement are not
assigned. 

    "Registration Expenses" shall mean all expenses incurred in complying with Section 2.2 hereof, including, without limitation,
all registration and filing fees, printing expenses, fees and disbursements of counsel for the Company, reasonable fees and disbursements of a single special counsel for the Holders, blue sky fees and
expenses and the expense of any special audits incident to or required by any such registration (but excluding the compensation of regular employees of the Company which shall be paid in any event by
the Company). 

    "SEC" or "Commission" shall mean the Securities and Exchange Commission. 

 

    "Securities Act" shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated by the SEC. 

    "Selling Expenses" shall mean all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of
Registerable Securities. 

    "Shares" shall mean the Company's Common Stock issued to a Holder pursuant to the Merger Agreement and held by a Holder. 

    "Special Registration Statement" shall mean a registration statement relating to any employee benefit plan or with respect to any
corporate reorganization or other transaction under Rule 145 of the Securities Act, including, without limitation, a registration statement on Form S-4 or
Form S-8 or any successor form thereto. 

SECTION 2. REGISTRATION; RESTRICTIONS ON TRANSFER.  

    2.1  Restrictions on Transfer.  

    (a) Each
Holder agrees not to make any disposition of all or any portion of the Registrable Securities unless and until: 

     (i) There
is then in effect a registration statement or such Holder sells such securities in compliance with Rule 144 under the Securities Act covering such
proposed disposition and such disposition is made in accordance with such registration statement; or 

    (ii) (A)
Such Holder shall have notified the Company in writing of the proposed disposition and shall have furnished the Company with a detailed statement of the
circumstances surrounding the proposed disposition, and (B) if reasonably requested by the Company, such Holder shall have furnished the Company with an opinion of counsel, reasonably
satisfactory to the Company, that such disposition will not require registration of such shares under the Securities Act. It is agreed that the Company will not require opinions of counsel for
transactions made pursuant to Rule 144 under the Securities Act. 

    (b) Each
certificate representing Shares shall (unless otherwise permitted by the provisions of the Agreement) (a) be stamped or otherwise imprinted with a
legend substantially similar to the following (in addition to any legend required under applicable state securities laws): 

THE
SECURITIES EVIDENCED HEREBY HAVE BEEN ISSUED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") AND MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS EITHER (i) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED IN
CONNECTION WITH SUCH SALE, OFFER FOR SALE, TRANSFER, PLEDGE OR HYPOTHECATION OR (ii) SUCH SALE, OFFER FOR SALE, TRANSFER, PLEDGE OR HYPOTHECATION HAS BEEN REGISTERED UNDER THE ACT. 

    (c) The
Company shall be obligated to reissue promptly unlegended certificates at the request of any Holder thereof if the Holder shall have obtained an opinion of
counsel reasonably acceptable to the Company to the effect that the securities proposed to be disposed of may lawfully be so disposed of without registration, qualification or legend, or if the
securities are to be sold pursuant to an effective registration statement or Rule 144 under the Securities Act. 

    (d) Any
legend endorsed on an instrument pursuant to applicable state securities laws and the stop-transfer instructions with respect to such securities
shall be removed upon receipt by the Company of an order of the appropriate blue sky authority authorizing such removal. 

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    2.2  Piggyback Registration.  

    (a)  Notice.  The Company shall notify all Holders of Registrable Securities in writing at least fifteen
(15) days prior to the filing of any registration statement under the Securities Act for purposes of a public offering of securities of the Company (including, but not limited to, registration
statements relating to secondary offerings of securities of the Company, but excluding Special Registration Statements) and shall afford each such Holder an opportunity to include in such registration
statement all or part of such Registrable Securities held by such Holder. Each Holder desiring to include in any such registration statement all or any part of the Registrable Securities held by it
shall, within ten (10) days after the above-described notice from the Company, so notify the Company in writing. Such notice shall state the intended method of disposition of the Registrable
Securities by such Holder. If a Holder decides not to include all of its Registrable Securities in any registration statement thereafter filed by the Company, such Holder shall nevertheless continue
to have the right to include any Registrable Securities in any subsequent registration statement or registration statements (excluding Special Registration Statements) as may be filed by the Company
with respect to offerings of its securities, all upon the terms and conditions set forth herein. 

    (b)  Underwriting.  If the registration statement under which the Company gives notice under
Section 2.2(a) is for an underwritten offering, the Company shall so advise the Holders of Registrable Securities. In such event, the right of any such Holder to be included in a registration
pursuant to this Section 2.2
shall be conditioned upon such Holder's participation in such underwriting and the inclusion of such Holder's Registrable Securities in the underwriting to the extent provided herein. All Holders
proposing to distribute their Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such
underwriting by the Company but in no event shall any indemnity and/or contribution provisions therein provide that the indemnity and/or contribution obligations of the Holders of the Registrable
Securities exceed the net proceeds from the offering received by such Holders. Notwithstanding any other provision of the Agreement, if the underwriter determines in good faith that marketing factors
require a limitation of the number of shares to be underwritten, the number of shares that may be included in the underwriting shall be allocated,  first, to the Company; second, to the Holders and Pequot Private Equity Fund II, L.P. and its affiliates
(collectively, "Pequot"), on a pro rata basis, based on the total number of shares of Common Stock
proposed to be registered by the Holders and Pequot; and third, to any other shareholder of the Company on a pro
rata basis, based on the total number of shares of Common Stock proposed to be registered by such other shareholders. Such reduction (i) shall not reduce the securities
being offered by the Company for its own account to be included in the registration and underwriting, and (ii) may result in all Holders being reduced to zero in certain circumstances. If any
Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the underwriter, delivered at least ten (10) business
days prior to the effective date of the registration statement. Any Registrable Securities excluded or withdrawn from such underwriting shall be excluded and withdrawn from the registration. 

    (c)  Right to Terminate Registration.  The Company shall have the right to terminate or withdraw any
registration initiated by it for its own account under this Section 2.2 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such
registration. The Registration Expenses of such withdrawn registration shall be borne by the Company in accordance with Section 2.3 hereof. 

    2.3  Expenses of Registration.  Except as specifically provided in this Section 2.3, all
Registration Expenses incurred in connection with any registration pursuant to Section 2.2, except underwriters' commissions and discounts and stock transfer taxes, shall be borne by the
Company. All Selling 

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Expenses incurred in connection with any registrations hereunder shall be borne by the holders of the securities so registered pro rata on the basis of
the number of shares so registered. 

    2.4  Obligations of the Company.  Whenever effecting the registration of any Registrable Securities, the
Company shall, as expeditiously as reasonably possible: 

    (a) Furnish
to the Holders such number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and
such other documents as they may reasonably request in writing in order to facilitate the disposition of Registrable Securities owned by them. 

    (b) Use
its reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such
jurisdictions as shall be reasonably requested by the Holders; provided that the Company shall not be required in connection therewith or as a condition
thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions. 

    (c) Notify
each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under
the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. The Company will use reasonable
efforts to amend or supplement such prospectus in order to cause such prospectus not to include any untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in the light of the circumstances then existing. 

    2.5  Termination of Registration Rights.  All registration rights granted under this Section 2
shall terminate and be of no further force and effect on the fifth anniversary of the date hereof. In addition, a Holder's registration rights shall expire immediately when all Registrable Securities
held by and issuable to such Holder may be sold under Rule 144 during any ninety (90) day period without volume limitations. 

    2.6  Furnishing of Information.  It shall be a condition precedent to the obligations of the Company to
take any action pursuant to Section 2.2 that the selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended
method of disposition of such securities as shall be required or reasonably requested to effect the registration of their Registrable Securities. 

    2.7  Indemnification.  In the event any Registrable Securities are included in a registration statement
under Section 2.2: 

    (a) To
the extent permitted by law, the Company will indemnify and hold harmless each Holder, any underwriter (as defined in the Securities Act) for such Holder and
each person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to
which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any of the following statements, omissions or violations (collectively a "Violation") by the Company: (i) any untrue
statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or
supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or
(iii) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities 

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Act, the Exchange Act or any state securities law in connection with the offering covered by such registration statement; and the Company will pay as incurred to each such Holder, underwriter or
controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action if it is judicially
determined that there was such a Violation; provided, however, that the indemnity agreement contained in this Section 2.7(a) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld or
delayed, nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in
reliance upon and in conformity with written information furnished by such Holder for use in connection with such registration by such Holder. 

    (b) To
the extent permitted by law, each Holder will indemnify and hold harmless the Company, each of its directors, its officers and each person, if any, who controls
the Company within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages or liabilities (joint or several) to which the Company or any such director, officer or
controlling person may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto)
arise out of or are based upon any Violation, in each case solely to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information
furnished by such Holder for use in connection with such registration; and each such Holder will pay as incurred any legal or other expenses reasonably incurred by the Company or any such director,
officer or controlling person in connection with investigating or defending any such loss, claim, damage, liability or action if it is judicially determined that there was such a Violation;  provided, however, that the indemnity agreement contained in this Section 2.7(b) shall not apply to amounts paid in settlement of any such loss,
claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld or delayed;  provided that in no event shall any
indemnity and contribution under this Section 2.7(b) exceed in the aggregate the net proceeds from the
offering received by such Holder. 

    (c) Promptly
after receipt by an indemnified party under this Section 2.7 of notice of the commencement of any action (including any governmental action), such
indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.7, deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume
the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its
own counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due
to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action, if and to the extent materially prejudicial to its ability to defend such action, shall relieve such indemnifying party of any
liability to the indemnified party under this
Section 2.7, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this
Section 2.7. 

    (d) If
the indemnification provided for in this Section 2.7 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect
to any losses, claims, damages or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified 

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party thereunder, shall to the extent permitted by applicable law contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability in such
proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the Violation(s) that resulted in such
loss, claim, damage or liability, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of
law by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission;  provided that in no event shall any indemnification and contribution by a Holder under this Section 2.7(d) exceed in the aggregate the net
proceeds from the offering received by such Holder. 

    (e) The
obligations of the Company and Holders under this Section 2.7 shall survive completion of any offering of Registrable Securities in a registration
statement and the termination of this Agreement. No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent to entry of
any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in
respect to such claim or litigation. 

    2.8  Assignment of Registration Rights.  The rights to cause the Company to register Registrable
Securities pursuant to this Section 2 may not be assigned by any Holder to any other person or entity, by operation of law or otherwise, without the written consent of the Company. Any
purported assignment in violation of this provision shall be null and void. Notwithstanding the foregoing, a Holder shall be permitted to assign its rights under this Agreement without the consent of
the Company to another Holder or to a Family Trust for estate planning purposes to whom or to which such Holder has transferred Registrable Securities; provided,
however, that the assignee agrees in a writing addressed to the Company to be bound by all terms and conditions of this Agreement applicable to a Holder. For purposes of this
Section 2.8, "Family Trust" means a revocable trust of which (i) the Holder assigning its rights under this Agreement is the grantor for
United States federal income tax purposes; and (ii) such Holder or members of his or her family or his or her lineal descendants are the primary beneficiaries. 

    2.9  Amendment of Registration Rights.  Any provision of this Section 2 may be amended and the
observance thereof may be waived (either generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and the Holders holding at least a majority of the Registrable Securities then held by the Holders. Any amendment or waiver effected in
accordance with this Section 2.9 shall be binding upon each Holder and the Company. By acceptance of any benefits under this Section 2, the Holders of Registrable Securities hereby agree
to be bound by the provisions hereunder. 

    2.10  "Market Stand-Off" Agreement; Agreement to Furnish Information.  Each Holder hereby
agrees that such Holder shall not publicly sell, publicly transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same
economic effect as a public sale in respect of, any Common Stock (or other securities) of the Company held by such Holder (other than those included in the registration) for a period specified by the
representative of the underwriters of Common Stock (or other securities) of the Company not to exceed ninety (90) days following the effective date of a registration statement of the Company
filed under the Securities Act; provided that, as a condition to the effectiveness of this paragraph as to a given registration statement, all officers
and directors of the Company and holders of at least one percent (1%) of the Company's voting securities and all other persons with registration rights (whether or not 

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pursuant to this Agreement) must be bound by and enter into similar agreements and no such agreement is waived. 

    Each
Holder agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriter that are consistent with the foregoing or that are
necessary to give further effect thereto. In addition, if requested by the Company or the representative of the underwriters of Common Stock (or other securities) of the Company, each Holder shall
provide, within ten (10) days of such request, such information as may be required by the Company or such representative in connection with the completion of any public offering of the
Company's securities pursuant to a registration statement filed under the Securities Act. The obligations described in this Section 2.10 shall not apply to a registration relating solely to
employee benefit plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or to a registration relating solely to a transaction
pursuant to Rule 145 under the Securities Act on Form S-4 or similar forms that may be promulgated in the future. 

    2.11  Rule 144 Reporting.  With a view to making available to the Holders the benefits of certain
rules and regulations of the SEC that may permit the sale of the Registrable Securities to the public without registration, the Company agrees to use its best efforts to: 

    (a) Make
and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act or any similar or analogous rule
promulgated under the Securities Act, at all times; 

    (b) File
with the SEC, in a timely manner, all reports and other documents required of the Company under the Exchange Act; and 

    (c) So
long as a Holder owns any Registrable Securities, furnish to such Holder forthwith upon reasonable request: a written statement by the Company as to its
compliance with the reporting requirements of Rule 144 under the Securities Act, and of the Exchange Act (at any time after it has become, and so long as it remains, subject to such reporting
requirements); a copy of the most recent annual or quarterly report of the Company; and such other reports and documents as a Holder may reasonably request in availing itself of any rule or regulation
of the SEC allowing it to sell any such Registrable Securities without registration. 

SECTION 3. MISCELLANEOUS.  

    3.1  Governing Law.  This Agreement shall be governed by, construed and interpreted in accordance with
the laws of the State of California, without giving effect to the conflicts of laws principles thereof. 

    3.2  Survival.  The representations, warranties, covenants, and agreements made herein shall survive any
investigation made by any Holder and the closing of the transactions contemplated hereby. All statements as to factual matters contained in any certificate or other instrument delivered by or on
behalf of the Company pursuant hereto in connection with the transactions contemplated hereby shall be deemed to be representations and warranties by the Company hereunder solely as of the date of
such certificate or instrument. 

    3.3  Successors and Assigns.  Except as otherwise expressly provided herein, the provisions hereof shall
inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors, and administrators of the parties hereto. 

    3.4  Entire Agreement.  This Agreement, the Merger Agreement and the other Transaction Documents (and the
other agreements referred to therein) constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and no party shall be liable or 

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bound to any other in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein and therein. 

    3.5  Severability.  In the event one or more of the provisions of this Agreement should, for any reason,
be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be
construed as if such invalid, illegal or unenforceable provision had never been contained herein. 

    3.6  Amendment and Waiver.  

    (a) Except
as otherwise expressly provided, this Agreement may be amended or modified only upon the written consent of the Company and the Holders holding at least a
majority of the Registrable Securities then held by the Holders. 

    (b) Except
as otherwise expressly provided, the obligations of the Company and the rights of the Holders under this Agreement may be waived only with the written
consent of the Holders holding at least a majority of the Registrable Securities then held by the Holders. 

    (c)For
the purposes of determining the number of Holders entitled to vote or exercise any rights hereunder, the Company shall be entitled to rely solely on the list of record holders
of its stock as maintained by or on behalf of the Company. 

    3.7  Delays or Omissions.  It is agreed that no delay or omission to exercise any right, power, or remedy
accruing to any party, upon any breach, default or noncompliance of any other party under this Agreement shall impair any such right, power, or remedy, nor shall it be construed to be a waiver of any
such breach, default or noncompliance, or any acquiescence therein, or of any similar breach, default or noncompliance thereafter occurring. It is further agree that any waiver, permit, consent, or
approval of any kind or character on any party's part of any breach, default or noncompliance under the Agreement or any waiver on such party's part of any provisions or conditions of this Agreement
must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, by law, or otherwise afforded to the parties, shall be
cumulative and not alternative. 

    3.8  Notices.  All notices required or permitted hereunder shall be in writing and shall be deemed
effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed facsimile if sent during normal business hours of the recipient; if not, then on the
next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit
with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the party to be notified at the address as set
forth in the Merger Agreement or at such other address as such party may designate from time to time in accordance with the Merger Agreement. 

    3.9  Attorneys' Fees.  In the event that any suit or action is instituted to enforce any provision in
this Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing party under or with
respect to this Agreement, including without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of
appeals. 

    3.10  Service of Process; Consent to Jurisdiction; Waiver of Jury Trial.  

    (a)  Service of Process.  Each of the parties hereto irrevocably consents to the service of any process,
pleading, notices or other papers by the mailing of copies thereof by registered, certified or first class mail, postage prepaid, to such party at such party's address set forth herein, or by any
other method provided or permitted under California law. 

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    (b)  Consent to Jurisdiction; Waiver of Jury Trial.  Each party hereto irrevocably and unconditionally:
(i) agrees that any suit, action or other legal proceeding arising out of this Agreement may be brought in the United States District Court for the Central District of California or, if such
court does not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in the County of Los Angeles, California; (ii) consents to the jurisdiction of any such
court in any such suit, action or proceeding; (iii) waives any objection which such party may have to the laying of venue of any such suit, action or proceeding in any such court; and
(iv) waives, to the fullest extent permitted by applicable law, any right to have a trial by jury in respect of any suit, action or proceeding directly or indirectly arising out of, under or in
connection with this Agreement and the other Transaction Documents. 

    3.11  Information Confidential.  Each Holder acknowledges that the information received by such Holder
pursuant hereto may be confidential and for its use only, and it will not use such confidential information in violation of the Exchange Act or reproduce, disclose or disseminate such information to
any other person (other than its employees or agents having a need to know the contents of such information, and its attorneys), except in connection with the exercise of rights under this Agreement,
unless the Company has made such information available to the public generally or such Holder is required to disclose such information by a governmental body. Notwithstanding the foregoing, each
Holder agrees that it shall maintain in confidence any material nonpublic information disclosed by the Company, or any person acting on behalf of the Company, regarding the Company or its securities,
unless the Company shall have publicly disclosed such information by (i) furnishing to or filing with the SEC a Report on Form 8-K or (ii) otherwise complying with the
requirements of Regulation F-D under the Exchange Act relating to the provision of broad, non-exclusionary dissemination of such information. 

    3.12  Titles and Subtitles.  The titles of the sections and subsections of this Agreement are for
convenience of reference only and are not to be considered in construing this Agreement. 

    3.13  Counterparts.  This Agreement may be executed in any number of counterparts (including by
facsimile), each of which shall be an original, but all of which together shall constitute one instrument. 

[Signature page follows]

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    IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement as of the date set forth in the first paragraph
hereof. 

	 	 	COMPANY:
	

 	
 	
US SEARCH.COM INC.
	

 	
 	

By:	
 	

/s/ BRENT N. COHEN   
 Name:Brent N. Cohen

Title:Chief Executive Officer
	

 	
 	
HOLDERS:
	

 	
 	

By:	
 	

/s/ IRWIN R. PEARLSTEIN   
 Irwin R. Pearlstein
	

 	
 	

By:	
 	

/s/ DAVID PEARLSTEIN   
 David Pearlstein
	

 	
 	

By:	
 	

/s/ CHERYL PEARLSTEIN-ENOS   
 Cheryl Pearlstein-Enos

S–1

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EXHIBIT 10.2

REGISTRATION RIGHTS AGREEMENT

RecitalsPrepared by MERRILL CORPORATION

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EXHIBIT 10.3    
  

 
  SECURITY AGREEMENT

    This
SECURITY AGREEMENT (as amended, modified or otherwise supplemented from time to time, this "Agreement") is made and entered into
as of December 28, 2001 by U.S. SEARCH.COM INC., a Delaware corporation (the "Debtor") in favor of IRWIN R. PEARLSTEIN, DAVID PEARLSTEIN
and CHERYL PEARLSTEIN-ENOS (collectively, the "Secured Parties"). 

 
 

RECITALS

    A> Pursuant
to that certain Agreement and Plan of Merger, dated as of December 28, 2001, by and among the Debtor, US SEARCH Screening Services, Inc., a
Delaware corporation (the "Acquiror"), Professional Resource Screening, Inc., a California corporation and the Secured Parties (the
"Merger Agreement"; capitalized terms used but not defined herein shall have the meanings given such terms in the Merger Agreement), the Debtor has
agreed to pay to the Secured Parties cash in certain sums as set forth therein. 

    B.  After
consummating the transactions contemplated by the Merger Agreement, the Debtor will own all shares of the outstanding common stock of the Acquiror (the
"Common Stock") and is willing to pledge such Common Stock to the Secured Parties to secure the payment by the Debtor of the Merger Consideration under
the Merger Agreement. 

    C.  It
is a condition precedent to the obligation of the Secured Parties to consummate the transactions contemplated by the Merger Agreement that the Debtor shall have
entered into this Agreement. 

    D.  Debtor
intends to pay the Merger Consideration to the Secured Parties in accordance with the terms of the Merger Agreement, and Debtor does not intend to take or
omit any action, or cause or allow any action to be taken or omitted, which would reasonably be expected to constitute an Event of Default under this Agreement. 

 
 

AGREEMENT

    NOW,
THEREFORE, in consideration of the premises and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Debtor hereby agrees
with Secured Parties and grants as follows: 

    Section
1.  Grant of Security Interest.  The Debtor hereby pledges and grants to Secured Parties a
security interest in all of the Common Stock now owned or hereafter acquired by the Debtor, the certificates representing such Common Stock and all proceeds thereof (collectively, the
"Collateral"), provided that all dividends, cash, instruments, chattel paper and other rights, property
or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Collateral shall remain the property of the Debtor except during an
ongoing Event of Default. 

    Section
2.  Security for Performance.  This Agreement (and all of the Collateral) secures the payment of
the Merger Consideration payable to the Secured Parties pursuant to the Merger Agreement (the "Secured Obligations"). 

    Section
3.  Preparation of Financing Statement.  Concurrently with the closing of the transactions
contemplated by the Merger Agreement, the Debtor shall prepare and deliver for filing to the Secured Parties a financing statement on Form UCC-1 for filing in the Office of the Secretary
of State of the State of Delaware (the "Financing Statement"). Additionally, the Debtor will execute any and all further amendments, assignments,
documents and financing statements and take any and all further actions that the Secured Parties may reasonably request from time to time in order to perfect or continue the security interest of the
Secured Parties in the Collateral or otherwise carry out the purposes and intent of this Agreement; provided that the Debtor shall not be required to
deliver to the Secured Parties the certificates representing the Common Stock constituting part of the Collateral. 

 

    Section 4.  Perfection of the Security Interest.  The Debtor represents and warrants to the Secured
Parties that upon the filing of the Financing Statement with the Secretary of State of the State of Delaware the security interest in the Collateral in favor of the Secured Parties securing the
Secured Obligations will be perfected to the extent a security interest in the Collateral can be perfected by the filing of a financing statement. 

    Section
5.  Administration of Security.  The following provisions shall govern the administration of the
Collateral: 

    (a) So
long as no Event of Default shall have occurred and be continuing: 

     (i) The
Debtor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Collateral or any part thereof for any purpose; and 

    (ii) The
Debtor shall be entitled to receive all cash dividends and other cash distributions paid or payable with respect to any of the Collateral. 

    (b) Upon
the occurrence and during the continuation of an Event of Default: 

     (i) All
rights of the Debtor to exercise the voting and other rights which it would otherwise be entitled to exercise and to receive the dividends which it would
otherwise be authorized to receive and retain shall cease, and all such rights shall, upon written notice by the Secured Parties to the Debtor, become vested in the Secured Parties who shall thereupon
have the sole right to exercise such voting and other rights and the sole right to receive and hold as Collateral such dividends (and, to the extent permissible under applicable law, apply them to any
Secured Obligations then due and payable). 

    (ii) All
dividends which are received by the Debtor contrary to the provisions of paragraph (i) of this Section 5(b) shall be received in trust for the
benefit of the Secured Parties, shall be segregated from other property or funds of the Debtor and shall be paid over promptly to the Secured Parties as Collateral in the same form as so received
(with any necessary or requested endorsement). 

    (c) At
any time prior to the termination of this Agreement: 

     (i) The
Debtor will not, without the written consent of the Secured Parties, sell, contract to sell, lease, encumber or otherwise dispose of the Collateral. 

    (ii) The
Debtor will not waste or destroy the Collateral or any part of it. 

    (iii) The
Debtor will pay promptly prior to the imposition of any tax lien all taxes and assessments on the Collateral, or any part of the Collateral or for its use and
operation. 

    Section
6.  Defaults.  The occurrence of any one or more of the following events or conditions shall
constitute an "Event of Default" under this Agreement: 

    (a) The
Debtor fails to make any payment of the Merger Consideration required pursuant to the Merger Agreement and fails to cure such default within thirty
(30) days after receipt of written notice from the Secured Parties that such payment is due; 

    (b) There
is a seizure or attachment of, or a levy on, the Collateral or if, for any reason, the security interest hereby granted by the Debtor to the Secured Parties
is impaired or removed, or, except as provided in Section 5(a) above and except for nonconsensual liens, rights or security interests arising by operation of law, becomes subordinate to any
other lien, right, or security interest in the Collateral; 

    (c) The
Debtor is dissolved or becomes insolvent or generally unable to meet its debts as they mature; 

2

 

    (d) The Debtor commences any bankruptcy, reorganization or insolvency proceeding, or other proceeding under any federal, state or other law for the relief of debtors or
makes any general assignment for the benefit of its creditors; 

    (e) The
Debtor fails to obtain dismissal, within ninety (90) days after commencement thereof, of any bankruptcy, insolvency, or reorganization proceeding or
other proceeding for relief under any bankruptcy law, including, without limitation, the federal bankruptcy code, or any law for the relief of debtors, instituted against the Debtor by one or more
third parties; or 

    (f)  Any
receiver, trustee or custodian is appointed by a court of competent jurisdiction to take possession of all or any substantial portion of the assets of the
Debtor. 

    Section
7.  Remedies upon an Event of Default.  If any Event of Default shall have occurred and be
continuing: 

    (a) The
Secured Parties may exercise in respect of all or any of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to
them at law or in equity or otherwise, all the rights and remedies of a secured party under the Uniform Commercial Code (the "Code") in effect in the
State of California at that time (whether or not the Code is applicable to the Collateral). The Secured Parties hereby agree to comply fully with all federal securities laws, including without
limitation the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and all applicable state securities or "Blue Sky" laws in any foreclosure sale of the Collateral. 

    (b) Any
cash proceeds received by the Secured Parties in respect of any sale of, collection from, or other realization upon all or any part of the Collateral, in the
discretion of the Secured Parties, may be applied in whole by the Secured Parties for their benefit against, all or any part of the Secured Obligations then due and payable. Any surplus of such cash
or cash proceeds held by the Secured Parties and remaining after payment in full of, first, all costs and expenses of the Secured Parties in preserving and enforcing their rights hereunder, including
but not limited to reasonable attorneys' fees, and second, all Secured Obligations then due and payable shall be held by the Secured Parties in a segregated, interest bearing account as additional
Collateral securing the Secured Obligations, and, during an ongoing Event of Default, may be applied by the Secured Parties to any Secured Obligations then due and payable. Any surplus of such cash or
cash proceeds held by the Secured Parties and remaining after payment in full of all the Secured Obligations shall be paid over promptly to the Debtor or to whomsoever may be lawfully entitled to
receive such surplus or as a court of competent jurisdiction may direct. 

    Section
8.  Remedies Cumulative.  Each right, power and remedy of the Secured Parties provided in this
Agreement or now or hereafter existing at law or in equity or by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power or remedy provided for in
this Agreement or now or hereafter existing at law or in equity or by statute or otherwise. The exercise or partial exercise by the Secured Parties of any one or more of such rights, powers or
remedies shall not preclude the simultaneous or later exercise by the Secured Parties of all such other rights, powers or remedies, and no failure or delay on the part of the Secured Parties to
exercise any such right, power or remedy shall operate as a waiver thereof. 

    Section
9.  Release; Termination.  This Agreement shall terminate upon full and complete payment in full
of all the Secured Obligations. The Secured Parties, at the time of such termination and upon the request of and at the expense of the Debtor will execute and deliver to the Debtor a proper instrument
or instruments acknowledging the termination of this Agreement and a termination of the Financing Statement, in a form reasonably acceptable to the Debtor. 

    Section
10.  Notices.  All notices required or permitted to be made hereunder shall be in accordance with
the notice provisions of the Merger Agreement. 

3

 

    Section 11.  Continuing Security Interest; Assignment of Merger Agreement.  This Agreement shall create a
continuing security interest in the Collateral and shall (i) remain in full force and effect until terminated pursuant to Section 9, (ii) be binding upon the Debtor, or its
successors and assigns, and (iii) inure, together with the rights and remedies of the Secured Parties hereunder, to the benefit of the Secured Parties and their respective successors,
transferees and assigns. The Debtor may not assign or transfer any of its rights, duties or obligations under this Agreement, without the prior written consent of the Secured Parties in their sole
discretion; provided that the Debtor may assign its rights, duties or obligations under this Agreement solely to a permitted assignee of its rights,
duties or obligations under the Merger Agreement. Any purported assignment or transfer in breach of this Section shall be of no force and effect. 

    Section
12.  Waiver.  To the fullest extent the Debtor may lawfully so agree, the Debtor agrees that it
will not at any time insist upon, claim, plead, or take any benefit or advantage of any appraisement, valuation, stay, extension, moratorium, redemption or similar law now or hereafter in force in
order to prevent, delay, or hinder the enforcement hereof or the absolute sale of any part of the Collateral; the Debtor for itself and all who claim through it, so far as it now or hereafter lawfully
may do so, hereby waives the benefit of all such laws, and all right to have the Collateral marshaled upon any foreclosure hereof, and agrees that any court having jurisdiction to foreclose this
Agreement may order the sale of the Collateral as an entirety. 

    Section
13.  Reinstatement.  This Agreement shall continue to be effective or be reinstated, as the case
may be, if at any time any amount received by the Secured Parties in respect of the Secured Obligations is rescinded or must otherwise be restored or returned by the Secured Parties upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of Debtor or upon the appointment of any intervenor or conservator of, or trustee or similar official for, the Debtor or any
substantial part of the Debtor's assets, or otherwise, all as though such payments had not been made. 

    Section
14.  Severability.  If any provision or obligation of this Agreement should be found to be
invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions and obligations or any other agreement executed in connection herewith, or
of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby and shall nonetheless remain in full force and effect to the maximum extent permitted by
law. 

    Section
15.  Survival of Provisions.  All representations, warranties and covenants of the Debtor
contained herein shall survive the execution and delivery of this Agreement, and shall terminate only upon the full and final payment by the Debtor of the Secured Obligations. 

    Section
16.  Headings Descriptive.  The headings in this Agreement are for purposes of reference only and
shall not limit or otherwise affect the meaning or construction or any provision of this Agreement. 

    Section
17.  Entire Agreement.  This Agreement, together with the Merger Agreement and the other
Transaction Documents (and the other agreements referred to therein), is intended by the parties as a final expression of their agreement and is intended as a complete and exclusive statement of the
terms and conditions thereof. Acceptance of or acquiescence in a course of performance rendered under this Agreement shall not be relevant to determine the meaning of this Agreement even though the
accepting or acquiescing party had knowledge of the nature of the performance and opportunity for objection. 

    Section
18.  Counterparts.  This Agreement may be executed in one or more counterparts (including by
facsimile), each of which shall be deemed an original but all of which shall together constitute one and the same agreement. 

4

    Section 19.  Governing Law.  This Agreement shall be construed in accordance with and all disputes
hereunder shall be governed by the laws of the State of California, without regard to principles of conflicts of laws. 

    Section
20.  Service of Process; Consent to Jurisdiction; Waiver of Jury Trial.  

    (a)  Service of Process.  Each of the parties hereto irrevocably consents to the service of any process,
pleading, notices or other papers by the mailing of copies thereof by registered, certified or first class mail, postage prepaid, to such party at such party's address set forth herein, or by any
other method provided or permitted under California law. 

    (b)  Consent to Jurisdiction; Waiver of Jury Trial.  Each party hereto irrevocably and unconditionally:
(i) agrees that any suit, action or other legal proceeding arising out of this Agreement may be brought in the United States District Court for the Central District of California or, if such
court does not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in the County of Los Angeles, California; (ii) consents to the jurisdiction of any such
court in any such suit, action or proceeding; (iii) waives any objection which such party may have to the laying of venue of any such suit, action or proceeding in any such court; and
(iv) waives, to the fullest extent permitted by applicable law, any right to have a trial by jury in respect of any suit, action or proceeding directly or indirectly arising out of, under or in
connection with this Agreement and the other Transaction Documents. 

    Section
21.  Amendments.  This Agreement or any provision hereof may be changed, waived, or terminated
only by a statement in writing signed by the party against which such change, waiver or termination is sought to be enforced, and then any such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given. 

    Section
22.  Reliance.  The Debtor shall be entitled to rely, and shall be fully protected in relying,
upon any instrument, writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order, instruction, direction or other document or
conversation ("Information and Directions") believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or
Persons. Without limiting the foregoing, the Debtor shall be entitled to rely, and shall be fully protected in relying, on any Information and Directions provided by any Secured Party. The Debtor
shall be entitled to deliver any Information and Directions, any Collateral or any documents or other instruments required to be delivered by the Debtor hereunder to the Secured Parties in accordance
with the notice provisions of the Merger Agreement. 

    Section
23.  Attorneys' Fees.  If any party to this Agreement brings an action to enforce its rights
under this Agreement, the prevailing party shall be entitled to recover its costs and expenses, including without limitation reasonable attorneys' fees, incurred in connection with such action,
including any appeal of such action. 

[Signature page follows]

    IN WITNESS WHEREOF, this Security Agreement has been duly executed and delivered by the parties hereto as of the date first above written. 

	 	 	DEBTOR:
	

 	
 	
U.S. SEARCH.COM INC.
	

 	
 	

By:	
 	

/s/ BRENT N. COHEN   

	 	 	Name:	 	Brent N. Cohen
	 	 	Title:	 	Chief Executive Officer
	

 	
 	

SECURED PARTIES:
	

 	
 	

By:	
 	

/s/ IRWIN R. PEARLSTEIN   
 IRWIN R. PEARLSTEIN
	

 	
 	

By:	
 	

/s/ DAVID PEARLSTEIN   
 DAVID PEARLSTEIN
	

 	
 	

By:	
 	

/s/ CHERYL PEARLSTEIN-ENOS   
 CHERYL PEARLSTEIN-ENOS

QuickLinks

EXHIBIT 10.3

SECURITY AGREEMENT

RECITALS

AGREEMENT

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