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EXHIBIT 10.4  

 
 

US SEARCH.COM INC.
  
    FIRST AMENDMENT
  
    TO
  
    STOCKHOLDERS AGREEMENT    
  

    THIS FIRST AMENDMENT TO STOCKHOLDERS AGREEMENT (this
"Amendment") is entered into as of June 5, 2001, by and among US Search.com, Inc., a Delaware corporation (the
"Company"), The Kushner-Locke Company, a California corporation (together with any of its affiliates who currently own common stock of the Company,
"KL"), Pequot Private Equity Fund II, L.P., a Delaware limited partnership and (together with any of its Affiliates (as defined in the Agreement) the
"Purchasers"). 

 
 

R E C I T A L S    
  

    WHEREAS, the parties to this Amendment are parties to that certain Stockholders Agreement, dated as of September 7, 2000 (the
"Agreement"); 

    WHEREAS,
the Company and Pequot have entered into a Preferred Stock Exchange and Purchase Agreement, of even date herewith (the "Exchange
Agreement"), pursuant to which Pequot has agreed to exchange its Series A Convertible Preferred Stock of the Company (the "Series A
Preferred Shares") for newly issued series of convertible preferred stock of the Company (the "Series A-1 Preferred
Shares"), cancel a certain warrant for shares of Series A Preferred Shares, and convert certain promissory notes for additional shares of Series A-1
Preferred Shares; and pursuant to which the Company will issue a new warrant to Pequot for the purchase of Series A-1 Preferred Shares, subject to the terms and conditions set forth
therein; and 

    WHEREAS,
in connection with the transactions contemplated by the Exchange Agreement and to induce Pequot to enter into the Exchange Agreement the parties hereto desire to amend the
Agreement as provided below. 

 
 

A M E N D M E N T    
  

    NOW, THEREFORE, BE IT RESOLVED, that in consideration of the foregoing and for good and valuable consideration the receipt and sufficiency of which are hereby
acknowledged, the Agreement is hereby amended as set forth below. 

    1.  References
in the Agreement to "this Agreement" shall be deemed to be references to the Agreement as amended hereby. 

    2.  The
definition of "KL Right of First Refusal Agreement" appearing in the second recital to the Agreement shall be deleted and the KL Right of First Refusal
Agreement shall mean the Right of First Refusal Agreement dated as of September 7, 2000, as amended by the First Amendment to Right of First Refusal Agreement, dated as of the date hereof, by
and between KL and the Purchasers. 

    3.  The
definition of "USS Stock Purchase Agreement" appearing in the first recital of the Agreement shall be deleted, and the USS Stock Purchase Agreement shall mean
the Exchange Agreement for the purposes of the Agreement, with the exception of Section 9(b) of the Agreement. 

    4.  The
term "First Closing" in Section 9 of the Agreement shall mean the first closing under the USS Stock Purchase Agreement dated September 7, 2000, by
and between the Company and the Purchasers. 

    5.  The
definition of "Series A Preferred" appearing in the first recital shall be deleted, and the Series A Preferred shall mean the
Series A-1 Preferred Shares for the purposes of the Agreement, with the exception of Section 9(b) of the Agreement. 

 

    6.  The first sentence of the second paragraph of Section 7 of the Agreement is hereby deleted in its entirety and replaced with the following: 

    "Each
of the Stockholders further agrees to take all such actions, including without limitation, the voting of their respective Voting Shares, to cause the shareholders of the Company
to approve, at their next meeting, one or more amendments to the Certificate of Incorporation to remove the differences referred to in clauses (i) and (ii) above and to authorize all
such additional shares of Common Stock as are required to permit the conversion of all authorized shares of Series A-1 Preferred Shares (including all dividends which may accumulate
with respect thereto)." 

    7.  In
the first sentence of Section 13 (e) the words "David Malat, the Chief Accounting Officer of Purchaser's Investment Manager" are hereby omitted and
replaced with the words "Amber Tencic". 

    Except
as amended hereby the provisions of the Agreement shall remain unchanged and in full force and effect. This Amendment shall be governed by, and construed in accordance with,
the laws of the State of Delaware. 

[Signature
Page Follows] 

2

 

    IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first set forth above. 

	 	 	PEQUOT PRIVATE EQUITY FUND II, L.P.
	 	 	BY:	PEQUOT CAPITAL MANAGEMENT, INC.,

its Investment Manager
	

 	
 	

 	

 
	

 	
 	

By:	

/s/ KEVIN E. O'BRIEN   

	 	 	Name:	Kevin E. O'Brien
	 	 	Title:	General Counsel
	 	 	Facsimile:	(203) 429-2420
	 	 	Address:	500 Nyala Farm Road

Westport, CT 06880
	

 	
 	

 	

 
	

 	
 	

US SEARCH.COM, INC.
	

 	
 	

 	

 
	

 	
 	

By:	

/s/ BRENT N. COHEN   

	 	 	Name:	Brent N. Cohen
	 	 	Title:	Chief Executive Officer
	 	 	Facsimile:	(310) 882-7898
	 	 	Address:	5401 Beethoven Street

Los Angeles, CA 90066
	

 	
 	

 	

 
	

 	
 	

THE KUSHNER-LOCKE COMPANY
	

 	
 	

 	

 
	

 	
 	

By:	

/s/ DONALD KUSHNER   

	 	 	Name:	Donald Kushner
	 	 	Title:	Co-Chief Executive Officer
	 	 	Facsimile:	(310) 481-2101
	 	 	Address:	11601 Wilshire Boulevard

21st Floor

Los Angeles, California 90025

3

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US SEARCH.COM INC. FIRST AMENDMENT TO STOCKHOLDERS AGREEMENT

R E C I T A L S

A M E N D M E N T<PAGE>

                               FACE OF GLOBAL NOTE

      Unless this certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation ("DTC"), to Issuer or its
agent for registration of transfer, exchange, or payment, and any certificate
issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

REGISTERED                                                     PRINCIPAL AMOUNT
CUSIP No. 892331 AA 7                                         Y

                                                              CERTIFICATE NO.

                         TOYOTA MOTOR CREDIT CORPORATION
                            0.750% NOTES DUE 2008

      TOYOTA MOTOR CREDIT CORPORATION, a California corporation (hereinafter,
the "Company," which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to
pay to CEDE & CO., or registered assigns, the principal sum of
(Y)25,000,000,000 on June 9, 2008 (the "Stated Maturity Date"), and to pay
interest thereon from June 8, 2001 or from the most recent date on which
interest has been paid or duly provided for, semi-annually on June 9 and
December 9 (each, an "Interest Payment Date") in each year commencing
December 9, 2001, and at maturity at the rate of 0.750% per annum, until the
principal hereof is paid or duly made available for payment.

      Interest on this Note shall be payable in equal semiannual installments
(except for the first payment) of (Y)3,750 per (Y)1,000,000 on June 9 and
December 9 in each year, beginning on December 9, 2001. The first payment of
interest will be made on December 9, 2001 for the period from and including
June 8, 2001 to but excluding December 9, 2001 and will be in an amount equal
to (Y)3,781 per (Y)1,000,000 denomination. Whenever it is necessary to
compute any amount of accrued interest in respect of the Note for a period of
less than one full year, other than with respect to regular semi-annual
interest payments, interest will be calculated on the basis of the actual
number of days in the period and a year of 365 days.

      If a date for payment of principal or interest on this Note falls on a
day that is not a Business Day, the related payment of principal, premium, if
any, or interest will be made on the next succeeding Business Day as if made
on the date the payment was due. No interest shall accrue on any amounts
payable for the period from and after the date for payment of principal or
interest on this Note. For these purposes, "Business Day" means any day which
is a day on which commercial banks and foreign exchange markets settle
payments and are open for general business (including dealings in foreign
exchange and foreign currency deposits) in: (a) the relevant place of
payment, and (b) The City of New York, Tokyo and London.

<PAGE>

      The interest so payable and punctually paid or duly provided for on any
Interest Payment Date will as provided in the Indenture be paid to the Person
in whose name this Note (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such Interest Payment
Date, which shall be the May 20 or the November 20 (whether or not a Business
Day) immediately preceding such Interest Payment Date. Any such interest
which is payable, but not punctually paid or duly provided for on any
Interest Payment Date, shall forthwith cease to be payable to the registered
Holder on such Regular Record Date, and may be paid to the Person in whose
name this Note (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to the
Holder of this Note not less than 10 days prior to such Special Record Date,
or may be paid at any time in any other lawful manner, all as more fully
provided in the Indenture.

      Payment of the principal of and interest on this Note will be made
under the terms and conditions set forth in the Exchange Rate Agent
Agreement, dated as of June 8, 2001, between the Company and The Chase
Manhattan Bank, as exchange rate agent, relating to this Note; PROVIDED,
however, that at the option of the Company, payment of interest may be made
by check mailed to the address of the Person entitled thereto as such address
shall appear in the Security Register; and PROVIDED, FURTHER, that AT THE
OPTION OF THE COMPANY, the Holder of this Note shall be entitled to receive
payments of principal of and interest on this Note by wire transfer of
immediately available funds if appropriate wire transfer instructions have
been received by the Trustee not less than 15 days prior to the applicable
payment date.

      Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

      This Note is one of a series of Securities designated under the
Indenture as 0.750% Notes due 2008 (the "Notes").

      Unless the certificate of authentication hereon has been executed by or
on behalf of The Chase Manhattan Bank, the Trustee under the Indenture, or
its successor thereunder, by the manual signature of one of its authorized
officers, this Note shall not be entitled to any benefit under the Indenture
or be valid or obligatory for any purpose.

                                       2
<PAGE>

      IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed, manually or in facsimile, and an imprint or facsimile of its corporate
seal to be imprinted hereon.

Dated:  June 8, 2001                      TOYOTA MOTOR CREDIT CORPORATION

                                       By:
                                          -----------------------------------
                                          George E. Borst
                                          President and Chief Executive
                                            Officer

[SEAL]

Attest:

By:
   -------------------------------
      Michael Deaderick
      Secretary

CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series
designated therein referred to in the
within-mentioned Indenture.

THE CHASE MANHATTAN BANK
      as Trustee

By:
     ------------------------------
      Authorized Officer

<PAGE>

                         TOYOTA MOTOR CREDIT CORPORATION
                            0.750% NOTES DUE 2008

      This Note is one of a duly authorized series of the Securities
(hereinafter called the "Securities") of the Company, issued and to be issued
under an Indenture dated as of August 1, 1991, between the Company and The
Chase Manhattan Bank as amended by the First Supplemental Indenture, dated as
of October 1, 1991 among the Company, The Chase Manhattan Bank and Bankers
Trust Company, pursuant to which The Chase Manhattan Bank acts as Trustee of
the Securities (herein called the "Trustee," which term includes any
successor Trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the
respective rights thereunder of the Company, the Trustee and the Holders of
the Securities and the terms upon which the Securities are to be
authenticated and delivered.

      Except as otherwise provided in the Indenture, the Securities will be
issued in global form only registered in the name of The Depository Trust
Company (the "Depositary") or its nominee. The Securities will not be issued
in definitive form, except as otherwise provided in the Indenture, and
ownership of the Securities shall be maintained in book entry form by the
Depositary for the accounts of participating organizations of the Depositary.

      Except as provided below, this Note will not be subject to redemption
before the Stated Maturity Date by a sinking fund or otherwise.

      The Company will pay to the Holder of this Note for the benefit of each
beneficial owner of an interest in this Note (each, a "beneficial owner") who
is a non-United States person (as defined below), additional amounts
("Additional Amounts") necessary in order that every net payment in respect
of the principal, premium, if any, or interest, if any, on this Note, after
deduction or withholding by the Company or any paying agent for or on account
of any present or future tax, assessment or governmental charge imposed upon
or as a result of such payment by the United States or any political
subdivision or taxing authority, will not be less than the amount provided
for in this Note to be then due and payable before any deduction or
withholding for or on account of any such tax, assessment or governmental
charge. The foregoing obligation to pay Additional Amounts will not apply to:

            (a) any tax, assessment or other governmental charge which would not
have been so imposed but for:

                  (i) the existence of any present or former connection between
                  the beneficial owner (or a fiduciary, settlor, beneficiary,
                  member or shareholder of, or holder of a power over, the
                  beneficial owner, if the beneficial owner is an estate, trust,
                  partnership or corporation) and the United States, including,
                  without limitation, the beneficial owner (or the fiduciary,
                  settlor, beneficiary, member, shareholder of, or holder of a
                  power) being or having been a citizen or resident or treated
                  as a resident or being or having been engaged in a trade or
                  business therein or being or having been present therein or
                  having or having had a permanent establishment therein, or

<PAGE>

                  (ii) the beneficial owner's present or former status as a
                  personal holding company, foreign personal holding company,
                  controlled foreign corporation or private foundation for
                  United States federal income tax purposes or as a corporation
                  which accumulates earnings to avoid United States federal
                  income tax;

            (b) any tax, assessment or other governmental charge which would not
have been so imposed but for the presentation by the Holder of this Note for
payment on a date more than 15 days after the date on which the payment became
due and payable or the date on which payment is duly provided for, whichever
occurs later;

            (c)   any estate, inheritance, gift, sales, transfer, personal
property or excise tax or any similar tax, assessment or governmental charge;

            (d) any tax, assessment or other governmental charge which is
payable otherwise than by withholding from payments in respect of principal of,
premium, if any, or interest, if any, on this Note;

            (e) any tax, assessment or other governmental charge imposed on
interest received by a beneficial owner of this Note who (i) actually or
constructively owns 10% or more of the total combined voting power of all
classes of stock of the Company entitled to vote within the meaning of Section
871(h)(3) of the United States Internal Revenue Code of 1986, as amended, or
(ii) is a bank extending credit pursuant to a loan agreement entered into in the
ordinary course of its trade or business;

            (f) any tax, assessment or other governmental charge imposed as a
result of the failure to comply with:

                  (i) certification, information, documentation, reporting or
                  other similar requirements concerning the nationality,
                  residence, identity or connection with the United States of
                  the Holder or beneficial owner of this Note, if such
                  compliance is required by statute, or by regulation of the
                  United States Treasury Department, as a precondition to relief
                  or exemption from such tax, assessment or other governmental
                  charge (including backup withholding), or

                  (ii) any other certification, information, documentation,
                  reporting or other similar requirements under United States
                  income tax laws or regulations that would establish
                  entitlement to otherwise applicable relief or exemption from
                  such tax, assessment or other governmental charge;

            (g) any tax, assessment or other governmental charge required to be
withheld by any paying agent from any payment of the principal of, premium, if
any, or interest, if any, on this Note, if such payment can be made without such
withholding by at least one other paying agent;

            (h) any tax, assessment or other governmental charge withheld or
deducted from a payment, where such withholding or deduction is imposed on a
payment to an individual

<PAGE>

and is required to be made pursuant to any European Union Directive on the
taxation of savings implementing the conclusions of the ECOFIN Council
meeting of 26-27 November 2000 or any law implementing or complying with, or
introduced in order to conform to, such Directive;

            (i) any tax, assessment or other governmental charge withheld or
deducted from a payment to a Holder who would have been able to avoid such
withholding or deduction by presenting the relevant note to another paying agent
in a member state of the European Union; or

            (j)   any combination of items (a), (b), (c), (d), (e), (f), (g),
(h) or (i);

nor will Additional Amounts be paid to any Holder in respect of a beneficial
owner who is a fiduciary or partnership or other than the sole beneficial owner
of this Note to the extent a settlor or beneficiary with respect to the
fiduciary or a member of such partnership or a beneficial owner of this Note
would not have been entitled to payment of Additional Amounts had the
beneficiary, settlor, member or beneficial owner been the sole beneficial owner
of this Note.

            This Note is subject in all cases to any tax, fiscal or other law or
regulation or administrative or judicial interpretation applicable thereto.
Except as specifically provided herein, the Company will not be required to make
any payment with respect to any tax, assessment or governmental charge imposed
by any government or a political subdivision or taxing authority thereof or
therein.

            The term "United States" means the United States of America
(including the States and the District of Columbia) and its territories, its
possessions and other areas subject to its jurisdiction.

            The term "United States person" mean a beneficial owner of this Note
that is for United States federal income tax purposes:

            (1)   a citizen or resident of the United States,

            (2)   a coporation, partnership or other entity created or organized
                  in or under the laws of the United States or of any political
                  subdivision thereof,

            (3)   an estate the income of which is subject to United States
                  federal income taxation regardless of its source, or

            (4)   a trust if (i) a court within the United States is able to
                  exercise primary supervision over the administration of the
                  trust and (ii) one or more United States persons have the
                  authority to control all substantial decisions of that trust.

            The term "non-United States person" means a beneficial owner of this
Note that is, for United States federal income tax purposes:

            (1)   a nonresident alien individual,

<PAGE>

            (2)   a foreign corporation,

            (3)   a nonresident alien fiduciary of a foreign estate or trust,
                  or

            (4)   a foreign partnership one or more of the members of which is,
                  for United States federal income tax purposes, a nonresident
                  alien individual, a foreign corporation or a nonresident alien
                  fiduciary of a foreign estate or trust.

      If as result of any change in or amendment to the laws (including any
regulations or rulings promulgated thereunder) of the United States or any
political subdivision thereof or therein affecting taxation, any change in
the official application or interpretation of such laws, including any
official proposal for such a change, amendment or change in the application
or interpretation of such laws, which change, amendment, application or
interpretation is announced or becomes effective after June 1, 2001 (the date
of the prospectus supplement relating to this Note) or which proposal is made
after that date, as a result of any action taken by any taxing authority of
the United States which action is taken or becomes generally known after such
date, or any commencement of a proceeding in a court of competent
jurisdiction in the United States after that date, whether or not such action
was taken or such proceeding was brought with respect to the Company, there
is, in that case, in the written opinion of independent legal counsel of
recognized standing to the Company, a material increase in the probability
that the Company has or may become obligated to pay Additional Amounts (as
described above), and the Company in its business judgment, determines that
the obligation cannot be avoided by the use of reasonable measures available
to it, not including assignment of any Note, the Notes may be redeemed, as a
whole but not in part, at the Company's option at any time thereafter, upon
notice to the Trustee and the Holder of this Note in accordance with
provisions of the Indenture at a redemption price equal to 100% of the
principal amount of this Note to be redeemed together with accrued interest
to the date fixed for redemption.

      If an Event of Default with respect to the Notes shall occur and be
continuing, the principal of all the Notes may be declared due and payable in
the manner and with the effect provided in the Indenture.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected thereby at any time by the Company and the Trustee with the consent
of the Holders of 66 2/3% in aggregate principal amount of the Outstanding
Securities of each series affected thereby. The Indenture also contains
provisions permitting the Holders of specified percentages in aggregate
principal amount of the Securities of each series at the time Outstanding, on
behalf of the Holders of all the Securities of such series, to waive
compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note
issued upon the registration of transfer hereof or in exchange herefor or in
lieu hereof whether or not notation of such consent or waiver is made upon
this Note.

<PAGE>

      No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and interest on this
Note at the time, place and rate, and in the coin or currency, herein
prescribed.

      As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Security Register
of the Company, upon surrender of this Note for registration of transfer at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Security Registrar duly executed by,
the Holder hereof or by his attorney duly authorized in writing, and thereupon
one or more new Notes of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

      The Notes are issuable only in registered form without coupons in
denominations of (Y)1,000,000 and any integral multiple thereof. As provided in
the Indenture and subject to certain limitations therein set forth, the Notes
are exchangeable for a like aggregate principal amount of Notes as requested by
the Holder surrendering the same.

      No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

      Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

      All terms used in this Note which are defined in the Indenture shall have
the meanings assigned to them in the Indenture.

<PAGE>

                                  ABBREVIATIONS

      The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations.

      TEN COM--as tenants in common

      UNIF  GIFT MIN ACT--.................Custodian.......................
                              (Cust)                       (Minor)

            Under Uniform Gifts to Minors Act
            .................................
                        (State)

      TEN ENT--as tenants by the entireties
      JT TEN--as joint tenants with right of survivorship and not as tenants
              in common

      Additional abbreviations may also be used though not in the above list.

<PAGE>

                            ASSIGNMENT/TRANSFER FORM

      FOR VALUE RECEIVED the undersigned Registered Holder hereby sell(s),
assign(s) and transfer(s) unto (insert Taxpayer Identification No.)
                                                                   ------------

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
(Please print or typewrite name and address including postal zip code of
assignee)

------------------------------------------------------------------------------
the within Note and all rights thereunder, hereby irrevocably constituting and
appointing _______________________________ attorney to transfer said Note on the
books of the Company with full power of substitution in the premises.

Dated:
            ------------------------            -------------------------------

            NOTICE: The signature of the Registered Holder to this assignment
            must correspond with the name as written upon the face of the
            within instrument in every particular, without alteration or
            enlargement or any change whatsoever.

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