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Exhibit 4.2    
  

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE STATE LAW OR AN OPINION OF COUNSEL ACCEPTABLE TO THE BORROWER THAT SUCH REGISTRATION IS NOT REQUIRED UNDER SUCH LAWS. THE
CONVERSION OF THIS NOTE IS SUBJECT TO THE APPLICABLE REQUIREMENTS OF THE HART-SCOTT-RODINO ANTITRUST IMPROVEMENTS ACT OF 1976, AS AMENDED. 

 
 

CONVERTIBLE SUBORDINATED PROMISSORY NOTE    

$5,000,000.00
February 28, 2001 

    FOR
VALUE RECEIVED, the undersigned, US Search.com Inc., a Delaware corporation ("Borrower"), promises to pay to Pequot Private Equity Fund II, L.P. ("Holder"), the principal
sum of Five Million Dollars ($5,000,000.00) with interest from the date hereof, at the rate of seven percent (7%) per annum on the unpaid balance until paid or until default, both principal and
interest being payable in lawful money of the United States of America, at 500 Nyala Farm Road, Westport, Connecticut 06880, or at such place as the Holder may designate in writing. The principal and
interest shall be due and payable as follows: 

	(i)
	The
entire unpaid balance shall be due and payable on such date as is six (6) months from the date hereof (the "Due Date"); and

	(ii)
	Interest
shall be due and payable on the Due Date. All computations of interest payable hereunder shall be on the basis of a 360-day
year and actual days elapsed in the period of which such interest is payable. 

    1.  Conversion.  

	(a)
	In
the event that 

     (i) the
Borrower and the Holder shall enter an agreement or agreements (the "Financing Agreements") for the Holder's purchase of capital stock of the Borrower and the
exchange by the Holder of issued and outstanding capital stock of the Borrower on the terms and subject to the conditions generally set forth in the Summary of Terms for Preferred Stock
Issuance/Restructuring of Series A-1 Preferred Stock (the "Summary of Terms") dated as of February 19, 2001 between the Borrower and the Holder (the agreement or agreements
and such terms and conditions being referred to as the "Financing"), and 

    (ii) the
Borrower shall have received approval from its stockholders of the Financing or the approval of Nasdaq to the effect that the Borrower may complete the
Financing without soliciting the approval of all holders of capital stock of the Borrower; provided, however that this subsection (ii) shall not apply if the Borrower's common stock, par value
$.001 per share (the "Common Stock"), is no longer subject to the Rules and Regulations of the Nasdaq Stock Market, Inc., 

within
ten (10) business days following the satisfaction of the conditions set forth in the foregoing clauses (i) and (ii), all amounts of principal and accrued interest under this Note
shall be converted (within such period, the exact date upon which such conversion will occur being determined by the Holder in its discretion) into shares of the Borrower's then newly authorized,
fully paid and non-assessable shares of Series A-1 Preferred Stock in accordance with the Financing (such shares being the "Financing Shares"), on the terms and with the
rights, preferences and privileges as are set forth in the Financing Agreements. Upon such conversion, in addition to any shares or other instruments received by the Holder through the Financing, the
Holder shall receive the number of 

 

Financing Shares calculated by dividing the amount of principal and accrued interest due under this Note by the price per share of the Financing Shares paid by the Holder in the Financing. 

    (b) If
a Financing does not occur on or before the Due Date, or if a Financing has not occurred and an Acceleration Event (as defined below) occurs prior to the Due
Date, then on the Due Date or upon the consummation of an Acceleration Event, as the case may be, all amounts of principal and accrued
interest due under this Note, including any amounts accruing pursuant to Section 3.3 hereof, shall, at the option of the Holder: 

     (i) become
due and payable in full; or 

    (ii) be
converted (the "Conversion") into such number of fully paid and non-assessable shares (the "Conversion Shares") of the Borrower's Series A
Convertible Preferred Stock, $0.001 par value per share ("Series A Preferred") having the same terms, preferences and conditions as were in effect on September 7, 2000 (including an
initial conversion price of $1.70 per share of Common Stock), as shall be determined by dividing the outstanding amount of principal and accrued interest due under this Note by $100.00 (as adjusted to
reflect any stock splits, reverse splits, stock dividends, recapitalizations or similar events having occurred since September 7, 2000). Borrower shall not issue fractional shares but shall pay
the dollar equivalent of any fractional shares on such closing date. 

An
"Acceleration Event" shall be deemed to have occurred if (i) Borrower, or a subsidiary thereof, shall merge or consolidate with or into another entity such that the shareholders of Borrower
prior to such transaction do not or are not expected to own a majority of the voting stock of the surviving entity, (ii) Borrower shall sell or otherwise dispose of all or substantially all of
its assets, or (iii) Borrower shall liquidate, (iv) any transaction or series of transactions shall occur which results in the holders, as of the date hereof, of a majority in interest
of the capital stock of the Borrower entitled to vote for the election of directors no longer holding such a majority in interest, or (v) the occurrence of a Material Adverse Effect (as
hereinafter defined). 

    2.  Borrower Representations.  Subject to and except as disclosed by the Borrower in  Exhibit A hereto, the Borrower hereby represents and
warrants to the Holder as follows: 

    2.1.  Organization and Qualification.  The Borrower is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware, and has the requisite corporate power and authority to own, lease and operate its assets, properties and business and to carry on its business
as it is now being conducted or proposed to be conducted. The Borrower is duly qualified as a foreign corporation to transact business, and is in good standing, in each jurisdiction where it owns or
leases real property or maintains employees or where the nature of its activities make such qualification necessary, except where the failure to be so qualified would not have a Material Adverse
Effect. For purposes of this Note, "Material Adverse Effect" shall mean a material adverse effect (i) on the business, operations, prospects, properties, earnings, assets, liabilities or
condition (financial or other) of the Borrower and any subsidiary of the Borrower, taken as a whole, or (ii) on the ability of the Borrower or any subsidiary of the Borrower to perform its
obligations hereunder or under any of the other agreement or instrument to which the Borrower and the Holder are a party; provided, however
that a delisting from the Nasdaq Stock Market will not be a Material Adverse Effect for any purposes hereunder. 

    2.2.  Certificate of Incorporation and Bylaws.  The Borrower has delivered to the Holder true, correct
and complete copies of the Borrower's Certificate of Incorporation and bylaws, as amended and in force on the date hereof. 

    2.3.  Capitalization.  The authorized capital stock of the Borrower consists of: (1) 40,000,000
shares of Common Stock, of which (i) 17,908,244 shares are issued and outstanding and 

2

 

(ii) 8,341,106 have been reserved for issuance upon the conversion of any outstanding Preferred Stock of the Borrower, and (2) 1,000,000 shares of Preferred Stock, $0.001 par value per
share, of which (i) 350,000 shares have been designated as Series A Preferred, (ii) 100,000 shares are issued and outstanding and (iii) 75,000 shares are reserved for
issuance upon the Conversion and upon exercise of that certain Warrant, dated as of September 7, 2000, in the name of the Holder. All of the issued and outstanding shares of Common Stock and
Preferred Stock have been duly authorized and validly issued and are fully paid and nonassessable. Shares of the authorized Common Stock (as adjusted to reflect stock splits, stock dividends,
conversion price adjustments and similar events) have been reserved as follows: (i) 5,872,098 shares of the authorized Common Stock have been reserved for issuance upon conversion of the
Preferred Stock; and (ii) 12,000,650 shares of the authorized Common Stock have been reserved for issuance pursuant to the exercise of stock options granted or to be granted after the date
hereof under the Borrower's Amended and Restated 1998 Stock Incentive Plan and the 2000 Stock incentive Plan (the "Option Plans"). As of the date hereof and immediately prior to the issuance of the
Note, all issued and outstanding shares of the Borrower's capital stock have been duly authorized and validly issued, are fully paid and nonassessable and owned of record, and to the Borrower's
knowledge, beneficially. Except as aforesaid and as set forth on Exhibit A hereto, there are no options, warrants, conversion privileges, or
preemptive or other rights or agreements presently outstanding to purchase or otherwise acquire any authorized but unissued shares of the capital stock or other securities of the Borrower. Except as
aforesaid and as contemplated herein, and other than that certain Stockholders Agreement, dated as of September 7, 2000, by and among the Borrower, the Holder and The Kushner-Locke Company, the
Borrower is not a party or subject to any agreement or understanding that affects or relates to the voting or giving of written consents with respect to any security, or the voting by a director, of
the Borrower. Except as aforesaid, to the Borrower's knowledge, no stockholder has granted options or other rights to any person (other than the Borrower) to purchase any shares of Common Stock or
other equity securities of the Borrower from such stockholder. Except as aforesaid and as set forth on Exhibit A hereto, the Borrower is not
subject to any obligation (contingent or otherwise) to repurchase or otherwise to acquire or retire any shares of its capital stock. Since its initial public offering on June 24, 1999, the
Borrower has not declared or paid any dividend or made any other distribution of cash, stock or other property to its stockholders. All of the issued and outstanding shares of capital stock of the
Borrower listed on Exhibit A have been offered, issued and sold by the Borrower in compliance with applicable Federal and state securities laws. 

    2.4.  Issuance of Note and Financing Shares.  The issuance and delivery of the Note, and the issuance and
delivery of the equity securities issuable upon the completion of the Financing described in Section 1(a) hereto (the "Financing Shares") or upon the Conversion described in Section 1(b)
hereto, and the issuance and delivery of the equity securities issuable upon conversion of the Financing Shares or the Conversion Shares, as the case may be (the "Subsequent Shares"), have been, or
will be prior to issuance, duly authorized by all necessary corporate action on the part of the Borrower. The Conversion Shares have been duly reserved for issuance. Any shares of Common Stock that
are not issued and outstanding as of the date hereof, are not reserved for issuance and are not so described as being reserved in Section 2.3 hereof have been duly reserved for issuance as
Subsequent Shares. Each of the Financing Shares, the Conversion Shares and the Subsequent Shares, when and the extent issued will be duly and validly issued, fully paid and nonassessable. 

    2.5.  Authority for Agreement.  The execution, delivery and performance by the Borrower of this Note, and
the consummation by the Borrower of the transactions contemplated hereby, have been or will be duly authorized by all necessary corporate action. This Note has been duly executed and delivered by the
Borrower and constitutes a valid and binding obligation of the Borrower enforceable in accordance with its terms, subject to laws of general application relating 

3

 

to bankruptcy, insolvency, and the relief of debtors, rules and laws governing specific performance, injunctive relief, and other equitable remedies and principles of public policy. The execution of
and performance of the transactions contemplated by this Note and compliance with its provisions by the Borrower will not violate any provision of law and will not conflict with or result in any
breach of any of the terms, conditions or provisions of, or constitute a default under, or require a consent or waiver under, its Certificate of Incorporation or Bylaws (each as amended to date) or
any indenture, lease, agreement or other instrument to which the Borrower is a party or by which it or any of its properties is bound, or any decree, judgment, order, statute, rule or regulation
applicable to the Borrower. 

    2.6.  Compliance with Other Instruments.  The Borrower is not in violation of any provisions of its
Certificate of Incorporation or its Bylaws as amended and in effect on and as of the date hereof, or of any provisions of any material instrument or contract to which it is a party or any judgment,
decree, or order by which it is bound or, to its knowledge, any statute, rule, or regulation applicable to the Borrower. The execution, delivery, and performance of this Note, and the issuance of the
Note, the Financing Shares, the Conversion Shares and the Subsequent Shares pursuant to the terms of the Note, will not result in any such violation or be in conflict with or constitute a default
under any such provisions or result in the creation of any mortgage, pledge, lien, encumbrance, or charge upon any of the properties or assets of the Borrower. 

    2.7.  Litigation.  Except as set forth on  Exhibit A hereto, there is no action, proceeding, or investigation pending or, to the best
knowledge of the Borrower currently threatened against
the Borrower before any court or administrative agency (or any basis therefor known to the Borrower). There is no action, proceeding, or investigation by the Borrower currently pending or that the
Borrower intends to initiate. 

    2.8.  Permits; Compliance with Applicable Law.  The Borrower has all material franchises, permits,
licenses, authorizations, approvals and any similar authorizations from any foreign, Federal, state or local court, governmental authority, regulatory authority, self-regulatory agency or
organizationn ("Permits") necessary for the conduct of its business as now being conducted by it and believes it can obtain, without undue burden or expense, any similar authority for the conduct of
its business as planned by the Borrower to be conducted. The Borrower is not in violation in any material respect of, or default in any material respect under, any such Permits. All such Permits are
in full force and effect, and to the Borrower's knowledge, no violations have been recorded in respect of any such permits; no proceeding is pending or, to the knowledge of the Borrower, threatened to
revoke or limit any such Permit; and no such Permit will be suspended, cancelled or adversely modified as a result of the execution and delivery of this Note and the consummation of the transactions
contemplated hereby. Since the Borrower's inception, the conduct of the business of the Borrower has been in conformity with all applicable federal, state and other governmental and regulatory
requirements, except where nonconformity or noncompliance would not, individually or in the aggregate, have a Material Adverse Effect. No investigation or review by any governmental entity with
respect to the Borrower is pending, or to the knowledge of the Borrower, threatened. 

    2.9.  Financial Statements.  

    (a) The
Borrower has delivered to the Holder the audited financial statements of the Borrower for the fiscal year ended December 31, 1999 and the unaudited,
internally prepared financial statements of the Borrower for the fiscal period ended December 31, 2000 (the "Financial Statements"). The Financial Statements have been prepared in accordance
with generally accepted accounting principles in the United States consistently followed (except in the case of the unaudited, internally prepared financial statements with respect to the absence of
notes and outstanding year-end adjustments, which adjustments are not expected to be 

4

 

material) throughout the periods involved and fairly present in all material respects the financial condition, results of operations and changes in shareholders' equity of the Borrower as of the
respective dates thereof and for the respective periods then ended. 

    (b) Since
September 7, 2000, (i) the Borrower has operated its business only in the ordinary course, (ii) there has not been, individually or in
the aggregate, any change that would have a Material Adverse
Effect, nor to the knowledge of the Borrower is any such change threatened and (iii) the Borrower has not increased the compensation of any of its officers or the rate of pay of any of its
employees, except as part of regular compensation increases in the ordinary course of business. 

    2.10.  Absence of Undisclosed Liabilities.  The Borrower does not have, and the Borrower does not know
of, any liabilities or obligations (fixed or contingent, including without limitation any tax liabilities due or to become due) of the Borrower which, either individually or in the aggregate, are
material and not disclosed in the Financial Statements. 

    2.11.  Material Adverse Changes.  Since September 7, 2000, (a) there has been no material
change in the business or financial prospects of the Borrower except as disclosed in the Borrower's Board of Directors Meetings that, individually or in the aggregate, is materially adverse to the
Borrower, and (b) none of the material assumptions (financial or otherwise), operations, management or prospects of the Borrower nor any of its material properties or assets have been
materially adversely affected by any occurrence or development (whether or not insured against). Immediately after giving effect to the issuance of the Note and the consummation of the other
transactions contemplated hereby, the Borrower will not be insolvent. 

    2.12.  Consents.  No consent, approval, or authorization of, or designation, declaration, notification,
or filing with any governmental authority, regulatory authority or self-regulatory agency or organization on the part of the Borrower is required in connection with the valid execution,
delivery and issuance of this Note, or the consummation of any other transaction contemplated hereby (other than such notifications or filings required under applicable federal or state securities
laws, if any). 

    2.13.  Brokers or Finders.  Neither the Borrower nor the Holder has incurred, or will incur, directly or
indirectly, as a result of any action taken by the Borrower, any liability for brokerage or finders' fees or agents' commissions or any similar charges in connection with this Note. 

    2.14.  Borrower Status.  The Borrower is not (i) a "public utility holding company" or a "holding
company" as defined in the Public Utility Holding Borrower Act of 1935, as amended, (ii) a "public utility" as defined in the Federal Power Act, as amended, or (iii) an "investment
company" as defined in the Investment Company Act of 1940, as amended. 

    2.15.  Offering Exemption.  Assuming the truth and accuracy as of the date hereof of the representations
and warranties made by the Holder in the Purchase Agreement, dated as of September 7, 2000, between the Borrower and the Holder (except that any reference to "Securities" in such
representations and
warranties shall be deemed to be a reference to this Note), the offer and sale of the Note as contemplated hereby is exempt from registration under the Securities Act of 1933, as amended (the
"Securities Act"), and under applicable state securities and "blue sky" laws, as currently in effect. 

    2.16.  Disclosure.  Neither this Note nor any certificate, instrument or written statement furnished or
made to the Holders by or on behalf of the Borrower in connection with this Note contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the
statements contained herein and therein in light of the circumstances under which they were made not misleading. 

5

 

    3.  Borrower Covenants.  The Borrower covenants and agrees with the Holder as follows: 

    3.1.  Required Authorization.  As soon as practicable after the date hereof, and in any event no later
than five (5) business days following the date hereof, the Borrower will complete and submit an application (the "Application") to Nasdaq seeking an approval from Nasdaq to the effect that,
notwithstanding the Marketplace Rules currently in effect for the Nasdaq Stock Market, the Borrower may complete the Financing without soliciting the approval of all holders of capital stock of the
Borrower. Following the Borrower's receipt of any correspondence or other communication from any party with respect to the Application, including any response from Nasdaq, or with respect to the
transactions contemplated hereunder or under the Summary of Terms, the Borrower shall promptly notify the Holder of such correspondence or communication and provide the Holder with a copy or, in the
case of any oral communication, a transcript thereof. The Holder and the Borrower agree to execute and deliver such documents, certificates or instruments and to take any other reasonable actions as
may be desirable or necessary in connection with the Application. 

    3.2.  Increase to Authorized Capital.  The Borrower will amend its Certificate of Incorporation to
increase the authorized number of shares of Common Stock to a number sufficient to allow fully each of the conversions contemplated in Sections 1(a) and 1(b) hereof. 

    3.3.  Legal Fees.  Upon the conversion of any sum due under this Note pursuant to Sections 1(a) and 1(b)
hereof, (i) immediately prior to such conversion one half of the accrued and unpaid legal fees due to the Holder by the Borrower (the "Legal Fees") shall be converted into Financing Shares or
Conversion Shares, as the case may be, on the same terms as the amounts to be so converted hereunder and (ii) prior to or upon such conversion, the Borrower shall pay the Holder in cash for the
balance of the Legal Fees. 

    4.  Default.  In the event (i) of default when due of any payment of principal or interest hereof
and such default is not cured within five (5) business days; or (ii) Borrower becomes insolvent or generally fails to pay, or admits in writing its inability to pay, its debts as they
become due; Borrower applies for a trustee, receiver or other custodian for it or a substantial part of its property; a trustee, receiver or other custodian is appointed for Borrower or for a
substantial part of its property; or any bankruptcy, reorganization, debt arrangement, or other case of proceeding, is commenced in respect of Borrower, or (iii) of a material breach by
Borrower of the representations, warranties, covenants or agreements made herein which, after notice from the Holder, is not cured within fifteen (15) business days; then, upon the occurrence
of any such event, the Holder may, without notice, declare the unpaid principal and interest on this Note, and all other obligations of Borrower to the Holder, at once due and payable, whereupon such
principal, interest and other obligations shall become at once due and payable. Failure to exercise this option shall not constitute a waiver of the right to exercise the same at any other time. The
principal of this Note and any part thereof, and accrued interest, if any, shall bear interest at the rate of eight percent (8%) per annum after default until paid. 

    5.  Waiver of Certain Rights.  All parties to this Note, including maker and any sureties, endorsers, or
guarantors hereby waive protest, presentment, notice of dishonor, and notice of acceleration of maturity and agree to continue to remain bound for the payment of principal, interest and all other sums
due under this Note notwithstanding any change or changes by way of release, surrender, exchange, modification or substitution of any security for this Note or by way of any extension or extensions of
time for the payment of principal and interest; and all such parties waive all and every kind of notice of such change or changes and agree that the same may be without notice or consent of any of
them. 

    6.  Enforcement.  Upon default the Holder may employ an attorney to enforce the Holder's rights and
remedies and the maker, principal, surety, guarantor and endorsers of this Note hereby agree to pay to the Holder reasonable attorneys' fees plus all other reasonable expenses incurred by the Holder 

6

 

in exercising any of the Holder's rights and remedies upon default. The rights and remedies of the Holder as provided in this Note shall be cumulative and may be pursued singly, successively, or
together against any other funds, property or security held by the Holder for payment or security, in the sole discretion of the holder. The failure to exercise any such right or remedy shall not be a
waiver or release of such rights or remedies or the right to exercise any of them at another time. 

    7.  No Shareholder Rights.  Nothing contained in this Note shall be construed as conferring upon the
Holder or any other person the right to vote or to consent or to receive notice as a shareholder of the Borrower. 

    8.  Miscellaneous. The following general provisions apply:  

    (a) This
Note, and the obligations and rights of Borrower hereunder, shall be binding upon and inure to the benefit of Borrower, the Holder, and their respective heirs,
personal representatives, successors and assigns, except that the Borrower may not assign or transfer any of its rights or obligations under this Note without the prior written consent of the Holder. 

    (b) Recourse
under this Note shall be to the general unsecured assets of Borrower only and in no event to the officers, directors or shareholders of Borrower. 

    (c) Changes
in or amendments or additions to this Note may be made, or compliance with any term, covenant, agreement, condition or provision set forth herein may be
omitted or waived (either generally or in a particular instance and either retroactively or prospectively), upon written consent of Borrower and the Holder. 

    (d) All
payments shall be made in such coin and currency of the United States of America as at the time of payment shall be legal tender therein for the payment of
public and private debts. 

    (e) All
notices, requests, consents and demands shall be made in writing and shall be mailed postage prepaid, or delivered by hand, to Borrower or to the Holder at
their respective addresses set forth below or to such other address as may be furnished in writing to the other party hereto and shall be effective upon receipt: 

    If
to Borrower, at US SEARCH.com Inc., 5401 Beethoven Street, Los Angeles, California 90066, Attention: General Counsel. 

    If
to Holder, at Pequot Capital Management, Inc., 500 Nyala Farm Road, Westport, Connecticut 06880, Attention: Carol Holley and Amber Tencic. 

    (f)  This
Note shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of New York. 

    IN
TESTIMONY WHEREOF, Borrower has caused this instrument to be executed in its corporate name by its Chief Executive Officer, by order of its Board of Directors first duly given, the
day and year first above written. 

	 	 	US SEARCH.COM INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

7

  

 
 

EXHIBIT A
  
    Disclosure Schedules    
  

8

QuickLinks

Exhibit 4.2

CONVERTIBLE SUBORDINATED PROMISSORY NOTE

EXHIBIT A Disclosure SchedulesPrepared by MERRILL CORPORATION www.edgaradvantage.com

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Exhibit 10.27    
  

 
 

SECOND AMENDMENT TO
  ADVERTISING AND PROMOTION AGREEMENT    
  

	***
	CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR AN ORDER GRANTING CONFIDENTIAL TREATMENT OF SUCH INFORMATION IN ACCORDANCE WITH RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. This Second Amendment to
Advertising and Promotion Agreement (the "Second Amendment") between Yahoo! Inc.
("Yahoo") and US SEARCH.com Inc. ("US SEARCH"), is entered into on January 30, 2001. 

 
 

BACKGROUND    
  

	A.
	Yahoo
and US SEARCH executed an Advertising and Promotion Agreement on June 7, 1999 (the "Agreement"). The Agreement will
expire on January 31, 2001.

	B.
	The
Agreement was first amended on October 4, 2000.

	C.
	Yahoo
and US SEARCH wish to enter into this Second Amendment in order to extend the term of the Agreement and to amend various provisions in the Agreement. 

 
 

AGREEMENT    
  

    The
parties agree to amend the Agreement as follows: 

Section 1. Definitions.  

	1.1
	Defined Terms. Capitalized terms used in this Second Amendment and not otherwise defined in this Second Amendment will continue to
have the meanings given to them in the Agreement. 

Section 2. Amendments.  

	2.1
	Amendment of Section 1. A definition of "Extended Term" is added to Section 1 of the Agreement, and the definition of
"Term" in Section 1 of the Agreement is amended, both as follows: 

"Term"
means the period beginning on the date this Agreement is fully executed and continuing until July 31, 2002. 

"Extended
Term" means the period between February 1, 2001 and July 31, 2002. 

"US
SEARCH Wide Button" shall mean a link that: (a) contains a US SEARCH Mark (or any Mark that is a successor company of US SEARCH), (b) has dimensions of 230 pixels wide by 31 pixels
high, (c) has a maximum file size of 4.5 KB, (d) is accompanied by associated text link(s) such that the aggregate width will not exceed the width dimension stated in (b),
(e) does not contain animation and (f) permits users to navigate directly to a page on the US SEARCH Site dedicated to providing users with online access to and the ability to search for
Public Record Information. 

"Enhanced
Graphic Link" shall mean a link that contains all the requirements of a Graphic Link as herein defined plus (i) adds two (2) text links and (ii) the Graphic link and
text links are enclosed within a border that is 125 pixels by 125 pixels. 

1

***
Confidential

 
	2.2
	Amendment of Section 2.1. Section 2.1 of this Agreement is deleted in its entirety and replaced as follows: 

    2.1 Yahoo
will place a US SEARCH Wide Button and US SEARCH Search Module on (a) the top page of Yahoo People Search in a manner substantially similar to the
example set forth in Exhibit A, (b) the page of Yahoo People Search that results when no listings are returned on a search query submitted on Yahoo People Search for telephone listing in
a manner substantially similar to the example set forth in Exhibit B, (c) the page of Yahoo People Search that results when no listings are returned on a search query submitted on Yahoo
People Search for an email address in a manner substantially similar to the example set forth on Exhibit C, (d) the page of Yahoo People Search that results when a user chooses to
conduct an advanced email search in a manner substantially similar to the example set forth on Exhibit D, and (e) the page of Yahoo People Search that results when a detailed listing is
returned on a search query submitted to Yahoo People Search in a manner substantially similar to the example set forth on Exhibit G. 

	2.3
	Amendment of Section 2.2. Section 2.2 of this Agreement is modified as follows: 

    2.2 Replace
"Graphic Link" with "US SEARCH Wide Button and US SEARCH Search Module". 

	2.4
	Deletion of Section 2.3. Section 2.3 of the Agreement is deleted in its entirety and replaced with the following: 

    2.3. Yahoo
will use all reasonable efforts to implement and maintain an API provided by US SEARCH such that when a user clicks on the Functional Text Link placed
(a) in the telephone listings, the first name, last name, city and state of the individual listing will be populated into the page that results on US SEARCH Site, provided such information
exists from the Yahoo People Search database and (b) in the email listings, the first name, last name, and addresses of the individual listing will be populated into the page that results on
the US SEARCH Site provided such information exists from the Yahoo People Search database. 

	2.5
	Amendment of Section 2.4. Section 2.4 of this Agreement is modified as follows: 

    2.4 Reference
to "Exhibits A - D" is replaced with "Exhibits A - I". 

	2.6
	Addition of Section 2.5. 

    2.5 It
is anticipated that Yahoo will implement new page designs within Yahoo People Search in a manner substantially similar to the example set forth in Exhibits H and
I. 

	2.7
	Deletion of Section 3.1. Section 3.1 of this Agreement is deleted in its entirety and replaced with the following: 

    3.1 Intentionally
left blank. 

	2.8
	Amendment of Section 5.6. Section 5.6 of the Agreement is deleted in its entirety and replaced with the following: 

    5.6. Yahoo
will place the US Search Wide Button Links, Search Modules, and Functional Text Links and Banner Advertisements as provided in Sections 2.1 and 2.2 and
7.1(C) and 7.1(D) within seven (7) days of receiving US SEARCH Links, other then those that are hard coded. For US SEARCH links that are hard coded Yahoo will have those Links placed on its
site as specified herein within fourteen (14) days of receiving them from US SEARCH. 

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	2.9
	Amendment of Section 6. Section 6 of the Agreement is deleted in its entirety and replaced with the following: 

    6.1 Keyword Search. During the Extended Term, Yahoo will provide US SEARCH the following six (6) keyword searches
  ***  : address search, find a friend, find a person, find person, find someone, people find/peoplefind. In addition, Yahoo will provide US SEARCH, upon request,
subject to availability, the following three (3) keyword searches at *** Yahoo's current standard rate card: find people, people finder/peoplefinder, people search/peoplesearch. Each time a
keyword search, as stated herein, is performed a static US SEARCH Banner will appear at the top of the result page. 

    6.2 In
the event that Yahoo develops its own Public Records Information search service that includes the same level of information US SEARCH offers and Yahoo intends to
integrate such service into the Yahoo People Search or such other areas within the Yahoo site where US SEARCH Links are present, Yahoo will provide US SEARCH with written of notice of intent
(a) one hundred twenty (120) days prior to integrating such service into Yahoo People Search if the date of the notice is within the first six (6) months of the Extended Term and
(b) sixty (60) days notice if the date of notice occurs after the first six (6) months of the Extended Term. US SEARCH shall have the right to negotiate a reduction in fees and
Commission or terminate the contract at its option, provided that US SEARCH provides at least fifteen (15) days written notice of its election from date of receipt of Yahoo's notice. In the
event that US SEARCH elects to terminate the contract it may do so if it has made all undisputed payments that are due prior to the date of termination. If US SEARCH terminates this Agreement and has
paid any fees in advance of Yahoo's performance, US SEARCH shall receive a pro rata share of fees paid in advance 

    6.3 *** 

	2.10
	Amendment of Section 7.1. Section 7.1 of the Agreement is deleted in its entirety and replaced with the following: 

    7.1 A.
During the Extended Term, Yahoo *** it will deliver *** Page Views ("Total Page Views") of US SEARCH Links, Yahoo will place US SEARCH Links on the Yahoo site
throughout the Extended Term in a reasonably consistent manner so as to try to avoid material under-delivery or over delivery of Total Page Views in any one month period, as measured by Yahoo's online
reporting system 

    B.  Yahoo
*** from the Total Page Views and not attributable to the Additional Page Views and/or Extra Page Views, as herein defined: (i) *** (as defined below)
per month in the first six (6) month period of the Extended Term, (ii) *** per month in the second six (6) month period of the Extended Term, and (iii) *** per month in
the third six (6) month period of the Extended Term. As used in the Agreement, a *** is an instance of a user pressing down (***) on a mouse button in an advertising space. 

    C.  In
addition to the Total Page Views, Yahoo will deliver *** Page Views ("Extra Page Views") of US SEARCH Banner Advertisements as measured by Yahoo's online
reporting system, between February 1, 2001 and March 31, 2001. 

    D.  In
addition to and in separate locations from the Total Page Views, Yahoo will deliver, in its United States based properties, run of network Page Views
("Additional Page Views") of US SEARCH Banners during the Extended Term as measured by Yahoo's online reporting system, as follows: (i) from March 1, 2001 through May 31, 2001
Yahoo will deliver *** Additional Page Views per month, (ii) beginning June 1, 2001 to May 31, 2002 Yahoo will 

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deliver *** Additional Page Views per three (3) month period and (iii) for the months of June 2002 and July 2002 Yahoo will deliver *** Additional Page Views for the two
(2) month period. 

    E.  Reports:
Yahoo will make available on a daily basis to US SEARCH, through its online reporting system, the page view, click and click-through rate data by day by
specific US SEARCH Link at each specific location for all US SEARCH Search Modules, Enhanced Graphic Links, US SEARCH Wide Buttons, US SEARCH GRAPHIC Links, US SEARCH Banners, and their associated
text links. For all other hard coded text links the report stated above will be made on a monthly basis due no later then seven (7) calendar days after the end of the preceding month. 

    F.  Furthermore,
Yahoo will permit US SEARCH, at US SEARCH's expense, to retain a reputable, independent certified public accounting firm that is reasonably acceptable
to Yahoo solely for the purpose of reviewing, at a mutually agreed upon time during normal business hours, those records of Yahoo that relate to the calculation of Total Page Views, Additional Page
Views, Extra Page Views and Click, due to US SEARCH under this Agreement. In the event that any review reveals an under delivery of more than ten (10) percent, Yahoo will pay the costs of such
review, including, but not limited to, the costs and fees of the accounting firm selected by US SEARCH. Any under delivery will result in a "make good" as set forth in section 7.4. 

	2.11
	Deletion of Section 7.2. Section 7.2 of the Agreement is deleted in its entirety and replaced with the following: 

    7.2 Intentionally
left blank. 

	2.12
	Deletion of Section 7.3. Section 7.3 of the Agreement is deleted in its entirety and replaced with the following: 

    7.3 In
the event that a US SEARCH Link(s) is under performing in US SEARCH's good faith opinion, US SEARCH may reasonably request that the Link be moved within Yahoo
and/or the Link may be modified, altered or replaced consistent the terms and conditions stated herein to optimize the Link's performance. Yahoo shall in good faith use commercially reasonable efforts
to make the requested change within a reasonable amount of time. US SEARCH understands that Yahoo may not be able to make all requests as specified after having used commercially reasonable efforts. 

	2.13
	Amendment of Section 7.4. Section 7.4 of the Agreement is amended as follows: 

    7.4 In
the event that Yahoo fails to deliver the Total Page Views, Extra Page Views, Additional Page Views and/or Clicks by the expiration of the Extended Term, Yahoo
will "make good" the shortfall by extending its obligations for place under sections 2 and 7.1 beyond the Extended Term until such Total Page Views and/or Clicks obligations are satisfied. The
provisions set forth in this Section 7.4 set forth the entire liability of Yahoo and US SEARCH's sole remedy, for Yahoo's breach of its Total Page View, Extra Page Views, Additional Page Views
and/or Clicks obligation herein. 

	2.14
	Amendment of Section 8.1. Section 8.1 of the Agreement is deleted in its entirety and replaced with the following: 

    8.1 Fees.

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	(A)
	In
consideration of Yahoo's performance and obligations as set forth herein, US SEARCH will pay Yahoo on each date set forth in  Exhibit M ("Date"), the payment set forth opposite each such Date (the
"Payment"). Each such Payment shall be non-refundable. ***.

	(B)
	In
additional to the Total Contract Payment, US SEARCH shall pay to Yahoo, on a monthly basis, *** that result from the Total Page Views that takes place after August 1,
2001, up to *** during the Extended Term ("*** Payment"). Each monthly Click Payment will be paid to Yahoo within fifteen (15) calendar days after receipt of an invoice for *** form the Total
Page Views.

	(C)
	In
addition to the Total Contract Payment and *** Payment, US SEARCH will pay to Yahoo a *** equal to *** generated by 1) following a link from the Additional Page Views
displayed on the Yahoo site, to the US SEARCH site; 2) purchasing any US SEARCH service or product from the web site using US SEARCH's Automated Ordering System; 3) accepting delivery of
the products or services at the shipping destination; and 4) remitting payment to US SEARCH. For the purpose of determining *** all calculations of *** generated as a result of this Amendment,
shall be net of shipping and handling, any taxes, fees, charge-backs, refunds, set asides and off sets ("Commission"). US SEARCH will pay such *** to Yahoo on a quarterly basis within fifteen
(15) days after the end of the previous quarter. US SEARCH will permit Yahoo, at Yahoo's expense, to retain a reputable, independent certified public accounting firm that is reasonably
acceptable to US SEARCH solely for the purpose of reviewing, at a mutually agreed upon time during normal business hours, those records of US SEARCH that relate to the calculation of Commission due to
Yahoo under this Agreement. In the event that any review reveals an underpayment of more than ten percent (10%), US SEARCH will pay the costs of such review, including, but not limited to, the costs
and fees of the accounting firm selected by Yahoo. 

	2.15
	Amendment of Section 8.2. Section 8.2 is modified as follows: 

    8.2 Payment Information. Reference to "Exhibit H" is deleted and replaced with "Exhibit O". 

	2.16
	Amendment of Section 9. Section 9 of the Agreement is deleted in its entirety and replaced with the following: 

    9.1 Term. This Agreement shall commence upon the Effective Date and, unless terminated as provided herein, shall remain
in effect through the expiration of the Extended Term, unless earlier terminated pursuant to the terms and conditions stated herein. 

    9.2 Termination by Yahoo. This Agreement may be terminated by Yahoo with ten (10) days written notice to US
SEARCH (a) if US SEARCH does not pay the fees due to Yahoo according to the schedules set forth herein, or (b) in the event that the US SEARCH Site is no longer competitive with other
similar services (as determined, to the extent practical, over a reasonable period of time, by an independent third party and in light of the number and quality of customer, ability to locate people
and database offerings), unless the deficiencies in the US SEARCH Site are cured by US SEARCH within the notice period. 

    9.3 Termination by Either Party with Cause. This Agreement may be terminated at any time by either party:
(i) immediately upon written notice if the other party: (a) becomes insolvent; (b) files a petition in bankruptcy; or (c) makes an assignment for the benefit of its
creditors; or (ii) thirty (30) days after written notice to the other party of such other party's material breach of any of its obligations under this Agreement (ten (10) days in
the case of a failure to pay), which breach is 

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not cured within such notice period. Notwithstanding the preceding cure period, if US SEARCH receives notice of a material breach, and US SEARCH can establish to Yahoo's reasonable satisfaction that
(a) the nature of the breach is one that can not reasonably be cured within a thirty (30) day period, and (b) US SEARCH has been using reasonable efforts to cure such breach, then
so long as US SEARCH is taking all reasonable steps to cure such breach, the cure period shall be extended as necessary to cure, but in no event shall the total cure period exceed ninety
(90) days. In the event that Yahoo provides a notice of termination under this Section 9.3, Yahoo shall have the right to suspend performance under Sections 2 and 3 of this Agreement for
the notice period unless and until the breach is fully remedied by US SEARCH prior to the expiration of the notice period. 

    9.4 Survival. The provisions of Sections 1 and 10-14 shall survive expiration or termination of this
Agreement. 

	2.17
	Insertion of Exhibits. Exhibits M, N, and O as attached herein will be incorporated into the Agreement and become an integral part
of the Agreement.

	2.18
	Amendment of Exhibits. 

    A.  Exhibits
A - I are deleted and replaced in their entirety with the attachments hereto. 

    B.  Exhibit J
is deleted and replaced with an updated Insertion Order attachment hereto. 

    C.  Deletion
of Exhibits. Exhibit L is hereby deleted in its entirety and intentionally left blank. 

Section 3. Miscellaneous.  

	3.1
	Execution of Counterparts. This Second Amendment may be executed in any number of counterparts, all of which taken together will
constitute a single instrument. Execution and delivery of this Second Amendment may be evidenced by facsimile transmission.

	3.2
	Entire Agreement. This Second Amendment constitutes the entire agreement between Yahoo and US SEARCH with respect to the subject
matter of this Second Amendment, and there are no representations, understandings or agreements relating to the subject matter of this Second Amendment that are not fully expressed in this Second
Amendment. Except as specifically amended by this Second Amendment, all of the terms and conditions of the Agreement remain in full force and effect.

	3.3
	Order of Precedence. In the event the terms and conditions of this Agreement as amended conflict with the terms and conditions of any
Exhibit attached hereto and made a part hereof, the terms and condition of this Agreement as amended shall take precedence. 

[Signature
Page Follows] 

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    The
parties have caused this Second Amendment to Advertising and Promotion Agreement to be executed by their duly authorized representatives as of the date first written above. 

	YAHOO! INC.	 	US SEARCH.com, INC.
	

By:	

/s/	
 	

By:	

/s/
	 	
	 	 	

	

Name:	

 	
 	

Name:	

 
	 	
	 	 	

	

Title:	

 	
 	

Title:	

 
	 	
	 	 	

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Exhibit A    
  

   

8

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Exhibit B    
  

   

9

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Exhibit C    
  

   

10

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Exhibit D    
  

   

11

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Exhibit E    
  

   

12

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Exhibit F    
  

   

13

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Exhibit G    
  

   

14

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Exhibit H    
  

***  

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    Exhibit I    
  

***  

16

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    Exhibit J
  
    Insertion Order    
  

***  

17

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Exhibit M    
  

***  

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    Exhibit N
  
    MUTUAL NON-DISCLOSURE AGREEMENT    
  

    This Agreement governs the disclosure of information by and between Yahoo! Inc., a California corporation, and U.S. SEARCH.com, Inc.
("Participant"). 

    1.  The
"Confidential Information" is that confidential, proprietary, and trade secret information being disclosed by the disclosing party described as (please be
specific): 

    (a) Yahoo
Confidential Information (owned by Yahoo and any of its affiliates): All business and technical information regarding Yahoo, including not only proprietary
information belonging to Yahoo, but also proprietary information belonging to or regarding the business of Yahoo's clients, customers, consultants, licensees, affiliates or other third parties,
conveyed in whatever form, whether by written, oral, visual, electronic or by any other means. 

    (b) Participant
Confidential Information 

    2.  Except
as set forth in this Section 2, all Confidential Information shall be in tangible form and shall be marked as Confidential or proprietary information
of the disclosing party. If the Confidential Information is disclosed orally or visually, it shall be identified as such at the time of disclosure and confirmed in a writing to the recipient within
thirty (30) days of such disclosure. 

    3.  Each
of the parties agrees that it will not make use of, disseminate, or in any way disclose any Confidential Information of the other party to any person, firm or
business, except to the extent necessary for negotiations, discussions, and consultations with personnel or authorized representatives of the other party and any purpose the other party may hereafter
authorize in writing. Each of the parties agrees that it shall disclose Confidential Information of the other party only to those of its employees who need to know such information and who have
previously agreed, either as a condition to employment or in order to obtain the Confidential Information, to be bound by terms and conditions substantially similar to those of this Agreement. 

    4.  There
shall be no liability for disclosure or use of Confidential Information which is (a) in the public domain through no fault of the receiving party
(b) rightfully received from a third party without any obligation of confidentiality, (c) rightfully known to the receiving party without any limitation on use or disclosure prior to its
receipt from the disclosing party, (d) independently developed by the receiving party (e) generally made available to third parties without any restriction on disclosure, or
(f) communicated in response to a valid order by a court or other governmental body, as otherwise required by law, or as necessary to establish the rights of either party under this Agreement
(provided that the party so disclosing has provided the other party with a reasonable opportunity to seek protective legal treatment for such Confidential Information). 

    5.  "Residual
Information" shall mean any Confidential Information of the disclosing party which may be retained in intangible form in the minds of those individuals of
the receiving party who have had proper access to such Confidential Information. Notwithstanding anything else in this Agreement, the receiving party shall be free to use any Residual Information for
any purpose whatsoever, including, without limitation, the development of its own products, or business, provided that such party shall not 

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be entitled to disclose Residual Information to any third parties unless such disclosure is in the course of, or as part of, any disclosure of its own products or business or their development. 

    6.  Each
of the parties agrees that it shall treat all Confidential Information of the other party with the same degree of care as it accords to its own Confidential
Information, and each of the parties represents that it exercises reasonable care to protect its own Confidential Information. 

    7.  Each
of the parties agrees that it will not modify, reverse engineer, decompile, create other works from, or disassemble any software programs contained in the
Confidential Information of the other party unless otherwise specified in writing by the disclosing party. 

    8.  All
materials (including, without limitation, documents, drawings, models, apparatus, sketches, designs and lists) furnished to one party by the other, and which
are designated in writing to be the property of such party, shall remain the property of such party and shall be returned to it promptly at its request, together with any copies thereof. 

    9.  This
Agreement shall govern all communications between the parties that are made during the period from the effective date of this Agreement to the date on which
either party receives from the other written notice that subsequent communications shall not be so governed, provided, however, that each party's obligations under Sections 2 and 3 with respect to
Confidential Information of the other party which it has previously received shall continue unless and until such Confidential Information falls within Sections 4 or 5. Neither party shall communicate
any information to the other in violation of the proprietary rights of any third party. Neither party acquires any licenses under any intellectual property rights of the other party under this
Agreement. 

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Exhibit O
  
    Wire Transfer Instructions    
  

***  

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QuickLinks

Exhibit 10.27

SECOND AMENDMENT TO ADVERTISING AND PROMOTION AGREEMENT

BACKGROUND

AGREEMENT

Exhibit A

Exhibit B

Exhibit C

Exhibit D

Exhibit E

Exhibit F

Exhibit G

Exhibit H

Exhibit I

Exhibit J Insertion Order

Exhibit M

Exhibit N MUTUAL NON-DISCLOSURE AGREEMENT

Exhibit O Wire Transfer Instructions

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