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Exhibit 10.49    
  

 
 

WAIVER AND AMENDMENT NUMBER ONE TO LOAN AND SECURITY AGREEMENT    
  

        This Waiver and Amendment Number One to Loan and Security Agreement ("Amendment") is entered into as of
March 27, 2002, among US SEARCH.COM, INC., a Delaware corporation ("USI") and  PROFESSIONAL RESOURCE SCREENING,
INC., a Delaware corporation ("PRSI"), formerly known as US SEARCH
SCREENING SERVICES, INC., a Delaware corporation ("Screening") (each a "Borrower", and
collectively, jointly and severally, the "Borrowers"), on the one hand, and COMERICA
BANK—CALIFORNIA, successor by merger to Imperial Bank ("Bank"), on the other hand, and in light of the following: 

	A.
	USI
and Bank have previously entered into that certain Loan and Security Agreement, dated as of September 12, 2001 (as amended from time to time, the
"Loan Agreement").

	B.
	USI,
Screening and Bank have previously entered into that certain Forbearance Agreement, dated as of December 24, 2001 (the "Forbearance
Agreement"), and that certain Joint and Several Borrower Rider, dated as of December 24, 2001 (the "Rider"), whereby,
among other things, Screening became a Borrower under the Loan Agreement. In connection with the Loan Agreement, the Forbearance Agreement, and the Rider, Borrowers and Bank have entered into various
other agreements (such agreements, together with the Loan Agreement, the Forbearance Agreement, and the Rider, are collectively referred to herein as the "Loan
Documents").

	C.
	Events
of Default occurred under the terms of the Loan Documents as a result of: (i) Borrowers' failure to comply with Financial Statements, Reports, Certificates covenant set
forth in Section 6.2 of the Loan Agreement for the month ending January 31, 2002, failure to comply with such covenant being an Event of Default under Section 8.2 of the Loan
Agreement, and (ii) Borrowers' failure to comply with the Compliance with VISA Merchant Card Services covenants set forth in Section 6.10(a) and Section 6.10(b) of the Loan
Agreement for the month ending January 31, 2002, failure to comply with
such covenants being an Event of Default under Section 8.2 of the Loan Agreement (collectively, the "Existing Defaults").

	D.
	Screening
changed its name to PRSI pursuant to that certain Certificate of Amendment of Articles of Incorporation, dated as February 25, 2002.

	E.
	Borrowers
and Bank desire to amend the Loan Agreement and to waive the Existing Defaults in accordance with the terms and conditions contained herein. 

        NOW, THEREFORE, Borrowers and Bank hereby amend and supplement the Loan Agreement as follows: 

        1.    DEFINITIONS.    All initially capitalized terms used in this Amendment shall have the
meanings given to them in the Loan Agreement unless specifically defined herein. 

        2.    WAIVER.    Bank hereby waives the Events of Default arising out of the Existing
Defaults. This waiver applies only to the Existing Defaults and shall not in any way affect any other obligation, agreement or covenant of Borrowers, or any right or remedy of Bank, under the Loan
Agreement, as amended hereby. 

        3.    AMENDMENTS    

	(a)
	All
references to "US Search Screening Services, Inc., a Delaware corporation" or "Screening" in the Loan Agreement and all other Loan Documents shall be and mean, and shall be
revised to say, "Professional Resource Screening Services, Inc., a Delaware corporation". 

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	(b)
	Section 2.1
of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

	2.1
	Credit Extensions. Borrower promises to pay to Bank, in lawful money of the United States of America, the aggregate unpaid principal
amount of all Credit Extensions made by Bank to Borrower, together with interest on the unpaid principal amount of such Credit Extensions at rates in accordance with the terms hereof.

	(a)
	Revolving Advances.

	(i)
	Amount. Subject to and upon the terms and conditions of this Agreement (1) Borrower may request
Advances in an aggregate outstanding amount not to exceed the Committed Revolving Line, and (2) amounts borrowed pursuant to this Section 2.1(a) may be repaid and reborrowed at any time
prior to the Revolving Maturity Date, at which time all Advances under this Section 2.1(a) shall be immediately due and payable. Borrower may prepay any Advances without penalty or premium.

	(ii)
	Form of Request. Whenever Borrower desires an Advance, Borrower will notify Bank by facsimile
transmission or telephone no later than 3:00 p.m. Pacific time, on the Business Day that the Advance is to be made. Each such notification shall be promptly confirmed by a Payment/Advance Form
in substantially the form of Exhibit C. Bank is authorized to make Advances under this Agreement, based upon instructions received from a
Responsible Officer or a designee of a Responsible Officer, or without instructions if in Bank's discretion such Advances are necessary to meet Obligations which have become due and remain unpaid.
Bank shall be entitled to rely on any telephonic notice given by a person who Bank reasonably believes to be a Responsible Officer or a designee thereof, and Borrower shall indemnify and hold Bank
harmless for any damages or loss suffered by Bank as a result of such reliance. Bank will credit the amount of Advances made under this Section 2.1(a) to Borrower's deposit account. 

	(b)
	Borrowing Base Advances.

	(i)
	Amount. If no availability exists under the Committed Revolving Line, then (1) Borrower may
request Borrowing Base Advances in an aggregate outstanding amount not to exceed the lesser of (A) the Borrowing Base Line or (B) the Borrowing Base, and (2) amounts borrowed
pursuant to this Section 2.1(b) may be repaid and reborrowed at any time prior to the Revolving Maturity Date, at which time all Borrowing Base Advances under this Section 2.1(b) shall
be immediately due and payable. Borrower may prepay any Borrowing Base Advances without penalty or premium.

	(ii)
	Form of Request. Whenever Borrower desires a Borrowing Base Advance, Borrower will notify Bank by
facsimile transmission or telephone no later than 3:00 p.m. Pacific time, on the Business Day that the Borrowing Base Advance is to be made. Each such notification shall be promptly confirmed
by a Payment/Advance Form in substantially the form of Exhibit C. Bank is authorized to make Advances under this Agreement, based upon instructions received from a Responsible Officer or a
designee of a Responsible Officer, or without instructions if in Bank's discretion such Borrowing Base Advances are necessary to meet Obligations which have become due and remain unpaid. Bank shall be
entitled to rely on any telephonic notice given by a person who Bank reasonably believes to be a Responsible Officer or a designee thereof, and Borrower shall indemnify and hold Bank harmless for any
damages or 

2

 

loss suffered by Bank as a result of such reliance. Bank will credit the amount of Borrowing Base Advances made under this Section 2.1(b) to Borrower's deposit account. 

	(c)
	Equipment Advances.

	(i)
	Subject
to and upon the terms and conditions of this Agreement, Bank agrees to make advances (each an "Equipment Advance" and, collectively, the
"Equipment Advances") to Borrower at any time from the date hereof through the Equipment Advance Availability End Date. The aggregate outstanding amount of Equipment Advances shall not exceed the
Equipment Line. And Bank may advance up to 30% of the aggregate amount of outstanding Equipment Advances as Software Equipment Advances; provided,  however,
that each Software Equipment Advance shall be in a minimum amount of $100,000. Each Equipment Advance shall not exceed 100% of the invoice
amount of equipment and software approved by Bank from time to time (which Borrower shall, in any case, have purchased within 60 days of the date of the corresponding Equipment Advance),
excluding taxes, shipping, warranty charges, freight discounts, installation expense, and other such soft costs.

	(ii)
	At
the time of each Hardware Advance, the aggregate of the then outstanding principal balance of the Hardware Advances, if any, shall be added to the
new Hardware Advance and the total aggregate balance of both shall be payable in equal monthly installments, including all accrued interest thereon, on the last day of each month commencing on the
first (1st) full calendar month following the initial advance and each such subsequent advance hereunder and continuing on the last day of each succeeding month until the Equipment Maturity Date, at
which time all amounts due in connection with the Hardware Advances made under this Section 2.1(c) and any other amounts due under this Agreement shall be immediately due and payable.

	(iii)
	Interest
on each Software Equipment Advance shall begin to accrue on the funding date of the relevant Software Equipment Advance. Each Software
Equipment Advance shall be payable in eighteen (18) equal monthly principal installments, plus all accrued interest, beginning on the date that is one month after such Software Equipment
Advance is funded and continuing on the same day of each subsequent month thereafter (or on the last day of the month if the date of funding was on the 31st day of any month) through the
date that is 18 months after such Software Equipment Advance funding date.

	(iv)
	Equipment
Advances may not be prepaid. Any Equipment Advance or portion thereof, once repaid may not be reborrowed.

	(v)
	When
Borrower desires to obtain an Equipment Advance, Borrower shall notify Bank (which notice shall be irrevocable) by facsimile transmission to be
received no later than 3:00 p.m. Pacific time one Business Day before the day on which the Equipment Advance is to be made. Such notice shall be substantially in the form of  Exhibit C. The
notice shall be signed by a Responsible Officer or its designee and include a copy of the invoice for any Equipment to be
financed. 

	(d)
	Letter of Credit.

	(i)
	Bank
issued for the account of Borrower a standby letter of credit (ID No. 569842), with a maturity date of November 30, 2002
("Letter of Credit"). On each and every L/C Commitment Reduction Date, Bank shall reduce the L/C Commitment in such amount and the stated amount of the
Letter of Credit shall reduce, per the terms of 

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the
Letter of Credit, to an amount not greater than the L/C Commitment as reduced and in effect on such date. Borrower will pay any standard fees that Bank notifies Borrower will be charged for
processing the Letter of Credit. 

	(ii)
	Borrower
agrees to grant and pledge to Bank a continuing security interest in the Second TCD to secure prompt repayment of the Letter of Credit. Such
security interest shall constitute a valid, first priority security interest in the Second TCD, and will constitute a valid, first priority security interest in accrued interest or proceeds therefrom.
Notwithstanding any termination, Bank's Lien on the Second TCD shall remain in effect for so long as the Letter of Credit is outstanding. 

	(c)
	Section 2.2
of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

	2.2
	Overadvances. If the aggregate amount of the outstanding Advances, Borrowing Base Advances and Equipment Advances exceeds the Maximum
Commitment at any time, Borrower shall immediately pay to Bank, in cash, the amount of such excess.

	(d)
	Section 2.3(a)
of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

	(a)
	Interest Rates.

	(i)
	Advances, Borrowing Base Advances, and Letter of Credit. Except as set forth in Section 2.3(b)
the Advances, the Borrowing Base Advances, and any drawn but unreimbursed amounts under the Letter of Credit shall bear interest, on the outstanding daily balance thereof, at a rate equal to 2.50%
above the Prime Rate.

	(ii)
	Equipment Advances. Except as set forth in Section 2.3(b) the Equipment Advances shall bear
interest, on the outstanding daily balance thereof, at a rate equal to 2.75% above the Prime Rate. 

	(e)
	Section 2.3(c)
of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

	(c)
	Interest
on the Advances shall be due and payable on the last calendar day of each month during the term hereof. Any interest not paid when due shall be compounded by becoming a part
of the Obligations, and such interest shall thereafter accrue interest at the rate then applicable hereunder. Bank shall, at its option, charge such interest, all Bank Expenses, and all Periodic
Payments against any of Borrower's deposit accounts, including Account Number 38-059-297 (such debits are not a setoff), or against the Committed Revolving Line or, if no
availability exists under the Committed Revolving Line, then against the Borrowing Base Line, in which case those amounts shall thereafter accrue interest at the rate then applicable hereunder. 

	(f)
	Section 5.3
of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

	5.3
	Collateral. Borrower has good title to the Collateral, free and clear of Liens, except for Permitted Liens. The Eligible Accounts are
bona fide existing obligations. The property giving rise to such Eligible Accounts has been delivered to the account debtor or its agent for immediate shipment to and unconditional acceptance by the
account debtor. Borrower has not received notice of actual or imminent Insolvency Proceeding of any account debtor whose accounts are included in any Borrowing Base Certificate as an Eligible Account.
All Inventory is in all material respects of 

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good
and marketable quality, free from all material defects, except for Inventory for which adequate reserves have been made. 

	(g)
	Section 6.2
is hereby amended and restated in its entirety to read as follows:

	6.2
	Financial Statements, Reports, Certificates. Borrower shall deliver to Bank: (a) as soon as available, but in any event within
30 days after the end of each calendar month, a company prepared consolidated balance sheet and income statement covering Borrower's consolidated operations during such period, in a form
acceptable to Bank and certified by a Responsible Officer; (b) as soon as available, but in any event within 90 days after the end of Borrower's fiscal year commencing
December 31, 2001, audited consolidated financial statements of Borrower prepared in accordance with GAAP, consistently applied, together with an opinion which is unqualified or otherwise
consented to in writing by Bank on such financial statements of an independent certified public accounting firm reasonably acceptable to Bank; (c) if applicable, copies of all statements,
reports and notices sent or made available generally by Borrower to its security holders or to any holders of Subordinated Debt and all reports on Forms 10-K and 10-Q filed
with the Securities and Exchange Commission; (d) promptly upon receipt of notice thereof, a report of any legal actions pending or threatened against Borrower or any Subsidiary that could
result in damages or costs to Borrower or any Subsidiary of $100,000 or more; (e) such budgets, sales projections, operating plans or other financial information generally prepared by Borrower
in the
ordinary course of business as Bank may reasonably request from time to time, including the minutes from Borrower's board of directors; and (f) within 30 days of the last day of each
fiscal quarter, a report signed by Borrower, in form reasonably acceptable to Bank, listing any applications or registrations that Borrower has made or filed in respect of any Patents, Copyrights or
Trademarks and the status of any outstanding applications or registrations, as well as any material change in Borrower's Intellectual Property Collateral, including but not limited to any subsequent
ownership right of Borrower in or to any Trademark, Patent or Copyright not specified in Exhibits A, B,
and C of the Intellectual Property Security Agreement delivered to Bank by Borrower in connection with this Agreement.

	(a)
	Within
30 days after the last day of each month, Borrower shall deliver to Bank with the monthly financial statements a Compliance Certificate signed by a Responsible Officer
in substantially the form of Exhibit D hereto. 

5

  

	(b)
	Within
20 days after the last day of each month, and in addition, in connection with each request of a Borrowing Base Advance, Borrower shall deliver to Bank a Borrowing Base
Certificate signed by a Responsible Officer in substantially the form of Exhibit E hereto, together with aged listings of accounts receivable and
accounts payable.

	(c)
	Bank
shall have a right from time to time hereafter to audit Borrower's Accounts and appraise Collateral during normal business hours at Borrower's expense.

	(d)
	Borrower
shall immediately provide Bank with a detailed schedule of all equipment purchases and associated expenses in connection with each Equipment Advance.

	(e)
	On
the fifth (5th) and twentieth (20th) day of every month, Borrower shall deliver to Bank a cash flow report, signed by a Responsible Officer, in form reasonably
acceptable to Bank, which cash flow report shall include 3 weeks trailing (actual) cash flow and 6 weeks forward (projected) cash flow.

	(f)
	On
or before November 30, 2002, Borrower shall deliver the Plan Projections to Bank.

	(h)
	Section 6.6
of the Loan Agreement is hereby amended and restated in its entirety to read as follows: 

	6.6
	Primary Depository; First TCD and Second TCD.

	(a)
	Borrower
shall maintain its primary depository and operating accounts with Bank or Bank's affiliates.

	(b)
	Effective
March 31, 2002, Borrower shall maintain not less than $1,250,000 of its unrestricted cash and cash equivalents in deposit or investment accounts with Bank or Bank's
Affiliates (subject to control agreements if with Affiliates) at all times.

	(c)
	Borrower
shall maintain the First TCD and Second TCD at Bank, such amount of Second TCD reducing per reduction of the L/C Commitment on the L/C Commitment Reduction Dates.

	(i)
	Section 6.7
of the Loan Agreement is hereby amended and restated in its entirety to read as follows: 

	6.7
	Financial Covenants. Borrower shall maintain, as of the last day of each calendar month unless stated otherwise:

	(a)
	Operating Performance. Effective March 2002, and continuing monthly thereafter, actual company revenues of no less than 75% of
the Plan Projections;

	(b)
	Minimum EBITDA. Effective August 31, 2002, and monthly thereafter, an EBITDA calculated on a two month trailing average of at
least $1.00; and

	(c)
	Debt/Tangible Net Worth Ratio. Effective March 31, 2002, a ratio of Total Liabilities less Subordinated Debt to Tangible Net
Worth plus Subordinated Debt of not more than 1.50 to 1.00.

	(j)
	Section 6.10(b)
of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

	(b)
	Commencing
on or before April 30, 2002, and continuing up to and including April 30, 2003, Borrower shall cause itself to be removed from VISA's Merchant Chargeback
Monitoring Program (the "Program"). 

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	(k)
	Section 8
of the Loan Agreement is further amended by adding the following clause (8.10): 

	8.10
	Dissolution of Pequot. If Pequot Private Equity Fund II, L.P., a Delaware limited partnership
("Pequot"), during the term of this Agreement, unless Bank shall otherwise consent in writing, winds up, dissolves or otherwise terminates its corporate
existence, or consolidates with or merges with or into, or sells, loans or otherwise transfers all or substantially all of its assets to, any entity unless: (a) the
entity formed by a consolidation with or into which Pequot is merged or the entity that acquires all or substantially all of the assets of Pequot, as the case may be, shall be organized and existing
under the laws of the United States or any state thereof; (b) such entity shall expressly assume the obligations of Pequot under that certain Limited Guaranty, dated as of March 29,
2002, executed by Guarantor in favor of Bank (the "Guaranty"), in a written instrument duly authorized, executed and delivered to Bank; and (c) such entity shall have, immediately after the
consolidation, merger, transfer or loan, a net worth not less than the net worth of Pequot, and a debt to net worth ratio not greater than that of Pequot, in each case, as determined in accordance
with generally accepted accounting principles, and measured with respect to Pequot immediately before the consolidation, merger, transfer or loan.

	(l)
	Exhibit A of the Loan Agreement is hereby amended by adding the following new definition thereto in the appropriate alphabetical
order: 

"Borrowing
Base" means an amount equal to 80% of Eligible Accounts, as determined by Bank with reference to the most recent Borrowing Base Certificate delivered by Borrower. 

	(m)
	Exhibit A of the Loan Agreement is hereby amended by adding the following new definition thereto in the appropriate alphabetical
order: 

"Borrowing
Base Advance" or "Borrowing Base Advances" means a cash advance or cash advances under the Borrowing Base Facility. 

	(n)
	Exhibit A of the Loan Agreement is hereby amended by adding the following new definition thereto in the appropriate alphabetical
order: 

"Borrowing
Base Facility" means the facility under which Borrower may request Bank to issue Borrowing Base Advances, as specified in Section 2.3(b) hereof. 

	(o)
	Exhibit A of the Loan Agreement is hereby amended by adding the following new definition thereto in the appropriate alphabetical
order: 

"Borrowing
Base Line" means a Credit Extension of up to $1,000,000. 

	(p)
	The
definition of "Committed Revolving Line" in Exhibit A to the Loan Agreement is hereby amended and restated in its entirety to read as follows: 

"Committed
Revolving Line" means a Credit Extension of up to $2,000,000. 

	(q)
	The
definition of "Credit Extension" in Exhibit A to the Loan Agreement is hereby amended and restated in its entirety to read as follows: 

"Credit
Extension" means each Advance, Borrowing Base Advance, Equipment Advance, issuance of the Letter of Credit, or any other extension of credit by Bank for the benefit of Borrower hereunder. 

	(r)
	Exhibit A of the Loan Agreement is hereby amended by adding the following new definition thereto in the appropriate alphabetical
order: 

"Eligible
Accounts" means those Accounts that arise in the ordinary course of Borrower's business that comply with all of Borrower's representations and warranties to Bank set forth in
Section 5.3; provided, that Bank may change the standards of eligibility by giving Borrower 

7

 

30 days prior written notice. Unless otherwise agreed to by Bank, Eligible Accounts shall not include the following: 

	(a)
	Accounts
that the account debtor has failed to pay within 90 days of invoice date;

	(b)
	Accounts
with respect to an account debtor, 25% of whose Accounts the account debtor has failed to pay within 90 days of invoice date;

	(c)
	Accounts
with respect to which the account debtor is an officer, employee, or agent of Borrower;

	(d)
	Accounts
with respect to which goods are placed on consignment, guaranteed sale, sale or return, sale on approval, bill and hold, or other terms by reason of which the payment by the
account debtor may be conditional;

	(e)
	Accounts
with respect to which the account debtor is an Affiliate of Borrower;

	(f)
	Accounts
with respect to which the account debtor does not have its principal place of business in the United States;

	(g)
	Accounts
with respect to which the account debtor is the United States or any department, agency, or instrumentality of the United States;

	(h)
	Accounts
with respect to which Borrower is liable to the account debtor for goods sold or services rendered by the account debtor to Borrower, but only to the extent of any amounts
owing to the account debtor against amounts owed to Borrower;

	(i)
	Accounts
with respect to an account debtor, including Subsidiaries and Affiliates, whose total obligations to Borrower exceed 20% of all Accounts, to the extent such obligations
exceed the aforementioned percentage, except as approved in writing by Bank;

	(j)
	Accounts
with respect to any accounts receivables derived from any credit card transactions;

	(k)
	Accounts
with respect to which the account debtor disputes liability or makes any claim with respect thereto as to which Bank believes, in its sole discretion, that there may be a
basis for dispute (but only to the extent of the amount subject to such dispute or claim), or is subject to any Insolvency Proceeding, or becomes insolvent, or goes out of business; and

	(l)
	Accounts
the collection of which Bank reasonably determines after inquiry and consultation with Borrower to be doubtful.

	(s)
	Exhibit A of the Loan Agreement is hereby amended by adding the following new definition thereto in the appropriate alphabetical
order: 

"First
TCD" means that certain $550,000 time certificate of deposit account held by Bank, account number 942750000005786, and any replacement or substitution therefor, and the proceeds of any of the
foregoing. 

8

 

	(t)
	Exhibit A of the Loan Agreement is hereby amended by adding the following new definition thereto in the appropriate alphabetical
order: 

"L/C
Commitment" means the amount set forth in the table below opposite the applicable period: 

	Period
 
	 	L/C Commitment

	04/01/02—04/30/02	 	$	666,668
	05/01/02—05/31/02	 	$	583,335
	06/01/02—06/30/02	 	$	500,002
	07/01/02—07/31/02	 	$	416,669
	08/01/02—08/31/02	 	$	333,336
	09/01/02—09/30/02	 	$	250,003
	10/01/02—10/31/02	 	$	166,670
	11/01/02—11/30/02	 	$	83,337
	12/01/02	 	$	0

	(u)
	Exhibit A of the Loan Agreement is hereby amended by adding the following new definition thereto in the appropriate alphabetical
order: 

"L/C
Commitment Reduction Date" means the first day of April, May, June, July, August, September, October, and November, 2002. 

	(v)
	The
definition of "Letter of Credit Sublimit" in Exhibit A to the Loan Agreement is hereby deleted in its entirety and replaced
with the following: 

[Intentionally
Deleted.] 

	(w)
	Exhibit A of the Loan Agreement is hereby amended by adding the following new definition thereto in the appropriate alphabetical
order: 

"Maximum
Commitment" means a Credit Extension (excluding the stated amount of the Letter of Credit) of up to $3,000,000 

	(x)
	The
definition of "Plan Projections" in Exhibit A to the Loan Agreement is hereby amended and restated in its entirety to read
as follows: 

9

  

"Plan
Projections" means those certain projections for the following periods: (i) commencing March 1, 2002 through and including December 31, 2002 set forth in a business plan
delivered to Bank on or before April 1, 2002, and (ii) commencing January 1, 2003 through and including April 30, 2003 set forth in a business plan delivered to Bank on or
before January 1, 2003. 

	(y)
	The
definition of "Revolving Maturity Date" in Exhibit A to the Loan Agreement is hereby amended and restated in its entirety to
read as follows:p 

"Revolving
Maturity Date" means March 26, 2003. 

	(z)
	Exhibit A of the Loan Agreement is hereby amended by adding the following new definition thereto in the appropriate alphabetical
order: 

"Tangible
Net Worth" means, on any date, the consolidated total assets of Borrower and its Subsidiaries plus Subordinated Debt minus, (i) any
amounts attributable to (a) goodwill, (b) intangible items such as unamortized debt discount and expense, Patents, trade and service marks and names, Copyrights and research and
development expenses except prepaid expenses, and (c) reserves not already deducted from assets, and (ii) Total Liabilities. 

	(aa)
	Exhibit A of the Loan Agreement is hereby amended by adding the following new definition thereto in the appropriate
alphabetical order: 

"Second
TCD" means that certain $750,000 time certificate of deposit account held by Bank, account number 942750000006008, and any replacement or substitution therefor, and the proceeds of any of the
foregoing. The Second TCD shall be reduced per reduction of the L/C Commitment on the L/C Commitment Reduction Dates. 

	(bb)
	Exhibit A of the Loan Agreement is hereby amended by adding the following new definition thereto in the appropriate
alphabetical order: 

"Total
Liabilities" is on any day, obligations that should, under GAAP, be classified as liabilities on Borrower's consolidated balance sheet, including all Indebtedness, and current portion
Subordinated Debt allowed to be paid, but excluding all other Subordinated Debt. 

	(cc)
	Exhibit D of the Loan Agreement is hereby amended and restated in its entirety to read as attached hereto and incorporated by
this reference into the Amendment.

	(dd)
	A
new Exhibit E is hereby added to the Loan Agreement to read as attached hereto and incorporated by this reference into the
Amendment. 

        4.    REPRESENTATIONS AND WARRANTIES.    Borrowers hereby affirm to Bank that all of
Borrowers' representations and warranties set forth in the Loan Agreement are true, complete and accurate in all respects as of the date hereof. 

        5.    NO DEFAULTS.    Borrowers hereby affirm to Bank that, other than the Existing Defaults,
no Event of Default has occurred and is continuing as of the date hereof. 

        6.    CONDITIONS PRECEDENT.    The effectiveness of this Amendment (including the waiver of
the Existing Defaults under Section 2 hereof) is expressly conditioned upon the following: 

	(a)
	Receipt
by Bank of a fully earned, non-refundable Amendment Fee of $10,000;

	(b)
	Receipt
by Bank of a warrant to purchase 55,487 shares of USI's Common Stock at an exercise price per share equal to $0.85 per share, on Bank's form, with a 7-year
maturity, inclusive of certain provisions to include but not be limited to assignability to Bank's affiliates, antidilution protection and a net exercise provision, and on the same terms as provided
to 

10

 

Pequot
Private Equity Fund II, L.P., a Delaware limited partnership ("Pequot") in the last equity round, except that Bank shall have piggyback and
S-3 registration rights, duly executed and delivered by USI and Pequot to Bank; 

	(c)
	Receipt
by Bank of a limited continuing guaranty of the Obligations of Borrowers to Bank, in a form acceptable to Bank in its sole discretion, duly executed and delivered by Pequot to
Bank (the "Guaranty");

	(d)
	Receipt
by Bank of that certain Certified Certificate of Amendment of Articles of Incorporation, dated as of February 25, 2002, evidencing that Screening changed its name to
PRSI;

	(e)
	Filing
of amendments to financing statements as a result of Screening changing its name to PRSI; and

	(f)
	Receipt
by Bank of an executed copy of this Amendment. 

        7.    COSTS AND EXPENSES. Borrower shall pay to Bank all of Bank's out-of-pocket
costs and expenses (including, without limitation, the fees and expenses of its counsel, which counsel may include any local counsel deemed necessary, search fees, filing and recording fees,
documentation fees, appraisal fees, travel expenses, and other fees) arising in connection with the preparation, execution, and delivery of this Amendment, the Guaranty, and all related documents. 

        8.    LIMITED EFFECT. In the event of a conflict between the terms and provisions of this Amendment and
the terms and provisions of the Loan Agreement, the terms and provisions of this Amendment shall govern. In all other respects, the Loan Agreement, as amended and supplemented hereby, shall remain in
full force and effect. 

        9.    COUNTERPARTS; EFFECTIVENESS. This Amendment may be executed in any number of counterparts and by
different parties on separate counterparts, each of which when so executed and delivered shall be deemed to be an original. All such counterparts, taken together, shall constitute but one and the same
Amendment. This Amendment shall become effective upon the execution of a counterpart of this Amendment by each of the parties hereto. 

        *** 

        [remainder
of this page intentionally left blank] 

        ***

11

 

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

	 	 	COMMERICA BANK — CALIFORNIA
	

 	
 	
By:	

	

 	
 	

Title:	

	

 	
 	
US SEARCH, INC.

a Delaware corporation
	

 	
 	

By:	

	

 	
 	

Title:	

	

 	
 	
PROFESSIONAL RESOURCE SCREENING, INC.,

formerly known as
 US SEARCH SCREENING SERVICES, INC.

a Delaware corporation
	

 	
 	

By:	

	

 	
 	

Title:	

12

  

 
 

Exhibit D    
    

 
  COMPLIANCE CERTIFICATE    
  

TO:
COMERICA BANK—CALIFORNIA 

FROM:
US SEARCH.COM, INC. 

        The
undersigned authorized officer of US SEARCH.COM, INC. hereby certifies that in accordance with the terms and conditions of the Loan and Security Agreement between Borrower and
Bank (the "Agreement"), (i) Borrower is in complete compliance for the period ending                    with all required covenants, including
without limitation the ongoing registration of
intellectual property rights in accordance with Section 6.8, except as noted below and (ii) all representations and warranties of Borrower stated in the Agreement are true and correct in
all material respects as of the date hereof. Attached herewith are the required documents supporting the above certification. The Officer further certifies that these are prepared in accordance with
Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes. 

Please indicate compliance status by circling Yes/No under "Complies" column.  

	Reporting Covenant
 
	 	Required
 
	 	Complies

	Monthly financial statements*	 	Monthly within 30 days	 	Yes	 	No
	Annual (CPA Audited)	 	FYE within 120 days	 	Yes	 	No
	10K and 10Q	 	(as applicable)	 	Yes	 	No
	A/R & A/P Agings, Borrowing Base Cert	 	With each Borrowing Base Advance	 	Yes	 	No
	A/R Audit	 	Initial and Semi-annual	 	Yes	 	No
	IP Report	 	Quarterly within 30 days	 	Yes	 	No

	Financial Covenant
 
	 	Required
 
	 	Actual
 
	 	Complies

	Maintain on a Monthly Basis:	 	 	 	 	 	 	 	 
	 	1. Minimum Liquidity	 	
	 	
	 	Yes	 	No
	 	2. EBITDA Negative Variance	 	
	 	
	 	Yes	 	No
	 	3. Monthly Cash Burn	 	
	 	
	 	Yes	 	No
	 	4. Operating Performance	 	
	 	
	 	Yes	 	No
	 	5. Minimum EBITDA	 	
	 	
	 	Yes	 	No
	 	6. Debt/Tangible Net Worth Ratio	 	
	 	
	 	Yes	 	No

13

 

Comments Regarding Exceptions: See Attached. 

	 	 	BANK USE ONLY
	

 	
 	

Received by:

	Sincerely,	 	AUTHORIZED SIGNER
	

 	
 	

Date

	
	 	Verified:

	SIGNATURE	 	AUTHORIZED SIGNER
	
	 	Date:

	TITLE	 	 	 	 	 	 
	 	 	Compliance Status	 	Yes	 	No
	
	 	 	 	 	 	 
	DATE	 	 	 	 	 	 

	*
	Until
Borrower implements CVV-2, Borrower shall include within its monthly financial reporting to Bank, Pequot Capital's written certification that Borrower is observing a
"No Questions Asked" refund policy for billing disputes involving either fraud or customer dissatisfaction. 

14

 
 
 

Exhibit E    
  

 
 

BORROWING BASE CERTIFICATE    
  

Borrowers:
US SEARCH.COM, INC., and PROFESSIONAL RESOURCE SCREENING, INC. 

Lender:
Comerica Bank — California 

Commitment
Amount: $1,000,000 

	ACCOUNTS RECEIVABLE	 	 	 	 
	1.	 	Accounts Receivable Book Value as of	 	 	 	$__________
	2.	 	Additions (please explain on reverse)	 	 	 	$__________
	3.	 	TOTAL ACCOUNTS RECEIVABLE	 	 	 	$__________
	

ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)	
 	

 
	4.	 	Amounts over 90 days from invoice date	 	$__________	 	 
	5.	 	Balance of 25% over 90 day accounts	 	$__________	 	 
	6.	 	Concentration Limits	 	 	 	 
	7.	 	Foreign Accounts	 	$__________	 	 
	8.	 	Governmental Accounts	 	$__________	 	 
	9.	 	Contra Accounts	 	$__________	 	 
	10.	 	Demo Accounts	 	$__________	 	 
	11.	 	Intercompany/Employee Accounts	 	$__________	 	 
	12.	 	Other (please explain on reverse)	 	$__________	 	 
	13.	 	TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS	 	 	 	$__________
	14.	 	Eligible Accounts (#3 minus #13)	 	 	 	$__________
	15.	 	LOAN VALUE OF ACCOUNTS (    % of #14)	 	 	 	$__________
	

BALANCES	
 	

 	
 	

 
	16.	 	Maximum Loan Amount	 	 	 	$1,000,000
	17.	 	Total Funds Available [Lesser of #16 or #15]	 	 	 	$__________
	18.	 	Present balance owing on Borrowing Base Line	 	 	 	$__________
	19.	 	RESERVE POSITION (#17 minus #18 and #19)	 	 	 	$__________

        The undersigned represents and warrants that the foregoing is true, complete and correct, and that the information reflected in this Borrowing Base Certificate
complies with the representations and warranties set forth in the Loan and Security Agreement between the undersigned and Comerica Bank—California.

	US SEARCH.COM, INC.	 	PROFESSIONAL RESOURCE SCREENING, INC.
	

By:
	
 	

By:

	Authorized Signer	 	Authorized Signer

15

QuickLinks

Exhibit 10.49

WAIVER AND AMENDMENT NUMBER ONE TO LOAN AND SECURITY AGREEMENT

Exhibit D

COMPLIANCE CERTIFICATE

Exhibit E

BORROWING BASE CERTIFICATEQuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.50    
  

        THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE
TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION
IS NOT REQUIRED. 

 
 

WARRANT TO PURCHASE STOCK    
  

	Corporation:	 	US SEARCH.COM, INC., a Delaware Corporation
	Number of Shares:	 	55,487
	Class of Stock:	 	Common
	Initial Exercise Price:	 	$0.85 per share
	Issue Date:	 	March 27, 2002
	Expiration Date:	 	March 27, 2009 (Subject to Section 4.1)

        THIS
WARRANT CERTIFIES THAT, in consideration of the payment of $1.00 and for other good and valuable consideration, COMERICA BANK—CALIFORNIA, successor by merger to Imperial
Bank, or its assignee ("Holder") is entitled to purchase the number of fully paid and nonassessable shares of the class of securities (the "Shares") of the corporation (the "Company") at the Initial
Exercise Price per Share (the "Warrant Price"), subject to adjustment pursuant to Article 2 of this warrant, and further subject to the provisions and upon the terms and conditions set forth in
this warrant. 

ARTICLE
1. EXERCISE.  

        1.1    Cash Exercise.    Holder may exercise this warrant by delivering this warrant and a
duly executed Notice of Exercise in substantially the form attached as Appendix 1 to the principal office of the Company. Unless Holder is exercising the conversion right set forth in
Section 1.2, Holder shall also deliver to the Company a check for the aggregate Warrant Price for the Shares being purchased. 

        1.2    Net Issue Exercise.    In lieu of exercising this warrant as specified in Section 1.1, Holder may from
time to time elect to surrender this warrant, in whole or in part, at the principal office of the Company, in which event the Company shall issue to the Holder the number Shares determined by dividing
(a) the aggregate fair market value of the Shares or other securities otherwise issuable upon exercise of this warrant minus the aggregate Warrant Price of such Shares by (b) the fair
market value of one Share. The fair market value of the Shares shall be determined pursuant to Section 1.4. 

        1.3    Right to Put Warrant.    At Holder's option, in lieu of exercising its rights as set forth in Sections 1.1 or
1.2, Holder shall have the right to require the Company to purchase the warrant under the circumstances set forth on Exhibit A. 

        1.4    Fair Market Value.    If the Shares are traded regularly in a public market, the fair market value of the
Shares shall be the closing price of the Shares (or the closing price of the Company's stock into which the Shares are convertible) reported for the business day immediately before Holder delivers its
Notice of Exercise to the Company. If the Shares are not regularly traded in a public market, the Board of Directors of the Company shall determine fair market value in its reasonable good faith
judgment. The foregoing notwithstanding, if Holder advises the Board of Directors in writing that Holder disagrees with such determination, then the Company and Holder shall promptly agree upon a
reputable investment banking firm to undertake such valuation. If the valuation of such investment banking firm is greater than that determined by the Board of Directors by five percent (5%) or more, 

1

 

then all fees and expenses of such investment banking firm shall be paid by the Company. In all other circumstances, such fees and expenses shall be paid by Holder. 

        1.5    Delivery of Certificate and New Warrant.    Promptly after Holder exercises or converts this warrant, the
Company shall deliver to Holder certificates for the Shares acquired and, if this warrant has not been
fully exercised or converted and has not expired, a new warrant representing the Shares not so acquired. 

        1.6    Replacement of Warrants.    On receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the
case of mutilation, on surrender and cancellation of this warrant, the Company at its expense shall execute and deliver, in lieu of this warrant, a new warrant of like tenor. 

        1.7    Repurchase on Sale, Merger, or Consolidation of the Company.    

	 	1.7.1	"Acquisition." For the purpose of this warrant, "Acquisition" means any sale, license, or other disposition of all or substantially all of the assets (including intellectual
property) of the Company, or any reorganization, consolidation, or merger of the Company where the holders of the Company's securities before the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity
after the transaction.
	

 	

1.7.2	
Assumption of Warrant. If upon the closing of any Acquisition the successor entity assumes the obligations of this warrant, then this warrant shall be exercisable for the same securities,
cash, and property as would be payable for the Shares issuable upon exercise of the unexercised portion of this warrant as if such Shares were outstanding on the record date for the Acquisition and subsequent closing. The Warrant Price shall be
adjusted accordingly. The Company shall use reasonable efforts to cause the surviving corporation to assume the obligations of this warrant.
	

 	

1.7.3	
Nonassumption. If upon the closing of any Acquisition the successor entity does not assume the obligations of this warrant and Holder has not otherwise exercised this warrant in full, then
Holder shall have the option either to (a) deem this warrant to have been automatically converted pursuant to Section 1.2 and thereafter Holder shall participate in the Acquisition on the same terms as other holders of the same class of
securities of the Company; or (b) require the Company to purchase this warrant for cash upon the closing of the Acquisition for an amount per Share equal to the Warrant Price.

ARTICLE
2. ADJUSTMENTS TO THE SHARES.

        2.1    Stock Dividends, Splits, Etc.    If the Company declares or pays a dividend on its common stock payable in
common stock, or other securities, subdivides the outstanding common stock into a greater amount of common stock, then upon exercise of this warrant, for each Share acquired, Holder shall receive,
without cost to Holder, the total number and kind of securities to which Holder would have been entitled had Holder owned the Shares of record as of the date the dividend or subdivision occurred. 

        2.2    Reclassification, Exchange or Substitution.    Upon any reclassification, exchange, substitution, or other
event that results in a change of the number and/or class of the securities issuable upon exercise or conversion of this warrant, Holder shall be entitled to receive, upon exercise or conversion of
this warrant, the number and kind of securities and property that Holder would have received for the Shares if this warrant had been exercised immediately before such reclassification, exchange,
substitution, or other event. Such an event shall include any automatic conversion of the outstanding or issuable securities of the Company of the same class or series as the Shares to common stock
pursuant to the terms of the Company's Articles of Incorporation upon the closing of a registered public offering of the Company's common stock. The Company or its successor shall promptly issue to
Holder a new 

2

 

warrant for such new securities or other property. The new warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this
Article 2 including, without limitation, adjustments to the Warrant Price and to the number of securities or property issuable upon exercise of the new warrant. The provisions of this
Section 2.2 shall similarly apply to successive reclassifications, exchanges, substitutions, or other events. 

        2.3    Adjustments for Combinations, Etc.    If the outstanding Shares are combined or consolidated, by
reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased. 

        2.4    Adjustments for Diluting Issuances.    The Warrant Price and the number of Shares issuable upon exercise of
this warrant shall be subject to adjustment, from time to time, in the manner set forth on Exhibit B, if attached, in the event of Diluting
Issuances (as defined on Exhibit B). 

        2.5    No Impairment.    The Company shall not, by amendment of its Articles of Incorporation or through a
reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed under this warrant by the Company, but shall at all times in good faith assist in carrying out all the provisions of this Article 2 and in taking all such
action as may be necessary or appropriate to protect Holder's rights under this Article against impairment. If the Company takes any action affecting the Shares or its common stock other than as
described above that adversely affects Holder's rights under this warrant, the Warrant Price shall be adjusted downward and the number of Shares issuable upon exercise of this warrant shall be
adjusted upward in such a manner that the aggregate Warrant Price of this warrant is unchanged. 

        2.6    Certificate as to Adjustments.    Upon each adjustment of the Warrant Price, the Company at its expense shall
promptly compute such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which such adjustment is based. The Company
shall, upon written request, furnish Holder a certificate setting forth the Warrant Price in effect upon the date thereof and the series of adjustments leading to such Warrant Price. 

ARTICLE
3. REPRESENTATIONS AND COVENANTS OF THE COMPANY.

        3.1    Representations and Warranties.    The Company hereby represents and warrants to the Holder as follows: 

	(a)
	The
initial Warrant Price referenced on the first page of this warrant is not greater than the fair market value of the Shares as of the date of this warrant.

	(b)
	This
warrant has been duly authorized and executed by the Company and is a valid and binding obligation of the Company, enforceable in accordance with its terms.

	(c)
	The
rights, preferences, privileges and restrictions granted to or imposed upon the Common Stock and the holders thereof are as set forth in the articles of incorporation certificate
of incorporation, or other charter documents of the Company, as amended to the date of grant of this warrant, a true and complete copy of which has been delivered to the original holder of this
warrant.

	(d)
	The
execution and delivery of this warrant are not, and the issuance of the Shares upon exercise of this Warrant in accordance with the terms hereof will not be, inconsistent with the
Certificate of Incorporation or by-laws of the Company, do not and will not contravene, in any material respect, any governmental rule or regulation, judgment or order applicable to the
Company, and do not and will not conflict with or contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other instrument of which the Company is a party or
by which it is bound or require the consent or approval of, the giving of notice to, the registration or filing with or the taking of any action in respect of or by, any Federal, state 

3

 

or
local government authority or agency or other person, except for the filing of notices pursuant to federal and state securities laws, which filings will be effected by the time required thereby 

	(e)
	All
Shares which may be issued upon the exercise of the purchase right represented by this warrant, and all securities, if any, issuable upon conversion of the Shares, shall, upon
issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under applicable federal
and state securities laws. The Company further covenants and agrees that during the period within which the rights represented by this warrant may be exercised, the Company will at all times have
authorized, and reserved, a sufficient number of shares of Common Stock to provide for the exercise of the rights represented by this Warrant.

	(f)
	The
Company's capitalization table attached to this warrant is true and complete as of the Issue Date.

	(g)
	The
Company shall timely file such information, documents and reports as the U.S. Securities and Exchange Commission (the "Commission") may require or prescribe under  Section 13 or Section 15(d) (whichever is applicable) of the Securities Exchange Act of
1934 (the "Exchange Act"). The Company shall forthwith upon request furnish any holder of Registrable Stock (1) a written statement by the Company that it has complied with such reporting
requirements, (2) a copy of the most recent annual or quarterly report of the Company, and (3) such other reports and documents filed by the Company with the Commission as such holder
may reasonably request in availing itself of an exemption for the sale of Registrable Stock without registration under the Securities Act. The Company acknowledges and agrees that the purpose of the
requirements contained in this Section 11(g) is to enable any such holder to comply with the current public information requirement contained in
Rule 144 under the Securities Act should such holder ever wish to dispose of any of the securities of the Company acquired by it without registration under the Securities Act in reliance upon
Rule 144 (or any other similar exemptive provision). In addition, the Company shall take such other measures and file such other information, documents and reports as shall hereafter be
required by the Commission as a condition to the
availability of Rule 144 and Rule 144A under the Securities Act (or any similar exemptive provision hereafter in effect). 

        3.2    Notice of Certain Events.    If the Company proposes at any time (a) to declare any dividend or
distribution upon its common stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; (b) to offer for subscription pro rata to the holders of
any class or series of its stock any additional shares of stock of any class or series or other rights; (c) to effect any reclassification or recapitalization of common stock; or (d) to
merge or consolidate with or into any other corporation, or sell, lease, license, or convey all or substantially all of its assets, or to liquidate, dissolve or wind up, then, in connection with each
such event, the Company shall give Holder (1) at least 20 days prior written notice of the date on which a record will be taken for such dividend, distribution, or subscription rights
(and specifying the date on which the holders of common stock will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in (a) and
(b) above; and (2) in the case of the matters referred to in (c) and (d) above at least 20 days prior written notice of the date when the same will take place (and
specifying the date on which the holders of common stock will be entitled to exchange their common stock for securities or other property deliverable upon the occurrence of such event). 

        3.3    Information Rights.    So long as the Holder holds this warrant and/or any of the Shares, the Company shall
deliver to the Holder (a) promptly after mailing, copies of all communiques to the shareholders of the Company, (b) within ninety (90) days after the end of each fiscal year of
the Company, the annual audited financial statements of the Company certified by independent public 

4

 

accountants of recognized standing and (c) within forty-five (45) days after the end of each of the first three quarters of each fiscal year, the Company's quarterly,
unaudited financial statements. 

        3.4    Registration Under Securities Act of 1933, as amended.    For purposes of this Section 3.4, the Common
Stock issued or issuable upon the exercise of this warrant shall be deemed Registrable Securities under the Investors Rights Agreement dated September 7, 2000, by and between the Company,
Pequot Private Equity Fund II, L.P. ("Pequot") and the Kushner-Locke Company as amended and as may be subsequently amended (the "Investor Rights Agreement"), a copy of which is attached hereto as
Exhibit C. Further, the Company expressly agrees that Holder shall be deemed to have all Piggyback Registration Rights as set forth in Section 2.3 and S-3 Registration Rights
as set forth in Section 2.4 of the Investors Rights Agreement; provided, however, that
(a) the Holder shall have unlimited Piggyback Registration Rights under Section 2.3 at Company's sole expense; and (b) if the Company becomes eligible to effect a registration
using Form S-3, (i) Holder shall have the right, by written notice delivered to Company, to require the Company, at Company's sole expense, to register up to all Registrable
Securities held by Holder, including without limitation, the Shares issuable upon exercise of this warrant upon demand, and (ii) the Company shall use its best efforts to maintain its
eligibility to effect a registration using Form S-3. Finally, the Holder shall have all of the rights of "Holders" as that term is defined in Section 1.1 of the Investors
Rights Agreement with respect to Sections 2.5, 2.6, 2.9, 2.10, 2.11, 2.12 and 2.15. The provisions set forth in the Investors Rights Agreement or similar agreement relating to the above in effect as
of the Issue Date may not be amended, modified or waived without the prior written consent of Holder unless such amendment, modification or waiver effects Holder in the same manner as they effect all
other shareholders of the Shares. Pequot hereby expressly acknowledges and agrees to the terms and conditions of this Section 3.4. 

ARTICLE
4. MISCELLANEOUS.

        4.1    Term: Notice of Expiration.    This warrant is exercisable in whole or in part, at any time and from time to
time on or before the Expiration Date set forth above. If this warrant has not been exercised prior to the Expiration Date, this warrant shall be deemed to have been automatically exercised on the
Expiration Date by "cashless" conversion pursuant to Section 1.2. 

        4.2    Legends.    This warrant and the Shares (and the securities issuable, directly or indirectly, upon conversion
of the Shares, if any) shall be imprinted with a legend in substantially the following form: 

5

   
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR
PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. 

        4.3    Compliance with Securities Laws on Transfer.    This warrant and the Shares issuable upon exercise of this
warrant (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part without compliance with applicable federal
and state securities laws by the transferor and the transferee (including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the
Company). The Company shall not require Holder to provide an opinion of counsel if the transfer is to an affiliate of Holder or if there is no material question as to the availability of current
information as referenced in Rule 144(c), Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the selling broker represents that it has complied
with Rule 144(f), and the Company is provided with a copy of Holder's notice of proposed sale. 

        4.4    Transfer Procedure.    Subject to the provisions of Section 4.3, Holder may transfer all or part of this
warrant or the Shares issuable upon exercise of this warrant (or the securities issuable, directly or indirectly, upon conversion of the Shares, if any) by giving the Company notice of the portion of
the warrant being transferred setting forth the name, address and taxpayer identification number of the transferee and surrendering this warrant to the Company for reissuance to the transferee(s) (and
Holder, if applicable); provided, however, that Holder may transfer all or part of this warrant to its affiliates, including, without limitation,
Comerica Incorporated, at any time without notice to the Company, and such affiliate shall then be entitled to all the rights of Holder under this warrant and any related agreements, and the Company
shall cooperate fully in ensuring that any stock issued upon exercise of this warrant is issued in the name of the affiliate that exercises the warrant. The terms and conditions of this warrant shall
inure to the benefit of, and be binding upon, the Company and the holders hereof and their respective permitted successors and assigns. Unless the Company is filing financial information with the SEC
pursuant to the Securities Exchange Act of 1934, the Company shall have the right to refuse to transfer any portion of this warrant to any person who directly competes with the Company. 

        4.5    Notices.    All notices and other communications from the Company to the Holder, or vice versa, shall be deemed
delivered and effective when given personally or mailed by first-class registered or certified mail, postage prepaid, at such address as may have been furnished to the Company or the Holder, as
the case may be, in writing by the Company or such Holder from time to time. All notices to the Holder shall be addressed as follows: 

	Comerica Bank—California

Attn: Warrant Administrator

Emerging Growth Division

P.O. Box 7279

San Francisco, CA 94120-7279

        4.6    Waiver.    This warrant and any term hereof may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 

        4.7    Attorneys' Fees.    In the event of any dispute between the parties concerning the terms and provisions of this
warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys' fees. 

6

 

        4.8    Governing Law.    This warrant shall be governed by and construed in accordance with the laws of the State of
California, without giving effect to its principles regarding conflicts of law. 

	

 	
 	
US SEARCH.COM INC.
	

 	
 	

 	
 	

By:	
 	

	

 	
 	

 	
 	

Name:	
 	

	

 	
 	

 	
 	

Title:	
 	

	

 	
 	

 	
 	

By:	
 	

	

 	
 	

 	
 	

Name:	
 	

	

 	
 	

 	
 	

Title:	
 	

        As to Section 3.4, Acknowledged and Agreed to by: 

	
PEQUOT PRIVATE EQUITY FUND II, L.P.	
 	

 
	

By:	
 	

	
 	

 	
 	

 
	

Name:	
 	

	
 	

 	
 	

 
	

Title:	
 	

	
 	

 	
 	

 

        Authorized signatories under Corporate Resolutions to Borrow or an authorized signer(s) under a resolution covering warrants must sign the warrant. 

7

  

 
 

APPENDIX 1
  
    NOTICE OF EXERCISE    
  

	1.
	The
undersigned hereby elects to purchase            shares of
the                        stock of US SEARCH.COM, INC. for a
purchase price of                        ($            ) pursuant to
the terms of the attached warrant, and tenders herewith payment of the purchase price of such shares in full.

	2.
	Please
issue a certificate or certificates representing said shares in the name of the undersigned or in such other name as is specified below: 

Comerica
Bank—California

Attn: Warrant Administrator

Emerging Growth Division

P.O. Box 7279

San Francisco, CA 94120-7279 

	3.
	The
undersigned represents it is acquiring the shares solely for its own account and not as a nominee for any other party and not with a view toward the resale or distribution thereof
except in compliance with applicable securities laws. 

	COMERICA BANK—CALIFORNIA or Registered Assignee
	 
	
 (Signature)
	 
	
 (Date)

8

 
 
 

Exhibit A    
  

 
 

Put Right    
  

        Subject to the succeeding sentence, upon written notice to the Company, Holder shall have the right (the "Put Right") to require that the Company purchase the
warrant from Holder in consideration of the Company's payment to Holder (due seven days after receipt of Holder's written notice) of Five Thousand Three Hundred Fifty Dollars ($5,350). The foregoing
notwithstanding, Holder may only exercise the Put Right during the first to occur of the following periods: 

	1.
	Anytime
during the five-year period commencing with the Issue Date of this warrant; or

	2.
	The
20-day period ending on the closing of the merger, consolidation or sale of assets of the Company; or

	3.
	The
20-day period ending on the liquidation, dissolution or winding up of the Company. 

9

  

 
 

Exhibit B    
    

 
 

COMERICA BANK—CALIFORNIA
  ANTI-DILUTION AGREEMENT
  (for Common Stock Warrants)    
  

        This Anti-dilution Agreement is entered into as of March 26, 2002, by and between Comerica
Bank—California ("Purchaser") and US Search.com, Inc. ("the Company"). 

 
 

RECITALS    
  

	A.
	Concurrently
with the execution of this Anti-dilution Agreement, the Purchaser is purchasing from the Company a Warrant to Purchase Stock (the "Warrant") pursuant to which
Purchaser has the right to acquire from the Company the Shares (as defined in the Warrant).

	B.
	By
this Anti-dilution Agreement, the Purchaser and the Company desire to set forth the adjustment in the number of Shares issuable upon exercise of the Warrant as a result
of a Diluting Issuance (as defined below).

	C.
	Capitalized
terms used herein shall have the same meaning as set forth in the Warrant. 

        NOW,
THEREFORE, in consideration of the mutual promises, covenants and conditions hereinafter set forth, the parties hereto mutually agree as follows: 

	1.
	Definitions.
As used in this Anti-dilution Agreement, the following terms have the following respective meanings:

	(a)
	"Option"
means any right, option or warrant to subscribe for, purchase or otherwise acquire common stock or Convertible Securities.

	(b)
	"Convertible
Securities" means any evidences of indebtedness, shares of stock or other securities directly or indirectly convertible into or exchangeable for common stock.

	(c)
	"Issue"
means to grant, issue, sell, assume or fix a record date for determining persons entitled to receive any security (including Options), whichever of the foregoing is the first
to occur.

	(d)
	"Additional
Common Shares" means all common stock (including reissued shares) Issued (or deemed to be issued pursuant to Section 2) after the date of the Warrant. Additional
Common Shares does not include, however, any common stock Issued in a transaction described in Sections 2.1 and 2.2 of the Warrant; any common stock Issued upon conversion of preferred stock
outstanding on the date of the Warrant; the Shares; or common stock Issued as incentive or in a nonfinancing transaction to employees, officers, directors or consultants to the Company. 

	2.
	Deemed Issuance of Additional Common Shares. The shares of common stock ultimately Issuable upon exercise of an Option (including the
shares of common stock ultimately Issuable upon conversion or exercise of a Convertible Security Issuable pursuant to an Option) are deemed to be Issued when the Option is Issued. The shares of common
stock ultimately Issuable upon conversion or exercise of a Convertible Security (other than a Convertible Security Issued pursuant to an Option) shall be deemed Issued upon Issuance of the Convertible
Security. The maximum amount of common stock Issuable is determined without regard to any future adjustments permitted under the instrument creating the Options or Convertible Securities.

	3.
	Adjustment of Warrant Price for Diluting Issuances.

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	3.1
	Weighted Average Adjustment. If the Company issues Additional Common Shares after the date of the Warrant and the consideration per
Additional Common Share (determined pursuant to Section 9) is less than the Warrant Price in effect immediately before such Issue (a "Diluting Issuance"), the Warrant Price in effect
immediately before such Issue shall be reduced, concurrently with such Issue, to a price (calculated to the nearest hundredth of a cent) determined by multiplying the Warrant Price by a fraction:

	(a)
	the
numerator of which is the amount of common stock outstanding immediately before such Issue plus the amount of common stock that the aggregate consideration received by Company for
the Additional Common Shares would purchase at the Warrant Price in effect immediately before such Issue, and

	(b)
	the
denominator of which is the amount of common stock outstanding immediately before such Issue plus the number of such Additional Common Shares. 

	3.2
	Adjustment of Number of Shares. Upon each adjustment of the Warrant Price, the number of Shares Issuable upon exercise of the Warrant
shall be increased to equal the quotient obtained by dividing (a) the product resulting from multiplying (i) the number of Shares Issuable upon exercise of the Warrant and
(ii) the Warrant Price, in each case as in effect immediately before such adjustment, by (b) the adjusted Warrant Price.

	3.3
	Securities Deemed Outstanding. For the purpose of this Section 3, all securities Issuable upon exercise of any outstanding
Convertible Securities or Options, Warrants, or other rights to acquire securities of the Company shall be deemed to be outstanding. 

	4.
	No Adjustment for Issuances Following Deemed Issuances. No adjustment to the Warrant Price shall be made upon the exercise of Options or
conversion of Convertible Securities.

	5.
	Adjustment Following Changes in Terms of Options or Convertible Securities. If the consideration payable to, or the amount of common
stock Issuable by, the Company increases or decreases, respectively, pursuant to the terms of any outstanding Options or Convertible Securities, the Warrant Price shall be recomputed to reflect such
increase or decrease. The recomputation shall be made as of the time of the Issuance of the Options or Convertible Securities. Any changes in the Warrant Price that occurred after such Issuance
because other Additional Common Shares were Issued or deemed Issued shall also be recomputed.

	6.
	Recomputation Upon Expiration of Options or Convertible Securities. The Warrant Price computed upon the original Issue of any Options or
Convertible Securities, and any subsequent adjustments based thereon, shall be recomputed when any Options or rights of conversion under Convertible Securities expire without having been exercised. In
the case of Convertible Securities or Options for common
stock, the Warrant Price shall be recomputed as if the only Additional Common Shares Issued were the shares of common stock actually Issued upon the exercise of such securities, if any, and as if the
only consideration received therefor was the consideration actually received upon the Issue, exercise or conversion of the Options or Convertible Securities. In the case of Options for Convertible
Securities, the Warrant Price shall be recomputed as if the only Convertible Securities Issued were the Convertible Securities actually Issued upon the exercise thereof, if any, and as if the only
consideration received therefor was the consideration actually received by the Company (determined pursuant to Section 9), if any, upon the Issue of the Options for the Convertible Securities.

	7.
	Limit on Readjustments. No readjustment of the Warrant Price pursuant to Sections 5 or 6 shall increase the Warrant Price more than the
amount of any decrease made in respect of the Issue of any Options or Convertible Securities. 

11

 
	8.
	30 Day Options. In the case of any Options that expire by their terms not more than 30 days after the date of Issue thereof, no
adjustment of the Warrant Price shall be made until the expiration or exercise of all such Options.

	9.
	Computation of Consideration. The consideration received by the Company for the Issue of any Additional Common Shares shall be computed
as follows:

	(a)
	Cash shall be valued at the amount of cash received by the Corporation, excluding amounts paid or payable for accrued interest or
accrued dividends.

	(b)
	Property. Property, other than cash, shall be computed at the fair market value thereof at the time of the Issue as determined in good
faith by the Board of Directors of the Company.

	(c)
	Mixed Consideration. The consideration for Additional Common Shares Issued together with other property of the Company for
consideration that covers both shall be determined in good faith by the Board of Directors.

	(d)
	Options and Convertible Securities. The consideration per Additional Common Share for Options and Convertible Securities shall be
determined by dividing:

	(i)
	the
total amount, if any, received or receivable by the Company for the Issue of the Options or Convertible Securities, plus the minimum amount of additional consideration (as set
forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Company upon exercise of the Options or
conversion of the Convertible Securities, by

	(ii)
	the
maximum amount of common stock (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number)
ultimately Issuable upon the exercise of such Options or the conversion of such Convertible Securities. 

	10.
	General.

	10.1
	Governing Law. This Anti-dilution Agreement shall be governed in all respects by the laws of the State of California as
such laws are applied to agreements between California residents entered into and to be performed entirely within California.

	10.2
	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.

	10.3
	Entire Agreement. Except as set forth below, this Anti-dilution Agreement and the other documents delivered pursuant
hereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof.

	10.4
	Notices, etc. All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by first
class mail, postage prepaid, certified or registered mail, return receipt requested, addressed (a) if to Purchaser at Purchaser's address as set forth below, or at such other address as
Purchaser shall have furnished to the Company in writing, or (b) if to the Company, at the Company's address set forth below, or at such other address as the Company shall have furnished to the
Purchaser in writing.

	10.5
	Severability. In case any provision of this Anti-dilution Agreement shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions of this Anti-dilution Agreement shall not in any way be affected or impaired thereby. 

12

 
	10.6
	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 Anti-dilution Agreement.

	10.7
	Counterparts. This Anti-dilution Agreement may be executed in any number of counterparts, each of which shall be an
original, but all of which together shall constitute one instrument. 

	
PURCHASER	
 	
ISSUER.
	
COMERICA BANKTMCALIFORNIA	
 	
USSEARCH.COM, INC.
	

By:	
 	

	
 	

By:	
 	

	

Name:	
 	

	
 	

Name:	
 	

	

Title:	
 	

	
 	

Title:	
 	

	

Address:	
 	

	
 	

Address:	
 	

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QuickLinks

Exhibit 10.50

WARRANT TO PURCHASE STOCK

APPENDIX 1 NOTICE OF EXERCISE

Exhibit A

Put Right

Exhibit B

COMERICA BANK—CALIFORNIA ANTI-DILUTION AGREEMENT (for Common Stock Warrants)

RECITALS

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