Document:

Prepared by MERRILL CORPORATION

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Exhibit 10.2    
  

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (THE "ACT") OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH
REGISTRATION IS NOT REQUIRED. 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (AND ALL TRANSFERS THEREOF) ARE SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH IN THE REGISTRATION RIGHTS AGREEMENT, DATED AS OF DECEMBER 20, 2001, A
COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY. NO TRANSFER OF SUCH SHARES WILL BE MADE ON THE BOOKS OF THE COMPANY UNLESS ACCOMPANIED BY EVIDENCE OF COMPLIANCE WITH THE TERMS OF SUCH
AGREEMENT AND BY AN AGREEMENT OF THE TRANSFEREE TO BE BOUND BY THE RESTRICTIONS SET FORTH THEREIN. ANY ATTEMPTED TRANSFER OF THESE SHARES IN VIOLATION OF SUCH REGISTRATION RIGHTS AGREEMENT SHALL BE
NULL AND VOID AND HAVE NO FORCE OR EFFECT. 

	Warrant No.: 3	 	Number of Shares: 1,117,497
	Date of Issuance: December 20, 2001	 	(subject to adjustment)

 
 

US SEARCH.COM INC.    
    
    Warrant    
  

    US SEARCH.com Inc., a Delaware corporation (the "Company"), for value received, hereby certifies that Pequot
Private Equity Fund II, L.P., or its registered assigns (the "Registered Holder"), is entitled, subject to the terms set forth below, to purchase from
the Company, at any time after the Approval Date (as such term is defined in Section 1(a) below) and on or before the Expiration Date (as defined in Section 5 below), up to 1,117,497 shares of Common
Stock, par value $.001 per share, of the Company ("Common Stock"), at a purchase price equal to $1.044. The shares purchasable upon exercise of this
Warrant and the purchase price per share, as adjusted from time to time pursuant to the provisions of this Warrant, are hereinafter referred to as the "Warrant
Stock" and the "Purchase Price," respectively. 

    1.  Exercise.  

    (a) Manner of Exercise. This Warrant may be exercised by the Registered Holder, in whole or in part, at any time after
the earlier of the date the Borrower receives (x) approval from its stockholders of the financing transactions contemplated by the Purchase Agreement dated December 20, 2001 among the Company and the
Purchasers named therein (the "Purchase Agreement") or (y) the approval of the Nasdaq National Market to the effect that the Borrower may complete the transactions contemplated by the Purchase
Agreement without soliciting the approval of holders of its capital stock pursuant to MarketPlace Rule 4350(i)(1)(D)(ii), (such earlier date is referred to hereto as the
"Approval Date"), and on or before the Expiration Date by surrendering this Warrant, with the purchase form appended hereto as  Exhibit A-1 (the
"Purchase Form") duly executed by such Registered Holder or by such Registered Holder's
duly authorized attorney, at the principal office of the Company, or at such other office or agency as the Company may designate, accompanied by payment in full of the aggregate Purchase Price payable
in respect of the number of shares of Warrant Stock specified in such Purchase Form. The Purchase Price may be paid by cash or certified or official bank check payable to the Company, wire transfer or
by the surrender of promissory notes or other instruments representing indebtedness of the Company to the Registered Holder. 

 

    (b) Effective Time of Exercise. Each exercise of this Warrant shall be deemed to have been effected immediately prior to
the close of business on the day on which this Warrant, the accompanying Purchase Form and the aggregate Purchase Price shall have been surrendered to the Company as provided in Section 1(a) above. At
such time, the person or persons in whose name or names any certificates for Warrant Stock shall be issuable upon such exercise shall be deemed for the purposes hereof to have become the holder or
holders of record of the Warrant Stock represented by such certificates issuable upon such exercise, notwithstanding that the stock transfer records of the Company
may be closed or that certificates representing the Warrant Stock shall not then be actually delivered to the Registered Holder. 

    (c) Net Issue Exercise.

    (i)  In
lieu of exercising this Warrant in the manner provided above in Section 1(a), the Registered Holder may elect to receive shares equal to the value of this
Warrant (or the portion thereof being canceled) by surrender of this Warrant with the notice of exercise form appended hereto as Exhibit A-2, duly
executed by such Registered Holder or by such Registered Holder's duly authorized attorney, at the principal office of the Company together with notice of such election in which event the Company
shall issue to such Registered Holder a number of shares of Warrant Stock computed using the following formula: 

	X =	Y (A - B)
	 	
 A

	Where	 	X =	 	The number of shares of Warrant Stock to be issued to the Registered Holder.
	

 	
 	

Y =	
 	

The number of shares of Warrant Stock purchasable under this Warrant (at the date of such calculation).
	

 	
 	

A =	
 	

The Fair Market Value of one share of Warrant Stock (at the date of such calculation).
	

 	
 	

B =	
 	

The Purchase Price (as adjusted to the date of such calculation).

    (ii) For
purposes of this Section 1(c) and Section 12 hereof, the "Fair Market Value" of one share of Warrant Stock on
the date of calculation shall be at the highest price per share which the Company could obtain on the date of calculation from a willing buyer (not a current employee or director) for shares of
Warrant Stock sold by the Company, from authorized but unissued shares, as determined in good faith by the Board of Directors, unless the Company is at such time subject to an acquisition as described
in Section 6(b) below, in which case the Fair Market Value of one share of Warrant Stock shall be deemed to be the value received by the holder of one share of Common Stock pursuant to such
acquisition. 

    (d) Delivery to Registered Holder. As soon as practicable after the exercise of this Warrant, in whole or in part,
pursuant to Section 1(a) or 1(c) hereof, and in any event within ten days thereafter, the Company at its expense will cause to be issued in the name of, and delivered to, the Registered Holder, or as
such Registered Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct: 

    (i)  a
certificate or certificates representing the number of shares of Warrant Stock to which such Registered Holder shall be entitled and cash in lieu of fractional
shares issuable upon exercise, and 

    (ii) in
case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for
the number of shares of Warrant Stock equal (without giving effect to any adjustment therein) to the number of such shares called for on the face of this Warrant minus the number of such shares 

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purchased by the Registered Holder upon such exercise as provided in Section 1(a) or 1(c) above. 

    2.  Adjustments.  

    (a) Stock Splits and Dividends. If outstanding shares of the Company's Common Stock shall be subdivided into a greater
number of shares or a dividend or other distribution in Common Stock shall be paid in respect of Common Stock, the Purchase Price in effect immediately prior to such subdivision or at the record date
of such dividend shall simultaneously with the effectiveness of such subdivision or immediately after the record date of such dividend or other distribution be proportionately reduced. If outstanding
shares of Common Stock shall be combined into a smaller number of shares, the Purchase Price in effect immediately prior to such combination shall, simultaneously with the effectiveness of such
combination, be proportionately increased. When any adjustment is required to be made in the Purchase Price, the number of shares of Warrant Stock purchasable upon the exercise of this Warrant shall
be changed to the number determined by dividing (i) an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Purchase
Price in effect immediately prior to such adjustment, by (ii) the Purchase Price in effect immediately after such adjustment. 

    (b) Reclassification, Etc. In case there occurs any reclassification or change of the outstanding securities of the
Company or of any reorganization of the Company (or any other corporation the stock or securities of which are at the time receivable upon the exercise of this Warrant) or any similar corporate
reorganization on or after the date hereof, but before the Expiration Date, then and in each such case the Registered Holder, upon the exercise hereof
at any time after the consummation of such reclassification, change, or reorganization shall be entitled to receive, in lieu of the stock or other securities and property otherwise receivable upon the
exercise hereof prior to such consummation, the
stock or other securities or property to which such Registered Holder would have been entitled upon such consummation if such Registered Holder had exercised this Warrant immediately prior thereto,
all subject to further adjustment pursuant to the provisions of this Section 2. 

    (c) Adjustment Certificate. When any adjustment is required to be made in the Warrant Stock or the Purchase Price
pursuant to this Section 2, the Company shall promptly mail to the Registered Holder a certificate setting forth (i) a brief statement of the facts requiring such adjustment, (ii) the Purchase Price
after such adjustment and (iii) the kind and amount of stock or other securities or property into which this Warrant shall be exercisable after such adjustment. 

    3.  Transfers; Restrictions on Transferability.  

    (a) Unregistered Security. Each holder of this Warrant acknowledges that this Warrant and the Warrant Stock have not
been registered under the Securities Act of 1933, as amended (the "Securities Act"), and agrees not to sell, pledge, distribute, offer for sale,
transfer or otherwise dispose of this Warrant or any Warrant Stock issued upon exercise of this Warrant in the absence of (i) an effective registration statement under the Act as to this Warrant or
such Warrant Stock and registration or qualification of this Warrant or such Warrant Stock under any applicable U.S. federal or state securities law then in effect or (ii) an opinion of counsel,
satisfactory to the Company, that such registration and qualification are not required. Each certificate or other instrument for Warrant Stock or such other securities shall bear a legend
substantially to the foregoing effect. Each holder of this Warrant or Warrant Stock and each subsequent transferee (hereinafter collectively referred to as a "Restricted
Holder") consents to the Company making a notation on its records and giving instructions to any applicable transfer agent in order to implement the restrictions on transfer
set forth in this Section 3. 

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    (b) Transferability. This Warrant and the rights of the Registered Holder may not be sold, transferred or otherwise
disposed of, in whole or in part, except to any Permitted Transferee of the Registered Holder, subject to compliance with Section 3(a) hereof; provided,
however, that this Warrant may not be transferred in part. Any such transfer shall be effective upon surrender of the Warrant with a properly executed assignment (in the form
of Exhibit B-1 hereto) and funds sufficient to pay any transfer tax, at the principal office of the Company. "Permitted
Transferee" shall mean (i) the Company, (ii) any subsidiary of the Company and (iii) any Affiliate of the Registered Holder.
"Affiliate" shall mean (i) with respect to any individual, (A) a spouse or descendant of such individual, (B) any trust or family partnership whose
beneficiaries shall solely be such individual and/or such individual's spouse and/or any person related by blood or adoption to such individual or such individual's spouse and (C) the estate of such
individual, (ii) with respect to any Person which is not an individual, any other Person that, directly or indirectly through one or more intermediaries controls, is controlled by, or is under common
control with, such Person and/or one or more Affiliates thereof. For the purposes of this Section 3(b), the term "control" (including, with correlative
meanings, the terms "controlled by" and "under common control with"), as used with respect to any Person, includes, without limitation, the possession, directly or indirectly, of the power to direct
or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by agreement or otherwise. "Person" shall mean and includes an individual,
a corporation, a partnership, a limited liability company, a joint venture, a trust, an unincorporated organization and a government or any department or agency thereof, or any entity similar to any
of the foregoing. 

    (c) Restrictive Legend. Each certificate representing the Warrant Stock and any other securities issued in respect of
the Warrant Stock upon any stock split, stock dividend, recapitalization, merger, consolidation or similar event, shall (unless otherwise permitted by the provisions of this Warrant) be stamped or
otherwise imprinted with a legend in the following form (in addition to any legend required under applicable state securities laws): 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (THE "ACT") OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH
REGISTRATION IS NOT REQUIRED. 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (AND ALL TRANSFERS THEREOF) ARE SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH IN THE REGISTRATION RIGHTS AGREEMENT, DATED AS OF DECEMBER 20, 2001, A
COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY. NO TRANSFER OF SUCH SHARES WILL BE MADE ON THE BOOKS OF THE COMPANY UNLESS ACCOMPANIED BY EVIDENCE OF COMPLIANCE WITH THE TERMS OF SUCH
AGREEMENT AND BY AN AGREEMENT OF THE TRANSFEREE TO BE BOUND BY THE RESTRICTIONS SET FORTH THEREIN. ANY ATTEMPTED TRANSFER OF THESE SHARES IN VIOLATION OF SUCH REGISTRATION RIGHTS AGREEMENT SHALL BE
NULL AND VOID AND HAVE NO FORCE OR EFFECT. 

    (d) Removal of Restrictions on Transfer of Securities. Any legend referred to in subsection (c) hereof stamped on a
certificate evidencing the Warrant Stock and the stock transfer instructions and record notations with respect to the Warrant Stock shall be removed, and the 

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Company shall issue a certificate without such legend to the Restricted Holder of the Warrant Stock, if the Warrant Stock is registered under the Securities Act or if such Restricted Holder provides
the Company with an opinion of counsel (which may be counsel for the Company) reasonably satisfactory to the Company to the effect that a public sale or transfer of such security may be made without
registration under the Securities Act. 

    (e) Warrant Register. The Company will maintain a register containing the names and addresses of the Registered Holders
of this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder of this Warrant as the absolute owner hereof for all purposes;  provided, however, that if this Warrant is properly assigned in blank, the Company may (but shall not be required to) treat the bearer hereof as the
absolute owner hereof for all purposes, notwithstanding any notice to the contrary. Any Registered Holder may change such Registered Holder's address as shown on the warrant register by written notice
to the Company requesting such change. 

    4.  No Impairment.  The Company will not, by amendment of its charter or through reorganization,
consolidation, merger, dissolution, sale of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the holder of this Warrant against
impairment. 

    5.  Termination.  This Warrant (and the right to purchase shares of Warrant Stock upon exercise hereof)
shall terminate on the earlier to occur of (a) the date the Registered Holder purchases all of the Warrant Stock issuable upon exercise of this Warrant and (b) at 5:00 p.m., Los Angeles time on
December 20, 2005 (in each case, the "Expiration Date"). 

    6.  Notices of Certain Transactions.  In case: 

    (a) the
Company shall take a record of the holders of its Common Stock (or other stock or securities at the time deliverable upon the exercise of this Warrant) for the
purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of stock of any class or any other securities, or
to receive any other right, to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, or 

    (b) of
any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation or merger of the Company, any
consolidation or merger of the Company with or into another corporation (other than a consolidation or merger in which the Company is the surviving entity), or any transfer of all or substantially all
of the assets of the Company, or 

    (c) of
the voluntary or involuntary dissolution, liquidation or winding-up of the Company, 

then,
and in each such case, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying, as the case may be, (i) the date on which a record is to be taken
for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization,
reclassification,
consolidation, merger, transfer, dissolution, liquidation, winding-up, redemption or conversion is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock
(or such other stock or securities at the time deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation, winding-up, redemption or conversion)
are to be determined. Such notice shall be mailed at least ten days prior to the record date or effective date for the event specified in such notice. 

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    7.  Reservation of Stock.  The Company will at all times reserve and keep available, solely for the
issuance and delivery upon the exercise of this Warrant, such shares of Warrant Stock and other stock, securities and property, as from time to time shall be issuable upon the exercise of this
Warrant. 

    8.  Exchange of Warrant.  Subject to the terms hereof, upon the surrender by the Registered Holder of
this Warrant, properly endorsed, to the Company at the principal office of the Company, the Company will, subject to the provisions of Section 3 hereof, issue and deliver to or upon the order of the
Registered Holder, at the Company's expense, a new Warrant of like tenor, in the name of such Registered Holder or as such Registered Holder (upon payment by such Registered Holder of any applicable
transfer taxes) may direct, calling for the number of shares of Warrant Stock called for on the face of this Warrant or if partially exercised, such lesser number of shares that shall be issuable upon
exercise of this Warrant. 

    9.  Replacement of Warrant.  Upon 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) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount reasonably
satisfactory to the Company to indemnify it against any claim that may be made against it on account of the alleged loss, theft, destruction or the issuance of a new Warrant, or (in the case of
mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor. 

    10.  Mailing of Notices.  Any notice required or permitted pursuant to this Warrant shall be in writing
and shall be deemed sufficient upon receipt, when delivered personally or sent by courier, overnight delivery service or confirmed facsimile, or 48 hours after being deposited in the regular mail, as
certified or registered mail (airmail if sent internationally), with postage prepaid, addressed (a) if to the Registered Holder, to the address of the Registered Holder most recently furnished in
writing to the Company, and (b) if to the Company, to the address set forth below or subsequently modified by written notice to the Registered Holder. 

    11.  No Rights as Stockholder.  Until the exercise of this Warrant, the Registered Holder of this Warrant
shall not have or exercise any rights by virtue hereof as a stockholder of the Company, either at law or in equity. 

    12.  No Fractional Shares.  No fractional shares of Warrant Stock will be issued in connection with any
exercise hereunder. In lieu of any fractional shares which would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the Fair Market Value of one
share of Warrant Stock on the date of exercise, as determined in good faith by the Company's Board of Directors. 

    13.  Amendment or Waiver.  Any term of this Warrant may be amended or waived only by an instrument in
writing signed by the party against which enforcement of the amendment or waiver is sought. 

    14.  Headings.  The headings in this Warrant are for purposes of reference only and shall not limit or
otherwise affect the meaning of any provision of this Warrant. 

    15.  Governing Law.  This Warrant shall be governed, construed and interpreted in accordance with the
laws of the State of New York, without giving effect to principles of conflicts of law. 

    (Signature Page Follows)  

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    IN
WITNESS WHEREOF, the undersigned has caused this Warrant to be duly executed, all as of the day and year first above written. 

	 	 	US SEARCH.COM INC.
	

 	
 	

By:	

/s/ BRENT N. COHEN   

	 	 	Name:	Brent N. Cohen
	 	 	Title:	Chief Executive Officer

	

 	
 	

Address:	

5401 Beethoven Street

Los Angeles, CA 90066
	

 	
 	

Fax Number:	

(310) 882-7898

 
 

EXHIBIT A-1    
    
    PURCHASE FORM    
  

	

To: US SEARCH.com Inc.	
 	

Dated:

    The undersigned, pursuant to the provisions set forth in the attached Warrant No.      , hereby irrevocably elects to purchase      
shares of the Common Stock covered by such Warrant and herewith makes payment of $         , representing the aggregate purchase price for such shares at the price per share provided for in
such Warrant. 

	 	 	Signature:	

	

 	
 	

Name (print):	

	

 	
 	

Title (if applic.):	

	

 	
 	

Company (if applic.):	

 
 

EXHIBIT A-2    
    
    NET ISSUE NOTICE OF EXERCISE    
  

	TO:	 	
	 	 
	

 	
 	

	
 	

 
	

 	
 	

	
 	

 
	 	 	Attention:	 	 

    1. The undersigned hereby elects to purchase      shares of Common Stock of USSEARCH.com Inc., pursuant to the terms of this Warrant, and hereby
elects under Section 1(c) to surrender the right to purchase      shares of Common Stock pursuant to this Warrant for a net issue exercise
with respect to      shares of Common Stock. 

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

	
 (Name)
	

	

 (Address)

    3. The undersigned hereby represents and warrants that the aforesaid shares of Common Stock are being acquired for the account of the undersigned for
investment and not with a view to, or for resale, in connection with the distribution thereof, and that the undersigned has no present intention of distributing or reselling such shares. 

	 	 	
 (Signature)
	

 	
 	

Title:	
 	

	

(Date)

	
 	

 	
 	

 

 
 

EXHIBIT B-1    
    
    ASSIGNMENT FORM    
  

    FOR VALUE RECEIVED,                              hereby
sells, assigns and transfers all of the rights of the undersigned under the attached Warrant with respect to the
number of shares of Common Stock, par value $.001 per share, of US SEARCH.com Inc., a Delaware corporation, covered thereby set forth below, unto: 

	Name of Assignee
	 	Address/Fax Number
	 	No. of Shares

	

 	
 	

 	
 	

 
	

 	
 	

 	
 	

 
	

 	
 	

 	
 	

 
	

 	
 	

 	
 	

 
	

 	
 	

 	
 	

 

	Dated:	
	 	Signature:	

	 	 	 	 	

	 	 	 	Witness:	

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Exhibit 10.2

US SEARCH.COM INC. Warrant

EXHIBIT A-1 PURCHASE FORM

EXHIBIT A-2 NET ISSUE NOTICE OF EXERCISE

EXHIBIT B-1 ASSIGNMENT FORMPrepared by MERRILL CORPORATION

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Exhibit 10.3    
  

 
 

US SEARCH.COM Inc.    
    
    REGISTRATION RIGHTS AGREEMENT    
  

US SEARCH.COM INC.  

 REGISTRATION RIGHTS AGREEMENT  

    THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is
entered into as of December 20, 2001, by and among US SEARCH.COM INC., a Delaware corporation (the
"Company"), and the Purchasers listed on the signature pages hereto (the "Purchasers"). 

Recitals  

    WHEREAS, the Purchasers are, pursuant to the terms of the Purchase Agreement, dated as of December 20, 2001
(the "Purchase Agreement"), by and among the Company and the Purchasers, agreeing to purchase $3,500,000 aggregate principal amount of 8% Convertible
Subordinated Promissory Notes due December 20, 2002 (the "Notes") and Warrants (the "Warrants") to
purchase an aggregate of up to 1,117,497 shares of common stock, par value $.001 per share (the "Common Stock"), of the Company. 

    WHEREAS, the obligations in the Purchase Agreement are conditioned upon the execution and delivery of this Agreement; and 

    WHEREAS, in connection with the consummation of the Purchase Agreement, the parties desire to enter into this Agreement in order to
grant registration and other rights to the Purchasers as set forth below. 

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

SECTION 1. General.  

    1.1  Definitions.  As used in this Agreement the following terms shall have the following respective
meanings: 

    "Affiliates" shall have the meaning set forth in the Purchase Agreement. 

    "Closing Date" shall have the meaning set forth in the Purchase Agreement. 

    "Commission" shall mean the Securities and Exchange Commission. 

    "Effective Period" shall have the meaning set for in Section 2.2(a) hereof. 

    "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended. 

    "Form S-3" shall mean such form under the Securities Act as in effect on the date hereof or any successor or similar registration form
under the Securities Act subsequently adopted by the Commission which permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the
Commission. 

    "Holder" shall mean any Purchaser owning of record Registrable Securities or any assignee of record of such Registrable Securities in
accordance with Section 3.3 hereof. A person who holds any security, upon the exercise of which or conversion of which such person shall be entitled to receive a Registrable Security shall for all
purposes of this Agreement be deemed to be the Holder of such Registrable Securities. 

    "Majority Holders" shall have the meaning set forth in Section 2.6 hereof. 

    "Person" shall have the meaning set forth in the Purchase Agreement. 

    "Registrable Securities" shall mean (a) shares of Common Stock or any other security issued or issuable upon conversion of the Notes or
Warrants; (b) any security issued or issuable with respect to any Registrable Securities as a result of a change or reclassification of Registrable Securities or any capital reorganization of the
Company; or (c) any security issued or issuable to a Holder in 

 

respect of Registrable Securities as a result of a merger or consolidation of the Company. Notwithstanding the foregoing, Registrable Securities shall not include any securities sold by a person to
the public either pursuant to a Registration Statement, that may be sold pursuant to Rule 144 under the Securities Act or that have been sold in a private transaction in which the transferor's rights
under Section 2 of this Agreement are not assigned. 

    "Registration" shall have the meaning set forth in Section 2.2(a) hereof. 

    "Registration Expenses" shall mean all expenses incurred in complying with Section 2.2 and 2.3 hereof, including, without limitation,
all registration and filing fees, printing expenses, fees and disbursements of counsel for the Company, reasonable fees and disbursements of a single special counsel for the Holders, blue sky fees and
expenses and the expense of any special audits incident to or required by any such Registration. 

    "Registration Period" shall have the meaning set forth in Section 2.2(b) hereof. 

    "Registration Statement" shall have the meaning set forth in Section 2.2(a) hereof. 

    "Securities Act" shall mean the Securities Act of 1933, as amended. 

    "Selling Expenses" shall mean all underwriting discounts and selling commissions applicable to the sale. 

    "Violation" shall have the meaning set forth in Section 2.5(a) hereof. 

SECTION 2. REGISTRATION; RESTRICTIONS ON TRANSFER.  

    2.1  Restrictions on Transfer.  Subject to the provisions set forth in Section 3 hereof, 

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

    (i)  the
Registration Statement is then in effect and such disposition is made in accordance with such Registration Statement; or 

    (ii) such
Holder sells such Registrable Securities in compliance with Rule 144 under the Securities Act; or 

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

Notwithstanding
the provisions of clauses (i), (ii) and (iii) above, no such Registration Statement or opinion of counsel shall be necessary for a transfer by a Holder which is (A) a partnership to
its partners or former partners in accordance with partnership interests or to its Affiliates, (B) a corporation to its shareholders in accordance with their interest in the corporation, (C) a limited
liability company to its members or former members in accordance with their interest in the limited liability company, or (D) a Holder to another Holder;  provided that in each case the transferee will
be subject to the terms of this Agreement to the same extent as if such transferee were an original
Holder hereunder. 

    (b) Each
certificate representing Registrable Securities held by the Holders shall (unless otherwise permitted by the provisions of the Agreement) (a) be stamped or
otherwise imprinted 

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with a legend substantially similar to the following (in addition to any legend required under applicable state securities laws): 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (THE "ACT") OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH
REGISTRATION IS NOT REQUIRED. 

and
(b) so long as such Registrable Securities held by such Holder are subject to the terms of this Agreement, bear a legend reading substantially as follows. 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (AND ALL TRANSFERS THEREOF) ARE SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH IN THE REGISTRATION RIGHTS AGREEMENT, DATED AS OF DECEMBER 20, 2001, A
COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY. NO TRANSFER OF SUCH SHARES WILL BE MADE ON THE BOOKS OF THE COMPANY UNLESS ACCOMPANIED BY EVIDENCE OF COMPLIANCE WITH THE TERMS OF SUCH
AGREEMENT AND BY AN AGREEMENT OF THE TRANSFEREE TO BE BOUND BY THE RESTRICTIONS SET FORTH THEREIN. ANY ATTEMPTED TRANSFER OF THESE SHARES IN VIOLATION OF SUCH REGISTRATION RIGHTS AGREEMENT SHALL BE
NULL AND VOID AND HAVE NO FORCE OR EFFECT. 

    (c) The
Company shall be obligated to reissue promptly unlegended certificates at the request of any holder thereof if the holder shall have obtained an opinion of
counsel (which counsel may be counsel to the Company) reasonably acceptable to the Company to the effect that the securities proposed to be disposed of may lawfully be so disposed of without
registration, qualification or legend, or if the securities are to be sold pursuant to a Registration Statement or Rule 144 under the Securities Act. The Company shall be obligated to reissue
promptly, in the name of a transferee of securities referred to in the last sentence of Section 2.1(a) hereof, legended certificates at the request of any transferor or transferee thereof. 

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

    2.2  Registration.  

    (a) The
Company shall, as promptly as practicable (but in no event more than 60 days after the Closing Date), file with the Commission a registration statement (the
"Registration Statement"), on an appropriate form under the Securities Act relating to the offer and sale of the Registrable Securities by the Holders
thereof in accordance with the methods of distribution set forth in the Registration Statement (hereinafter, the "Registration"), and thereafter shall
use its best efforts to cause the Registration Statement to be declared effective within 120 days after the Closing Date; provided,  however, that no Holder
shall be entitled to have the Registrable Securities held by it included in such Registration Statement unless such Holder
agrees in writing to be bound by all the provisions of this Agreement applicable to such Holder; provided, further that if prior to the Registration Statement being declared effective, the Company
shall furnish to each Holder a certificate signed by the Chairman of the Board stating that in the good faith judgment of the 

3

 

Board of Directors of the Company, it would be seriously detrimental to the Company and its shareholders for such Registration Statement to be effected at such time, the Company shall have the right
to defer such filing or effectiveness for a period of not more than 90 days from the date of such certificate, provided that the Company shall not exercise this right more than once. If the
Registration Statement has not been declared effective within 120 days after the Closing Date (the "Effective Period"), at the conclusion of each 30-day
period following the Effective Period, the Company shall issue to each Person that is the owner of record of Warrants at the end of such 30-day period, additional Warrants, in the form attached as
Exhibit A hereto, to purchase a number of shares of Common Stock equal to 1.5% of the number of shares of Common Stock issuable to such Person pursuant to the Warrants held by such Person at the end
of such 30-day period multiplied by a ratio, the numerator of which is the number of days during such period that the Registration Statement was not effective and the denominator of which is 30;  provided, however, that (i) the Company's obligation to issue such warrants shall cease at the time the
Registration Statement is declared effective. 

    (b) The
Company shall use its commercially reasonable efforts to keep the Registration Statement continuously effective in order to permit the prospectus included
therein to be lawfully delivered by the Holders of the Registrable Securities, for a period of 180 days from the date of its effectiveness or such shorter period that will terminate when all the
shares of Common Stock covered by the Registration Statement (i) have been sold pursuant thereto or (ii) are no longer restricted securities (as defined in Rule 144 under the Securities Act, or any
successor rule thereof) or may be sold without registration in accordance with Rule 144(k) under the Securities Act (in each case, such period being called the "Registration
Period"). The Company shall be deemed not to have used its commercially reasonable efforts to keep the Registration Statement effective during the requisite period if it
voluntarily takes any action that would result in Holders of Registrable Securities covered thereby not being able to offer and sell such Registrable Securities during that period, unless such action
is required by applicable law; provided, however, that the Company shall have the right to voluntarily
take such action and temporarily suspend effectiveness and not be obligated to effect such qualification or compliance required (i) if the Company gives notice to each Holder of the Company's
intention to make a public offering of Common Stock within 90 days, other than pursuant to a Registration Statement as required hereto, (ii) if there is a possible merger, acquisition or business
combination or other similar transaction involving the Company, or (iii) in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent
to service of process in effecting such registration, qualification or compliance. 

    (c) Notwithstanding
any other provisions of this Agreement to the contrary, the Company shall cause the Registration Statement and the related prospectus and any
amendment or supplement thereto, as of the effective date of such Registration Statement, amendment or supplement, (i) to comply in all material respects with the applicable requirements of the
Securities Act, the Exchange Act and the rules and regulations of the Commission thereunder and (ii) not to contain any untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading. 

    2.3  Registration Procedures.  In connection with any Registration contemplated by Section 2.2 hereof: 

    (a) The
Company shall use its best efforts to prevent the issuance, and if issued to obtain the withdrawal at the earliest possible time, of any order suspending the
effectiveness of the Registration Statement. 

    (b) The
Company shall furnish to each Holder of Registrable Securities included within the coverage of the Registration, without charge, at least one copy of the
Registration Statement and 

4

 

any post-effective amendment thereto, including financial statements and schedules, and, if the Holder so reasonably requests in writing, all exhibits thereto (including those, if any, incorporated by
reference). 

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

    (d) The
Company shall cooperate with the Holders of the Registrable Securities to facilitate the timely preparation and delivery of certificates representing the
Registrable Securities to be sold pursuant to any Registration Statement free of any restrictive legends and in such denominations and registered in such names as the Holders may request in connection
with the sale of Securities pursuant to such Registration Statement. 

    (e) The
Company shall not later than the effective date of the applicable Registration Statement, provide CUSIP numbers for the Registrable Securities registered
thereunder and provide the applicable
trustee with a printed certificate for the Registrable Securities in a form eligible for deposit with The Depository Trust Company. 

    (f)  The
Company shall comply with all rules and regulations of the Commission to the extent and so long as they are applicable to the Registration and will make
generally available to its security holders (or otherwise provide in accordance with Section 11(a) of the Securities Act) an earnings statement satisfying the provisions of Section 11(a) of the
Securities Act, no later than 45 days after the end of a 12-month period (or 90 days, if such period is a fiscal year) beginning with the first month of the Company's first fiscal quarter commencing
after the effective date of the Registration Statement, which statement shall cover such 12-month period. 

    (g) The
Company may require each Holder of Registrable Securities to be sold pursuant to the Registration Statement to furnish to the Company such information regarding
the Holder and the distribution of the Registrable Securities as the Company may from time to time reasonably require for inclusion in the Registration Statement, pursuant to applicable law and
regulations, and the Company may exclude from such registration the Securities of any Holder that unreasonably fails to furnish such information within a reasonable time after receiving such request. 

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

    (i)  In
the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the
managing underwriter(s) of such offering but in no event shall any indemnity and/or contribution provisions therein provide that the indemnity and/or contribution of the Holders of Registrable
Securities exceed the net proceeds from the offering received by such Holders. Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement. 

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

5

 

prospectus not to include any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light
of the circumstances then existing. 

    (k) Upon
the occurrence of any event contemplated by Section 2.3(j) hereof during the period for which the Company is required to maintain an effective Registration
Statement, the Company shall promptly prepare and file a post-effective amendment to the Registration Statement or a supplement to the related prospectus and any other required document so that, as
thereafter delivered to Holders of the Registrable Securities or purchasers of Registrable Securities, the prospectus will not contain an untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies the Holders
of the Registrable Securities in accordance with Section 2.3(j) hereof to suspend the use of the prospectus until the requisite changes to the prospectus have been made, then the Holders of the
Registrable Securities shall suspend use of such prospectus, and the period of effectiveness of the Registration Statement provided for in Section 2.2(b) hereof shall be extended by the number of days
from and including the date of the giving of such notice to and including the date when the Holders of the Registrable Securities shall have received such amended or supplemented prospectus pursuant
to this Section 2.3. 

    (l)  The
Company shall use its commercially reasonable efforts to furnish, on the date that such Registrable Securities are delivered to the underwriters for sale, if
such securities are being sold through underwriters, (i) an opinion, dated as of such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is
customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and (ii) a letter dated as of such date, from the independent certified public accountants
of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering addressed to the underwriters. 

    2.4  Registration Expenses.  All Registration Expenses incurred in connection with any registration,
qualification or compliance pursuant to Section 2.2 and 2.3 hereof, except underwriters' commissions and discounts, shall be borne by the Company. All Selling Expenses incurred in connection with any
registrations hereunder, shall be borne by the holders of the securities so registered pro rata on the basis of the number of shares so registered. 

    2.5  Indemnification.  

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

6

 

controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action;  provided however, that the
indemnity agreement contained in this Section 2.5(a) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld or delayed, nor shall the Company be liable in any such
case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information
furnished by such Holder under an instrument duly executed by such Holder and stated to be specifically for use in connection with such registration by such Holder, partner, officer, director,
underwriter or controlling person of such Holder. 

    (b) To
the extent permitted by law, each Holder will, if Registrable Securities held by such Holder are included in the securities as to which such registration
qualifications or compliance is being effected, indemnify and hold harmless the Company, each of its directors, its officers and each Person, if any, who controls the Company within the meaning of the
Securities Act, against any losses, claims, damages or liabilities (joint or several) to which the Company or any such director, officer or controlling person may become subject under the Securities
Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case
to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder under an instrument duly executed by such Holder
and stated to be specifically for use in connection with such registration; and each such Holder will pay as incurred any legal or other expenses reasonably incurred by the Company or any such
director, officer or controlling person in connection with investigating or defending any such loss, claim, damage, liability or action if it is judicially determined that there was such a Violation;  provided, however,
 that the indemnity agreement contained in this Section 2.5(b) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld or delayed; provided
further, that in no event shall any indemnity and contribution under this Section 2.5 exceed in the aggregate the net proceeds from the offering received by such Holder. 

    (c) Promptly
after receipt by an indemnified party under this Section 2.5 of notice of the commencement of any action (including any governmental action), such
indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.5, deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume
the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and expenses to
be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests
between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the
commencement of any such action, if and to the extent materially prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under
this Section 2.5, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this
Section 2.5. 

    (d) If
the indemnification provided for in this Section 2.5 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any
losses, claims, damages or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified 

7

 

party thereunder, shall to the extent permitted by applicable law contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability in such
proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the Violation(s) that resulted in such
loss, claim, damage or liability, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of
law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying
party or by the indemnified party and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission;  provided, that in no event shall
any indemnification and contribution by a Holder under this Section 2.5 exceed in the aggregate the net proceeds from
the offering received by such Holder. 

    (e) The
obligations of the Company and Holders under this Section 2.5 shall survive completion of any offering of Registrable Securities in a Registration Statement and
the termination of this agreement. No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or
enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such
claim or litigation. 

    2.6  Amendment of Registration Rights.  Any provision of this Section 2 may be amended and the observance
thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Holders holding at least a majority
of the Registrable Securities then outstanding (the "Majority Holders"). Any amendment or waiver effected in accordance with this Section 2.6 shall be
binding upon each Holder and the Company. By acceptance of any benefits under this Section 2.6, Holders of Registrable Securities hereby agree to be bound by the provisions hereunder. 

    2.7  "Market Stand-Off" Agreement; Agreement to Furnish Information.  Each Holder hereby agrees that such
Holder shall not publicly sell, publicly transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a
public sale, any Common Stock (or other securities) of the Company held by such Holder (other than those included in the registration) for a period specified by the representative of the underwriters
of Common Stock (or other securities) of the Company not to exceed 90 days following the effective date of a registration statement of the Company filed under the Securities Act;  provided that all
officers and directors of the Company and holders of at least 1% of the Company's voting securities and all other Persons with
registration rights (whether or not pursuant to this Agreement) are bound by and enter into similar agreements and no such agreement is waived. 

    Each
Holder agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriter which are consistent with the foregoing or which are
necessary to give further effect thereto. In addition, if requested by the Company or the representative of the underwriters of Common Stock (or other securities) of the Company, each Holder shall
provide, within ten days of such request, such information as may be required by the Company or such representative in connection with the completion of any public offering of the Company's securities
pursuant to a Registration Statement filed under the Securities Act. The obligations described in this Section 2.7 shall not apply to a registration relating solely to employee benefit plans on Form
S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a Rule 145 transaction under the Securities Act on Form S-4 or similar forms that may be
promulgated in the future. Each Holder agrees that any transferee of any shares of Registrable Securities shall be bound by this Section 2.7. 

8

 

    2.8  Restrictions on Public Sale by the Company and Others.  The Company agrees not to make any public
sale or distribution of its equity securities, or any securities convertible into or exchangeable or exercisable for its equity securities, including a sale under Regulation D under the Securities Act
or under any other exemption of the Securities Act (except as part of the underwritten registration referred to herein or pursuant to registration on Forms S-8 or S-4 or any successor form), during
the seven days prior to and the 90 days after the effective date of any Registration Statement. The Company also agrees to use reasonable efforts to cause each holder of at least 1% (on a
fully-diluted basis) of its equity securities (other than Registrable Securities) or any securities convertible into or exchangeable or exerciseable for its equity securities (other than Registrable
Securities), purchased from the Company at any time on or after the date of this Agreement (other than in a registered public offering), to agree not to make any public sale or distribution of those
securities, including a sale pursuant to Rule 144 under the Securities Act (except as part of the underwritten registration, if permitted), during the seven days prior to and the 180 days after the
effective date of the registration unless the managing underwriter(s) agrees otherwise. 

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

    (a) Make
and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, or any similar or analogous rule
promulgated under the Securities Act, at all times after the effective date of the Registration Statement filed by the Company for an offering of its securities to the general public; 

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

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

    2.10  S-3 Eligibility.  The Company shall use its best efforts to maintain its eligibility to use Form
S-3 under the Securities Act. 

SECTION 3. MISCELLANEOUS.  

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

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

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

9

 

who shall be a holder of Registrable Securities from time to time; provided, however, that prior to the
receipt by the Company of adequate written notice of the transfer of any Registrable Securities specifying the full name and address of the transferee, the Company may deem and treat the Person listed
as the holder of such shares in its records as the absolute owner and holder of such shares for all purposes, including the payment of dividends or any redemption price. 

    3.4  Entire Agreement.  This Agreement, the Purchase Agreement and the other documents delivered pursuant
thereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and no party shall be liable or bound to any other in any manner by any
representations, warranties, covenants and agreements except as specifically set forth herein and therein. 

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

    3.6  Amendment and Waiver.  

    (a) Except
as otherwise expressly provided, this Agreement may be amended or modified only upon the written consent of the Company and the Majority Holders. 

    (b) Except
as otherwise expressly provided, the obligations of the Company and the rights of the Holders under this Agreement may be waived only with the written
consent of the Majority Holders. 

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

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

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

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

10

 

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

    3.11  Counterparts.  This 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. 

    [THIS
SPACE INTENTIONALLY LEFT BLANK] 

11

    In Witness Whereof, the parties hereto have executed this Registration Rights Agreement
as of the date set forth in the first paragraph hereof. 

	COMPANY:	 	PURCHASER:
	

US SEARCH.COM INC.	
 	

PEQUOT PRIVATE EQUITY FUND II, L.P.
	
 	

 	
 	

By:	

Pequot Capital Management, Inc.
	By:	/s/ BRENT N. COHEN   
	 	Its:	Investment Manager
	Name:	Brent N. Cohen	 	 	 
	Title:	Chief Executive Officer

	 	 	 

	 	 	By:	/s/ KEVIN E. O'BRIEN   

	 	 	Name:	Kevin E. O'Brien
	 	 	Title:	General Counsel
	 	 	Address:	500 Nyala Farm Road

Westport, CT 06880

QuickLinks

Exhibit 10.3

US SEARCH.COM Inc. REGISTRATION RIGHTS AGREEMENT

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