Document:

Exhibit 10.3.1

Stock Option Agreement

TRAFFIC.COM,
INC., a Delaware corporation (the “Company”), hereby grants an option (the “Option”)
to purchase shares of its common stock (the “Shares”) to the Participant named
below. The terms and conditions of the Option are set forth in this Stock
Option Agreement (the “Agreement”), and in the Traffic.Com, Inc. 2005
Long-Term Incentive Plan (the “Plan”), a copy of which is attached as Appendix
A.

	
  Date of Option Grant

  	
                                    ,
  20      

  
	
  Vesting Commencement Date

  	
                                    ,
  20            Expiration
  Date                                 ,
  20      

  	 

	
  Participant’s Name

  	
                                                                
  SSN                                   

  	 

	
  Type of Option

  (Check applicable
  box(es))

  	
  The Option is

  o
  an Incentive Stock Option

  o a Nonstatutory Stock
  Option

  	
  o The
  Option is granted with respect to Restricted Stock
(If this box is checked,
  see attached Schedule of Restrictions)

  	 

	
  Number of Shares

  	
                            
  Shares.

  	 

	
  Exercise Price

  	
  $                    
  per Share.

  	 

	
  Vesting

  (Check applicable
  box(es))

  	
  The
  Option shall vest in accordance with one of the following:

  £ Performance Objectives: If this
  box is checked, the Option will vest upon achievement of the Performance
  Objectives listed on the attached Schedule of Performance Objectives.

  £ Time Vesting Schedule: If this
  box is checked, the Option will vest according to the Vesting Schedule below:

  	 

	
   

  	
  The Option shall initially be unvested and shall
  vest (i) twenty-five percent (25%) on the first anniversary of the
  Vesting Commencement Date and (ii) the balance of the Option in twelve
  (12) successive equal quarterly installments over the thirty-six (36) month
  period measured from the first anniversary of the Vesting Commencement Date.
  In no event shall any additional portion of the Option vest after
  Participant’s Termination of Service.

  	 

	
  Termination of Service Prior to Expiration Date

  	
  If the Participant has a Termination of Service (not
  for Cause) prior to the Expiration Date, the time to exercise the Option
  shall be limited, as follows:

  ·  Unless the Termination of Service is the
  result of the Participant’s death or Disability, the Participant may exercise
  the Option up to           
  months after the Termination of Service.

  ·  If the Termination of Service is the result
  of the Participant’s Disability, the Participant may exercise the Option up
  to            months
  after the Termination of Service.

  ·  If the Termination of Service is the result
  of the Participant’s death, the Participant’s Beneficiary may exercise the
  Option up to           
  months after the Termination of Service.

  ·  If the Termination of Service is for Cause,
  as defined hereinafter, the Option shall immediately expire and shall be null
  and void.

  	 

						

My signature at the end of this Agreement, as the
Participant,  indicates that I understand
and agree to the terms and conditions set forth in this Agreement and the Plan.

 24
 

 
  

 

Initials:
          Date:                        

 25
 

 
  

 

STOCK
OPTION AGREEMENT

This
Agreement evidences the grant of an Option under the Traffic.Com, Inc.
2005 Long-Term Incentive Plan. The name of the recipient, the number of Shares
covered by the Option, and other variable terms are set forth in the cover
page, which is part of this Agreement. The words “you,” “your,” and similar
terms refer to the Participant to whom this Option is granted.

The
Option is subject to the following terms and conditions:

 

	
  Definitions and the Plan

  	
   

  	
  All capitalized terms that are not otherwise defined
  in this Agreement have the meanings set forth in the Plan, the text of which
  is incorporated into this Agreement by reference. In case of any conflict
  between this Agreement and the Plan, the terms of the Plan shall control.

  
	
  Term

  	
   

  	
  Subject to the Termination of Service provisions set
  forth in the cover page and the provisions that apply in case of
  Termination of Service for Cause (and, for an Incentive Stock Option,
  Section 5.3(a) of the Plan), this Option shall expire at
  5:00 p.m. Eastern Time on the Expiration Date set forth in the cover
  page.

  
	
  Number of Shares and Exercise Price

  	
   

  	
  To the extent vested (and prior to the end of the
  Term described above), this Option gives you the right to purchase the number
  of Shares set forth on the cover page, at the Exercise Price set forth on the
  cover page.

  ·  The Exercise Price is subject to
  Section 5.3(b) of the Plan, which provides that the Exercise Price
  may not be less than the Fair Market Value (or, if this Option is an
  Incentive Stock Option and you are a 10% Stockholder, 110% of the Fair Market
  Value) of the Shares on the Date of Option Grant.

  ·  The number of Shares and/or Exercise Price
  may be adjusted to reflect a stock split or other corporate transaction or
  event, in the sole discretion of the Administrator.

  
	
  Vesting

  	
   

  	
  The cover page indicates whether the criteria
  for vesting are (i) achievement of the Performance Objectives set forth
  in the attached schedule or (ii) continued service in accordance with
  the Vesting Schedule set forth in the cover page.

  ·  With respect to any portion of this Option
  that vests according to the Vesting Schedule set forth in the cover page, a
  leave of absence of more than three month, unless otherwise is provided by
  the Administrator or a Company policy, shall not count as service, except as
  required by law.

  ·  Any portion of this Option that vests upon
  achievement of Performance Objectives shall not be deemed to have vested
  until the Administrator certifies in writing that the applicable Performance
  Objectives and other material terms of the Agreement have been satisfied.

  In addition, this Option shall vest upon the
  occurrence of any vesting event (for example, onset of disability or change
  of control) set forth in a separate written agreement between you and the
  Company.

  
	
  Special Provisions for Incentive Stock Options

  	
   

  	
  If this Option is an Incentive Stock Option, the
  following provisions apply:

  ·  Although the Option is intended to be an
  Incentive Stock Option, the Company does not warrant that the Option will be
  treated as an Incentive Stock Option for tax purposes. To the extent that the
  Option fails for any reason to satisfy the requirements applicable to
  Incentive Stock Options, the Option or such portion thereof shall be a
  Nonqualified Stock Option.

  

 

 26
 

 
  

 

	
  

  	
   

  	
  ·  The Option will not be treated as an
  Incentive Stock Option for tax purposes if you sell or otherwise dispose of
  Shares issued upon exercise before the later of: (i) the first
  anniversary of the date the Shares are delivered to you, or (ii) the
  second anniversary of the Date of Option Grant. Any earlier sale or
  disposition of the Shares will be a “disqualifying disposition.” You must
  notify the Company of any disqualifying disposition within 30 days after a
  disqualifying disposition occurs.

  ·  Any portion of the Option that is exercised
  more than three months after your Termination of Service for any reason other
  than Disability or death (to the extent the Option has not expired) shall be
  treated as a Nonstatutory Stock Option. If you die before exercising the
  Option, it may be treated as an Incentive Stock Option only to the extent
  that the Option would have been treated as an Incentive Stock Option if you
  had exercised it on the date of your death.

  
	
  Exercise

  	
   

  	
  To exercise all or any
  part of this Option, you (or your Beneficiary, in the case of exercise after
  your death) must complete a Notice of Exercise, which may be written or
  electronic, and file it at the principal office of the Company (Attn:
  Corporate Secretary). Your Notice of Exercise must indicate the number of
  Shares you wish to purchase and will not be accepted if it is incomplete. You
  may not purchase fractional Shares; Any request for fractional Shares will be
  rounded down to the next lowest whole number of Shares.

  A sample Notice of
  Exercise appears as Appendix B to this Agreement.

  You will not have any of the rights of a
  stockholder until (1) you exercise the Option; (2)  the Company
  receives full payment for the Shares, and (3) you pay or otherwise
  provide for the satisfaction of the Company of the Withholding obligations.

  
	
  Payment Upon Exercise

  	
   

  	
  When you (or your
  Beneficiary) submit your Notice of Exercise, you must include payment of the
  Exercise Price for the Shares you are purchasing. (You might also have to
  include payment for tax withholding, as described below.) Unless approved by
  the Administrator, payment for the Shares must be made by cash or check made
  payable to the Company. With approval from the Administrator, however,
  payment may be made in either of the following forms:

  ·  Tender or Attestation of
  Shares: You may tender whole Shares to the Company with a Fair
  Market Value equal to the Exercise Price. Instead of actually tendering
  Shares to the Company, you may attest that you own Shares with a Fair Market
  Value equal to the Exercise Price, and the Company will reduce the number of
  Shares issuable upon exercise by the number of Shares required to cover the
  Exercise Price. Shares attested to or tendered in order to pay the Exercise
  Price may not be Restricted Stock, and you must have owned the Shares for at
  least six months.

  ·  Broker-Assisted Cashless
  Exercise: You may instruct the Company to deliver the Shares
  issuable upon exercise to a broker (acceptable to the Company); you must give
  the broker irrevocable instructions to sell enough Shares to pay the Exercise
  Price and to deliver the Exercise Price to the Company. For purposes of a
  broker-assisted cashless exercise, the Shares are deemed to have a Fair
  Market Value on the Option exercise date equal to the price at which the
  broker sold the Shares to pay the Exercise Price. (Because of the
  rules prohibiting directors and executive officers from receiving loans
  or other extensions of credit from the Company, directors and executive
  officers of the Company are not eligible to use the cashless exercise
  method.)

  All or part of the
  Option is deemed exercised when the Administrator receives (i) your (or
  your Beneficiary’s) Notice of Exercise and (ii) full payment for the
  Shares with respect to which the Option is exercised.

  The Administrator or the Company may for any reason
  decline to accept payment by

  

 

 27
 

 
  

 

	
  

  	
   

  	
  exchange of Shares, or may impose such limitations
  or restrictions on the form of payment as it deems advisable.

  
	
  Withholding

  	
   

  	
  If you received the
  Option as an employee, the Company must withhold income and employment taxes
  when you (or your Beneficiary) exercise the Option. The Company may either
  (i) require you (or your Beneficiary) to remit to the Company cash
  and/or Shares in an amount sufficient to satisfy all federal, state, and
  local withholding obligations, or (ii) upon your request and with
  approval from the Administrator, withhold Shares that would otherwise be
  delivered.

  As set forth in Section 10.8(a) of the
  Plan, you remain responsible at all times for paying any federal, state, and
  local income and employment taxes with respect to this Award. Traffic.Com is not
  responsible for any liability or penalty that you incur by failing to make
  timely payments of tax.

  
	
  Nontransferability

  	
   

  	
  Unless the Administrator determines otherwise, you
  may not transfer the Option, except by will or the laws of descent or
  distribution. (The person(s) to whom the Option is passed by will or the
  laws of descent or distribution is your Beneficiary.) However, if approved by
  the Administrator (subject to terms and conditions that the Administrator may
  establish), and provided that this Option is a Nonstatutory Stock Option, you
  may transfer all or part of the Option to a member of your immediate family
  (i.e., spouse, child, stepchild, grandchild, parent, grandparent, or
  sibling).

  
	
  Restrictions on Exercise, Delivery, and Resale

  	
   

  	
  ·  You may not exercise this Option or sell any
  Shares acquired under this Option at a time when the exercise or sale would
  be prohibited under Applicable Laws.

  ·  You may not exercise this Option after an
  event constituting “Cause” (as defined in the following section) occurs,
  unless you are notified by the Administrator your right to exercise has been
  reinstated.

  ·  As set forth in Section 10.6 of the
  Plan, Shares shall not be delivered until (i) all conditions of the
  Option have been met to the satisfaction of the Administrator, (ii) all
  other legal matters in connection with the issuance and delivery of the
  Shares have been satisfied, and (iii) you have executed and delivered to
  the Company all representations and agreements as are necessary and
  appropriate to satisfy the requirements of any Applicable Laws. 

  ·  As set forth in Section 10.7 of the
  Plan, the Company shall not be liable for any delay in obtaining regulatory
  authority that it deems necessary to issue Shares.

  If the cover page indicates that this Option is
  granted with respect to Restricted Stock, the Shares you acquire by
  exercising the Option might be subject to additional restrictions, and you
  might forfeit the Shares if you fail to meet the vesting conditions specified
  in the Restricted Stock Agreement. Consult the Company concerning the nature
  of any restrictions before you exercise an Option to acquire Restricted
  Stock.

  
	
  Forfeiture Upon Termination of Service for Cause

  	
   

  	
  If you experience a
  Termination of Service that is initiated by the Company for “Cause” (as
  defined below) while the Option is outstanding, this Option (whether vested
  or not vested) shall immediately expire and shall be null and void.

  If you are covered by
  an employment agreement or consulting agreement at the time of your
  Termination of Service, and if the employment agreement or consulting
  agreement includes provisions relating to termination for cause, your
  termination for cause within the meaning of the employment agreement or
  consulting agreement shall constitute a Termination of Service for “Cause”
  within the meaning of this Agreement.

  If you are not covered by an employment agreement or
  consulting agreement that includes provisions relating to termination for
  cause, “Cause” shall mean (i) any breach or violation by you of any
  agreement between you and the Company or an Affiliate; (ii) any act or
  omission to act by you that would be reasonably likely to have the effect 

  

 

 28
 

 
  

 

	
  

  	
   

  	
  of injuring the reputation, business, or business
  relationships of the Company, or of impairing your ability to perform
  services for the Company or an Affiliate; (iii) your conviction
  (including without limitation a plea of guilty or nolo contendere) of any
  crime other than an ordinary traffic violation; (iv) any material misconduct
  or willful and deliberate non-performance of duties by you in connection with
  the Company’s or an Affiliate’s business or affairs; (v) your theft,
  dishonesty, misrepresentation, or falsification of the Company’s or an
  Affiliate’s documents or records; (vi) your improper use or disclosure
  of the Company’s or an Affiliate’s confidential or proprietary information;
  or (vii) your use of the Company’s or an Affiliate’s facilities,
  premises, or property to conduct unlawful or unauthorized activities or
  transactions.

  
	
  Reorganization Event

  	
   

  	
  Subject to the
  provisions set forth below, upon the occurrence of a Reorganization Event,
  the Option shall be assumed or an equivalent option substituted by the
  successor corporation or a Parent or Subsidiary of the successor corporation.

  In the event that the
  successor corporation does not assume (within the meaning of
  Section 11.2 of the Plan) the Option or an equivalent option is not
  substituted, then the Administrator shall have the authority to provide in
  its discretion that one of the following will occur, and will provide you
  with written or electronic notice thereof: (i) any unvested Options and
  any vested Options that are not exercised shall terminate and be canceled
  upon such Reorganization Event; or (ii) the Option will become exercisable
  in full or in part, as determined by the Administrator, as of a specified
  time prior to the Reorganization Event and will terminate immediately prior
  to the consummation of such Reorganization Event, except to the extent
  exercised by you prior to the consummation of the Reorganization Event; or
  (iii) the Option will terminate upon consummation of such Reorganization
  Event and you will receive, in exchange for all or any portion of such
  Option, as is designated by the Administrator, a cash payment equal to the
  amount (if any) by which (A) the Acquisition Price multiplied by the
  number of Option Shares subject to the portion of the Option designated by
  the Administrator, exceeds (B) the aggregate Exercise Price of the
  Option or designated portion thereof.

  If the Option is
  assumed in connection with a Reorganization Event, then the Option shall be
  appropriately adjusted, immediately after such Reorganization Event, to apply
  to the number and class of securities which would have been issuable to you in
  consummation of such Reorganization Event had the Option been exercised in
  full immediately prior to such Reorganization Event, and appropriate
  adjustments shall also be made to the Exercise Price, provided that the
  aggregate Exercise Price shall remain the same.

  This Agreement shall not, in any way, affect the
  right of the Company to adjust, reclassify, reorganize or to otherwise change
  its capital or business structure or to merge, consolidate, dissolve,
  liquidate or sell or transfer all or any part of its business or assets.

  
	
  Adjustments

  	
   

  	
  In the event that there is any stock dividend that
  is paid on the Shares in Shares, or any stock split, reverse stock split,
  combination or reclassification of Shares, or any other increase in the
  number of outstanding Shares without receipt of consideration by the Company,
  then the total number and/or class of securities subject to the Option and
  the Exercise Price of the Option shall be appropriately adjusted, in such
  manner as the Administrator in its sole discretion deems equitable, in order
  to prevent dilution or enlargement of your rights under the Option.

  

 

 29
 

 
  

 

	
  Lock-up Provision

  	
   

  	
  If the Company proposes to make a public offering of
  Shares, the Company or an underwriter might request that you not sell or
  otherwise dispose (directly or indirectly) of Shares delivered under this
  Agreement for a reasonable period (not to exceed 180 days) after the
  offering. You hereby agree to enter into such a lock-up agreement, whether
  such public offering occurs before or after you exercise your Option. Your
  right to any Shares received under this Agreement is contingent on your
  agreeing to comply with such a request.

  
	
  Notices

  	
   

  	
  ·  Any notice from you to the Company with
  regard to this Agreement, must be in writing and shall be deemed effective
  when it is received by the Secretary of the Company at the Company’s
  principal office.

  ·  Any notice from the Company to you with
  regard to this Agreement, must be in writing and shall be deemed effective
  when it is personally delivered to you or when it is deposited in the U.S.
  Mail at the address set forth under your signature, with postage and fees
  prepaid.

  
	
  Not an Employment Contract

  	
   

  	
  This Agreement is not an employment agreement and
  does not give you any right to continued employment (or other service
  relationship) with the Company or an Affiliate. Unless provided otherwise in
  a written agreement between you and the Company or an Affiliate, your
  employment (or other service relationship) is “at-will” and may be terminated
  at any time and for any reason.

  
	
  Amendment and Termination

  	
   

  	
  This Agreement may be amended or terminated by
  mutual agreement, in writing, signed by you and the Company. To the extent
  required or appropriate, as determined by the Administrator, to comply with
  an Applicable Law or to comply with or conform to am accounting principle,
  this Agreement may be amended by the Company without your consent. In
  addition, as set forth in Section 12.5 of the Plan, the Administrator
  reserves the right to adjust the terms of this Agreement in connection with
  any unusual or nonrecurring events affecting the Company or an Affiliate. By
  way of example, the Company may respond to an unusual or nonrecurring event
  by temporarily suspending your right to exercise this Option.

  
	
  Governing Law

  	
   

  	
  As set forth in Section 13.2 of the Plan, this
  Agreement shall be governed by and interpreted in accordance with Delaware
  law (without regard to any principles of Delaware law that might direct
  resolution to the laws of a different jurisdiction).

  
	
  Severability

  	
   

  	
  As set forth in Section 13.5 of the Plan, any
  provision in this Agreement that is determined to be unenforceable shall be
  construed or deemed to be amended to resolve the applicable infirmity, unless
  the Administrator determines that the infirmity cannot be resolved without
  materially changing the Agreement, in which case the provision shall be
  stricken (as it applies in the jurisdiction where it is invalid) and the
  remainder of Agreement shall remain in effect.

  
	
  Waiver

  	
   

  	
  The waiver by you or the Company of any provision of
  this Agreement at any time or for any purpose shall not operate as or be
  construed to be a waiver of the same or any other provision of this Agreement
  at any subsequent time or for any other purpose.

  
	
  Interpretation and Construction

  	
   

  	
  This Agreement shall be construed and interpreted by
  the Administrator, in its sole discretion. Any interpretation or other
  determination by the Administrator (including without limitation correction
  of any defect or omission and reconciliation of any inconsistency in the
  Agreement or the Plan) shall be binding and conclusive.

  
	
  Headings

  	
   

  	
  The headings in this Agreement are provided solely
  as a convenience to facilitate reference. The headings shall not be relevant
  for purposes of construing or interpreting any part of this Agreement.

  

 

 30
 

 
  

 

	
  Entire Understanding

  	
   

  	
  This Agreement and the Plan constitute the entire
  understanding between you and the Company regarding this Option. Any prior
  agreements, commitments, or negotiations concerning this Option are
  superseded.

  

 

	
  Traffic.Com, Inc.

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

I have read this Agreement and the Plan, and I understand and agree to
their terms and conditions.

	
  

  	
   

  
	
   

  	
  Participant’s Signature

  
	
   

  	
   

  
	
   

  	
  Participant’s Name (please print)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Participant’s Address

  

 

 

Appendix
A:

Copy of Traffic.Com, Inc. 2005 Long -term incentive Plan

 31
 

 
  

Appendix
B:

Sample Notice of Exercise

	
  

  	
  Name:

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
                                ,
  20        

  

 

Traffic.Com, Inc.
851 Duportail Road,
Wayne, PA 19087

Attention: Corporate Secretary

By
a Stock Option Agreement dated                               ,
20       (the “Option Agreement”), I am
the holder of an Option granted under the Traffic.Com, Inc. 2005 Long-Term
Incentive Plan (the “Plan”) to purchase up to                         
shares of Traffic.Com common stock (the “Shares”) at an exercise price of $                  
per Share. My Option is (circle one) [an Incentive] [a Nonstatutory] Stock
Option.

I
hereby exercise my Option to purchase                     
Shares, for which the total exercise price is $                        .
I have arranged to pay the exercise price as follows:

£                                     I am enclosing with this notice a check for $                            .

£                                     With approval from the Administrator of the
Plan (the “Administrator”), I have arranged to tender                       
Shares, with a Fair Market Value of $                      .
I certify that I have owned the Shares that I am tendering for more than six
months and that the Shares are not restricted.

£                                     With approval from the Administrator, I
hereby attest that I have owned                     Shares,
with a current Fair Market Value of $                      ,
for more than six months, and that I continue to own such Shares. I acquired
these Shares on                             
[insert date] for a purchase price of $                        .
I authorize Traffic.Com to reduce the number of Shares deliverable upon
exercise by the number of Shares whose ownership I have attested.

£                                     With approval from the Administrator, I
hereby instruct Traffic.Com to deliver the Option Shares to                                               
(the “Broker”) to be credited to my account number                           .
The Broker’s address and telephone number are:       
                                                                                                                                        .
I certify that I have instructed the Broker to sell Shares with a Fair Market
Value of at least $                      
(after any commissions or other expenses of the sale), and to deliver $                        
to Traffic.Com from the proceeds of the sale.

I
understand that my Option may be exercised only to the extent that it is
vested, and that it will not be deemed exercised with respect to any Shares
until the exercise price has been received by the Corporate Secretary of
Traffic.Com (or by a person designated by the Corporate Secretary).

I
understand the nature of the investment I am making and the financial risks
thereof. I am aware that if I received my Option as an employee of Traffic.com,
exercise of my Option might trigger certain federal, state, and local tax
withholding obligations. I have arranged to satisfy the withholding obligations
in the following manner:

£                                     I am enclosing with this notice a check for $                              ,
which Traffic.Com has determined to be sufficient to satisfy all withholding
obligations.

 32
 

 
  

 

£                                     With approval from the Administrator, I
authorize Traffic.Com to withhold Shares with a Fair Market Value equal to the
amount that must be withheld. I understand that only whole Shares will be
withheld and that any fractional Shares required to be withheld will be rounded
up to the next whole Share.

Notwithstanding
the provisions for withholding, I understand that I remain responsible at all
times for paying any federal, state, and local income and employment taxes with
respect to my Option and that Traffic.Com is not responsible for any liability
or penalty that I incur by failing to make timely payments of tax.

Please register my stock
certificate as follows:

	
  Name:

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Tax I.D. #:

  	
   

  	
   

  

If my Option is an Incentive
Stock Option, I will notify Traffic.Com’s Chief Financial Officer within 30
days after any transfer of Shares acquired pursuant to my exercise of the
Option that occurs within one (1) year after the date of exercise or
within two (2) years after the date the Option was granted.

I further understand and
acknowledge that my exercise of this Option and receipt of the Shares are
subject to the terms and conditions of the Plan and the Option Agreement, which
I have received and carefully reviewed. I understand the terms and conditions
and agree to be bound by them.

	
  

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  Signature

  

 

Received by Traffic.Com, Inc.:                                             ,
20        

Approved

	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 33Exhibit 10.3.2

Executive Stock Option Agreement

TRAFFIC.COM,
INC., a Delaware corporation (the “Company”), hereby grants an option (the “Option”)
to purchase shares of its common stock (the “Shares”) to the Participant named
below. The terms and conditions of the Option are set forth in this Stock
Option Agreement (the “Agreement”), and in the Traffic.Com, Inc. 2005
Long-Term Incentive Plan (the “Plan”), a copy of which is attached as Appendix
A.

	
  Date of Option Grant

  	
                                    ,
  20      

  
	
  Vesting Commencement Date

  	
                                    ,
  20            Expiration
  Date                                 ,
  20      

  	 

	
  Participant’s Name

  	
                                                                
  SSN                                   

  	 

	
  Type of Option

  (Check applicable
  box(es))

  	
  The Option is

  o
  an Incentive Stock Option

  o a Nonstatutory Stock
  Option

  	
  o The
  Option is granted with respect to Restricted Stock
(If this box is checked,
  see attached Schedule of Restrictions)

  	 

	
  Number of Shares

  	
                            
  Shares.

  	 

	
  Exercise Price

  	
  $                    
  per Share.

  	 

	
  Vesting

  (Check applicable
  box(es))

  	
  The
  Option shall vest in accordance with one of the following:

  £ Performance Objectives: If this
  box is checked, the Option will vest upon achievement of the Performance
  Objectives listed on the attached Schedule of Performance Objectives.

  £ Time Vesting Schedule: If this
  box is checked, the Option will vest according to the Vesting Schedule below:

  	 

	
   

  	
  The Option shall initially be unvested and shall
  vest (i) twenty-five percent (25%) on the first anniversary of the
  Vesting Commencement Date and (ii) the balance of the Option in twelve
  (12) successive equal quarterly installments over the thirty-six (36) month
  period measured from the first anniversary of the Vesting Commencement Date.
  In no event shall any additional portion of the Option vest after
  Participant’s Termination of Service.

  	 

	
  Termination of Service Prior to Expiration Date

  	
  If the Participant has a Termination of Service (not
  for Cause) prior to the Expiration Date, the time to exercise the Option
  shall be limited, as follows:

  ·  Unless the Termination of Service is the
  result of the Participant’s death or Disability, the Participant may exercise
  the Option up to           
  months after the Termination of Service.

  ·  If the Termination of Service is the result
  of the Participant’s Disability, the Participant may exercise the Option up
  to            months
  after the Termination of Service.

  ·  If the Termination of Service is the result
  of the Participant’s death, the Participant’s Beneficiary may exercise the
  Option up to           
  months after the Termination of Service.

  ·  If the Termination of Service is for Cause,
  as defined hereinafter, the Option shall immediately expire and shall be null
  and void.

  	 

						

 34
 

 
  

My signature at the end of this Agreement, as the
Participant,  indicates that I understand
and agree to the terms and conditions set forth in this Agreement and the Plan.

 

Initials:
          Date:                        

 35
 

 
  

 

EXECUTIVE
STOCK OPTION AGREEMENT

This
Agreement evidences the grant of an Option under the Traffic.Com, Inc.
2005 Long-Term Incentive Plan. The name of the recipient, the number of Shares
covered by the Option, and other variable terms are set forth in the cover
page, which is part of this Agreement. The words “you,” “your,” and similar
terms refer to the Participant to whom this Option is granted.

The
Option is subject to the following terms and conditions:

 

	
  Definitions and the Plan

  	
   

  	
  All capitalized terms that are not otherwise defined
  in this Agreement have the meanings set forth in the Plan, the text of which
  is incorporated into this Agreement by reference. In case of any conflict
  between this Agreement and the Plan, the terms of the Plan shall control.

  
	
  Term

  	
   

  	
  Subject to the Termination of Service provisions set
  forth in the cover page and the provisions that apply in case of
  Termination of Service for Cause (and, for an Incentive Stock Option,
  Section 5.3(a) of the Plan), this Option shall expire at
  5:00 p.m. Eastern Time on the Expiration Date set forth in the cover
  page.

  
	
  Number of Shares and Exercise Price

  	
   

  	
  To the extent vested (and prior to the end of the
  Term described above), this Option gives you the right to purchase the number
  of Shares set forth on the cover page, at the Exercise Price set forth on the
  cover page.

  ·  The Exercise Price is subject to
  Section 5.3(b) of the Plan, which provides that the Exercise Price
  may not be less than the Fair Market Value (or, if this Option is an
  Incentive Stock Option and you are a 10% Stockholder, 110% of the Fair Market
  Value) of the Shares on the Date of Option Grant.

  ·  The number of Shares and/or Exercise Price
  may be adjusted to reflect a stock split or other corporate transaction or
  event, in the sole discretion of the Administrator.

  
	
  Vesting

  	
   

  	
  The cover page indicates whether the criteria
  for vesting are (i) achievement of the Performance Objectives set forth
  in the attached schedule or (ii) continued service in accordance with
  the Vesting Schedule set forth in the cover page.

  ·  With respect to any portion of this Option
  that vests according to the Vesting Schedule set forth in the cover page, a
  leave of absence of more than three month, unless otherwise is provided by
  the Administrator or a Company policy, shall not count as service, except as
  required by law.

  ·  Any portion of this Option that vests upon
  achievement of Performance Objectives shall not be deemed to have vested
  until the Administrator certifies in writing that the applicable Performance
  Objectives and other material terms of the Agreement have been satisfied.

  In addition, this Option shall vest upon the occurrence
  of any vesting event (for example, onset of disability or change of control)
  set forth in a separate written agreement between you and the Company.

  
	
  Special Provisions for Incentive Stock Options

  	
   

  	
  If this Option is an Incentive Stock Option, the following
  provisions apply:

  ·  Although the Option is intended to be an
  Incentive Stock Option, the Company does not warrant that the Option will be
  treated as an Incentive Stock Option for tax purposes. To the extent that the
  Option fails for any reason to satisfy the requirements applicable to
  Incentive Stock Options, the Option or such portion thereof shall be a
  Nonqualified Stock Option.

  ·  The Option will not be treated as an
  Incentive Stock Option for tax purposes if you sell or otherwise dispose of
  Shares issued upon exercise before the later of: (i) the

  

 

 36
 

 
  

 

	
  

  	
   

  	
      first anniversary of the date the Shares
  are delivered to you, or (ii) the second anniversary of the Date of
  Option Grant. Any earlier sale or disposition of the Shares will be a
  “disqualifying disposition.” You must notify the Company of any disqualifying
  disposition within 30 days after a disqualifying disposition occurs.

  ·  Any portion of the Option that is exercised
  more than three months after your Termination of Service for any reason other
  than Disability or death (to the extent the Option has not expired) shall be
  treated as a Nonstatutory Stock Option. If you die before exercising the
  Option, it may be treated as an Incentive Stock Option only to the extent
  that the Option would have been treated as an Incentive Stock Option if you
  had exercised it on the date of your death.

  
	
  Exercise

  	
   

  	
  To exercise all or any
  part of this Option, you (or your Beneficiary, in the case of exercise after
  your death) must complete a Notice of Exercise, which may be written or
  electronic, and file it at the principal office of the Company (Attn:
  Corporate Secretary). Your Notice of Exercise must indicate the number of
  Shares you wish to purchase and will not be accepted if it is incomplete. You
  may not purchase fractional Shares; Any request for fractional Shares will be
  rounded down to the next lowest whole number of Shares.

  A sample Notice of
  Exercise appears as Appendix B to this Agreement.

  You will not have any of the rights of a
  stockholder until (1) you exercise the Option; (2)  the Company
  receives full payment for the Shares, and (3) you pay or otherwise
  provide for the satisfaction of the Company of the Withholding obligations.

  
	
  Payment Upon Exercise

  	
   

  	
  When you (or your
  Beneficiary) submit your Notice of Exercise, you must include payment of the
  Exercise Price for the Shares you are purchasing. (You might also have to
  include payment for tax withholding, as described below.) Unless approved by
  the Administrator, payment for the Shares must be made by cash or check made
  payable to the Company. With approval from the Administrator, however,
  payment may be made in either of the following forms:

  ·  Tender or Attestation of
  Shares: You may tender whole Shares to the Company with a Fair
  Market Value equal to the Exercise Price. Instead of actually tendering
  Shares to the Company, you may attest that you own Shares with a Fair Market
  Value equal to the Exercise Price, and the Company will reduce the number of
  Shares issuable upon exercise by the number of Shares required to cover the
  Exercise Price. Shares attested to or tendered in order to pay the Exercise
  Price may not be Restricted Stock, and you must have owned the Shares for at
  least six months.

  ·  Broker-Assisted Cashless
  Exercise: You may instruct the Company to deliver the Shares
  issuable upon exercise to a broker (acceptable to the Company); you must give
  the broker irrevocable instructions to sell enough Shares to pay the Exercise
  Price and to deliver the Exercise Price to the Company. For purposes of a
  broker-assisted cashless exercise, the Shares are deemed to have a Fair
  Market Value on the Option exercise date equal to the price at which the
  broker sold the Shares to pay the Exercise Price. (Because of the
  rules prohibiting directors and executive officers from receiving loans
  or other extensions of credit from the Company, directors and executive
  officers of the Company are not eligible to use the cashless exercise
  method.)

  All or part of the
  Option is deemed exercised when the Administrator receives (i) your (or
  your Beneficiary’s) Notice of Exercise and (ii) full payment for the
  Shares with respect to which the Option is exercised.

  The Administrator or the Company may for any reason
  decline to accept payment by exchange of Shares, or may impose such
  limitations or restrictions on the form of payment as it deems advisable.

  

 

 37
 

 
  

 

	
  Withholding

  	
   

  	
  If you received the
  Option as an employee, the Company must withhold income and employment taxes
  when you (or your Beneficiary) exercise the Option. The Company may either
  (i) require you (or your Beneficiary) to remit to the Company cash
  and/or Shares in an amount sufficient to satisfy all federal, state, and
  local withholding obligations, or (ii) upon your request and with approval
  from the Administrator, withhold Shares that would otherwise be delivered.

  As set forth in Section 10.8(a) of the
  Plan, you remain responsible at all times for paying any federal, state, and
  local income and employment taxes with respect to this Award. Traffic.Com is
  not responsible for any liability or penalty that you incur by failing to
  make timely payments of tax.

  
	
  Nontransferability

  	
   

  	
  Unless the Administrator determines otherwise, you
  may not transfer the Option, except by will or the laws of descent or
  distribution. (The person(s) to whom the Option is passed by will or the
  laws of descent or distribution is your Beneficiary.) However, if approved by
  the Administrator (subject to terms and conditions that the Administrator may
  establish), and provided that this Option is a Nonstatutory Stock Option, you
  may transfer all or part of the Option to a member of your immediate family
  (i.e., spouse, child, stepchild, grandchild, parent, grandparent, or
  sibling).

  
	
  Restrictions on Exercise, Delivery, and Resale

  	
   

  	
  ·  You may not exercise this Option or sell any
  Shares acquired under this Option at a time when the exercise or sale would
  be prohibited under Applicable Laws.

  ·  You may not exercise this Option after an
  event constituting “Cause” (as defined in the following section) occurs,
  unless you are notified by the Administrator your right to exercise has been
  reinstated.

  ·  As set forth in Section 10.6 of the
  Plan, Shares shall not be delivered until (i) all conditions of the
  Option have been met to the satisfaction of the Administrator, (ii) all
  other legal matters in connection with the issuance and delivery of the
  Shares have been satisfied, and (iii) you have executed and delivered to
  the Company all representations and agreements as are necessary and appropriate
  to satisfy the requirements of any Applicable Laws. 

  ·  As set forth in Section 10.7 of the
  Plan, the Company shall not be liable for any delay in obtaining regulatory
  authority that it deems necessary to issue Shares.

  If the cover page indicates that this Option is
  granted with respect to Restricted Stock, the Shares you acquire by
  exercising the Option might be subject to additional restrictions, and you
  might forfeit the Shares if you fail to meet the vesting conditions specified
  in the Restricted Stock Agreement. Consult the Company concerning the nature
  of any restrictions before you exercise an Option to acquire Restricted
  Stock.

  
	
  Forfeiture Upon Termination of Service for Cause

  	
   

  	
  If you experience a
  Termination of Service that is initiated by the Company for “Cause” (as
  defined below) while the Option is outstanding, this Option (whether vested
  or not vested) shall immediately expire and shall be null and void.

  If you are covered by
  an employment agreement or consulting agreement at the time of your
  Termination of Service, and if the employment agreement or consulting
  agreement includes provisions relating to termination for cause, your
  termination for cause within the meaning of the employment agreement or
  consulting agreement shall constitute a Termination of Service for “Cause”
  within the meaning of this Agreement.

  If you are not covered by an employment agreement or
  consulting agreement that includes provisions relating to termination for
  cause, “Cause” shall mean (i) any breach
  or violation by you of any agreement between you and the Company or an
  Affiliate; (ii) any act or omission to act by you that would be
  reasonably likely to have the effect of injuring the reputation, business, or
  business relationships of the Company, or of impairing your ability to
  perform services for the Company or an Affiliate; (iii) your 

  

 

 38
 

 
  

 

	
  

  	
   

  	
  conviction (including without limitation a plea of
  guilty or nolo contendere) of any crime other than an ordinary traffic
  violation; (iv) any material misconduct or willful and deliberate
  non-performance of duties by you in connection with the Company’s or an
  Affiliate’s business or affairs; (v) your theft, dishonesty,
  misrepresentation, or falsification of the Company’s or an Affiliate’s
  documents or records; (vi) your improper use or disclosure of the
  Company’s or an Affiliate’s confidential or proprietary information; or
  (vii) your use of the Company’s or an Affiliate’s facilities, premises,
  or property to conduct unlawful or unauthorized activities or transactions.

  
	
  Reorganization Event

  	
   

  	
  Subject to the
  provisions set forth below, upon the occurrence of a Reorganization Event,
  the Option shall be assumed or an equivalent option substituted by the
  successor corporation or a Parent or Subsidiary of the successor corporation.

  In the event that the
  successor corporation does not assume (within the meaning of
  Section 11.2 of the Plan) the Option or an equivalent option is not
  substituted, then the Administrator shall have the authority to provide in
  its discretion that one of the following will occur, and will provide you
  with written or electronic notice thereof: (i) any unvested Options and
  any vested Options that are not exercised shall terminate and be canceled
  upon such Reorganization Event; or (ii) the Option will become
  exercisable in full or in part, as determined by the Administrator, as of a
  specified time prior to the Reorganization Event and will terminate
  immediately prior to the consummation of such Reorganization Event, except to
  the extent exercised by you prior to the consummation of the Reorganization
  Event; or (iii) the Option will terminate upon consummation of such
  Reorganization Event and you will receive, in exchange for all or any portion
  of such Option, as is designated by the Administrator, a cash payment equal
  to the amount (if any) by which (A) the Acquisition Price multiplied by
  the number of Option Shares subject to the portion of the Option designated
  by the Administrator, exceeds (B) the aggregate Exercise Price of the Option
  or designated portion thereof.

  If the Option is
  assumed in connection with a Reorganization Event, then the Option shall be
  appropriately adjusted, immediately after such Reorganization Event, to apply
  to the number and class of securities which would have been issuable to you
  in consummation of such Reorganization Event had the Option been exercised in
  full immediately prior to such Reorganization Event, and appropriate
  adjustments shall also be made to the Exercise Price, provided that the
  aggregate Exercise Price shall remain the same.

  This Agreement shall not, in any way, affect the
  right of the Company to adjust, reclassify, reorganize or to otherwise change
  its capital or business structure or to merge, consolidate, dissolve,
  liquidate or sell or transfer all or any part of its business or assets.

  
	
  Adjustments

  	
   

  	
  In the event that there is any stock dividend that
  is paid on the Shares in Shares, or any stock split, reverse stock split,
  combination or reclassification of Shares, or any other increase in the number
  of outstanding Shares without receipt of consideration by the Company, then
  the total number and/or class of securities subject to the Option and the
  Exercise Price of the Option shall be appropriately adjusted, in such manner
  as the 

  

 

 39
 

 
  

 

	
  

  	
   

  	
  Administrator in its sole discretion deems
  equitable, in order to prevent dilution or enlargement of your rights under
  the Option.

  
	
  Lock-up Provision

  	
   

  	
  If the Company proposes to make a public offering of
  Shares, the Company or an underwriter might request that you not sell or
  otherwise dispose (directly or indirectly) of Shares delivered under this
  Agreement for a reasonable period (not to exceed 180 days) after the
  offering. You hereby agree to enter into such a lock-up agreement, whether
  such public offering occurs before or after you exercise your Option. Your
  right to any Shares received under this Agreement is contingent on your
  agreeing to comply with such a request.

  
	
  Notices

  	
   

  	
  ·  Any notice from you to the Company with
  regard to this Agreement, must be in writing and shall be deemed effective
  when it is received by the Secretary of the Company at the Company’s
  principal office.

  ·  Any notice from the Company to you with
  regard to this Agreement, must be in writing and shall be deemed effective
  when it is personally delivered to you or when it is deposited in the U.S.
  Mail at the address set forth under your signature, with postage and fees
  prepaid.

  
	
  Not an Employment Contract

  	
   

  	
  This Agreement is not an employment agreement and
  does not give you any right to continued employment (or other service
  relationship) with the Company or an Affiliate. Unless provided otherwise in
  a written agreement between you and the Company or an Affiliate, your
  employment (or other service relationship) is “at-will” and may be terminated
  at any time and for any reason.

  
	
  Amendment and Termination

  	
   

  	
  This Agreement may be amended or terminated by
  mutual agreement, in writing, signed by you and the Company. To the extent
  required or appropriate, as determined by the Administrator, to comply with
  an Applicable Law or to comply with or conform to am accounting principle,
  this Agreement may be amended by the Company without your consent. In
  addition, as set forth in Section 12.5 of the Plan, the Administrator
  reserves the right to adjust the terms of this Agreement in connection with
  any unusual or nonrecurring events affecting the Company or an Affiliate. By
  way of example, the Company may respond to an unusual or nonrecurring event
  by temporarily suspending your right to exercise this Option.

  
	
  Governing Law

  	
   

  	
  As set forth in Section 13.2 of the Plan, this
  Agreement shall be governed by and interpreted in accordance with Delaware
  law (without regard to any principles of Delaware law that might direct resolution
  to the laws of a different jurisdiction).

  
	
  Severability

  	
   

  	
  As set forth in Section 13.5 of the Plan, any
  provision in this Agreement that is determined to be unenforceable shall be
  construed or deemed to be amended to resolve the applicable infirmity, unless
  the Administrator determines that the infirmity cannot be resolved without
  materially changing the Agreement, in which case the provision shall be
  stricken (as it applies in the jurisdiction where it is invalid) and the
  remainder of Agreement shall remain in effect.

  
	
  Waiver

  	
   

  	
  The waiver by you or the Company of any provision of
  this Agreement at any time or for any purpose shall not operate as or be
  construed to be a waiver of the same or any other provision of this Agreement
  at any subsequent time or for any other purpose.

  
	
  Interpretation and Construction

  	
   

  	
  This Agreement shall be construed and interpreted by
  the Administrator, in its sole discretion. Any interpretation or other
  determination by the Administrator (including without limitation correction
  of any defect or omission and reconciliation of any inconsistency in the
  Agreement or the Plan) shall be binding and conclusive.

  
	
  Headings

  	
   

  	
  The headings in this Agreement are provided solely
  as a convenience to facilitate reference. The headings shall not be relevant
  for purposes of construing or interpreting 

  

 

 40
 

 
  

 

	
  

  	
   

  	
  any part of this Agreement.

  
	
  Entire Understanding

  	
   

  	
  This Agreement and the Plan constitute the entire
  understanding between you and the Company regarding this Option. Any prior
  agreements, commitments, or negotiations concerning this Option are
  superseded.

  

 

	
  TRAFFIC.COM, INC.

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

I have read this Agreement and the Plan, and I understand and agree to
their terms and conditions.

	
  

  	
   

  
	
   

  	
  Participant’s Signature

  
	
   

  	
   

  
	
   

  	
  Participant’s Name (please print)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Participant’s Address

  

 

 

Appendix
A:

Copy of Traffic.Com, Inc. 2005 Long -term incentive Plan

 41
 

 
  

Appendix
B:

Sample Notice of Exercise

	
  

  	
  Name:

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
                                ,
  20        

  

 

Traffic.Com, Inc.
851 Duportail Road,
Wayne, PA 19087

Attention: Corporate Secretary

By
an Executive Stock Option Agreement dated                               ,
20       (the “Option Agreement”), I am
the holder of an Option granted under the Traffic.Com, Inc. 2005 Long-Term
Incentive Plan (the “Plan”) to purchase up to                         
shares of Traffic.Com common stock (the “Shares”) at an exercise price of $                  
per Share. My Option is (circle one) [an Incentive] [a Nonstatutory] Stock
Option.

I
hereby exercise my Option to purchase                     
Shares, for which the total exercise price is $                        .
I have arranged to pay the exercise price as follows:

£                                     I am enclosing with this notice a check for $                            .

£                                     With approval from the Administrator of the
Plan (the “Administrator”), I have arranged to tender                       
Shares, with a Fair Market Value of $                      .
I certify that I have owned the Shares that I am tendering for more than six
months and that the Shares are not restricted.

£                                     With approval from the Administrator, I
hereby attest that I have owned                     Shares,
with a current Fair Market Value of $                      ,
for more than six months, and that I continue to own such Shares. I acquired
these Shares on                             
[insert date] for a purchase price of $                        .
I authorize Traffic.Com to reduce the number of Shares deliverable upon
exercise by the number of Shares whose ownership I have attested.

£                                     With approval from the Administrator, I
hereby instruct Traffic.Com to deliver the Option Shares to                                               
(the “Broker”) to be credited to my account number                           .
The Broker’s address and telephone number are:       
                                                                                                                                        .
I certify that I have instructed the Broker to sell Shares with a Fair Market
Value of at least $                      
(after any commissions or other expenses of the sale), and to deliver $                        
to Traffic.Com from the proceeds of the sale.

I
understand that my Option may be exercised only to the extent that it is
vested, and that it will not be deemed exercised with respect to any Shares
until the exercise price has been received by the Corporate Secretary of
Traffic.Com (or by a person designated by the Corporate Secretary).

I
understand the nature of the investment I am making and the financial risks
thereof. I am aware that if I received my Option as an employee of Traffic.com,
exercise of my Option might trigger certain federal, state, and local tax
withholding obligations. I have arranged to satisfy the withholding obligations
in the following manner:

£                                     I am enclosing with this notice a check for $                              ,
which Traffic.Com has determined to be sufficient to satisfy all withholding
obligations.

 42
 

 
  

£                                     With approval from the Administrator, I
authorize Traffic.Com to withhold Shares with a Fair Market Value equal to the
amount that must be withheld. I understand that only whole Shares will be
withheld and that any fractional Shares required to be withheld will be rounded
up to the next whole Share.

Notwithstanding
the provisions for withholding, I understand that I remain responsible at all
times for paying any federal, state, and local income and employment taxes with
respect to my Option and that Traffic.Com is not responsible for any liability
or penalty that I incur by failing to make timely payments of tax.

Please register my stock
certificate as follows:

	
  Name:

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Tax I.D. #:

  	
   

  	
   

  

If my Option is an Incentive
Stock Option, I will notify Traffic.Com’s Chief Financial Officer within 30 days
after any transfer of Shares acquired pursuant to my exercise of the Option
that occurs within one (1) year after the date of exercise or within two (2) years
after the date the Option was granted.

I further understand and
acknowledge that my exercise of this Option and receipt of the Shares are
subject to the terms and conditions of the Plan and the Option Agreement, which
I have received and carefully reviewed. I understand the terms and conditions
and agree to be bound by them.

	
  

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  Signature

  

 

Received by Traffic.Com, Inc.:                                             ,
20        

Approved

	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 43

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