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Exhibit 4.2  

THIS WARRANT HAS NOT BEEN, AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT WILL NOT BE, REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"1933 ACT"), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN TAKEN BY THE REGISTERED OWNER FOR INVESTMENT, AND WITHOUT A VIEW TO
RESALE OR DISTRIBUTION THEREOF, AND MAY NOT BE TRANSFERRED OR DISPOSED WITHOUT AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH TRANSFER OF DISPOSITION DOES NOT VIOLATE THE 1933 ACT, AND THE
RULES AND REGULATIONS THEREUNDER.

	No. 040501	 	 
	 	 	Warrant to Purchase 350,000

Shares of Common Stock

 
 

WARRANT TO PURCHASE COMMON STOCK
  OF
  TRAFFIC.COM, INC.    
    

        This is to certify that, FOR VALUE RECEIVED, National Electrical Benefit Fund, or its assigns (in either case, a
"Holder"), is entitled to purchase, subject to the provisions of this Warrant, from Traffic.com, Inc., a Delaware corporation (the
"Company"), three hundred fifty thousand (350,000) fully paid, validly issued and non-assessable shares of Common Stock, $0.01 par value per
share, of the Company (the "Common Stock"), at the Exercise Price (as defined below) per share during the Exercise Period (as defined below). The number
of shares of Common Stock to be received upon the exercise of this Warrant and the price to be paid for each share of Common Stock may be adjusted from time to time as hereinafter set forth. The
shares of Common Stock deliverable upon
such exercise, and as adjusted from time to time, are hereinafter sometimes referred to as the "Warrant Shares". 

        Section 1.    Exercise Period    

        This
Warrant may be exercised in whole or in part at any time or from time to time on or after the date set forth on the signature page thereof until 5 p.m. EST on
April 22, 2010 (the "Exercise Period"); provided,  however, that if such day is a day on which banking
institutions in the State of Delaware are authorized by law to close, then on the next succeeding
day which shall not be such a day. 

        Section 2.    Exercise Price    

        The
exercise price at any time for each Warrant Share shall be $0.01 (the "Exercise Price"), subject to adjustment pursuant to
Section 5 hereof. 

        Section 3.    Exercise of Warrant; Warrant Shares    

        (a)   This
Warrant may be exercised, in whole or in part, by (i) the surrender of this Warrant at the office of the Company (or at such other agency or office of the
Company in the United States of America as it may designate by notice in writing to the Holder at the address of the Holder), (ii) the delivery to the Company of a notice of election to
exercise this Warrant (or part thereof) in the form of Exhibit "A" attached hereto (the "Notice of
Exercise"), and (iii) subject to Section 3(b) below, payment to the Company of the aggregate Exercise Price by cash, wire transfer funds or check. In conjunction
with, and as a condition to, the Holder's exercise of this Warrant, whether in whole or in part, the Holder shall simultaneously execute counterpart signature pages to the (i) the Fourth
Amended and Restated Investor Rights Agreement, dated as of the date hereof, by and among the Company, certain investors and other parties thereto, as such agreement may be further amended and
restated from time to time, and (ii) the Fourth Amended and Restated Stockholders' Agreement, dated as of the date hereof, by and among the Company, 

 

certain
investors and other parties thereto, as such agreement may be further amended and restated from time to time, and shall thereafter have the rights and obligations of a Founder thereunder. 

        (b)   In
addition to the rights of the Holder under Section 3(a)(iii) above, the Holder shall have the right to exercise this Warrant, in whole or in part, in
lieu of paying the Exercise Price in cash, by instructing the Company to issue that number of Warrant Shares which is equal to the quotient obtained by dividing (i) the net value of the number
of Warrant Shares into which this Warrant is being converted at the time of exercise (determined by subtracting the aggregate Exercise Price for the Warrant Shares into which this Warrant is being
exercised immediately prior to the exercise from a number equal to the product of (A) the Fair Market Value as hereinafter defined per share as at such time, multiplied by (B) that
number of Warrant Shares purchasable upon such exercise of this Warrant (or portion hereof that is being exercised) immediately prior to exercise (taking into account all applicable adjustments
pursuant to this Warrant)), by (ii) the Fair Market Value per share. For purposes of the above calculation, the Fair Market Value of one share of Common Stock shall be determined by the
Company's Board of Directors in good faith; provided, however, that if a public market for the Common
Stock exists at the time of such exercise, the Fair Market Value per share shall be the last reported sale price on the Nasdaq National Market or on any exchange on which the Common Stock is listed,
or, if no such price is quoted, the average of the closing bid and asked prices of the Common Stock, whichever is applicable, as published in the Eastern Edition of The Wall Street Journal or, if not
reported in The Wall Street Journal, as reported by Bloomberg, for the five trading days prior to the date this Warrant and the executed notice of Exercise are delivered to the Company as provided in
this Section 3(b). 

        (c)   Upon
the exercise of this Warrant, the Company will not issue fractional shares of its Common Stock, and shall distribute cash in lieu of such fractional shares,  provided that, if any holder of any class of
capital stock of the Company holds less than one share of such class of capital stock, such holder will be
issued, and may hold, a fractional share of such stock. In lieu of any fractional shares of Common Stock which would otherwise be issuable upon the exercise of this Warrant, the Company shall pay to
the Holder upon such exercise a cash adjustment in respect of such fractional interest in an amount equal to the then fair market value, as determined in good faith by the Board of Directors of the
Company, of a share of Common Stock, multiplied by such fractional interest. 

        (d)   Each
date on which this Warrant is surrendered and on which payment of the Exercise Price is made is referred to herein as an "Exercise Date." Simultaneously with each
exercise, the Company shall issue and deliver a certificate or certificates for the Warrant Shares being purchased pursuant to such exercise, registered in the name of the Holder or the Holder's
designee, to such Holder or designee, as the case may be. If such exercise shall not have been for the full number of the Warrant Shares, then the Company shall issue and deliver to the Holder a new
Warrant, registered in the name of the Holder, of like tenor to this Warrant, for the balance of the Warrant Shares that remain after the exercise of this Warrant. 

        (e)   The
person or entity in whose name any certificate for shares of Common Stock is issued upon any exercise shall for all purposes be deemed to have become the holder of
record of such shares as of the Exercise Date, except that if the Exercise Date is a date on which the stock transfer books of the Company are closed, such person or entity shall be deemed to have
become the holder of record of such shares at the close of business on the next succeeding date on which the stock transfer books are open. The Company shall pay all documentary, stamp or other
transactional taxes attributable to the issuance or delivery of shares of Common Stock upon exercise of all or any part of this Warrant. 

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        Section 4.    Representations, Warranties and Covenants as to Common Stock.    

        The
Company represents and warrants to the Holder that all shares of Common Stock which may be issued upon the exercise of this Warrant will, upon issuance, be validly issued, fully paid
and non-assessable. The Company further covenants and agrees that it will take all such action as may be required to assure that the Company shall at all times have authorized and
reserved, a sufficient number of shares of its Common Stock to provide for the exercise of this Warrant. 

        Section 5.    Adjustment of Exercise Price    

        The
Exercise Price shall be subject to adjustment from time to time as follows: 

        (a)   If,
at any time after the date hereof, the number of shares of the Company's Common Stock outstanding is increased by a stock dividend or by a subdivision or
split-up of shares, then, following the record date for the determination of holders of Common Stock entitled to receive such stock dividend, subdivision or split-up, the
Exercise Price shall be appropriately decreased and the aggregate number of shares of Common Stock issuable on exercise of this Warrant shall be increased in proportion to such increase in outstanding
shares. The foregoing provisions shall similarly apply to successive stock dividends, subdivisions or split-ups. 

        (b)   If,
at any time after the date hereof, the number of shares of Common Stock outstanding is decreased by a combination or reverse-split of the outstanding shares, then,
following the record date for such combination or reverse-split, the Exercise Price shall be appropriately increased and the aggregate number of shares of Common Stock issuable on exercise of this
Warrant shall be decreased in proportion to such decrease in outstanding shares. The foregoing provisions shall similarly apply to successive combinations or reverse-splits. 

        (c)   Subject
to Section 3(d), in the event of any capital reorganization of the Company, any reclassification of the stock of the Company (other than a change in par
value or from par value to no par value or from no par value to par value as a result of a stock dividend or subdivision, split-up or combination of shares), or any consolidation or merger
of the Company in which those stockholders of the Company holding more than 50% of the voting securities of the Company prior to such consolidation or merger hold less than 50% of the voting
securities of the surviving entity, this Warrant shall after such reorganization, reclassification, consolidation, or merger be convertible into the kind and number of shares of stock or other
securities or property of the Company resulting from such reorganization, reclassification, consolidation, or surviving such merger to which the holder of the number of shares of Common Stock
deliverable (immediately prior to the time of such reorganization, reclassification, consolidation, or merger) upon exercise of this Warrant would have been entitled upon such reorganization,
reclassification, consolidation, or merger. The foregoing provisions shall similarly apply to successive reorganizations, reclassifications, consolidations, or mergers. 

        (d)   All
calculations under this paragraph shall be made to the nearest one hundredth (1/100) of a cent or the nearest one tenth (1/10) of a
share, as the case may be. 

        (e)   The
Company shall give prompt notice of any adjustment in the Exercise Price to the Holder hereof, together with supporting documentation. 

        Section 6.    No Stockholder Rights    

        This
Warrant shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company. 

        Section 7.    Restrictions on Transfer    

        This
Warrant may not be transferred or assigned to any person without the prior written consent of the Company. 

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        Section 8.    Lost, Stolen, Mutilated or Destroyed Warrant    

        If
this Warrant is lost, stolen, mutilated or destroyed, the Company shall, upon receipt from the Holder of an affidavit of loss or similar instrument satisfactory to the Company (and,
in the case of a mutilated Warrant, the accompanying surrender thereof), issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant
shall constitute an original contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone. 

        Section 9.    Governing Law; Jurisdiction and Venue; Waiver of Jury Trial    

        This
Warrant shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any law or rule that would cause the laws of any
jurisdiction other than the State of Delaware to be applied. 

        Section 10.    Headings    

        The
headings of the various sections contained in this Warrant have been inserted for convenience of reference only and should not be deemed to be a part of this Warrant. 

        Section 11.    No Amendment, Modification, Waiver, etc.    

        No
provision of this Warrant may be amended, modified or waived without the prior written consent of the Holder. 

[INTENTIONALLY
LEFT BLANK] 

4

 

        IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized officer as of the date first written above. 

Dated:
April 22, 2005 

	 	 	TRAFFIC.COM, INC.
	

 	
 	
By:	

/s/  ROBERT N. VERRATTI      
 Name: Robert N. Verratti

Title: Chief Executive Officer

5

 
 
 

EXHIBIT "A"
  
    FORM OF NOTICE OF ELECTION TO EXERCISE    
    

[To
be executed only upon exercise of the Warrant to which this form is attached] 

To:
Traffic.com, Inc. 

        The
undersigned, the holder of the Warrant to which this form is attached, hereby elects to exercise the right represented by such Warrant to
purchase                        shares of Common
Stock of Traffic.com, Inc., herewith tenders the aggregate payment of
$                                         
 in the form of cash, wire transfer funds or check in full payment of the Exercise Price
for such shares. The undersigned requests that a certificate for such shares be issued in the name of                        ,
whose address is                        and that such certificate be delivered to
                        , whose address
is                        . 

        If
such number of shares is less than all of the shares purchasable under the current Warrant, the undersigned requests that a new Warrant, of like tenor as the Warrant to which this
form is attached, representing the remaining balance of shares purchasable under such current Warrant be registered in the name
of                        , whose address
is                        and that such new
Warrant be delivered to                        , whose address
is                        . Capitalized terms used in this form which are not defined shall have the meanings ascribed thereto in
the Warrant to which
this form is attached. 

	 	 	By:	 	 	 
	 	 	 	
	 	 
	

 	
 	

Signature:	

 	
 	

 
	 	 	 	
	 	 
	

 	
 	

Date:	

 	
 	

 
	 	 	 	
	 	 

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WARRANT TO PURCHASE COMMON STOCK OF TRAFFIC.COM, INC.

EXHIBIT "A" FORM OF NOTICE OF ELECTION TO EXERCISEQuickLinks
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Exhibit 4.3  

THIS WARRANT AND THE SECURITIES ISSUABLE UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE TRANSFERRED OR DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER TIE SECURITIES ACT OR IN A
TRANSACTION WHICH, IN THE OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, QUALIFIES AS AN EXEMPT TRANSACTION UNDER THE SECURITIES ACT, THE APPLICABLE STATE SECURITIES LAW AND THE RULES AND REGULATIONS
PROMULGATED THEREUNDER.

	No. 040502	 	Warrant to Purchase 579,298
	Issue Date: April 22, 2005	 	Shares of Common Stock

 
 

WARRANT TO PURCHASE COMMON STOCK
  OF
  TRAFFIC.COM, INC.    
    

        This is to certify that, FOR VALUE RECEIVED, TL Ventures IV L.P. or its assigns (in either case, a "Holder"), is
entitled to purchase, subject to the terms set forth below, from Traffic.com, Inc., a Delaware corporation (the "Company"), during the period
commencing on the Exercise Commencement Date (as defined below) and ending at 5:00 P.M. (E.S.T.) on April 22, 2010 (the "Exercise
Period"), an aggregate of Five Hundred Seventy-Nine Thousand Two Hundred Ninety-Eight (579,298) fully paid and non-assessable shares of Common Stock,
$0.01 par value per share, of the Company (the "Common Stock"), at a per share purchase price of $0.01 (the "Exercise
Price"). The Exercise Price and the number of such shares are subject to adjustment, from time to time, as provided below. The shares of Common Stock deliverable upon such
exercise are
hereinafter sometimes referred to as the "Warrant Shares." This Warrant is herein called the "Warrant."
The "Exercise Commencement Date" shall mean the earliest to occur of the date on which (i) the Holder has satisfied all of its obligations
pursuant to Sections 1 and 4 of the Equity Commitment Letter, dated as of the date hereof among the Company, the Holder and the other Investor Guarantors named therein (the
"Equity Commitment Letter"), (ii) the Holder has satisfied in full its Guarantor's Commitment, as such term is defined in the Investor Guaranty
Agreement, dated as of the date hereof among the Company, the Holder and the other Investor Guarantors named therein (the "Investor Guaranty"), and
(iii) the Investor Guaranty has terminated in accordance with its terms. 

        Section 1.    Exercise Period.    In the event that the expiration of the Exercise Period shall fall on a
Saturday, Sunday or United States federally recognized holiday, the expiration of the Exercise Period shall be extended to 5:00 P.M. (E.S.T.) on the first business day following such Saturday,
Sunday or recognized holiday. Notwithstanding anything contained herein to the contrary, if any portion of this Warrant remains unexercised as of the Expiration Date and the Market Price of one share
of Common Stock as of the Expiration Date is greater than the Exercise Price as of the Expiration Date, then this Warrant shall be deemed to have been exercised automatically, for the maximum number
of shares then purchasable hereunder, immediately prior to the close of business on the Expiration Date (or, in the event that the Expiration Date is not a business day, the immediately preceding
business day) (the "Automatic Exercise Date") in the manner provided in Section 2 below, and the Holder (or such other person or persons as
directed by the Holder) shall be treated for all purposes as the holder of record of such Warrant Shares as of the close of business on such Automatic Exercise Date. This Warrant shall be deemed to be
surrendered to the Company on the Automatic Exercise Date by virtue of this Section 1 without any action by the Holder. As promptly as is reasonably practicable on or after the Automatic
Exercise Date, but in no event before the date on which this Warrant is surrendered to the Company at the principal office of the Company, or such other office or agency of the Company as it may
reasonably designate by written notice to the Holder, during normal business hours on any business day, the Company at its expense shall issue and deliver to the Holder (or such other person or 

 

persons
as directed by the Holder) a certificate or certificates for the number of Warrant Shares issuable upon such exercise, in accordance with
Section 2.

        Section 2.    Exercise of Warrant.    

        a.    Manner of Exercise.    This Warrant may be exercised by the Holder, in whole or in part, at any time and from
time to time during the Exercise Period, by (i) the surrender of this Warrant to the Company, with the Notice of Exercise attached hereto as Exhibit
"A" (the "Notice of Exercise") duly completed and executed on behalf of the Holder, at the principal office of the Company or
such other office or agency of the Company as it may designate by notice in writing to the Holder (the "Principal Office"), and
(ii) the delivery of payment to the Company of the Exercise Price for the number of Warrant Shares specified in the Notice of Exercise in any manner specified in Section 2(c). 

        b.    Issuance of Warrant Shares.    Such Warrant Shares shall be deemed to be issued to the Holder as the record
holder of such Warrant Shares as of the close of business on the date on which this Warrant shall have been surrendered and payment shall have been made for the Warrant Shares as aforesaid. As
promptly as practicable thereafter, but in any event within five (5) business days, the Company shall deliver to the Holder a stock certificate(s) for the Warrant Shares specified in the Notice
of Exercise. If this Warrant shall have been exercised only in part, the Company shall, at the time of delivery of the stock certificate(s), also deliver to the Holder, at the Company's expense, a new
Warrant evidencing the right to purchase the remaining number of Warrant Shares, which new Warrant shall in all other respects be identical to this Warrant. 

        c.    Payment of Exercise Price.    The Exercise Price shall be payable (i) in cash or its equivalent, payable
by wire transfer of immediately available funds to a bank account specified by the Company or by certified or bank cashiers' check in lawful money of the United States of America, (ii) by
surrendering to the Company the right to purchase a number of Warrant Shares equal to the product obtained by multiplying (A) the number of Warrant Shares by (B) one (1) minus a
fraction, the numerator of which is the Exercise Price and the denominator of which is the Market Price (as defined below) of the Common Stock on the date of exercise of the Warrant, or
(iii) in any combination of (i) and (ii). 

        The
term "Market Price," as used herein, shall mean, per share of Common Stock on any given day, the closing price per share of the Common
Stock on the earlier of the day in question or, with respect to any issuance, payment or distribution, the day immediately prior to the first day the Common Stock trades regular way on the applicable
securities exchange or in the applicable securities market without the right to receive such issuance, payment or distribution, where the closing price for each day shall be the reported last sale
price regular way or, in case no such reported sale takes place on such day, the average of the reported closing bid and asked prices regular way, in either case (I) on the New York Stock
Exchange, or (II) if the Common Stock is not listed or admitted to trading on such Exchange, on the principal national securities exchange on which the Common Stock is listed or admitted to
trading, or (III) if the Common Stock is not listed or admitted to trading on any national securities exchange, on the Nasdaq National Market, or (IV) if the Common Stock is not listed
or admitted to trading on any national securities exchange or quoted on the Nasdaq National Market, the average of the closing bid and asked prices in the over-the-counter
market as furnished by any New York Stock Exchange member firm reasonably selected from time to time by the Board of Directors for such purpose;  provided, however, that in the event that none of (I) through (IV) is applicable to the
Common Stock, then the Market Price of the Common Stock shall be determined in good faith by the Company's Board of Directors. 

        d.    Fractional Shares.    The Company shall not issue fractions of Warrant Shares upon exercise of this Warrant or
scrip in lieu thereof. If any fraction of a Warrant Share would, except 

2

 

for
the provisions of this Section 2(d), be issuable upon exercise of this Warrant, the Company shall in lieu thereof pay to the person entitled thereto an amount in cash equal to such
fraction, calculated to the nearest one-hundredth (1/00) of a share, multiplied by the Market Price for the Common Stock, determined as of the date of exercise. 

        Section 3.    Adjustment to Exercise Price and Warrant Shares.    The Exercise Price in effect from time to
time and the number of Warrant Shares shall be subject to adjustment in certain cases as set forth in this Section 3. 

        a.    Stock Split.    If, at any time after in date hereof, the number of shares of the Company's capital stock
outstanding is increased by a stock dividend or by a subdivision or split-up of shares, then, following the record date for the determination of holders of capital stock entitled to
receive such stock dividend, subdivision or split-up, the Exercise Price shall be appropriately decreased and the aggregate number of Warrant Shares shall be increased in proportion to
such increase in outstanding shares. The foregoing provisions shall similarly apply to successive stock dividends, subdivisions or split-ups. 

        b.    Reverse Stock-Split.    If, at any time after the date hereof, the number of shares of capital stock outstanding
is decreased by a combination or reverse-split of the outstanding shares, then, following the record date for such combination or reverse-split, the Exercise Price shall be appropriately increased and
the aggregate number of Warrant Shares shall be decreased in proportion to such decrease in outstanding shares. The foregoing provisions shall similarly apply to successive combinations or
reverse-splits. 

        c.    Issuance of Dividends.    In the event that the Company shall make or issue to holders of Common Stock, or shall
fix a record date for the determination of holders of Common Stock entitled to receive, any dividend or other distribution payable in equity securities (other than shares of Common Stock), evidences
of its indebtedness or other property (other than a cash dividend that is payable solely out of earnings or surplus legally available for dividends under applicable law), then, in each such event and
as a condition precedent to the taking of any such action, lawful and adequate provision (in form and substance approved by the Holder, which approval shall not be unreasonably withheld or delayed)
shall be made whereby the Holder shall thereafter have the right to receive, upon exercise of this Warrant, in addition to the number of shares of Common Stock receivable thereupon, the amount of such
equity securities, evidences of indebtedness or other property as the Holder would have received had the Holder been the record owner, at the time the Company made or issued such dividend or other
distribution or on the record date fixed therefor, as the case may be, of that number of shares of Common Stock receivable upon exercise of this Warrant in full, and had the Holder thereafter, during
the period from the date of such event to and including the date(s) on which the Holder exercises this
Warrant, retained such equity securities, evidences of indebtedness or other property, giving application to all other adjustments called for during such period under this Section 3. 

        d.    Merger or Sale of Assets.    In the event that the Company shall effect (i) any consolidation or merger
of the Company with or into any other person in which those holding more than 50% of the voting power of the Company prior to the consolidation or merger no longer hold more than 50% of the voting
power of the surviving entity, or (ii) the sale or other disposition of all or substantially all of the Company's assets to any other person, in such a way that the holders of Common Stock
shall be entitled to receive cash, securities, evidences of indebtedness or other property with respect to or in exchange for their shares of Common Stock, then, in each such event and as a condition
precedent to the consummation thereof, the Company or such other person as is formed by or survives such consolidation or merger or acquires such assets, as the case may be, shall execute and deliver
to the Holder, without payment of any additional consideration therefor, a new Warrant (in form and substance approved by the Holder, which approval shall not 

3

 

be
unreasonably withheld or delayed) providing that the Holder shall have the right thereafter, during the period such Warrant shall remain outstanding, to exercise such Warrant into the kind and
amount of cash, securities, evidences of indebtedness and other property as the Holder would have received had the Holder been the record owner, at the time of such consolidation, merger, sale or
disposition, of that number of shares of Common Stock issuable upon exercise of this Warrant in full immediately prior to the consummation of such consolidation, merger, sale or disposition. If the
holders of the Common Stock may elect from choices the kind and/or amount of cash, securities, evidences of indebtedness and other property receivable upon such consolidation, merger, sale or
disposition, then, for purposes of this Section 3(d), the kind and amount of cash, securities, evidences of indebtedness and other property receivable by the Holder upon exercise of such new
Warrant shall be specified by the Holder, which specification shall be made by the Holder by the later of (I) ten (10) business days after the Holder is provided with a final version of
all material information concerning such choice as is provided to the holders of Common Stock, or (II) the last time at which the holders of Common Stock are permitted to make their
specifications known to the Company; provided, however, that if the Holder fails to make any specification within such time period, the Holder's choice
shall be deemed to be whatever choice is made by a plurality of the holders of Common Stock not affiliated with the Company or, in the case of a consolidation, merger, sale or disposition, the other
parties thereto. Such new Warrant shall provide for adjustments that, for events subsequent to the effective date of such new Warrant, shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Section 3. The foregoing provisions shall similarly apply to successive consolidations, mergers or asset acquisitions. 

        e.    Notice of Adjustment.    In each case of an adjustment or readjustment of the Exercise Price and number of
Warrant Shares pursuant to this Section 3, the Company shall, at its expense, promptly furnish to the Holder a certificate prepared and signed by the Treasurer or Chief Financial Officer of the
Company, setting forth (i) such adjustment or readjustment, (ii) the Exercise Price and number of Warrant Shares in effect following such adjustment or readjustment (including the
amount, if any, of other securities and property that at the time would be received upon the exercise of this Warrant), and (iii) the facts, set forth in reasonable detail, upon which such
adjustment or readjustment is based. 

        Section 4.    No Dilution or Impairment.    The Company shall not, by amendment to its certificate of
incorporation 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 against dilution or other impairment. Without limiting the generality of the foregoing, the Company will not increase the par value of any shares of stock receivable upon the exercise of
this Warrant above the amount payable therefor upon such exercise, and at all times will take all such action as may be necessary or appropriate in order that the Company may validly and legally issue
fully paid and non-assessable stock upon the exercise of this Warrant. 

        Section 5.    Exchange and Replacement.    

        a.    Manner of Exchange and Replacement.    This Warrant is exchangeable, upon surrender of the Warrant by the Holder
to the Company at the Principal Office, for new Warrants of like tenor registered in the Holder's name and representing in the aggregate the right to purchase the same number of Warrant Shares
purchasable hereunder, each of such new Warrants to represent the right to purchase such number of Warrant Shares as shall be designated by the Holder at the time of surrender. 

4

 

        b.    Issuance of New Warrant.    Upon receipt by the Company of (i) evidence reasonably satisfactory to it of
the loss, theft, destruction or mutilation of this Warrant, and (ii) (A) in the case of loss, theft or destruction, an indemnity agreement reasonably satisfactory in form and substance
to the Company or (B) in the case of mutilation, this Warrant, the Company, at its expense, shall execute and deliver, in lieu of this Warrant, a new Warrant of like tenor and amount. 

        Section 6.    Representations and Warranties of the Company.    The Company represents and warrants to the
Holder that all shares of Common Stock which may be issued upon the exercise of this Warrant will, upon issuance in accordance with the terms of this Warrant, be validly issued, fully paid and
non-assessable. 

        Section 7.    Covenants of the Company.    The Company covenants and agrees that it shall take all such action
as may be required to assure that the Company shall at all times have authorized and reserved, a sufficient number of shares of its Common Stock to provide for the exercise of this warrant and/or
other similar Warrants. 

        Section 8.    No Stockholder Rights.    The Holder shall not be entitled to vote or receive dividends or be
deemed the holder of the Warrant Shares or any other securities of the Company that may at any time be issuable upon the exercise hereof for any purpose, nor shall anything contained herein be
construed to confer upon the Holder, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any other matter submitted to the
stockholders of the Company at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance or reclassification of capital stock, change of
par value, or change of stock to no par value, consolidation, merger, conveyance or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or otherwise, until the
Warrant shall have been exercised as provided herein. 

        Section 9.    Restrictions on Transfer.    This Warrant may not be transferred or assigned to any person
without the prior written consent of the Company. 

        Section 10.    Termination.    Notwithstanding anything contained herein to the contrary, this Warrant shall
terminate and no longer be exercisable upon the earlier to occur of (i) the breach by the Holder of its obligations under Section 1 or 4, as the case may be, of the Equity Commitment
Letter, and (ii) the Holder's failure to pay its Guarantor's Commitment, or any portion thereof, when it becomes due and payable pursuant to the terms of the Investor Guaranty. 

        Section 11.    Notice.    All notices or other communications which are required or permitted hereunder shall
be in writing and sufficient if delivered personally or sent by registered mail, postage prepaid, return receipt requested, or via facsimile, addressed as follows: 

	(i)
	If
to the Company, to: 

Traffic.com, Inc.

851 Duportail Road, Suite 220

Wayne, PA 19087

Attn: Chief Executive Officer 

with
a copy to: 

Covington &
Burling

1330 Avenue of the Americas

New York, NY 10019

Telephone: (212) 841-1256

Facsimile: (646) 441-9256

Attn: Ellen B. Corenswet, Esq. 

5

 

	(ii)
	If
to the Holder, to: 

TL
Ventures IV, L.P.

c/o TL Ventures Inc.

700 Building

435 Devon Park Drive

Wayne, PA 19087-1934

Attn: Chief Financial Officer

Fax: (610) 975-9330 

with
a copy to: 

Lisa
R. Jacobs

Pepper Hamilton LLP

3000 Two Logan Square

18th and Arch Streets

Philadelphia, PA 19103

Fax: (866) 738-9609 

or
to such other address as the party to whom notice is to be given may have furnished to the other party in writing in accordance herewith. 

        Section 12.    Miscellaneous.    

        a.    Governing Law.    This Warrant shall be construed in accordance with and governed by the laws of the State of
Delaware (without giving effect to any conflicts or choice of law provisions that would cause the application of the domestic substantive laws of any other jurisdiction). 

        b.    Prevailing Party's Costs and Expenses.    The prevailing party in any mediation, arbitration or legal action to
enforce or interpret this Warrant shall be entitled to recover from the non-prevailing party all costs and expenses, including reasonable and documented attorneys' fees, incurred in such
action or proceeding. 

        c.    Failure to Pursue Remedies.    Except where a time period is specified, no delay on the part of any party in the
exercise of any right, power, privilege or remedy hereunder shall operate as a waiver thereof, nor shall any exercise or partial exercise of any such right, power, privilege or remedy preclude any
further exercise thereof or the exercise of any other right, power, privilege or remedy. 

        d.    Amendment and Waiver.    No provision of this Warrant may be amended, modified or waived except upon the written
consent of the party against whom such amendment, modification or waiver is to be enforced. The failure of any party to enforce any of the provisions of this Warrant shall in no way be construed as a
waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Warrant in accordance with its terms. 

        e.    Assignment; Binding Effect.    The rights and obligations of the Company set forth herein may not be assigned or
delegated by the Company without the prior written consent of the Holder. Subject to compliance with the provisions of Section 9 hereof, the rights and obligations of the Holder set forth
herein may be assigned or delegated by the Holder without the prior written consent of the Company. This Warrant shall be binding upon and inure to the benefit of all of the parties and, to the extent
permitted by this Warrant, their successors, legal representatives and assigns. 

        f.    Severability.    If any term or provision of this Warrant, or the application thereof to any person or
circumstance, shall, to any extent, be invalid or unenforceable, the remainder of this 

6

 

Warrant,
or its application to other persons or circumstances, shall not be affected thereby, and each term and provision of this Warrant shall be enforced to the fullest extent permitted by law. 

        g.    Construction.    Whenever the context requires, the gender of any word used in this Warrant includes the
masculine, feminine or neuter, and the number of any word includes the singular or plural. Unless the context otherwise requires, all references to articles and sections refer to articles and sections
of this Warrant, and all references to exhibits are to exhibits attached hereto, each of which is made a part hereof for all purposes. 

        h.    Headings.    The headings and subheadings in this Warrant are included for convenience and identification only
and are in no way intended to describe, interpret, define or limit the scope, extent or intent of this Warrant or any provision hereof. 

        i.    Facsimile.    Delivery of an executed signature page of this Warrant by facsimile transmission shall be as
effective as delivery of a manually executed signature page. 

[SIGNATURES
ON THE FOLLOWING PAGE] 

7

 

        IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized officer as of the date first written above. 

Dated:
April 22, 2005 

	 	 	TRAFFIC.COM, INC.
	

 	
 	

By:	
 	

/s/  ROBERT N. VERRATTI      
 Name: Robert N. Verratti

Title: Chief Executive Officer

8

 
 
 

EXHIBIT "A"    
    
    NOTICE OF EXERCISE    
    

To:
Traffic.com, Inc. 

        1.     The
undersigned hereby elects to purchase 579,298 shares of Common Stock of Traffic.com, Inc., pursuant to the terms of the attached Warrant, and tenders herewith
payment of the Exercise Price for such shares in full in the following manner: 

	o
	The
undersigned elects to exercise the attached Warrant by means of a cash payment, and tenders herewith payment in full for the Exercise
Price of the shares being purchased, together with all applicable transfer taxes, if any.

	o
	The
undersigned elects to exercise the attached Warrant by means of the surrender of the right to purchase a number of shares of Common
Stock in accordance with the provisions of Section 2(c)(ii) of the Warrant, and also tenders herewith a cash payment in the amount of all applicable transfer taxes, if any.

	o
	The
undersigned elects to exercise the attached Warrant by means of both a cash payment and the surrender of the right to purchase a number
of shares of Common Stock in accordance with the provisions of Section 2(c)(ii) of the Warrant, and tenders herewith payment in full for that portion of the purchase price being paid in
cash, together with all applicable transfer taxes, if any. 

        2.     In
exercising this Warrant, the undersigned hereby confirms and acknowledges that the shares of Common Stock to be issued upon exercise are being acquired solely for the
account of the undersigned and not as a nominee for any other party, or for investment, and that the undersigned will not offer, sell or otherwise dispose of any such shares of Common Stock except
under circumstances that will not result in a violation of the registration provisions of the Securities Act of 1933, as amended, or any applicable state securities laws. 

        3.     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:	

        4.     Please
issue a new Warrant for the unexercised portion of the attached Warrant in the name of the undersigned or in such other name as is specified below: 

	 	 	Name:	

	

 (Date)	
 	

 	

 Signature of Holder

9

QuickLinks

WARRANT TO PURCHASE COMMON STOCK OF TRAFFIC.COM, INC.

EXHIBIT "A" NOTICE OF EXERCISE

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