Document:

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                                                                   EXHIBIT 10.11

                          SECURITIES EXCHANGE AGREEMENT

      This SECURITIES EXCHANGE AGREEMENT (this "Agreement") is made and entered
into as of this 13th day of December, 2005 by and among Global Traffic Network,
Inc., a Delaware corporation (the "Company"), The Australia Traffic Network Pty
Limited, an Australian proprietary company registered under the Corporations Act
of Australia ("ATN"), and William L. Yde III ("Yde"), Dale C. Arfman, Thomas M.
Gilligan ("Gilligan"), Donald R. Bussell, Questcom Media Brokerage, Inc., a
Maryland corporation ("Questcom"), and Metro Networks Communications, Inc., a
Maryland corporation ("Metro"), as the holders of all of the outstanding
ordinary shares of ATN (collectively, the "Shareholders," each a "Shareholder").

                                    RECITALS

      WHEREAS, the Shareholders collectively hold 135,453 ordinary shares of ATN
(the "ATN Shares") which constitute all of the issued and outstanding shares of
ATN;

      WHEREAS, upon the terms and subject to the conditions of this Agreement,
the Company, ATN and the Shareholders desire that the Shareholders exchange the
ATN Shares for an aggregate of 4,000,000 shares of the Company's common stock
(the "GTN Shares") in accordance with Schedule I attached hereto and an
aggregate of One Million Four Hundred Thousand Dollars ($1,400,000) in
promissory notes in accordance with Schedule II attached hereto (the "Exchange
Notes"), such that ATN becomes a wholly-owned subsidiary of the Company prior to
the consummation of the proposed initial public offering of the Company's common
stock in the United States (the "IPO");

      WHEREAS, ATN, Yde, Gilligan and Questcom are parties to that certain
Agreement dated September 29, 1997, as amended by a First Amendment dated April
30, 1998 (the "1997 Agreement") and wish to terminate the 1997 Agreement;

      WHEREAS, ATN, Yde, Gilligan, Questcom and Metro are parties to that
certain Share Subscription and Option Agreement dated May, 1998 (the "1998
Agreement") and wish to terminate the 1998 Agreement; and

      WHEREAS, in connection with this Agreement, the Company, as the future
sole shareholder of ATN, desires that Yde, Gilligan and Questcom each waive and
release any and all claims held by such party against ATN in connection with the
1997 Agreement and that Yde, Gilligan, Questcom and Metro each waive and release
any and all claims held by such party against ATN in connection with the 1998
Agreement.

      NOW, THEREFORE, in consideration of the covenants, promises and
representations set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

                                   ARTICLE I
                               EXCHANGE OF SHARES

      1.1   Transaction. The Shareholders hereby agree to tender the ATN Shares
to the Company and, in exchange therefor, the Company shall issue to the
Shareholders in a transaction exempt from the registration and prospectus
delivery requirements of the Securities Act of 1933, as amended (the

                                       1
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"Securities Act"), the GTN Shares in accordance with Schedule I attached hereto
and the Exchange Notes in accordance with Schedule II attached hereto.

      1.2   Consideration. In consideration and exchange for the GTN Shares and
the Exchange Notes to be issued by the Company, each Shareholder shall surrender
to GTN all of his, her or its interest in and to the ATN Shares held by such
Shareholder as set forth on Schedule I attached hereto.

      1.3   Exchange Notes. The Company shall deliver to each Shareholder an
Exchange Note, substantially in the form attached hereto as Exhibit A, in the
original principal amount set forth on Schedule II opposite such Shareholder's
name, which shall bear no interest and shall be due and payable on the closing
date of the IPO.

      1.4   Exchange of Certificates.

            (a)   Shareholders to Deliver ATN Shares. Simultaneously with the
execution of this Agreement, each Shareholder shall deliver to the Company, in
exchange for the GTN Shares, all of the certificates representing his, her or
its ATN Shares duly endorsed for transfer to the Company, to be held in escrow
by the Company until the earlier of (i) the date of execution of the
Underwriter's Agreement by and between the Company and Feltl and Company (either
on behalf of Feltl and Company or as representative of several underwriters) or
its representative, with respect to the IPO (the "Effective Date") or (ii) the
termination of this Agreement pursuant to Section 5.1. In the event of a
termination pursuant to Section 5.1, the Company shall return the certificates
to each Shareholder within ten (10) days of any such termination.

            (b)   Company to Deliver GTN Shares. In exchange for the ATN Shares,
the Company shall deliver to each Shareholder a certificate representing his,
her or its GTN Shares within five (5) days of the Effective Date.

      1.5   Restrictions on Transfer; Legends. The GTN Shares will not be
transferable except (1) pursuant to an effective registration statement under
the Securities Act of 1933, as amended (the "Securities Act") or (2) upon
receipt by the Company of a written opinion of counsel, reasonably satisfactory
to the Company, that is knowledgeable in securities laws matters to the effect
that the proposed transfer is exempt from the registration requirements of the
Securities Act and relevant state securities laws. Restrictive legends must be
placed on all certificates representing the GTN Shares, substantially as
follows:

      "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY
      STATE, AND ARE BEING OFFERED AND SOLD PURSUANT TO AN EXEMPTION FROM THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THESE
      SECURITIES MAY NOT BE SOLD OR TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
      ACT OR SUCH OTHER LAWS."

Each Shareholder understands and acknowledges that the Company has not agreed to
register the GTN Shares for distribution in accordance with the Securities Act
or state law, and that the Company has not agreed to comply with any exemption
under the Securities Act or state law for the resale of the GTN Shares. Each
Shareholder understands and acknowledges that the Company has no obligation to
undertake or complete a public offering of its securities and that even if a
public offering is undertaken

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and successfully completed, the GTN Shares received hereby will remain subject
to the restrictions on transferability described in this Agreement. If no public
offering is undertaken and completed, the Shareholders may never be able to sell
their GTN Shares pursuant to Rule 144 under the Act. Each Shareholder further
understands and acknowledges that the Company currently does not file periodic
reports with the Securities and Exchange Commission pursuant to the requirements
of Sections 13 or 15(d) of the Securities Exchange Act of 1934, as amended, and
may not be obligated to file such reports at any time in the future. Therefore,
the Shareholders may never be able to sell their shares pursuant to Rule 144
under the Act.

                                   ARTICLE II
                      TERMINATION OF SHAREHOLDER AGREEMENTS

      2.1   Current Shareholders. Each Shareholder hereby represents that
Schedule I accurately represents the current ownership of all issued and
outstanding shares of ATN held by such party, and that to such party's knowledge
it has no other shares, or rights to acquire shares, of ATN outstanding or
rights with respect to the ATN Shares relating to the voting or disposition
thereof, except, in the case of Yde and Gilligan, for the Amendment to Option
Agreement by and between Yde and Gilligan dated November 18, 2005 or as
referenced herein.

      2.2   The 1997 Agreement. Effective on the Effective Date, ATN, Yde,
Gilligan and Questcom hereby terminate the 1997 Agreement. Each party to the
1997 Agreement hereby forever, fully and unconditionally waives, releases and
discharges each other party and its predecessors, successors, parent entities,
subsidiaries, affiliates, agents, attorneys, officers, employees, directors,
shareholders, members and assigns (in their roles as such but not individually
unless expressly a party hereto, the "Parties") from all obligations, offsets,
actions, suits, debts, sums of money, contracts, covenants, agreements,
promises, legal rights, claims, counterclaims, causes of action, demands,
damages, costs, compensation, liabilities, losses and expenses of any nature or
of any kind, whether known or unknown, asserted or unasserted, liquidated or
unliquidated, absolute or contingent, accrued or nonaccrued, which any of the
parties ever had, now have, hereafter may have or claim to have, whether
grounded in law or equity, in contract or in tort, by statute or otherwise
against the Parties with respect to the 1997 Agreement.

      2.3   The 1998 Agreement. Effective on the Effective Date, ATN, Yde,
Gilligan, Questom and Metro hereby terminate the 1998 Agreement. Each party to
the 1998 Agreement hereby forever, fully and unconditionally waives, releases
and discharges the Parties from all obligations, offsets, actions, suits, debts,
sums of money, contracts, covenants, agreements, promises, legal rights, claims,
counterclaims, causes of action, demands, damages, costs, compensation,
liabilities, losses and expenses of any nature or of any kind, whether known or
unknown, asserted or unasserted, liquidated or unliquidated, absolute or
contingent, accrued or nonaccrued, which any of the parties ever had, now have,
hereafter may have or claim to have, whether grounded in law or equity, in
contract or in tort, by statute or otherwise against the Parties with respect to
the 1998 Agreement.

                                   ARTICLE III
               REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS

      Each of the Shareholders hereby represents and warrants to the Company
that:

      3.1   Title. Such Shareholder is the lawful owner of the ATN Shares set
forth adjacent to its name on Schedule I, free and clear of all liens, charges,
encumbrances and claims of every kind, and the delivery of such ATN Shares by
Shareholder to the Company under this Agreement will transfer to the Company
valid title to the ATN Shares, free and clear of all liens, charges,
encumbrances and claims of

                                       3
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every kind. There are no actions, suits or proceedings against Shareholder
affecting Shareholder's title to the ATN Shares or the right of Shareholder to
execute, deliver and perform its obligations under this Agreement.

      3.2   Authority.

            (a)   Such Shareholder has the full legal right, power and capacity
to execute and deliver this Agreement and to consummate the transactions
provided for herein or contemplated hereby. This Agreement has been duly and
validly executed and delivered by, and constitutes the valid and binding
agreement of Shareholder, enforceable in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency, or
similar laws relating to, or affecting generally the enforcement of, creditors'
rights and remedies or by other equitable principles of general application.

            (b)   Neither the execution and delivery of this Agreement, nor the
consummation of the transactions contemplated hereby, will conflict with or
result in a breach of any of the terms, conditions or provisions of any
agreement or instrument to which Shareholder is a party or by which Shareholder
is bound, or constitute a default under the foregoing or violate any law, rule,
regulation, judgment or decree by which Shareholder is bound.

            (c)   No consent, approval, order or authorization of, or
registration, declaration or filing with any court, administrative agency or
commission or other governmental authority or instrumentality is required by or
with respect to such Shareholder in connection with the execution, delivery and
performance of this Agreement.

      3.3   Investment Representations. Such Shareholder is remitting its ATN
Shares in exchange for GTN Shares for his, her or its own account, for
investment purposes only and not with a view towards or in connection with the
public re-sale or distribution thereof in violation of the Securities Act.

      3.4   Confidentiality. Such Shareholder hereby agrees not to disclose to
any unauthorized persons, use for such Shareholder's own account, or use for any
third party's benefit, any confidential information relating to the Company or
the IPO (including without limitation the status, from time to time, of the IPO)
that the Shareholder obtains pursuant to this Agreement.

                                   ARTICLE IV
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

      The Company hereby represents and warrants to the Shareholders that:

      4.1   Organization of the Company. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization; has the corporate power and authority to own,
lease and operate its assets and property and to carry on its business as now
being conducted; and is duly qualified to do business and in good standing.

      4.2   Capital Structure. The authorized capital stock of the Company
consists of 100,000,000 shares of Common Stock, par value $0.001 per share, of
which there are 4,500,000 shares issued and outstanding as of the date hereof.
All outstanding shares of the capital stock of the Company are duly authorized,
validly issued, fully paid and non-assessable, were issued in compliance with
applicable securities laws and are not subject to preemptive rights created by
statute, the Company's articles of incorporation, bylaws or any agreement or
document to which the Company is a party or by which it is bound.

                                       4
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      4.3   Authority.

            (a)   The Company has all requisite corporate power and authority to
enter into this Agreement and to consummate the transactions contemplated
hereby. The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby, have been duly authorized by all necessary
corporate action on the part of the Company.

            (b)   This Agreement constitutes the valid and binding agreement of
the Company, enforceable in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, or similar
laws relating to, or affecting generally the enforcement of, creditors' rights
and remedies or by other equitable principles of general application.

            (c)   Neither the execution and delivery of this Agreement, nor the
consummation of the transactions contemplated hereby, will conflict with or
result in a breach of any of the terms, conditions or provisions of any
agreement or instrument to which the Company is a party or by which the Company
is bound, or constitute a default under the foregoing or violate any law, rule,
regulation, judgment or decree by which the Company is bound.

            (d)   No consent, approval, order or authorization of, or
registration, declaration or filing with any court, administrative agency or
commission or other governmental authority or instrumentality is required by or
with respect to the Company in connection with the execution, delivery and
performance of this Agreement.

      4.4   Valid Issuances. The GTN Shares, when issued by the Company to the
Shareholders in accordance with the provisions of this Agreement, will be duly
authorized, validly issued, fully paid and nonassessable, and the delivery of
such GTN Shares to the Shareholders will transfer to the Shareholders valid
title to the GTN Shares, free and clear of all liens, charges, encumbrances and
claims of every kind. The GTN Shares, when issued by the Company to the
Shareholders in accordance with the provisions of this Agreement, will not be
subject to preemptive rights, and will be exempt from the registration
requirements of the Securities Act and applicable state blue sky laws.

                                    ARTICLE V
                            TERMINATION AND AMENDMENT

      5.1   Termination. This Agreement may be terminated at any time prior to
the Effective Date by written consent of all of the parties hereto. Unless
extended by written agreement of all of the parties hereto, this Agreement shall
terminate on March 31, 2006 in the event that the Effective Date has not
occurred by such date. Notwithstanding the foregoing provisions of this
Agreement, if the closing of the IPO has not occurred within ten days following
the Effective Date (as may be extended by the written agreement of all of the
parties hereto), then the transactions contemplated by this Agreement, including
without limitation the issuance of the Exchange Notes pursuant to Section 1.3
and the exchange of ATN Shares for GTN Shares pursuant to Section 1.4, shall be
deemed null and void.

      5.2   Amendment. This Agreement may not be amended by the parties hereto
except by execution of an instrument in writing signed on behalf of the Company,
ATN and each Shareholder.

                                       5
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                                   ARTICLE VI
                               GENERAL PROVISIONS

      6.1   Lock Up Agreement. Upon request by the Company, each of the
Shareholders hereby agrees to execute and deliver a lock up agreement
substantially in the form attached hereto as Exhibit B with respect to the GTN
Shares set forth adjacent to its name on Schedule I and received pursuant to
this Agreement, and any and all shares of the Company held by such Shareholder
at the time of the request.

      6.2   Entire Agreement. This Agreement constitutes the entire agreement
among the parties with respect to the subject matter hereof and supersedes all
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof.

      6.3   Severability. In the event that any provision of this Agreement, or
the application thereof, becomes or is declared by a court of competent
jurisdiction to be illegal, void or unenforceable, the remainder of this
Agreement will continue in full force and effect and the application of such
provision to other persons or circumstances will be interpreted so as reasonably
to effect the intent of the parties hereto. The parties further agree to replace
such void or unenforceable provision of this Agreement with a valid and
enforceable provision that will achieve, to the extent possible, the economic,
business and other purposes of such void or unenforceable provision.

      6.4   Governing Law; Venue. This Agreement shall be construed and
interpreted in accordance with the laws of the State of Delaware, without regard
to its conflicts-of-law provisions. All disputes related to or arising under
this Agreement shall be subject to the exclusive jurisdiction of the federal and
state courts located in Clark County, Nevada with each party consenting to the
exclusive jurisdiction of such courts and hereby waiving any personal
jurisdiction defenses. Each party hereby (i) waives any objection which it might
have now or hereafter to the foregoing venue of any such litigation, action or
proceeding, (ii) irrevocably submits to the exclusive jurisdiction of any such
court set forth above in any such litigation, action or proceeding, and (iii)
waives any claim or defense of inconvenient forum.

      6.5   Attorney's Fees. In the event of any controversy, claim, or dispute
between the parties hereto, arising out of or relating to this Agreement or the
breach thereof, the prevailing party shall be entitled, in addition to such
other relief as may be granted, to a reasonable sum as and for attorney's fees
in such litigation, which shall be determined by the court in such litigation or
in a separate action brought for the purpose.

      6.6   Counterparts. This Agreement may be executed in one or more
counterparts, including via facsimile, all of which together shall be considered
one and the same agreement.

                            (SIGNATURE PAGE FOLLOWS)

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      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above.

                                    GLOBAL TRAFFIC NETWORK, INC.

                                    By:    /s/ William L. Yde III
                                        ----------------------------------------
                                    Name:  William L. Yde III
                                    Title: President and Chief Executive Officer

                                    THE AUSTRALIAN TRAFFIC NETWORK PTY. LIMITED

                                    By:    /s/ William L. Yde III
                                        ----------------------------------------
                                    Name:  William L. Yde III
                                    Title: President and Chief Executive Officer

                                    THE SHAREHOLDERS:

                                           /s/ William L. Yde III
                                    --------------------------------------------
                                    WILLIAM L. YDE III

                                           /s/ Dale C. Arfman
                                    --------------------------------------------
                                    DALE  C. ARFMAN

                                           /s/ Thomas M. Gilligan
                                    --------------------------------------------
                                    THOMAS M. GILLIGAN

                                           /s/ Donald R. Bussell
                                    --------------------------------------------
                                    DONALD R. BUSSELL

                                    QUESTCOM MEDIA BROKERAGE, INC.

                                    By:    /s/ Donald R. Bussell
                                        ----------------------------------------
                                    Name:  Donald R. Bussell
                                    Title: President

                                    METRO NETWORKS COMMUNICATIONS, INC.

                                    By:    /s/ Andrew Zaref
                                        ----------------------------------------
                                    Name:          Andrew Zaref
                                           -------------------------------------
                                    Title:         CFO
                                           -------------------------------------

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                                   SCHEDULE I

<TABLE>
<CAPTION>
SHAREHOLDER                                             ATN SHARES    GTN SHARES
-----------                                             ----------    ----------
<S>                                                     <C>           <C>
William L. Yde III                                          47,038    1,389,057
Dale C. Arfman                                              40,037    1,182,314
Thomas M. Gilligan                                          16,000      472,489
Donald R. Bussell                                            1,500       44,296
Questcom Media Brokerage, Inc.                               6,334      187,046
Metro Networks Communications, Inc.                         24,544      724,798
                                                        ----------    ----------
   TOTAL                                                   135,453    4,000,000
</TABLE>

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                                   SCHEDULE II

<TABLE>
<CAPTION>
SHAREHOLDER                                                  PRINCIPAL AMOUNT OF
-----------                                                     EXCHANGE NOTES
                                                             -------------------
<S>                                                          <C>
William L. Yde III                                           $        486,170.00
Dale C. Arfman                                               $        413,810.00
Thomas M. Gilligan                                           $        165,371.00
Donald R. Bussell                                            $         15,504.00
Questcom Media Brokerage, Inc.                               $         65,466.00
Metro Networks Communications, Inc.                          $        253,679.00
                                                             -------------------
   TOTAL                                                     $      1,400,000.00
</TABLE>

                                       9
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                                    EXHIBIT A

                  Attached hereto is the form of Exchange Note

                                       10
<PAGE>
                                    EXHIBIT B

                Attached hereto is the form of Lock Up Agreement

                                       11<PAGE>
                                                                   EXHIBIT 10.12

                              EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into
effective (the "Effective Date") as of the closing date of the proposed initial
public offering of Global Traffic Network, Inc., a Delaware corporation located
at 7521 West Lake Mead Boulevard, Suite 300, Las Vegas, Nevada 89128 (the
"Company"), by and between the Company and William L. Yde III, with a mailing
address of 2091 Cherry Creek Circle, Las Vegas, Nevada 89135 (the "Employee").

                                   BACKGROUND

      A.    The Company desires to employ Employee as the Company's President
and Chief Executive Officer in accordance with the terms and conditions of this
Agreement, and wishes to obtain reasonable protection against unfair competition
from Employee following termination of employment and to protect itself against
unfair competition and the use of its confidential business and technical
information.

      B.    Employee wishes to provide services to the Company in exchange for
compensation and is willing to grant the Company the benefits of the various
covenants contained herein.

                                    AGREEMENT

      NOW, THEREFORE, in consideration of the foregoing facts, the mutual
covenants set forth herein and for other good and valuable consideration the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

      1.    Employment. The Company hereby employs Employee as the Company's
President and Chief Executive Officer, and Employee hereby accepts such
employment and agrees to serve the Company to the best of his ability, promoting
the Company's interests and business and devoting substantially all of his
business time, energy and skill to such employment.

      2.    Duties and Powers. While Employee is employed hereunder, and
excluding any periods of vacation, sick, disability or other leave to which
Employee may be entitled, Employee agrees to devote substantially all of
Employee's attention and time during normal business hours to the business and
affairs of the Company and, to the extent necessary to discharge the
responsibilities assigned to Employee pursuant hereto and under the Company's
bylaws as amended from time to time, to use Employee's reasonable best efforts
to perform faithfully and efficiently such responsibilities as set forth in
EXHIBIT A attached hereto. Employee shall perform such duties under the
direction of, and shall report to, the Company's Board of Directors (the
"Board") or a committee thereof. Employee shall comply with the Company's
policies and procedures; provided, however, that to the extent such policies and
procedures are inconsistent with this Agreement, the provisions of this
Agreement shall control.

      3.    Term. The Employee's appointment and position hereunder shall be
effective as of the Effective Date. This Agreement shall continue for five (5)
years after the Effective Date or until earlier terminated as provided pursuant
to Section 9.

      4.    Salary. As described above, the Company shall pay to Employee an
annual salary of Twenty-Nine Thousand One Hundred Sixty-Six and 67/100 Dollars
($29,166.67) per month, the
<PAGE>
equivalent of Three Hundred Fifty Thousand Dollars ($350,000) per year,
according to the Company's normal payroll business practice, commencing, if
ever, on the Effective Date. The Company shall increase Employee's annual salary
by an amount equal to Fifty Thousand Dollars ($50,000), provided that certain
profit levels as determined by the Board have been achieved.

      5.    Discretionary Annual Bonus. The Board may in its discretion
determine to grant cash bonus compensation to Employee in an amount up to
$50,000 and a bonus in the form of stock awards or grants of options to purchase
capital stock of the Company, dependent upon such factors or goals as may be
determined by the Board from time to time.

      6.    Discretionary Share Grant. Employee may receive a grant of up to
500,000 shares of the Company's common stock (the "Share Grant") if: (i) the
Company's stock has traded at an average closing sales price of $30.00 per share
of common stock for 20 consecutive trading days, as reported on the NASDAQ (or
such other market or exchange if the Company's common stock is then quoted or
listed on a market or exchange other than the NASDAQ); and (ii) the Board in its
sole discretion determines to grant Employee the Share Grant. Employee
recognizes, acknowledges and agrees that even if the condition set forth in
"(i)" above is met, whether the Share Grant is made is in the sole discretion of
the Board and if the Board determines not to make the Share Grant, Employee
shall have no recourse or right to obtain the Share Grant. The Company reserves
the right to withhold the requisite number of shares from the Share Grant to
cover federal, state and other tax obligations of the Company with respect to
the Share Grant.

      7.    Other Benefits. Employee shall be entitled to participate in or
receive benefits under any employee-benefit plan made available by the Company
in the future to its employees, subject to and on a basis consistent with the
terms, conditions and overall administration of such plans, specifically
Employee is entitled to receive medical, dental and life insurance consistent
with plan benefits enjoyed by members of the Company management. Nonetheless, in
its sole discretion the Company may amend or terminate any such employee-benefit
plan providing benefits generally to its employees. Employee shall be entitled
to an aggregate of two weeks of paid vacation in each calendar year.

      8.    Reimbursement of Business Expenses. Upon presentation of appropriate
receipts and/or vouchers, the Company shall reimburse Employee for the
reasonable and necessary expenses he incurs in connection with the performance
of his duties, in accordance with any and all Company's policies and procedures
governing such expenses.

      9.    Termination. Notwithstanding the term set forth in Section 3 hereof,
this Agreement may be earlier terminated as set forth below:

            (a)   by the Company without Cause (as defined below) upon 30 days
      written notice to Employee;

            (b)   by the Company, immediately upon written notice to Employee
      for the following events, each of which would constitute "Cause": (i)
      Employee is convicted of a felony; (ii) Employee has materially breached
      this Agreement; (iii) Employee's material violation of a Company policy
      that has a materially adverse effect on the Company; (iv) Employee's
      failure to perform his duties as the Company's President and Chief
      Executive Officer as required by this Agreement, which failure has not
      been cured by Employee after ten days written notice thereof to Employee
      by the Company; or (v) Employee's habitual intoxication, drug use or
      chemical substance abuse by any intoxicating or chemical substance;

                                       2
<PAGE>
            (c)   by Employee, upon 30 days written notice to the Company, in
      the event of a material breach of this Agreement by the Company;

            (d)   by Employee voluntarily upon at least 30 days written notice
      to the Company, specifying an effective date for such termination; and

            (e)   upon the death or disability of Employee. For the purposes of
      this Agreement, Employee's "disability" shall occur if Employee shall
      become incapacitated by accident or illness and, in the sole determination
      of the Board, shall be unable to perform the duties of the positions he
      then occupies with reasonable accommodation for a period of time of not
      less than 90 consecutive days, and the Company provides 30 days written
      notice to the Employee at any time after such period of disability.

            In the event of any termination occurring by virtue of paragraphs
      (a) through (e) above, Employee shall be entitled to compensation and
      benefits, if any, accrued through the effective date of termination.
      Furthermore, if Employee's employment is terminated pursuant to paragraphs
      (a) or (c) above, he shall continue to receive the salary payments
      specified in Section 4 for the 18-month period immediately following the
      effectiveness of any such termination (the "Severance Payments").

      10.   Confidential Information.

            (a)   Employee will hold all Confidential Information (as defined
      below) in the strictest confidence and never use, disclose or publish any
      Confidential Information without the prior express written permission of
      the Company and its Board. Employee agrees to maintain control over any
      Confidential Information obtained, and restrict access thereto to the
      Company's employees, agents or other associated parties who have a need to
      use such Confidential Information for its intended purpose. Employee
      agrees to advise and inform any party to whom he has provided access to
      the Confidential Information of its confidential nature, and further
      agrees to ensure that such parties be bound by the terms and obligations
      of this Agreement that relate to confidentiality.

            (b)   Upon the Company's request, all records and any compositions,
      articles, devices and other items which disclose or embody Confidential
      Information, including all copies or specimens thereof in Employee's
      possession, whether prepared or made by Employee or others, will be
      delivered to the Company.

            (c)   All documents and tangible items provided to Employee by the
      Company or created by Employee for use in connection with his employment
      by the Company are the sole and exclusive property of the Company and
      shall be promptly returned to the Company upon termination of employment
      with the Company, together with all copies, recordings, notes or
      reproductions of any kind made from or about the documents and tangible
      items or the information they contain.

            (d)   For purposes of this Agreement and subject to the following
      paragraph, the term "Confidential Information" shall mean all information
      developed by Employee as a result of his work with, for, on behalf of or
      in conjunction with the Company and any information relating to the
      Company's processes and products, including information relating to
      research, development, manufacturing, know-how, formulae, product ideas,
      inventions, trade secrets, patents, patent applications, systems,
      products, programs and techniques and any secret, proprietary or
      confidential information, knowledge or data of the Company. All
      information disclosed to

                                       3
<PAGE>
      Employee or to which Employee obtains access, whether originated by
      Employee or by others, which is treated by the Company as "Confidential
      Information," or which Employee has a reasonable basis to believe is
      "Confidential Information," will be presumed to be "Confidential
      Information."

            Notwithstanding the foregoing definition, the term "Confidential
      Information" will not apply to information which (i) Employee can
      establish by documentation was known to Employee prior to its receipt by
      Employee from the Company, (ii) is lawfully disclosed to Employee by a
      third party not deriving such information from the Company, or (iii) is
      presently in the public domain or becomes a part of the public domain
      through no fault of Employee.

            (e)   The Company shall in turn keep all personal nonpublic
      information about Employee that the Company may now have or hereafter
      acquire in strict confidence and shall not disclose any such personal
      nonpublic information except as required by law or ordered by a court of
      competent jurisdiction, or with the consent, express or implied, of
      Employee himself.

      11.   Restrictive Covenants. Employee agrees that during the period
Employee is employed by the Company (commencing on the Effective Date) and
continuing for a period one year following the termination of this Agreement for
any reason or no reason, Employee will not, without the prior express written
consent of the Company, directly or indirectly, engage in any of the following
actions:

            (a)   render services, advice or assistance to any corporation,
      person, organization or other entity which engages in the provision of
      traffic and/or news information to radio and television stations anywhere
      outside of the United States, or engage in any such activities in any
      capacity whatsoever, including without limitation as an employee,
      independent contractor, officer, director, manager, beneficial owner,
      partner, member or shareholder of any provider of traffic and/or news
      information; provided, however, that Employee may be a shareholder of a
      corporation other than the Company, required to file periodic reports with
      the Securities and Exchange Commission under Section 13 or 15(d) of the
      Securities Exchange Act of 1934 where his total holdings are less than one
      percent of the issuing corporation's issued and outstanding publicly
      traded securities; or

            (b)   induce, solicit, endeavor to entice or attempt to induce any
      customer, supplier, licensee, licensor or other business relation of the
      Company to cease doing business with the Company, or in any way interfere
      with the relationship between any such customer, vendor, licensee,
      licensor or other business relation and the Company; or

            (c)   induce, solicit or endeavor to entice or attempt to induce any
      employee of the Company to leave the employ of the Company, or to work
      for, render services or provide advice to or supply confidential business
      information or trade secrets of the Company to any third person or entity,
      or to in any way interfere adversely with the relationship between any
      such employee and the Company.

      12.   Conflicts of Interest. Employee agrees that he will not, directly or
indirectly, transact business with the Company for his own benefit, or as agent,
owner, partner or shareholder of any other entity; provided, however, that any
such transaction may be entered into if approved by a majority of the
disinterested directors serving on the Board after full disclosure.

      13.   Further Assurances. Each party shall, without further consideration,
execute such additional documents as may be reasonably required in order to
carry out the purpose and intent of this Agreement.

                                       4
<PAGE>
      14.   Arbitration.

            (a)   The parties will, to the greatest extent possible, endeavor to
      resolve any disputes relating to the Agreement through amicable
      negotiations. Failing an amicable settlement, any controversy, claim or
      dispute arising under or relating to this Agreement, including the
      existence, validity, interpretation, performance, termination or breach of
      this Agreement, will finally be settled by binding arbitration before a
      single arbitrator (the "Arbitration Tribunal") which will be jointly
      appointed by the parties. The Arbitration Tribunal shall self-administer
      the arbitration proceedings utilizing the Commercial Rules of the American
      Arbitration Association ("AAA"); provided, however, the AAA shall not be
      involved in administration of the arbitration. The arbitrator must be a
      retired judge of a state or federal court of the United States or a
      licensed lawyer with at least five years of corporate or commercial law
      experience and have at least an AV rating by Martindale Hubbell. If the
      parties cannot agree on an arbitrator, either party may request the AAA to
      appoint an arbitrator which appointment will be final.

            (b)   The arbitration will be held in that particular State and
      municipal location in which the Company's headquarters, at the time of any
      such arbitration's institution, is located. Each party will have discovery
      rights as provided by the Federal Rules of Civil Procedure within the
      limits imposed by the arbitrator; provided, however, that all such
      discovery will be commenced and concluded within 60 days of the selection
      of the arbitrator. It is the intent of the parties that any arbitration
      will be concluded as quickly as reasonably practicable. Once commenced,
      the hearing on the disputed matters will be held four days a week until
      concluded, with each hearing date to begin at 9:00 a.m. and to conclude at
      5:00 p.m. The arbitrator will use all reasonable efforts to issue the
      final written report containing award or awards within a period of five
      business days after closure of the proceedings. Failure of the arbitrator
      to meet the time limits of this Section 14 will not be a basis for
      challenging the award. The Arbitration Tribunal will not have the
      authority to award punitive damages to either party. Each party will bear
      its own expenses, but the parties will share equally the expenses of the
      Arbitration Tribunal. The Arbitration Tribunal shall award attorneys' fees
      and other related costs payable by the losing party to the successful
      party as it deems equitable. This Agreement will be enforceable, and any
      arbitration award will be final and non-appealable, and judgment thereon
      may be entered in any court of competent jurisdiction. Notwithstanding the
      foregoing, claims for injunctive relief, may be brought in a state or
      federal court in the state court in Las Vegas, Nevada.

      15.   General Provisions. This Agreement shall be interpreted and enforced
in accordance with the laws of the State of Nevada without regard to its
conflicts-of-law provisions. The venue for any action hereunder shall be in Las
Vegas, Nevada. If any provision of this Agreement shall be held by any court of
competent jurisdiction to be illegal, invalid or unenforceable, such provision
shall be construed and enforced as if it had been more narrowly drawn so as not
to be illegal, invalid or unenforceable, and such illegality, invalidity or
unenforceability shall have no effect upon and shall not impair the
enforceability of any other provision of this Agreement. This Agreement contains
the entire understanding of the parties with regard to all matters contained
herein. There are no other agreements, conditions or representations, oral or
written, expressed or implied, with regard to the matters contained in this
Agreement other than those referenced in this paragraph. This Agreement
supersedes all prior agreements relating to the matters contained herein. This
Agreement is and shall be binding upon the heirs, personal representatives,
legal representatives, successors and assigns of the parties hereto; provided,
however, that Employee may not assign this Agreement because the services to be
rendered hereunder are unique and personal in nature. This Agreement may be
amended only in writing, signed by both parties. Any waiver by either party of
compliance with any provision of this Agreement by the other

                                       5
<PAGE>
party shall not operate or be construed as a waiver of any other provision of
this Agreement, or of any subsequent breach by such party of a provision of this
Agreement. Any notice to be given under this Agreement by either Employee or the
Company shall be in writing and shall be effective upon personal delivery or
delivery by mail, registered or certified, postage prepaid with return receipt
requested. Mailed notices shall be addressed to the party at the address set
forth at the beginning of this Agreement, but each party may change its or his
address by written notice in accordance with this paragraph. Notice delivered
personally shall be deemed given as of actual receipt and mailed notices shall
be deemed given as of three business days after mailing. The parties hereby
mutually represent and warrant that they are authorized to execute and deliver
this Agreement, that this Agreement will be valid and enforceable against each
party upon their execution and delivery of the same, and that there are no
restrictive agreements binding them which may affect their ability to perform
their respective obligations hereunder. If any party is made or shall become a
party to any litigation (including arbitration) commenced by or against the
other party involving the enforcement of any of the rights or remedies of such
party, or arising on account of a default of the other party in its performance
of any of the other party's obligations hereunder, then the parties shall bear
their own expenses and attorneys' fees. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original, but all of
which shall constitute one and the same agreement. Signatures delivered by
facsimile and other means of electronic communication shall be valid and binding
to the same extent as original signatures.

                             Signature Page Follows

                                       6
<PAGE>
         IN WITNESS WHEREOF, the parties have executed this Employment Agreement
on this 18th day of November, 2005.

                                        COMPANY:

                                        GLOBAL TRAFFIC NETWORK, INC.
                                        a Delaware corporation

                                        By:     /s/ Dale C. Arfman
                                             -----------------------------------
                                        Its:    Treasurer and Vice President
                                             -----------------------------------

                                        EMPLOYEE:

                                                /s/ William L. Yde III
                                        ----------------------------------------
                                        William L. Yde III

                      Signature Page - Employment Agreement
<PAGE>
                                    EXHIBIT A

Duties of Employee:

                                       8

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