Document:

Exhibit 10.17

 

INVESTOR GUARANTY AGREEMENT

 

THIS INVESTOR GUARANTY AGREEMENT (this “Guaranty”), is made and
entered into as of April 22, 2005, by TL VENTURES IV L.P., TL
VENTURES IV INTERFUND L.P., PA EARLY STAGE PARTNERS III, L.P., and SAFEGUARD DELAWARE, INC. (each a “Guarantor” and
collectively, the “Guarantors”), in favor of COLUMBIA
PARTNERS, L.L.C. INVESTMENT MANAGEMENT, in its capacity as agent
(the “Agent”) for the Lenders under the Credit Agreement (as hereinafter
defined) and LENDERS (as defined in
the Credit Agreement).

 

RECITALS:

 

WHEREAS, Traffic.com, Inc., a Delaware
corporation (f/k/a Mobility
Technologies, Inc.) (the “Borrower”), Agent and Lenders entered
into a Credit Agreement, dated as of March 29, 2002, as amended, including
without limitation, by that certain Waiver and Fifth Amendment to Amended and
Restated Credit Agreement dated of even date herewith (the “Fifth Amendment,”
and collectively with all previous amendments, the “Credit Agreement”),
pursuant to which Lenders have provided to Borrower certain extensions of
credit and other financial accommodations; and

 

WHEREAS, Guarantors are investors in Borrower and will
derive substantial direct and indirect benefit for the transactions
contemplated by the Credit Agreement; and

 

WHEREAS, it is a condition precedent to Agent’s and
Lenders’ willingness to enter into the Fifth Amendment that Guarantors execute
and deliver to Agent this Guaranty;

 

NOW,
THEREFORE, in
consideration of the premises and in order to induce the Agent and Lenders to enter
into the Fifth Amendment and to continue to provide credit extensions and other
financial accommodations to Borrower, Guarantors hereby agree with Agent, for
the benefit of Agent and Lenders, as follows:

 

AGREEMENT:

 

1.                                      Definitions. Capitalized terms used in this Guaranty and
not defined in this Guaranty shall have the respective meanings set forth in
the Credit Agreement. All references herein to any Loan Document or other
document or instrument refer to the same as from time to time amended, supplemented
or restated. As used herein, terms defined above in the introductory paragraph
and in the Recitals shall have the meanings indicated above, and the following
terms shall have the following meanings:

 

“Aggregate Liability” shall mean
$10,000,000 less the aggregate amount of gross proceeds received by Borrower
from investors other than the Guarantors pursuant to one or more Qualified
Equity Financings.

 

“EBITDA” has the meaning given such
term in the Credit Agreement.

 

 

“EBITDA Milestone” shall mean, with
respect to Borrower, positive EBITDA for both (a) three (3) consecutive
fiscal quarters and (b) for the applicable trailing twelve (12) month
period.

 

“Equity Commitment” means that certain
Equity Commitment of even date herewith by and between the Guarantors and
Borrower.

 

“Funding Percentage” shall mean for
each Guarantor, a fraction (a) the numerator of which is such Guarantor’s
Commitment, and (b) the denominator of which is the Aggregate Liability
less the aggregate Qualifying Credits attributable to all Guarantors.

 

“Guaranteed Obligations” shall mean
collectively all of the Indebtedness, obligations and undertakings described in
subsections (a) and (b) of Section 2.

 

“Guarantor’s Base Liability” shall
mean, for each Guarantor, the Aggregate Liability multiplied by the percentage
set forth next to each such Guarantor’s name on Exhibit A attached hereto.

 

“Guarantor’s Commitment” shall mean,
for each Guarantor, such Guarantor’s Base Liability less any Qualifying Credits
attributable to such Guarantor.

 

“Obligor” shall mean any Person
obligated to make payments in respect of any of the Guaranteed Obligations.

 

“Qualifying Credits” shall mean sum of
(a) all funds provided by such Guarantor pursuant to Sections 2(a) and 2(b)
hereof, and (b) the aggregate amount of gross proceeds received by
Borrower from such Guarantor pursuant to one or more Qualified Equity
Financings not otherwise included in the amounts referenced in clause (a) above.

 

2.                                      Guaranty.

 

(a)                                  Subject to Section 2(d), each Guarantor
hereby irrevocably, absolutely, and unconditionally, and severally and not
jointly with each other Guarantor, guarantees to Agent, for the benefit of
Agent and Lenders, the prompt, complete, and full payment when due, and no
matter how the same shall become due, of all principal and unpaid interest with
respect to the Notes, in the event that (i) Borrower is then subject to an
Insolvency Proceeding or (ii) such Guarantor has failed to completely and
fully perform the Guaranteed Obligations as set forth in Section 2(b). Subject
to Sections 2(b) and 2(d), if Borrower shall for any reason fail to pay any
Guaranteed Obligation, as and when such Guaranteed Obligation shall become due
and payable (after giving effect to any applicable grace periods), whether at
its stated maturity, as a result of the exercise of any power to accelerate, or
otherwise, each Guarantor will pay to the Agent for the ratable benefit of
Agent and Lenders, (x) upon not less than thirty (30) days prior written notice
to such Guarantor by Agent under the circumstances described in clause (i) of
the first sentence of this Section 2(a) such Guarantor’s Funding
Percentage of the Guaranteed Obligations, and (y) upon demand under the
circumstances described in clause (ii) of the first sentence of this Section 2(a),
the unpaid Guaranteed Obligations owing by such Guarantor. For

 

2

 

purposes of this Section 2(a),
any payment made to Agent hereunder shall, at the option of each Guarantor, in
its sole discretion, be deemed to constitute consideration paid to the Borrower
pursuant to the Equity Commitment; provided, however, that the failure of such
payment to be determined or construed as such by and between Borrower and such
Guarantor shall have no effect on and shall in no way diminish or eliminate
such Guarantor’s obligations to Agent and Lender hereunder.

 

(b)                                 Subject to Section 2(d), each Guarantor
hereby irrevocably, absolutely, and unconditionally guarantees to Agent, for
the benefit of Agent and Lenders, the prompt, complete and full performance by
Borrower of the requirement set forth in Section 6.1.16 of the Credit
Agreement. If Borrower shall for any reason fail to perform promptly the
Guaranteed Obligations set forth in this Section 2(b), each Guarantor
will, without demand by Agent or any Lender, cause such Guaranteed Obligation
to be performed in accordance with the requirements of Section 6.1.16 of
the Credit Agreement or, to the extent of such Guarantor’s Commitment and upon
not less than thirty (30) days prior written notice to such Guarantor by Agent
(such timeframe to run concurrently with any notice requirements to Borrower in
connection with cure period set forth in Section 6.1.16 of the Credit
Agreement), provide to Borrower, pursuant to one or more Qualified Equity
Financings as is more fully set forth in the Equity Commitment, its Funding
Percentage of sufficient funds necessary for, Borrower to comply with the terms
of Section 6.1.16 of the Credit Agreement.

 

(c)                                  As between Guarantors and Agent, this
Guaranty shall be considered a primary and liquidated, several and not joint
liability of Guarantors. This Guaranty constitutes a guaranty of payment, not
of collection.  Without limiting the
generality of the foregoing, each Guarantor’s liability hereunder shall extend
to and include all post-petition interest, expenses, and other duties and
liabilities of Obligors described above in Sections 2(a) and 2(b), which would
be owed by an Obligor even if they are unenforceable or not allowable due to the
existence of a bankruptcy, reorganization, or similar proceeding involving such
Obligor.

 

(d)                                 Each Guarantor’s respective maximum aggregate
liability hereunder shall be limited to an amount equal to such Guarantor’s
Base Liability. Each Guarantor’s remaining liability hereunder at any time
shall equal such Guarantor’s Commitment.

 

3.                                      Unconditional Guaranty.

 

(a)           No action that Agent or any Lender
may take or omit to take in connection with any of the Loan Documents, any of
the Guaranteed Obligations (or any other indebtedness owing by any Obligor to
Agent or any Lender), or any security therefor, and no course of dealing of
Agent or any Lender with any Guarantor or any other Person, shall release or
diminish any Guarantor’s obligations, liabilities, agreements or duties
hereunder, affect this Guaranty in any way, or afford any Guarantor any
recourse against Agent or any Lender, regardless of whether any such action or inaction may
increase any risks to or liabilities of Agent, any Lender or any Obligor or
increase any risk to or diminish any safeguard of any security for the
Guaranteed Obligations. Without limiting the foregoing, each Guarantor hereby
expressly agrees that Agent and Lenders may, from time to time, without notice
to or the consent of such Guarantor, do any or all of the following, which
shall not affect such Guarantor’s liability hereunder:

 

3

 

(i)                                     amend, change or modify, in whole or in part,
any one or more of the Loan Documents (except an amendment to a Loan Document
to which such Guarantor is a party to the extent such amendment requires the
consent of such Guarantor) and give or refuse to give any waivers or other
indulgences with respect thereto;

 

(ii)                                  neglect, delay, fail, or refuse to take or
prosecute any action for the collection or enforcement of any of the Guaranteed
Obligations, to foreclose or take or prosecute any action in connection with
any security therefor or any Loan Document, to bring suit against any Obligor
or any other Person, or to take any other action concerning the Guaranteed
Obligations or the Loan Documents;

 

(iii)                               accelerate, change, rearrange, extend, or
renew the time, rate, terms, or manner for payment or performance of any one or
more of the Guaranteed Obligations (whether for principal, interest, fees,
expenses, indemnifications, affirmative or negative covenants, or otherwise);

 

(iv)                              compromise or settle any unpaid or
unperformed Guaranteed Obligation or any other obligation or amount doe or
owing, or claimed to be due or owing, under any one or more of the Loan
Documents;

 

(v)                                 take, exchange, amend, eliminate, surrender,
release, or subordinate any or all security for any or all of the Guaranteed
Obligations, accept additional or substituted security therefor, and perfect or
fail to perfect Agent’s or any
Lender’s rights in any or all Collateral;

 

(vi)                              discharge, release, substitute or add
Obligors in respect of any of the Guaranteed Obligations or fail to enforce any
obligation of any Obligor; or

 

(vii)                           apply all monies received from any Obligor in
respect of any of the Guaranteed Obligations or others, or from any security
for any of the Guaranteed Obligations, as it may determine to be in its best
interest, without in any way being required to marshal security or assets or to
apply all or any part of such monies upon any particular Guaranteed
Obligations.

 

(b)                                 No action or inaction of any Obligor or any
other Person, and no change of law or circumstances, shall release or diminish
such Guarantor’s obligations, liabilities, agreements, or duties hereunder,
affect this Guaranty in any way, or afford such Guarantor any recourse against
Agent or any Lender. Without limiting the foregoing, the obligations,
liabilities, agreements, and duties of such Guarantor under this Guaranty shall
not be released, diminished, impaired, reduced, or affected by the occurrence
of any or all of the following from time to time, even if occurring without
notice to or without the consent of such Guarantor:

 

(i)                                     any voluntary or involuntary liquidation,
dissolution, sale of all or substantially all assets, marshaling of assets or
liabilities, receivership, conservatorship, assignment for the benefit of
creditors, insolvency, bankruptcy, reorganization, arrangement, or composition
of any Obligor or any other proceedings involving any Obligor or any of the
assets

 

4

 

of any Obligor under laws
for the protection of debtors, or any discharge, impairment, modification,
release, or limitation of the liability of, or stay of actions or lien
enforcement proceedings against, any Obligor, any properties of any Obligor, or
the estate in bankruptcy of any Obligor in the course of or resulting from any
such proceedings;

 

(ii)                                  the failure by Agent or any Lender to file or
enforce a claim in any proceeding described in the immediately preceding subsection (i) or
to take any other action in any proceeding to which any Obligor is a party;

 

(iii)                               the release by operation of law of any
Obligor from any of the Guaranteed Obligations or any other obligations to
Agent or any Lender;

 

(iv)                              the invalidity, deficiency, illegality, or
unenforceability of any of the Guaranteed Obligations or the Loan Documents, in
whole or in part, any bar by any statute of limitations or other law of
recovery on any of the Guaranteed Obligations, or any defense or excuse for
failure to perform on account of force majeure, act of God, casualty,
impossibility, impracticability, or other defense or excuse of any Obligor
whatsoever, in  each  case other than the actual final
payment in cash and performance in full of the Guaranteed Obligations in
accordance with the terms of the Loan Documents;

 

(v)                                 the fact that such Guarantor may have
incurred directly part of the Guaranteed Obligations or is otherwise primarily
liable therefor; or

 

(vi)                              without limiting any of the foregoing, any
fact or event (whether or not similar to any of the foregoing) which in the
absence of this provision would or might constitute or afford a legal or
equitable discharge or release of or defense to a guarantor or surety, in
each  case other than (A) with respect to the Guaranteed
Obligations set forth in Section 2(a) above, the actual final payment
in full of such Guaranteed Obligations, to the maximum extent of such Guarantor’s
Commitment, in accordance with the terms of the Loan Documents and (B) with
respect to the Guaranteed Obligations set forth in Section 2(b) above,
the satisfaction of such Guarantor’s obligations under the Equity Commitment.

 

(c)                                  Subject to the specific conditions under
which this Guaranty may be enforced, Agent and Lenders may invoke the benefits
of this Guaranty before pursuing any remedies against any Obligor or any other
Person and before proceeding against any security now or hereafter existing for
the payment or performance of any of the Guaranteed Obligations. Agent and
Lenders may maintain an action against Guarantor on this Guaranty without
joining any other Obligor therein and without bringing a separate action
against any other Obligor or guarantor.

 

(d)                                 Except to the extent the Guarantor’s
Commitment has been satisfied, if any payment to Agent or any Lender by
Borrower is held to constitute a preference or a voidable transfer under
applicable state or federal laws, or if for any other reason Agent or any
Lender is required to refund such payment to the payer thereof or to pay the
amount thereof to any other Person, such payment to Agent or such Lender (as
the case may be) shall not constitute a release of such Guarantor from any
liability hereunder, and such Guarantor agrees to pay such amount to

 

5

 

Agent, for the benefit of
Agent or Lender (as the case may be), on demand and agrees and  acknowledges that this Guaranty shall
continue to be effective or shall be reinstated, as the case may be to the extent of any such payment or
payments. Any transfer by subrogation which is made as contemplated in Section 6 prior to any such payment or
payments shall (regardless of the
terms of such transfer) be automatically voided upon the making of any such
payment or payments, and all
rights so transferred shall thereupon revert to and be vested in Agent, for
file ratable benefit of Agent
and Lenders.

 

(e)                                  This is a continuing guaranty and shall apply
to and cover all Guaranteed Obligations and renewals and extensions thereof and
substitutions therefor from time to time.

 

(f)                                    Such Guarantor acknowledges that the
effectiveness of this Guaranty is not conditioned on any or all of the
Guaranteed Obligations being guaranteed by anyone else, including any other
Obligor or guarantor.

 

4.                                      Waiver. Each Guarantor hereby waives, with respect
to the Guaranteed Obligations, this Guaranty and the other Loan Documents:

 

(a)                                  notice of the incurrence of any Guaranteed
Obligation, and notice of any kind concerning the assets, liabilities,
financial condition, creditworthiness, businesses, prospects, or other affairs
of any Obligor (it being understood and agreed that: (i) such Guarantor
shall take fell responsibility for informing itself of such matters, (ii) neither
Agent nor any Lender shall have any responsibility of any kind to inform such
Guarantor of such matters, and (iii) Agent and Lenders are hereby
authorized to assume that such Guarantor, by virtue of its relationships with
the other Obligors which are independent of this Guaranty, has full and
complete knowledge of such matters whenever Agent or any Lender extends credit
to such Obligors or takes any other action which may change or increase such
Guarantor’s liabilities or losses hereunder);

 

(b)                                 notice that Agent, any Lender, any Obligor,
or any other Person has taken or omitted to take any action under any Loan
Document or any other agreement or instrument relating thereto or relating to
any Guaranteed Obligation;

 

(c)                                  notice of acceptance of this Guaranty and all
rights of such Guarantor under any statute or law discharging such Guarantor
from liability hereunder for failure to sue on this Guaranty.

 

(d)                                 demand, presentment for payment, and notice
of default, demand, dishonor, nonpayment, or nonperformance; and

 

(e)                                  notice of intention to accelerate, notice of
acceleration, protest, notice of protest, notice of any exercise of remedies
(as described in the following Section 5 or otherwise), and all other notices of any kind whatsoever.

 

Notwithstanding the
foregoing clauses (a) through (e), such Guarantor does not waive any
notices which are otherwise
specifically required in any Loan Document (including this

 

6

 

Guaranty) to which such
Guarantor is a party but agrees that to the extent permitted by applicable law
the failure of Agent or any Lender to provide any such notices pursuant to the
provisions of any Loan Document shall not release or diminish either such
Guarantor’s obligations, liabilities, agreements or duties hereunder, or
otherwise affect this Guaranty in any way.

 

5.                                      Exercise of Remedies. Agent, for the benefit of Agent and Lenders,
shall have the right to enforce, from time to time, in any order and at Agent’s
sole discretion, any rights, powers and remedies which Agent may have under the
Loan Documents or otherwise, including judicial foreclosure, the exercise of
rights of power of sale, the taking of a deed or assignment in lieu of
foreclosure, the appointment of a receiver to collect rents, issues and
profits, the exercise of remedies against personal property, or the enforcement
of any assignment of any properties or rights, whether real or personal,
tangible or intangible; and, subject to Section 2(d), Guarantors shall be
liable to Agent, for the benefit of Agent and Lenders, hereunder for any
deficiency resulting from the exercise by Agent or any Lenders of any such
right or remedy even though any rights that Guarantors may have against
Borrower or others may be destroyed or diminished by exercise of any such right
or remedy.   No failure on the part of
Agent or any Lender to exercise, and no delay in exercising, any right
hereunder or under any other Loan Document shall operate as a waiver thereof;
nor shall any single or partial exercise of any right preclude any other or
further exercise thereof or the exercise of any other right.   The rights, powers and remedies of Agent and
Lenders provided herein and in the other Loan Documents are cumulative and are
in addition to, and not exclusive of, any other rights, powers or remedies
provided by law or in equity. The rights of Agent hereunder are not conditional
or contingent on any attempt by Agent or any Lender to exercise any of their
respective rights under any other Loan Document against any Obligor or any
other Person.

 

6.                                      Limited Subrogation. Until all of the Guaranteed Obligations have
been finally and fully paid in cash and performed in full, no Guarantor shall
have the right to exercise any right of subrogation, reimbursement, indemnity,
exoneration, contribution or any other claim which it may now or hereafter have
against or to any Obligor or any security in connection with this Guaranty
(including any right of subrogation under any statute or other law), and each Guarantor
hereby waives any rights to enforce prior to such time any remedy that such
Guarantor may have against an Obligor in connection with this Guaranty or the
Guaranteed Obligations and any right to participate prior to such time in any
security therefor until such time. If any amount shall be paid to any Guarantor
on account of any such subrogation rights, any such other remedy with respect
to amounts paid under this Guaranty, or any security in respect of the
Guaranteed Obligations at any time when all of the Guaranteed Obligations and
all other expenses guaranteed pursuant hereto shall not have been paid in full
in cash, such amount shall be held in trust for the benefit of Agent, for the
ratable benefit of Agent and Lenders, shall be segregated from the other funds
of such Guarantor and shall forthwith be paid over to Agent to be held by Agent
as security for, or then or at any time thereafter applied in whole or in part
by Agent against, all or any portion of the Guaranteed Obligations, whether
matured or unmatured, in such order as Agent shall elect.

 

7.                                      Successors and Assigns. No Guarantor’s rights or obligations
hereunder may be assigned or delegated, but this Guaranty and such obligations
shall pass to and be fully binding

 

7

 

upon the respective
successors of each Guarantor, as well as each such Guarantor. This Guaranty
shall apply to and inure to the benefit of Agent and Lenders and their
respective successors or permitted assigns.

 

8.                                      No Oral Change; Amendments. No amendment of any provision of this Guaranty
shall be effective unless it is in writing and signed by all affected
Guarantors and the Agent, and no waiver of any provision of this Guaranty, and
no consent to any departure by any Guarantor therefrom, shall be effective
unless it is in writing and signed by Agent, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given.

 

9.                                      Invalidity of Particular
Provisions. If any term or provision of this Guaranty shall
be determined to be illegal or unenforceable all other terms and provisions
hereof shall nevertheless remain effective and shall be enforced to the fullest
extent permitted by applicable law.

 

10.                               Headings and References. The headings used herein are for purposes of
convenience only and shall not be used in construing the provisions
hereof.  The words “this Guaranty,”
“this instrument,” “herein,” “hereof,” “hereby” and words of similar import
refer to this Guaranty as a whole and not to any particular subdivision unless
expressly so limited. The phrases “this section” and “this subsection” and
similar phrases refer only to the subdivisions hereof in which such phrases
occur. The word “or” is not exclusive, and the word “including” (in its various
forms) means “including without limitation.” Pronouns in masculine, feminine and
neuter genders shall be construed to include any other gender, and words in the
singular form shall be construed to include the plural and vice versa, unless
the context otherwise requires.

 

11.                               Term. This Guaranty shall be irrevocable until
the earliest to occur of (i) 90 days following the Borrower’s delivery to
Agent and Comerica Bank of written certification that Borrower has achieved the
EBITDA Milestone (based on unqualified audited financial statements of Borrower
or such financial statements as are otherwise acceptable to Agent in its sole
discretion, of the achievement by Borrower of the EBITDA Milestone), (ii) Borrower’s
receipt, on a cumulative basis, of gross proceeds of one or more Qualified
Equity Financings in an aggregate amount of $10,000,000; or (iii) the
complete and final payment in full in cash and performance of all of the
Guaranteed Obligations; provided that this Guaranty is thereafter subject to
reinstatement as provided in Section 3(d). 
In addition, the liability of any Guarantor hereunder shall terminate
upon (a) such Guarantor having funded Qualifying Credits in an amount
equal to such Guarantor’s Base Liability (subject, in the case of payments made
by such Guarantor to the Agent pursuant to Section 2(a), to subsequent
reinstatement pursuant to Section 3(d) as to the avoidance of funds
provided by such Guarantor), notwithstanding the fact that any other Guarantor
has failed to fulfill any of its obligations hereunder. All extensions of
credit and financial accommodations heretofore or hereafter made by Agent and
Lenders pursuant to the Loan Documents shall be conclusively presumed to have
been made in acceptance hereof and in reliance hereon.

 

8

 

12.                               Notices. All notices and other communications
provided for hereunder shall be in writing and mailed or delivered to the
applicable Guarantor at its address as set forth on Exhibit A to this
Guaranty, and if to Agent or Lender, at the address set forth in the Credit
Agreement, or, as to either party, at such other address as shall be designated
by such party in a written notice to the other party.  All such notices and other communication
shall, when mailed, be effective when deposited in the mail or with the
applicable delivery service addressed as aforesaid.

 

13.                               Representations and Warranties. Each Guarantor hereby represents and warrants
to Agent and Lenders that (a) this Guaranty has been duly authorized,
executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency and similar
laws affecting the enforcement of creditors’ rights generally and general
principles of equity; (b) it has full partnership or other organizational
power and authority and has taken all requisite partnership or other
organizational actions, as applicable, necessary for (i) the
authorization, execution and delivery of this Guaranty and (ii) the performance
by it of all its obligations hereunder, including without limitation, creating appropriate
capital reserves for such performance; (c) the execution and delivery of
this Guaranty and the performance by it of its obligations hereunder require no
consent of, action by or in respect of, or filing with, any Person,
governmental body, agency, or official other than such consents as have been
previously obtained; (d) the execution and delivery of this Guaranty and
the performance by it of its obligations hereunder will not conflict with or
result in a breach or violation of any of the terms and provisions of, or
constitute a default under, (i) its limited partnership agreement,
operating agreement, articles of incorporation, bylaws or other governing documents,
or (ii)(A) any statute, rule, regulation or order of any governmental
agency or body or any court, domestic or foreign, having jurisdiction over it
or any of its assets or properties, or (B) any agreement or instrument to
which it is a party or by which it is bound or to which any of its assets or
properties is subject; and (c) it has, and at all times during the term of
this Guaranty will have, sufficient, presently available financial resources to
perform its obligations hereunder when they become due.

 

14.                               Loan Document. This Guaranty is a Loan Document, as defined
in the Credit Agreement, and is subject to the provisions of the Credit
Agreement governing Loan Documents.

 

15.                               Counterparts; Fax. This Guaranty may be executed in any number
of counterparts, each of which when so executed shall be deemed to constitute
one and the same Guaranty. This Guaranty may be validly executed and delivered
by facsimile or other electronic transmission.

 

16.                              Governing Law; Jurisdiction. This Guaranty shall be governed by and
construed in accordance with the laws of the Commonwealth of Pennsylvania
applied to contracts to be performed wholly within the Commonwealth of
Pennsylvania. Any judicial proceeding brought by or against any Guarantor with
respect to any of the Guaranteed Obligations, this Guaranty or any related
agreement shall be brought in any court of competent jurisdiction in the
Commonwealth of Pennsylvania, United States of America, and, by execution and
delivery of this Agreement, each Guarantor accepts for itself and in connection
with its properties, generally and unconditionally, the non-exclusive
jurisdiction of the aforesaid courts,

 

9

 

and irrevocably agrees to be
bound by any judgment rendered thereby in connection with this Guaranty. Each Guarantor
hereby waives personal service of any and all process upon it and consents that
all such service of process may be made by registered mail (return receipt
requested) directed to such Guarantor at its address set forth in the
introductory paragraph of this Guaranty and service so made shall be deemed
completed five (5) days after the same shall have been so deposited in the
mails of the United States of America, or, at Agent’s and/or any Lender’s
option, by service upon which such Guarantor irrevocably appoints as such
Guarantor’s agent for the purpose of accepting service within the Commonwealth
of Pennsylvania. Nothing herein shall affect the right to serve process in any manner permitted by law or shall limit
the right of Agent or any Lender to bring proceedings against any Guarantor in
the courts of any other jurisdiction. Each Guarantor waives any objection to
jurisdiction and venue of any action instituted hereunder and shall not assert
any defense based on lack of jurisdiction or venue or based upon forum non
conveniens. Any judicial proceeding by any Guarantor against Agent or any
Lender involving, directly or indirectly, any matter or claim in any way
arising out of, related to or connected with this Agreement or any related
agreement, shall be brought only in a federal or state court located in the
County of Chester, Commonwealth of Pennsylvania..

 

17.                               WAIVER OF JURY TRIAL. AGENT, EACH
LENDER AND EACH GUARANTOR HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS
GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

[SIGNATURE PAGE FOLLOWS]

 

10

 

IN WITNESS WHEREOF, each Guarantor has
executed and delivered this Guaranty as of the date first written above.

 

	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  TL
  Ventures IV L.P.

  
	
   

  	
  By:

  	
  TL Ventures IV Management
  L.P.,

  its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  TL Ventures IV LLC,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ M J Jening

  	
   

  
	
   

  	
  Name:

  	
   

  	
  M J Jening

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
  TL Ventures IV Interfund
  L.P.

  
	
   

  	
  By:

  	
  TL Ventures IV LLC,

  its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ M J Jening

  	
   

  
	
   

  	
  Name:

  	
   

  	
  M J Jening

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PA Early Stage Partners
  III, L.P.

  
	
   

  	
   

  
	
   

  	
  By: PA-ESP III GP, L.P.,
  its general partner

  
	
   

  	
   

  
	
   

  	
  By: PA-ESP Manager III,
  LLC, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Nissenbaum

  	
   

  
	
   

  	
   

  	
  Name: Scott Nissenbaum

  
	
   

  	
   

  	
  Title: Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Safeguard
  Delaware, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven J. Feder

  	
   

  
	
   

  	
   

  	
  Steven J. Feder

  
	
   

  	
   

  	
  Vice President

  
									

 

 

	
   

  	
  ACCEPTED:

  
	
   

  	
   

  
	
   

  	
  AGENT:

  
	
   

  	
   

  
	
   

  	
  COLUMBIA PARTNERS, L.L.C.
  INVESTMENT

  MANAGEMENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher J. Doherty

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Christopher J. Doherty

  
	
   

  	
   

  	
  Title: 

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  NATIONAL ELECTRICAL
  BENEFIT FUND

  
	
   

  	
   

  
	
   

  	
  By: COLUMBIA PARTNERS,
  L.L.C.

  INVESTMENT MANAGEMENT, as its authorized

  signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher J. Doherty

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Christopher J. Doherty

  
	
   

  	
   

  	
  Title: 

  	
  Managing Director

  
					

 

 

EXHIBIT A

 

Guarantor’s Commitment
Percentages

 

	
  Guarantor

  	
   

  	
  Commitment Percentage

  	
   

  
	
  TL
  Ventures IV L.P.

  	
   

  	
  82.7570%

  	
   

  
	
  c/o TL Ventures Inc.

  	
   

  	
   

  	
   

  
	
  700 Building

  	
   

  	
   

  	
   

  
	
  435 Devon Park Drive

  	
   

  	
   

  	
   

  
	
  Wayne, PA 19087-1945

  	
   

  	
   

  	
   

  
	
  Attn: Chief Financial Officer

  	
   

  	
   

  	
   

  
	
  Tel: (610)971-1515

  	
   

  	
   

  	
   

  
	
  Fax: (610)975-9330

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
   

  	
   

  
	
  Lisa R. Jacobs

  	
   

  	
   

  	
   

  
	
  3000 Two Logan Square

  	
   

  	
   

  	
   

  
	
  Eighteenth and Arch Streets

  	
   

  	
   

  	
   

  
	
  Philadelphia, PA 19103-2799

  	
   

  	
   

  	
   

  
	
  Tel: (215) 931-4000

  	
   

  	
   

  	
   

  
	
  Fax: (215) 981-4750

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TL Ventures IV Interfund
  L.P.

  	
   

  	
  2.1868%

  	
   

  
	
  c/o TL Ventures Inc.

  	
   

  	
   

  	
   

  
	
  700 Building

  	
   

  	
   

  	
   

  
	
  435 Devon Park Drive

  	
   

  	
   

  	
   

  
	
  Wayne, PA 19087-1945

  	
   

  	
   

  	
   

  
	
  Attn: Chief Financial Officer

  	
   

  	
   

  	
   

  
	
  Phone: (610) 971-1515

  	
   

  	
   

  	
   

  
	
  Fax: (610) 975-9330

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
   

  	
   

  
	
  Lisa R. Jacobs

  	
   

  	
   

  	
   

  
	
  3000 Two Logan Square

  	
   

  	
   

  	
   

  
	
  Eighteenth and Arch Streets

  	
   

  	
   

  	
   

  
	
  Philadelphia, PA 19103-2799

  	
   

  	
   

  	
   

  
	
  Tel: (215) 981-4701

  	
   

  	
   

  	
   

  
	
  Fax: (215) 981-4750

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  PA Early Stage Partner
  III, L.P.

  	
   

  	
  7.5281%

  	
   

  
	
  1200 Liberty Ridge

  	
   

  	
   

  	
   

  
	
  Suite 310

  	
   

  	
   

  	
   

  
	
  Wayne, PA 19087

  	
   

  	
   

  	
   

  
	
  Attention: Guy W.
  Winters, Jr.

  	
   

  	
   

  	
   

  
	
  Partner and General
  Counsel

  	
   

  	
   

  	
   

  

 

 

	
  Safeguard
  Delaware, Inc.

  	
   

  	
  7.5281%

  	
   

  
	
  103 Springer Building

  	
   

  	
   

  	
   

  
	
  3411 Silverside Road

  	
   

  	
   

  	
   

  
	
  Wilmington, DE 19810

  	
   

  	
   

  	
   

  
	
  Attn: Christopher J. Davis

  	
   

  	
   

  	
   

  
	
  (302) 478-3667 (f)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
   

  	
   

  
	
  Steven J. Feder

  	
   

  	
   

  	
   

  
	
  Safeguard Scientifics, Inc.

  	
   

  	
   

  	
   

  
	
  435 Devon Park Drive

  	
   

  	
   

  	
   

  
	
  800 The Safeguard Building

  	
   

  	
   

  	
   

  
	
  Wayne, PA 19087

  	
   

  	
   

  	
   

  
	
  610) 482-9105 (f)Exhibit 10.18

 

	
   

  	
  April 22, 2005

  
	
  To the Entities Listed

  	
   

  
	
  on Schedule 1
  hereto

  	
   

  
	
   

  	
   

  
	
  Re:  Equity Commitment

  

 

Ladies
and Gentleman:

 

This Letter Agreement (“Letter Agreement”) is
entered into by and among Traffic.com, Inc., a Delaware corporation (the “Company”),
and each of the parties listed on Schedule 1 hereto (the “Investor
Guarantors”). The capitalized terms used in this Letter Agreement and not otherwise
defined shall have the meanings set forth in the Amended Credit Agreement (as
such term in defined below).

 

Background

 

A.                                   The Company is a party to a Credit Agreement, dated March 29,
2002, by and among the Company, PNC Bank, National Association as the original
agent, and certain lenders signatory thereto, which agreement was amended on April 23,
2002, April 11, 2003, December 7,
2003 and April 30, 2004 (such agreement, as amended, the “Credit Agreement”).
Contemporaneously herewith, the Company is entering into the Fifth Amendment to
the Amended and Restated Credit Agreement (the “Fifth Amendment”), dated as of
the date hereof, among the Company, as Borrower, National Electric Benefit Fund
(“NEBF”), as lender (the “Lender”), and Columbia Partners, L.L.C. Investment
Management, as Agent (the “Agent”), providing for an increase in the Individual
Loan Amount (as such term is defined in the Fifth Amendment) of NEBF from
$19,400,000 to $29,400,000 and extending the maturity date of the Loan Amount
under the Credit Agreement. The Credit Agreement, as further amended by the Fifth
Amendment, is referred to in this Letter Agreement as the “Amended Credit
Agreement.”

 

B.                                     Pursuant to Section 6.1.16 of the Credit
Agreement, the Company is required to maintain a certain minimum balance of
unrestricted cash (or certain cash equivalents) of $3,00,0,000 (as amended, the
“Cash Requirement Covenant”). The Agent, on behalf of the Lenders, has agreed
to enter into the Fifth Amendment, which reduces the amount of the Cash Requirement
Covenant to $2,500,000, but only on the condition that existing institutional stockholders
of the Company, acceptable to the Agent, shall become Investor Guarantors by executing
and delivering an Investor Guaranty substantially in the form of Exhibit A
hereto, providing a guarantee of payment (the “Guarantee”) of certain of the
Company’s Obligations under the Loan Documents, up to an aggregate maximum
liability of $10,000,000 and an individual liability for each such Investor
Guarantor equal to such Investor Guarantor’s “Guarantor’s Commitment” (as
defined in the Investor Guaranty).

 

C.                                     The Investor Guaranty provides that the
liability of the Investor Guarantors will be reduced by the aggregate amount of
gross proceeds received by the Company in any Qualified

 

 

Equity Financing. The
Investor Guarantors are willing to agree, subject to the terms and conditions
set forth in this Letter Agreement, to enter into the Investor Guaranty and to
provide the Qualified Equity Financing.

 

In consideration of the mutual covenants set
forth herein and 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.                                       Equity
Commitment

 

(a)                                  Subject to the terms and conditions set forth
in this Letter Agreement, each of the Investor Guarantors hereby agrees,
severally and not jointly, up to an amount equal to each such Investor
Guarantor’s “Guarantor’s Commitment,” that, upon a Cash Requirement
Shortfall (as defined below), such Investor Guarantor shall (i) execute
the Series F Agreements (as defined below) in which such Investor Guarantor is named as an Investor, in
substantially the forms attached
to this Letter Agreement as Exhibits B, C and D (unless such Investor Guarantor
has previously executed and
delivered such Series F Agreements), (ii) subject to the satisfaction
or waiver of all conditions set
forth in Section 4 of the Stock Purchase Agreement (as defined below), purchase the number of Initial
Tranche Shares or Second Tranche Shares, as the case may be, set forth opposite such Investor
Guarantor’s name on Exhibit A to the Stock Purchase Agreement at the Initial Tranche Closing or
Second Tranche Closing (as such terms are defined in the Stock Purchase Agreement), and (iii) take
all further actions, including approval in its capacity as a stockholder of the Restated Certificate (as defined
below), reasonably necessary or appropriate
to consummate a Qualified Equity Financing under the Series F Agreements.

 

(b)                                 “Cash Requirement Shortfall” shall mean the
failure by the Company to satisfy the Cash Requirement Covenant on the last day
of any calendar month (the “Cash Requirement Shortfall Date”) if, on the Cash
Requirement Shortfall Date: (i) any Loan Amount is outstanding, and (ii) the
Company has not consummated one or more Qualified Equity Financings in theaggregate amount of $10,000,000. “Series F
Agreements” shall mean, collectively: (i) the form of Series F Stock Purchase Agreement
attached hereto as Exhibit B (the “Stock Purchase Agreement”), (ii) the
form of Fourth Amended and Restated Stockholders’ Agreement attached hereto as Exhibit C (the “Stockholders’
Agreement”), (iii) the form of Fourth Amended and Restated Investor Rights Agreement attached
hereto as Exhibit D, and (iv) the form of Fourth Amended and Restated Certificate of
Incorporation (the “Restated Certificate”) attached hereto as Exhibit E.

 

(c)                                  Upon a Cash Requirement Shortfall, the
Company shall (i) execute the Series F Agreements, in substantially
the forms attached to this Letter Agreement as Exhibits B, C and D, (ii) subject
to the satisfaction or waiver of all conditions set forth in Section 5 of
the Stock Purchase Agreement,
issue and sell to the Investor Guarantors the number of Initial Tranche Shares or Second Tranche Shares, as the case
may be, set forth opposite such Investor Guarantor’s name on Exhibit A to the Stock Purchase
Agreement at the applicable Closing (as such terms are defined in the Stock Purchase Agreement), and (iii) use
its reasonable best efforts to
take all further actions reasonably necessary or appropriate to consummate such
Qualified Equity Financing.

 

2

 

(d)                                 In the event that the Company delivers to the
Agent a certificate pursuant to Section 6.1.16 of the Amended Credit
Agreement that indicates that the Company has experienced a Cash Requirement
Shortfall, the Company shall within five (5) business days thereafter
deliver a copy of such certificate to each of the Investor Guarantors (the “Shortfall
Notice”). The Shortfall Notice shall also specify the date under the Stock
Purchase Agreement for the Initial Tranche Closing or the Second Tranche
Closing, as the case may be, which date shall be not less than ten (10) business
days after the date of the Shortfall Notice but in no event later than the
thirtieth (30th) day after the Cash Requirement Shortfall Date. Not less than
ten (10) business days prior to the applicable Closing, the Company shall
deliver to the Investor Guarantors the Series F Agreements in final form,
with all blanks completed, together with an updated Schedule of Exceptions
to the Stock Purchase Agreement. Between the date of the Shortfall Notice and
the applicable Closing, the Company will also provide or make available such
other information as such Investor Guarantors shall reasonably request.

 

(c)                                  Notwithstanding any other provision of this Section 1,
upon any Share Election Closing pursuant to Section 4, the obligations
under this Section 1 of the Company and of the Investor Guarantors who
have complied with the terms of Section 4 shall terminate.

 

2.                                       Warrants. In consideration of the Investor Guarantors’ commitments pursuant to this
Letter Agreement, the Company shall issue to each of the Investor Guarantors,
on the date hereof, a warrant (the “Warrant” and collectively, the “Warrants”),
in substantially the form attached hereto as Exhibit F, evidencing
each Investor Guarantor’s right to purchase the number of shares of the Company’s
common stock, $.01 par value per share (the “Common Stock”) set forth on Schedule 1
hereto, at an exercise price of $.01 per share (for an aggregate of 700,000 shares
of Common Stock).

 

3.                                       Investor Guaranty. In consideration of the Company’s
commitments pursuant to this Letter Agreement, concurrent with the execution of
this Letter Agreement, each Investor Guarantor shall execute and deliver to the
Agent, on behalf of the Lender, the Investor Guaranty.

 

4.                                       Election to Purchase.

 

(a)                                  In consideration of the Investor Guarantors’
commitments pursuant to this Letter Agreement, the Company hereby grants to
each of the Investor Guarantors the right to purchase (the “Election to
Purchase”) all, but not less than all, of the number of shares of Series F
Preferred set forth opposite such Investor Guarantor’s name on “Exhibit A”
to the Stock Purchase Agreement under the heading “Total Shares” (an “Election
to Purchase”), by written notice to the Company signed by such Investor
Guarantor, in either of the following circumstances: (i) upon the election
by investor Guarantors constituting a majority-in-interest of the aggregate
Commitment Percentage set forth on Schedule 1 hereto during the
period beginning October 15, 2005 through and including April 15,
2006, or (ii) upon the election of any Investor Guarantor in the event
that the Company is then subject to an Insolvency Proceeding as referred to in Section 2(a)(i) of
the Investor Guaranty. Any Investor Guarantor making an Election to Purchase
pursuant to this Section 4(a) shall be referred to herein as an “Electing
Investor Guarantor.” Any Election to Purchase shall be subject to the
satisfaction or

 

3

 

waiver of all conditions set
forth in Section 4 of the Stock Purchase Agreement and shall take place at
the Share Election Closing (as defined in the Stock Purchase Agreement).

 

(b)                                 Immediately following receipt of an Election
to Purchase in accordance with Section 4(a), the Company shall provide
written notice to all Investor Guarantors that are not Electing Investor
Guarantors (the “Non-Electing Investor Guarantors”) of the exercise of such Election
to Purchase. Each of the Non-Electing Investor Guarantors shall have ten (10) business
days after the date of such notice to notify the Company of such Non-Electing
Investor Guarantor’s determination whether to elect to purchase all (but in no
event less than all) of the number of shares of Series F Preferred set
forth opposite such Investor Guarantor’s name on “Exhibit A” to the Stock
Purchase Agreement.

 

(c)                                  Prior to any Share Election Closing (as
defined in the Stock Purchase Agreement), each Investor Guarantor purchasing Series F
Preferred pursuant to this Section 4 shall (i) execute the Series F
Agreements in which such Investor Guarantor is named as an Investor, in
substantially the forms attached to this Letter Agreement as Exhibits B, C and
D (unless such Investor Guarantor has previously executed and delivered such Series F
Agreements) and (ii) take all further actions, including approval in its
capacity as a stockholder of the Restated Certificate (unless such approval has
already been granted), reasonably necessary or appropriate to consummate the
Election to Purchase under the Series F Agreements.

 

(d)                                 Prior to any Share Election Closing, the
Company shall (i) execute the Series F Agreements, in substantially
the forms attached to this Letter Agreement as Exhibits B, C and D (unless the
Company has previously executed the Series F Agreements), and (ii) take
all further actions reasonably necessary or appropriate to consummate the
Election to Purchase under the Series F Agreements. Subject to the
satisfaction or waiver of all conditions set forth in Section 5 of the
Stock Purchase Agreement, at the Share Election Closing, the Company shall
issue and sell to the Investor Guarantors purchasing shares of Series F
Preferred pursuant to this Section 4, the number of shares of Series F
Preferred set forth opposite each such Investor Guarantor’s name on “Exhibit A”
to the Stock Purchase Agreement.

 

(e)                                  The right to make an Election to Purchase
pursuant to Section 4(a), if not previously exercised, shall expire
immediately prior to the earlier to occur of (i) the consummation of a
firm commitment underwritten public offering of the Company’s Common Stock; and
(ii) the consummation of a Liquidation Event (as such term is defined in Article Fourth,
Section B.2(d) of the Restated Certificate). Notwithstanding any
other provision of this Section 4, upon any Initial Tranche Closing, the
Election to Purchase shall expire with respect to an aggregate number of shares
of Series F Preferred equal to the number of Initial Tranche Shares, on a
pro rata basis among the Investor Guarantors in accordance with each Investor Guarantor’s
Commitment Percentage. Upon the Second Tranche Closing, the Election to Purchase
shall expire in its entirety.

 

5.                                       Rights Offering. Following each closing of the sale of
shares of Series F Preferred by the Company to Investors Guarantors as
contemplated by Section 1 or Section 4 of this Letter Agreement, the
Company shall offer to each Rights Offering Eligible Stockholder (as such term
is defined in Section 1.4 of the Stock Purchase Agreement) the opportunity
to acquire

 

4

 

such Rights Offering
Eligible Stockholder’s Proportionate Percentage (as such term is defined in the
Stockholders Agreement) of Series F Preferred in accordance with Section 1.4
of the Stock Purchase Agreement (the “Rights Offering”). In such event, the
shares of Series F Preferred to be sold in the Rights Offering will be in
addition to, and shall not reduce, the number of shares of Series F
Preferred to be sold to the Investor Guarantors.

 

6.                                       Representations and Warranties of the Company. The Company hereby represents and warrants
to each of the Investors that as of the date hereof:

 

(a)                                  it is duly organized and validly existing
under the laws of the jurisdiction in which it is incorporated and has the full
power and authority, and has taken all action necessary, to execute and deliver
this Letter Agreement and the Warrants and to fulfill its obligations under,
and to consummate the transactions contemplated by, this Letter Agreement and
the Warrants;

 

(b)                                 the making and performance by it of this
Letter Agreement and the Warrants and all documents required to be executed and
delivered by it hereunder or thereunder do not and will not violate any law or
regulation of the jurisdiction of its incorporation or any other law or
regulation applicable to it or result in a breach or violation of any provision
of any material contract or agreement to which it is a party;

 

(c)                                  this Letter Agreement and the Warrants have
been duly executed and delivered by it and constitute its legal, valid and
binding obligations, enforceable in accordance with their terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency and similar
laws affecting the enforcement of creditors’ rights generally and general principles
of equity; and

 

(d)                                 the Company has reserved 700,000 shares of
Common Stock for issuance upon exercise of the Warrants by the Investor Guarantors
and such shares, When issued, will be duly and validly issued, fully paid and
nonassessable.

 

7.                                       Representations and Warranties of the
Investor Guarantors. Each of
the Investor Guarantors hereby represents and warrants to the Company that as
of the date hereof:

 

(a)                                  it is duly organized and validly existing
under the laws of the jurisdiction in which it is organized and it has the full
limited partnership or other organizational power and authority, and has taken
all action necessary, to execute and deliver this Letter Agreement and the
Investor Guaranty and to fulfill its obligations under, and to consummate the
transactions contemplated by, this Letter Agreement;

 

(b)                                 the making and performance by it of this
Letter Agreement and the Investor Guaranty and all documents required to be
executed and delivered by it hereunder do not and will not violate any law or
regulation of the jurisdiction of its incorporation or any other law or
regulation applicable to it or result in a breach or violation of any provision
of any material contract or agreement to which it is a party; and

 

5

 

(c)                                  this Letter Agreement and the Investor
Guarantors Guaranty has been duly executed and delivered by it and constitutes
its legal, valid and binding obligation, enforceable in accordance with its
terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency and similar laws affecting the enforcement of creditors’ rights
generally and general principles of equity.

 

8.                                       Miscellaneous.

 

(a)                                  No term or provision of this Letter Agreement
may be amended, waived or terminated except by an instrument in writing signed
by the Company and Investor Guarantors constituting a majority-in-interest of
the Investor Guarantors, based on each Investor Guarantor’s “Commitment
Percentage” as set forth on Schedule 1 hereto.

 

(b)                                 This Letter Agreement may be executed in one
or more counterparts, each of which shall be an original but all of which,
taken together, shall constitute one and the same instrument.

 

(c)                                  Any notice required or permitted hereunder
shall be given in writing and shall
be conclusively deemed effectively given upon personal delivery, or delivery by
overnight courier, or five days
after deposit in the United States mail, by registered or certified mail,postage prepaid, addressed (i) if
to the Company, as set forth below the Company’s name on the signature page of this Agreement, or (ii) if
to an Investor Guarantor, as set forth below the Investor Guarantor’s name on Schedule 1 to this Letter
Agreement, or at such other address as the Company or the Investor Guarantor may designate by ten (10) days’
advance written notice to the
Investor Guarantor or the Company, respectively.

 

(d)                                 This Letter Agreement is entered into in the
Commonwealth of Pennsylvania and shall be governed in all respects by the laws
of the Commonwealth of Pennsylvania, without regard to the conflict of laws
principles thereof.

 

(e)                                  Neither this Letter Agreement nor any of the
rights or obligations hereunder may be assigned by any party without the prior
written consent of the other party; provided, that an Investor Guarantor
may assign its rights and obligations hereunder to any existing stockholder of
the Company which is approved by the Agent so long as such assignee becomes a party to this Letter Agreement and
agrees to be bound by and subject to all of the obligations hereunder. Any assignment violating this Letter Agreement
is void. Subject to the foregoing, this Letter Agreement will inure to, and be
binding upon, the parties’ successors and permitted assigns.

 

(f)                                    The parties hereto agree to take such further
actions and execute and deliver
such further documents or instruments as the other party may reasonably request
to give      effect to this Letter Agreement.

 

(g)                                 Any notice required or permitted hereunder
shall be given in writing and shall be conclusively deemed effectively given
upon personal delivery, or delivery by overnight courier, or five days after
deposit in United States mail, by registered or certified mail, postage prepaid,
addressed,

 

6

 

	
  if to the Company, to:

  
	
   

  
	
  Traffic.com, Inc.

  851 Duportail Road

  Suite 220

  Wayne, PA 19014

  Attn: Robert N. Verratti

  Fax: (610) 889-7172

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  Covington &
  Burling

  1330 Avenue of the Americas

  New York, NY 10019

  Attn: Ellen B. Corenswet

  Fax: (646) 441-9256

  
	
   

  
	
  if to TL Ventures IV,
  L.P., 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

  
	
   

  
	
  if to TL Ventures IV
  Interfund, L.P.

  
	
   

  
	
  TL Ventures IV Interfund,
  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

  

 

7

 

	
  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

  
	
   

  
	
  if to PA Early Stage
  Partners III, L.P., to:

  
	
   

  
	
  PA Early Stage Partners
  III, L.P.

  
	
  1200 Liberty Ridge Drive

  
	
  Suite 310

  
	
  Wayne, PA 19087

  
	
  Attn:

  	
  Michael G. Bolton

  Guy Winters

  
	
  Fax: (610) 254-4240

  
	
   

  
	
  if to Safeguard
  Delaware, Inc., to:

  
	
   

  
	
  Safeguard
  Delaware, Inc.

  103 Springer Building

  3411 Silverside Road

  Wilmington, DE 19810

  Attn: Christopher J. Davis

  Fax: (302) 478-3667

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  Steven J. Feder

  Safeguard Scientifics, Inc.

  435 Devon Park Drive

  800 The Safeguard Building

  Wayne, PA 19087

  Fax: (610) 482-9105

  

 

(b)                                 In the event of a Qualified Equity Financing
while the Investor Guaranty is in effect, if some or all of the securities of
the Company sold in such financing are sold to investors other than to (i) the
Investor Guarantors or their permitted assigns under the Investor Guaranty, or (ii) stockholders
of the Company who are entitled to purchase their “Proportionate Percentage” of
any “Offered Securities” pursuant to, and as such terms are defined in, Section 5
of the Third Amended and Restated Stockholders’ Agreement, dated as of March 31,
2003, among the Company and the stockholder parties thereto (the “Current
Stockholders’ Agreement”), the aggregate purchase price of such securities
shall reduce the Guarantor’s Base

 

8

 

Liability of each Investor Guarantor, on a pro rata basis based upon
each such Investor Guarantor’s Guarantor’s Commitment (as defined in the
Investor Guaranty). In the event of a Qualified Equity Financing while the
Investor Guaranty is in effect, other than a financing pursuant to the Series F
Agreements, each Investor Guarantor shall have the right to purchase its
Proportionate Percentage of the Offered Securities in accordance with the terms
of Section 5 of the Current Stockholders’ Agreement instead of the
respective percentages set forth on Schedule 1 to this Agreement
opposite each Investor Guarantor’s name under the heading “Commitment
Percentage.”

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

9

 

If
the terms and conditions of this Letter Agreement are acceptable, please sign
this Letter Agreement and return a copy to us to confirm our mutual
understandings and binding agreements.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  TRAFFIC.COM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert N. Verratti

  	
   

  
	
   

  	
  Robert
  N. Verratti

  Chief Executive Officer

  

 

 

Agreed to and Accepted as of the

date first set forth above

 

	
  TL Ventures IV L.P.

  
	
   

  
	
  By:

  	
  TL Ventures IV Management
  L.P.,

  its general partner

  
	
   

  	
   

  
	
  By:

  	
  TL Ventures IV LLC,

  its general partner

  
	
   

  	
   

  
	
  By:

  	
  /s/ M J Jening

  	
   

  
	
  Name:

  	
  M J Jening

  
	
  Title:

  	
  Managing Director

  
	
   

  
	
  TL
  Ventures IV Interfund
  L.P.

  
	
   

  
	
  By:

  	
  TL Ventures IV LLC,

  its general partner

  
	
   

  
	
  By:

  	
  /s/ M J Jening

  	
   

  
	
  Name:

  	
  M J Jening

  
	
  Title:

  	
  Managing Director

  
	
   

  
	
  PA Early Stage Partners
  III, L.P.

  
	
   

  
	
  By: PA-ESP III GP, L.P.,
  its general partner

  
	
   

  
	
  By: PA-ESP Manager III, LLC,
  its general partner

  
	
   

  
	
  By:

  	
  /s/ Scott Nissenbaum

  	
   

  
	
   

  	
  Name: Scott Nissenbaum

  
	
   

  	
  Title: Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
  Safeguard
  Delaware, Inc.

  
	
   

  
	
  By:

  	
  /s/ Steven J. Feder

  	
   

  
	
   

  	
  Steven J. Feder

  
	
   

  	
  Vice President

  
						

 

 

Schedule 1

 

Investor Guarantors

 

	
  Name
  and Address

  	
   

  	
  Commitment Percentage

  (from Investor Guaranty)

  	
   

  	
  Number of

  Warrant Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TL Ventures IV, L.P.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  c/o TL Ventures Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  700 Building

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  435 Devon Park Drive

  	
   

  	
  82.7570

  	
  %

  	
  579,298

  	
   

  
	
  Wayne, PA 19087-1934

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attn: Chief Financial
  Officer

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fax: (610) 975-9330

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TL Ventures IV Interfund
  L.P.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  c/o TL Ventures Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  700 Building

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  435 Devon Park Drive

  	
   

  	
  2.1868

  	
  %

  	
  15,308

  	
   

  
	
  Wayne, PA 19087-1934

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attn: Chief Financial
  Officer

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fax: (610) 975-9330

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PA Early Stage Partners
  III, L.P.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1200 Liberty Ridge Drive

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Suite 310

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wayne, PA 19087

  	
   

  	
  7.5281

  	
  %

  	
  52,697

  	
   

  
	
  Attn:

  	
  Michael G. Bolton

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Guy Winters

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fax: (610) 254-4240

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Safeguard
  Delaware, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  103 Springer Building

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3411 Silverside Road

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wilmington, DE 19810

  	
   

  	
  7.5281

  	
  %

  	
  52,697

  	
   

  
	
  Attn: Christopher J. Davis

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fax: (302) 478-3667

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  100

  	
  %

  	
  700,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]