Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.9    
    

 
 

PROPRIETARY INFORMATION AND
  INVENTIONS AGREEMENT  
  

        In consideration of my employment by CARDIONET, INC., a California corporation (the "Company"), the compensation to be paid to me by the
Company during the period of my employment, and for other valuable consideration, I (the "Employee") hereby agree as follows: 

        1.    Employment.    I will perform the duties of my employment as
assigned by the Company and in a manner satisfactory to the Company, and will devote my full working time to such duties. I understand and acknowledge that my employment by the Company is completely
in the discretion of, and at the will of, the Company. 

        2.    Loyal Performance.    I agree that
during the period of my retention by the Company, I will not, without the Company's express written consent, engage in any activity in any business competitive with the Company. 

        3.    Maintaining Confidential Information.    

        3.1    Company Confidential Information.    I agree at all times, both
during and after the termination of my employment with the Company for any reason whatsoever (whether with or without cause), to hold in the strictest confidence, and not to use, to publish, or to
disclose to any person, firm or corporation without written authorization of the Board of Directors of the Company, any past, present or future techniques, know-how, designs, drawings,
processes, experimental and development work, inventions, trade secrets, developments, machinery, research activities and plans, prices, software, cost of production, equipment, prototypes, sales and
customer information, customer and prospect lists, and business and financial information relating to the business, products, practices and techniques of the Company or any of its affiliates, clients,
consultants or licensees (collectively, "Confidential Information"). Information shall for purposes of this Agreement be considered to be Confidential Information if not known by the trade generally,
even though such information has been disclosed to one or more third parties pursuant to distribution agreements, joint research agreements or other
agreements entered into by the Company. Without limiting the foregoing, the information set forth on Exhibit A shall constitute Confidential Information. 

        3.2    Former Employer Information.    I agree that I will not, during
my employment with the Company, use or disclose any confidential or proprietary information or trade secrets of my former employers or companies, or any third party, if any, and that I will not bring
onto the premises of the Company any unpublished document or any property belonging to my former employers or companies, or any third party, if any, unless consented to in writing by said employers or
companies. 

        3.3    Third Party Information.    I recognize that the Company has
received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company's part to maintain the confidentiality of such information and
to use it only for certain limited purposes. I agree that I owe the Company and such third parties, both during the term of my employment and thereafter, a duty to hold all such confidential or
proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation (except as necessary in carrying out my work for the Company consistent with the Company's
agreement with such third party) or to use it for the benefit of anyone other than for the Company or such third party (consistent with the Company's agreement with such third party) without the
express written authorization of the Board of Directors of the Company. 

        3.4    Exceptions.    My obligation under this Section 2 shall
not apply to information which I can demonstrate is or becomes generally known other than through my acts in violation of this Agreement. 

        4.    List of Prior Inventions.    As a matter of record, I have
attached as Exhibit B to this Agreement a complete list of all inventions or improvements relevant to the subject matter of my employment by the Company which have been made or conceived or
first reduced to practice by me alone or jointly 

with
others prior to my engagement by the Company, which I desire to remove from the operation of this Agreement, and I represent that such list is complete. If no list is attached or the list is
blank, it means that I have no inventions or improvements to list. 

        5.    Disclosure of Inventions.    I will promptly disclose in writing
to the President of the Company complete information concerning each and every invention (including a new contribution, concept, idea, development, formula, composition, technique, machine and
improvement thereof, or know-how related thereto), discovery, improvement, device, design, apparatus, practice, process, method or product (collectively, "Inventions"), whether I consider
them patentable or not, made, developed, perfected, devised, conceived or first reduced to practice by me, either solely or in collaboration with others, during the period of my retention by the
Company, and up to and including a period of one (1) year after termination of my employment, relating to the business, products, practices or techniques of the Company, or to the Company's
actual or demonstrably anticipated
research or development, or resulting from any work performed by me for the Company related to ambulatory cardiac monitoring. 

        6.    Assignment of Inventions and Original Works of Authorship.    

        6.1    Inventions.    I hereby agree that any and all Inventions made,
developed, perfected, devised, conceived or reduced to practice by me during the period of my employment by the Company, and any other Inventions made, developed, perfected, devised, conceived or
reduced to practice by me during said period of one (1) year after termination of my employment, relating to the business, products, practices or techniques of the Company or the Company's
actual or demonstrably anticipated research or development, or resulting from any work performed by me for the Company, are the sole property of the Company, and I hereby assign and agree to assign to
the Company, its successors and assigns, any and all of my right, title and interest in and to any and all Inventions, and any patent applications or letters patent thereon. 

        6.2    Original Works of Authorship.    I hereby assign any and all
original works of authorship (and all copyrights therein) created by me during the period of my employment by the Company, to the Company. I further agree from time to time to execute written
transfers to the Company of ownership of specific original works of authorship (and all copyrights therein) made by me (solely or jointly with others) during the period of my employment by the
Company, in such form as is acceptable to the Company in its reasonable discretion, including but not limited to the Copyright Assignment attached hereto as Exhibit C. 

        6.3    Further Cooperation.    I will, at any time during my
employment or there after, upon request and without further compensation therefore, but at no cost or expense to me, do all lawful acts, including the execution of papers and oaths and the giving of
testimony, that in the opinion of the Company, its successors and assigns, may be necessary or desirable for: (i) obtaining, sustaining, reissuing or enforcing letters patent in the United
States and throughout the world for any and all of said Inventions; (ii) perfecting, recording and maintaining the title of the Company, its successors and assigns, to the Inventions and to any
patent applications made and any letters patent granted for the Inventions in the United States and throughout the world; and (iii) obtaining, securing, perfecting or enforcing copyrights,
trademarks or other intellectual property rights. 

        6.4    Appointment of Company as
Attorney-in-Fact.    If the Company is unable for any reason whatsoever, including my mental or physical incapacity, to secure my signature to
apply for or to pursue any application for any United States or foreign Letters Patent or copyright registrations (or on any document transferring ownership thereof) covering inventions or original
works of authorship assigned to the Company under this Agreement, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and
attorney-in- fact, to act for and in my behalf and stead to execute and file any such applications and documents and to do all other lawfully permitted acts to further the
prosecution and issuance of Letters Patent or copyright registrations or transfers thereof with the same legal force and effect as if executed by me. This appointment is coupled with an interest in
and to the inventions and works of authorship and shall survive my death or disability. I hereby waive and quitclaim to the Company any and all claims, of any nature whatsoever, which I now or may
hereafter have for infringement of any 

patents
or copyright resulting from or relating to any such application for Letters Patent or copyright registrations assigned hereunder to the Company. 

        6.5    Applicability of Assignment Requirements.    This Agreement
shall not apply to any Inventions which qualify fully under the provisions of Section 2870 of the California Labor Code, as amended from time to time. I understand that Section 2870
provides that no assignment is required of any Invention for which no equipment, supplies, facilities or trade secret information of the Company was used and which was developed entirely on my own
time without using any of the Company's equipment, supplies, facilities or trade secret information, except for those Inventions that either: (a) related at the time of conception or reduction
to practice of the invention to the Company's business, or actual or demonstrably anticipated research or development of the Company; or (b) result from any work performed by me for the
Company. 

        7.    Keeping of Records.    I will keep complete, accurate and
authentic accounts, notes, data and records of any and all of the Inventions, original works of authorship, trade secrets, and other developments developed or made by me (solely or jointly with
others) during the term of my employment by the Company in the manner and form requested by the Company. Such accounts, notes, data and records, including all copies thereof, shall be the property of
the Company, and, upon its request, I will promptly surrender same to the Company, or if not previously surrendered, I will promptly surrender same to the Company upon the termination of my
employment. 

        8.    Non-Solicitation.    In order to protect the
Confidential Information of the Company and avoid injury to the Company, I agree that for a period of one (1) year following the termination of my employment with the Company: (a) I will
not directly or indirectly solicit the customers or prospective customers of the Company to purchase products or services which are competitive with those of the Company; and (b) I will not
directly or indirectly solicit or in any manner encourage employees of the Company to leave its employ. 

        9.    Surrender of Materials.    I agree that I will also surrender to
the Company, at its request, or upon the termination of my employment, all accounts, notes, data, sketches, drawings and other documents and records, and all material and physical items of any kind,
including all reproductions and copies thereof, which relate in any way to the business, products, practices or techniques of the Company or contain Confidential Information, whether or not created by
me, or which come into my possession by reason of my relationship with the Company, and I agree further that all of the foregoing are the property of the Company. 

        10.    Imposed Obligations.    I understand that the Company may enter
into agreements or arrangements that may be subject to laws and regulations which impose obligations, restrictions and limitations on it with respect to Inventions and patents which may be acquired by
it or which may be conceived or developed by employees, consultants or other agents rendering services to it. I agree that I shall be bound by all such obligations, restrictions and limitations
applicable to any Invention conceived or developed by me during the period of my employment, and I shall take any and all further action which may be required to discharge such obligations and to
comply with such restrictions and limitations. 

        11.    Preservation of Property.    I will exercise reasonable care,
consistent with good business judgment, to preserve in good working order, subject to reasonable wear and tear from authorized usage, and to prevent loss of, any equipment, instruments or accessories
of the Company in my custody for the purpose of making demonstrations, implementing trials, carrying out development work, or otherwise conducting the business of the Company. Upon request, I will
promptly surrender the same to the Company at the conclusion of my employment, or if not surrendered, I will account to the Company to its reasonable satisfaction as to the present location of all
such instruments or accessories and the business purpose for their placement at such location. At the conclusion of my relationship with the Company, I agree to return such instruments or accessories
to the Company or to account for same to the Company's reasonable satisfaction. 

        12.    No Inconsistent Agreements; Effect of Breach.    I affirm that
I have no agreement with any other party that would preclude my compliance with my obligations under this Agreement. This Agreement is ancillary to my employment relationship with the Company and does
not purport to include all of the terms of that relationship. It is intended, however, that the obligation of the parties to perform the 

terms
of this Agreement is unconditional and does not depend on the performance or nonperformance of any terms, duties or obligations not specifically recited in this Agreement. The undersigned's
obligations to maintain the confidentiality of the Company's Confidential Information is unconditional and shall not be excused by any conduct on the Company's part except prior voluntary disclosure
of the information by the Company. 

        13.    Post-Termination Statement.    At the conclusion of
my employment with the Company, I agree to give a written statement to the Company certifying that I have complied with my obligations under this Agreement as set forth above, and acknowledging my
continuing obligations to disclose Inventions, to do certain lawful acts relating to United States and foreign letters patent on the
Inventions, and to preserve as confidential and refrain from using the Company's Confidential Information. 

        14.    Successors.    The provisions of this Agreement shall inure to
the benefit of, and be binding upon, my heirs, personal representatives, successors and assigns. However, I affirm that I may not delegate my obligations under this Agreement. 

        15.    Equitable Relief.    I understand and agree that, because of
the unique nature of the Confidential Information, the Company will suffer irreparable harm if I fail to comply with any of my obligations under this Agreement, and monetary damages will be inadequate
to compensate the Company for such breach. Accordingly, I agree that the Company shall, in addition to any other remedies available to it at law or in equity, be entitled to injunctive relief to
enforce the terms of this Agreement, without the necessity of posting a bond or undertaking. 

        16.    Governing Law.    This Agreement is made in San Diego County,
California and shall be construed and interpreted in accordance with the internal laws of the State of California. Any controversy or claim arising out of or relating to this Agreement or the breach
thereof, whether involving remedies at law or in equity, shall be adjudicated in California. 

        17.    Attorneys' Fees.    In any controversy or claim arising out of
or relating to this Agreement or the breach thereof, which results in a legal action, proceeding or arbitration, the prevailing party in such action, as determined by the court or arbitrator, shall be
entitled to recover reasonable attorneys' fees and costs incurred in such action. 

        18.    Entire Agreement.    This Agreement and any Employment
Agreement between the parties constitutes the entire agreement between the parties and may be waived, modified or amended only by an agreement in writing signed by the undersigned and the President of
the Company. 

        19.    Severability.    If any provision in this Agreement is
determined by any court of competent jurisdiction or arbitrator to be invalid or unenforceable for any reason, including without limitation by reason of such provision extending for too long a period
or over too large a geographical area, or by reason of its being too extensive in any other respect, such provision, to the extent that it is unenforceable, shall be interpreted to extend only over
the maximum period of time or geographic area, and only to the maximum extent in all other respects, as to which it is valid an enforceable, in order to effectuate the parties' intent to the greatest
extent possible. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as
if such invalid or unenforceable provision were omitted. 

        20.    Waiver.    No covenant, term or condition of this Agreement or
breach thereof shall be deemed waived unless the waiver is in writing, signed by the party against whom enforcement is sought, and any waiver
shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other covenant, term or condition. 

        21.    Interpretation.    The normal rule of construction, to the
effect that any ambiguities are to be resolved against the drafting party, shall not be employed in the interpretation of this Agreement. 

        22.    Counterparts.    This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

 
 

LIST OF SPECIFIC INFORMATION CONSIDERED CONFIDENTIAL    
    
    (This list is not in any way exclusive.)    
    

Start
Date 

	To:
	CardioNet, Inc.

1010 Second Avenue, Suite 700

San Diego, CA 92101

	Re:
	Inventions, Improvements, Materials and Documents

        1.     The
following is a complete list of all inventions or improvements relevant to the subject matter of my employment by CARDIONET, INC., a California corporation
(the "Company"), that have been made or conceived or first reduced to practice by me alone or jointly with others prior to my employment by the Company, which I desire to remove from the operation of
the Company's Proprietary Information and Inventions Agreement: 

	o	 	No inventions or improvements.
	

o	
 	

Yes, the following inventions or improvements:
	

    

	

    

	

o	
 	

Yes, additional sheets attached.

        2.     I
propose to bring to my employment the following materials and documents of a former employer: 

	o	 	No materials or documents.
	

o	
 	

Yes, the following materials or documents:
	

    

	

    

	

o	
 	

Yes, additional sheets attached.

	

 	
 	

    
 Employee Name

 
 

COPYRIGHT ASSIGNMENT    
    

        KNOW ALL MEN BY THESE PRESENTS, that Employee Name (the "Assignor"), in consideration of monies paid to Assignor by, and other good and valuable consideration
from, CARDIONET, INC., a California corporation ("Assignee"), as more particularly set forth in a Proprietary Information and Inventions Agreement dated Start Date (the "Agreement") between
Assignor and Assignee, receipt of which consideration is hereby acknowledged, 

        DOES
HEREBY ASSIGN TO ASSIGNEE, its successors and assigns, for its own proper use and benefit, (a) the United States copyright to all works developed by Assignor pursuant to and
as specified in the Agreement (the "Works"), a copy of which Agreement is annexed hereto; (b) the right to modify the Works in any manner desired by Assignee, its successors and assigns; and
(c) all literary property rights of every kind in the Works, including the right to publish the Works in any manner desired by Assignee, and all rights to secure copyrights on the Works in any
language in the world. 

        IN
WITNESS WHEREOF, Assignor has executed this Copyright Assignment effective as of Start Date. 

	

 	
 	

 (Employee Signature)
	

 	
 	

 Employee Name
	

Signed and Delivered in

the Presence of ___________________	
 	

 

	STATE OF CALIFORNIA	 	)	 	 
	 	 	)	 	ss:
	COUNTY OF SAN DIEGO	 	)	 	 

        On
Start Date, before me,                        , a Notary Public in and for said State, personally appeared Employee Name,
personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person whose name is subscribed to the within instrument, and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the
instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 

        WITNESS
my hand and official seal. 

	 	 	    

	STATE OF CALIFORNIA	 	)	 	 
	 	 	)	 	ss:
	COUNTY OF SAN DIEGO	 	)	 	 

        On
Start Date, before me,                        , a Notary Public in and for said State, personally appeared Employee Name,
personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person whose name is subscribed to the within instrument, and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the
instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 

        WITNESS
my hand and official seal. 

	

 	
 	

    
 Notary Public

  

 
 

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT    
    

        In consideration of my employment by CARDIONET, INC., a California corporation (the "Company"), the compensation to be paid to me by the Company during the
period of my employment, and for other valuable consideration, I (the "Employee") hereby agree as follows: 

	1.
	Employment.    I will perform the duties of my employment as assigned by the Company and in a manner
satisfactory to the Company, and will devote my full working time to such duties. I understand and acknowledge that my employment by the Company is completely in the discretion of, and at the will of,
the Company.

	2.
	Loyal Performance.    I agree that during the period of my retention by the Company, I will not,
without the Company's express written consent, engage in any activity in any business competitive with the Company.

	3.
	Maintaining Confidential Information.    

        3.1    Company Confidential Information.    I agree at all times, both
during and after the termination of my employment with the Company for any reason whatsoever (whether with or without cause), to hold in the strictest confidence, and not to use, to publish, or to
disclose to any person, firm or corporation without written authorization of the Board of Directors of the Company, any past, present or future techniques, know-how, designs, drawings,
processes, experimental and development work, inventions, trade secrets, developments, machinery, research activities and plans, prices, software, cost of production, equipment, prototypes, sales and
customer information, customer and prospect lists, and business and financial information relating to the business, products, practices and techniques of the Company or any of its affiliates, clients,
consultants or licensees (collectively, "Confidential Information"). Information shall for purposes of this Agreement be considered to be Confidential Information if not known by the trade generally,
even though such information has been disclosed to one or more third parties pursuant to distribution agreements, joint research agreements or other agreements entered into by the Company. . 

        3.2    Former Employer Information.    I agree that I will not, during
my employment with the Company, use or disclose any confidential or proprietary information or trade secrets of my former employers or companies, or any third party, if any, and that I will not bring
onto the premises of the Company any unpublished document or any property belonging to my former employers or companies, or any third party, if any, unless consented to in writing by said employers or
companies. 

        3.3    Third Party Information.    I recognize that the Company has
received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company's part to maintain the confidentiality of such information and
to use it only for certain limited purposes. I agree that I owe the Company and such third parties, both during the term of my employment and thereafter, a duty to hold all such confidential or
proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation (except as necessary in carrying out my work for the Company consistent with the Company's
agreement with such third party) or to use it for the benefit of anyone other than for the Company or such third party (consistent with the Company's agreement with such third party) without the
express written authorization of the Board of Directors of the Company. 

        3.4    Exceptions.    My obligation under this Section 2 shall
not apply to information which I can demonstrate is or becomes generally known other than through my acts in violation of this Agreement. 

	4.
	List of Prior Inventions.    As a matter of record, I have attached as Exhibit B to this
Agreement a complete list of all inventions or improvements relevant to the subject matter of my employment 

1

 

by
the Company which have been made or conceived or first reduced to practice by me alone or jointly with others prior to my engagement by the Company, which I desire to remove from the operation of
this Agreement, and I represent that such list is complete. If no list is attached or the list is blank, it means that I have no inventions or improvements to list. 

	5.
	Disclosure of Inventions.    I will promptly disclose in writing to the President of the Company
complete information concerning each and every invention (including a new contribution, concept, idea, development, formula, composition, technique, machine and improvement thereof, or
know-how related thereto), discovery, improvement, device, design, apparatus, practice, process, method or product (collectively, "Inventions"), whether I consider them patentable or not,
made, developed, perfected, devised, conceived or first reduced to practice by me, either solely or in collaboration with others, during the period of my retention by the Company, and up to and
including a period of one (1) year after termination of my employment, relating to the business, products, practices or techniques of the Company, or to the Company's actual or demonstrably
anticipated research or development, or resulting from any work performed by me for the Company related to ambulatory cardiac monitoring.

	6.
	Assignment of Inventions and Original Works of Authorship.    

        6.1    Inventions.    I hereby agree that any and all Inventions made,
developed, perfected, devised, conceived or reduced to practice by me during the period of my employment by the Company, and any other Inventions made, developed, perfected, devised, conceived or
reduced to practice by me during said period of one (1) year after termination of my employment, relating to the business, products, practices or techniques of the Company or the Company's
actual or demonstrably anticipated research or development, or resulting from any work performed by me for the Company, are the sole property of the Company, and I hereby assign and agree to assign to
the Company, its successors and assigns, any and all of my right, title and interest in and to any and all Inventions, and any patent applications or letters patent thereon. 

        6.2    Original Works of Authorship.    I hereby assign any and all
original works of authorship (and all copyrights therein) created by me during the period of my employment by the Company, to the Company. I further agree from time to time to execute written
transfers to the Company of ownership of specific original works of authorship (and all copyrights therein) made by me (solely or jointly with others) during the period of my employment by the
Company, in such form as is acceptable to the Company in its reasonable discretion, including but not limited to the Copyright Assignment attached hereto as Exhibit C. 

        6.3    Further Cooperation.    I will, at any time during my
employment or there after, upon request and without further compensation therefore, but at no cost or expense to me, do all lawful acts, including the execution of papers and oaths and the giving of
testimony, that in the opinion of the Company, its successors and assigns, may be necessary or desirable for: (i) obtaining, sustaining, reissuing or enforcing letters patent in the United
States and throughout the world for any and all of said Inventions; (ii) perfecting, recording and maintaining the title of the Company, its successors and assigns, to the Inventions and to any
patent applications made and any letters patent granted for the Inventions in the United States and throughout the world; and (iii) obtaining, securing, perfecting or enforcing copyrights,
trademarks or other intellectual property rights. 

        6.4    Appointment of Company as
Attorney-in-Fact.    If the Company is unable for any reason whatsoever, including my mental or physical incapacity, to secure my signature to
apply for or to pursue any application for any United States or foreign Letters Patent or copyright registrations (or on any document transferring ownership thereof) covering inventions or original
works of authorship assigned to the Company under this Agreement, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and
attorney-in- fact, 

2

 

to
act for and in my behalf and stead to execute and file any such applications and documents and to do all other lawfully permitted acts to further the prosecution and issuance of Letters Patent or
copyright registrations or transfers thereof with the same legal force and effect as if executed by me. This appointment is coupled with an interest in and to the inventions and works of authorship
and shall survive my death or disability. I hereby waive and quitclaim to the Company any and all claims, of any nature whatsoever, which I now or may hereafter have for infringement of any patents or
copyright resulting from or relating to any such application for Letters Patent or copyright registrations assigned hereunder to the Company. 

	7.
	Keeping of Records.    I will keep complete, accurate and authentic accounts, notes, data and records
of any and all of the Inventions, original works of authorship, trade secrets, and other developments developed or made by me (solely or jointly with others) during the term of my employment by the
Company in the manner and form requested by the Company. Such accounts, notes, data and records, including all copies thereof, shall be the property of the Company, and, upon its request, I will
promptly surrender same to the Company, or if not previously surrendered, I will promptly surrender same to the Company upon the termination of my employment.

	8.
	Non-Solicitation.    In order to protect the Confidential Information of the Company and
avoid injury to the Company, I agree that for a period of one (1) year following the termination of my employment with the Company: (a) I will not directly or indirectly solicit the
customers or prospective customers of the Company to purchase products or services which are competitive with those of the Company; and (b) I will not directly or indirectly solicit or in any
manner encourage employees of the Company to leave its employ.

	9.
	Surrender of Materials.    I agree that I will also surrender to the Company, at its request, or upon the termination of my
employment, all accounts, notes, data, sketches, drawings and other documents and records, and all material and physical items of any kind, including all reproductions and copies thereof, which relate
in any way to the business, products, practices or techniques of the Company or contain Confidential Information, whether or not created by me, or which come into my possession by reason of my
relationship with the Company, and I agree further that all of the foregoing are the property of the Company.

	10.
	Imposed Obligations.    I understand that the Company may enter into agreements or arrangements that may be subject to laws
and regulations which impose obligations, restrictions and limitations on it with respect to Inventions and patents which may be acquired by it or which may be conceived or developed by employees,
consultants or other agents rendering services to it. I agree that I shall be bound by all such obligations, restrictions and limitations applicable to any Invention conceived or developed by me
during the period of my employment, and I shall take any and all further action which may be required to discharge such obligations and to comply with such restrictions and limitations.

	11.
	Preservation of Property.    I will exercise reasonable care, consistent with good business judgment,
to preserve in good working order, subject to reasonable wear and tear from authorized usage, and to prevent loss of, any equipment, instruments or accessories of the Company in my custody for the
purpose of making demonstrations, implementing trials, carrying out development work, or otherwise conducting the business of the Company. Upon request, I will promptly surrender the same to the
Company at the conclusion of my employment, or if not surrendered, I will account to the Company to its reasonable satisfaction as to the present location of all such instruments or accessories and
the business purpose for their placement at such location. At the conclusion of my relationship with the Company, I agree to return such instruments or accessories to the Company or to account for
same to the Company's reasonable satisfaction.

	12.
	No Inconsistent Agreements; Effect of Breach.    I affirm that I have no agreement with any other
party that would preclude my compliance with my obligations under this Agreement. This 

3

 

Agreement
is ancillary to my employment relationship with the Company and does not purport to include all of the terms of that relationship. It is intended, however, that the obligation of the parties
to perform the terms of this Agreement is unconditional and does not depend on the performance or nonperformance of any terms, duties or obligations not specifically recited in this Agreement. The
undersigned's obligations to maintain the confidentiality of the Company's Confidential Information is unconditional and shall not be excused by any conduct on the Company's part except prior
voluntary disclosure of the information by the Company. 

	13.
	Post-Termination Statement.    At the conclusion of my employment with the Company, I
agree to give a written statement to the Company certifying that I have complied with my obligations under this Agreement as set forth above, and acknowledging my continuing obligations to disclose
Inventions, to do certain lawful acts relating to United States and foreign letters patent on the Inventions, and to preserve as confidential and refrain from using the Company's Confidential
Information.

	14.
	Successors.    The provisions of this Agreement shall inure to the benefit of, and be binding upon,
my heirs, personal representatives, successors and assigns. However, I affirm that I may not delegate my obligations under this Agreement.

	15.
	Equitable Relief.    I understand and agree that, because of the unique nature of the Confidential
Information, the Company will suffer irreparable harm if I fail to comply with any of my obligations under this Agreement, and monetary damages will be inadequate to compensate the Company for such
breach. Accordingly, I agree that the Company shall, in addition to any other remedies available to it at law or in equity, be entitled to injunctive relief to enforce the terms of this Agreement,
without the necessity of posting a bond or undertaking.

	16.
	Governing Law.    This Agreement is made in Pennsylvania and shall be construed and interpreted in
accordance with the internal laws of the State of Pennsylvania. Any controversy or claim arising out of or relating to this Agreement or the breach thereof, whether involving remedies at law or in
equity, shall be adjudicated in Pennsylvania.

	17.
	Attorneys' Fees.    In any controversy or claim arising out of or relating to this Agreement or the
breach thereof, which results in a legal action, proceeding or arbitration, the prevailing party in such action, as determined by the court or arbitrator, shall be entitled to recover reasonable
attorneys' fees and costs incurred in such action.

	18.
	Entire Agreement.    This Agreement and any Employment Agreement between the parties constitutes the
entire agreement between the parties and may be waived, modified or amended only by an agreement in writing signed by the undersigned and the President of the Company.

	19.
	Severability.    If any provision in this Agreement is determined by any court of competent
jurisdiction or arbitrator to be invalid or unenforceable for any reason, including without limitation by reason of such provision extending for too long a period or over too large a geographical
area, or by reason of its being too extensive in any other respect, such provision, to the extent that it is unenforceable, shall be interpreted to extend only over the maximum period of time or
geographic area, and only to the maximum extent in all other respects, as to which it is valid an enforceable, in order to effectuate the parties' intent to the greatest extent possible. The
invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or
unenforceable provision were omitted.

	20.
	Waiver.    No covenant, term or condition of this Agreement or breach thereof shall be deemed waived
unless the waiver is in writing, signed by the party against whom enforcement is sought, and any waiver shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any
other covenant, term or condition. 

4

 
	21.
	Interpretation.    The normal rule of construction, to the effect that any ambiguities are to be
resolved against the drafting party, shall not be employed in the interpretation of this Agreement.

	22.
	Counterparts.    This Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 

        I
have carefully read this entire Agreement, have received a copy of it, and fully understand it. 

        I
have executed this Agreement effective as of Start Date. 

	

CARDIONET, INC., a California corporation	
 	

Employee:
	

By:	
 	

    
	
 	

    

	Debra Lees, Human Resources	 	Employee Name
	

 	
 	

 	
 	

    
 Social Security Number

5

 
Start Date

	To:
	CardioNet, Inc.

227 Washington Street, Suite 300

Conshohocken, PA 19428

	Re:
	Inventions, Improvements, Materials and Documents

	1.
	The
following is a complete list of all inventions or improvements relevant to the subject matter of my employment by CARDIONET, INC., a California corporation (the "Company"),
that have been made or conceived or first reduced to practice by me alone or jointly with others prior to my employment by the Company, which I desire to remove from the operation of the Company's
Proprietary Information and Inventions Agreement:

	•
	No
inventions or improvements.

	•
	Yes,
the following inventions or improvements: 

	•
	Yes,
additional sheets attached.

	2.
	I
propose to bring to my employment the following materials and documents of a former employer:

	•
	No
materials or documents.

	•
	Yes,
the following materials or documents: 

	•
	Yes,
additional sheets attached. 

	

 	
 	

    
 Employee Name

6

 
 
 

COPYRIGHT ASSIGNMENT    
    

        KNOW ALL MEN BY THESE PRESENTS, that Employee Name (the "Assignor"), in consideration of monies paid to Assignor by, and other good and valuable consideration
from, CARDIONET, INC., a California corporation ("Assignee"), as more particularly set forth in a Proprietary Information and
Inventions Agreement dated Start Date (the "Agreement") between Assignor and Assignee, receipt of which consideration is hereby acknowledged, 

        DOES
HEREBY ASSIGN TO ASSIGNEE, its successors and assigns, for its own proper use and benefit, (a) the United States copyright to all works developed by Assignor pursuant to and
as specified in the Agreement (the "Works"), a copy of which Agreement is annexed hereto; (b) the right to modify the Works in any manner desired by Assignee, its successors and assigns; and
(c) all literary property rights of every kind in the Works, including the right to publish the Works in any manner desired by Assignee, and all rights to secure copyrights on the Works in any
language in the world. 

        Assignor
has executed this Copyright Assignment effective as of Start Date. 

	

 	
 	

    
 Employee Name
	

 	
 	

    
 Date

7

QuickLinks

Exhibit 10.9

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

LIST OF SPECIFIC INFORMATION CONSIDERED CONFIDENTIAL (This list is not in any way exclusive.)

COPYRIGHT ASSIGNMENT

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

COPYRIGHT ASSIGNMENTQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.10    
    

 
 

CARDIONET, INC.    
    
    SECOND AMENDED AND RESTATED
  INVESTOR RIGHTS AGREEMENT    
    

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	PAGE

	SECTION 1.	 	GENERAL	 	1
	1.1	 	Definitions	 	1
	SECTION 2.	 	REGISTRATION; RESTRICTIONS ON TRANSFER	 	3
	2.1	 	Restrictions on Transfer	 	3
	2.2	 	Demand Registration	 	3
	2.3	 	Piggyback Registrations	 	5
	2.4	 	Form S-3 Registration	 	6
	2.5	 	Expenses of Registration	 	7
	2.6	 	Obligations of the Company	 	7
	2.7	 	Termination of Registration Rights	 	9
	2.8	 	Delay of Registration; Furnishing Information	 	9
	2.9	 	Indemnification	 	9
	2.10	 	Assignment of Registration Rights	 	11
	2.11	 	Amendment of Registration Rights	 	11
	2.12	 	Limitation on Subsequent Registration Rights	 	11
	2.13	 	"Market Stand-Off" Agreement; Agreement to Furnish Information	 	11
	2.14	 	Rule 144 Reporting	 	12
	SECTION 3.	 	COVENANTS OF THE COMPANY	 	12
	3.1	 	Basic Financial Information and Reporting	 	12
	3.2	 	Inspection Rights	 	13
	3.3	 	Observation Rights	 	13
	3.4	 	Confidentiality of Records	 	14
	3.5	 	Reservation of Common Stock	 	14
	3.6	 	Stock Vesting	 	14
	3.7	 	Proprietary Information and Inventions Agreement	 	14
	3.8	 	Directors' Expenses	 	14
	3.9	 	Approval	 	14
	3.10	 	Directors' Liability and Indemnification	 	14
	3.11	 	Termination of Covenants	 	14
	SECTION 4.	 	RIGHTS OF FIRST OFFER	 	15
	4.1	 	Subsequent Offerings	 	15
	4.2	 	Exercise of Rights	 	15
	4.3	 	Issuance of Equity Securities to Other Persons	 	15
	4.4	 	Termination and Waiver of Rights of First Offer	 	15
	4.5	 	Transfer of Rights of First Offer	 	15
	4.6	 	Excluded Securities	 	15
	SECTION 5.	 	MISCELLANEOUS	 	16
	5.1	 	Governing Law	 	16
	5.2	 	Survival	 	16
	5.3	 	Successors and Assigns	 	16
	5.4	 	Entire Agreement	 	17
	5.5	 	Severability	 	17
	5.6	 	Amendment and Waiver	 	17
	5.7	 	Delays or Omissions	 	17
	5.8	 	Notices	 	18
	5.9	 	Attorneys' Fees	 	18
	5.10	 	Titles and Subtitles	 	18
	5.11	 	Additional Investors	 	18
	5.12	 	Counterparts	 	18
	5.13	 	Termination of Prior Agreement	 	18

i

  

 
 

CARDIONET, INC.    
    
    SECOND AMENDED AND RESTATED
  INVESTOR RIGHTS AGREEMENT    
    

        THIS SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (this "Agreement") is entered into as of
March 18, 2004, by and among CARDIONET, INC., a California corporation (the "Company"), the investors listed on  Exhibit A hereto (collectively
referred to hereinafter as the "Investors" and each individually as an "Investor"), and the shareholders listed on  Exhibit B hereto (collectively referred to hereinafter as the "Founders" and each
individually as a "Founder"). 

RECITALS  

        WHEREAS, certain of the Investors are purchasing shares of the Company's Series D Preferred Stock (the
"Series D Preferred Stock") pursuant to that certain Series D Preferred Stock Purchase Agreement (the "Purchase Agreement") of even date herewith (the "Financing"); 

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

        WHEREAS, certain of the Investors (the "Prior Investors") are holders of the Company's Series B Preferred Stock (the
"Series B Preferred Stock") and Series C Preferred Stock (the "Series C Preferred Stock"); 

        WHEREAS, the Prior Investors, the Founders and the Company are parties to that certain First Amended and Restated Investor Rights
Agreement dated as of May 3, 2001, as amended (the "Prior Agreement"); 

        WHEREAS, the parties to the Prior Agreement desire to amend and restate the Prior Agreement in accordance with the amendment provisions
provided therein and to accept the rights and covenants hereof in lieu of their rights and covenants under the Prior Agreement; and 

        WHEREAS, in connection with the consummation of the Financing, the Company and the Investors have agreed to the registration rights,
information rights and other rights as set forth below. 

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

SECTION 1. GENERAL.  

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

        "Exchange
Act" means the Securities Exchange Act of 1934, as amended. 

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

        "Holder"
means any person owning of record Registrable Securities that have not been sold to the public or any assignee of record of such Registrable Securities in accordance with
Section 2.10 hereof. 

        "Initial
Offering" means the Company's first firm commitment underwritten public offering of its Common Stock registered under the Securities Act, covering the offer and sale of the
Company's Common Stock for the account of the Company and resulting in receipt by the Company of at least $20,000,000 (prior to underwriter's commissions and offering expenses) at a purchase price of
not less 

1

 

than
Ten Dollars ($10.00) per share (as adjusted to reflect stock splits, stock combinations, stock dividends and other recapitalizations). 

        "Major
Investor" means any Investor (with its affiliates) that owns not less than five percent (5%) of the total shares of the then outstanding Common Stock of the Company, calculated as
if all of the outstanding convertible equity securities of the Company had been fully converted; provided that Guidant Investment Corporation shall be
deemed a Major Investor if it (with its affiliates and Guidant Foundation) owns not less than five percent (5%) of the total shares of the outstanding Common Stock of the Company, calculated as if all
of the outstanding convertible equity securities of the Company had been fully converted, or if it owns at least 1,235,790 shares of the outstanding Common Stock of the Company, calculated as if all
of the convertible equity securities of the Company had been fully converted (as adjusted for any stock dividends, combinations, splits, recapitalization and the like); and  provided further that
Foundation Medical Partners, L.P. ("Foundation Medical") shall be deemed a Major Investor if it (together with its affiliates)
owns at least 800,000 shares of the outstanding Common Stock of the Company, calculated as if all of the convertible equity securities of the Company had been fully converted (as adjusted for any
stock dividends, combinations, splits, recapitalization and the like). 

        "Register,"
"registered," and "registration" refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration
or ordering of effectiveness of such registration statement or document. 

        "Registrable
Securities" means (a) Common Stock of the Company issued or issuable upon conversion of the Shares; and (b) any Common Stock of the Company issued as (or
issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, such
above-described securities. Notwithstanding the foregoing, Registrable Securities shall not include any securities sold by a person to the public either pursuant to a registration statement or
Rule 144 or sold in a private transaction in which the transferor's rights under Section 2 of this Agreement are not assigned. 

        "Registrable
Securities then outstanding" shall be the number of shares determined by calculating the total number of shares of the Company's Common Stock that are Registrable Securities
and either (a) are then issued and outstanding or (b) are issuable pursuant to then exercisable or convertible securities. 

        "Registration
Expenses" shall mean all expenses incurred by the Company in complying with Sections 2.2, 2.3 and 2.4 hereof, including, without limitation, all registration and filing
fees, printing expenses, fees and disbursements of counsel for the Company, reasonable fees and disbursements not to exceed Twenty-Five Thousand Dollars ($25,000) of a single special
counsel for the Holders, blue sky fees and expenses and the expense of any special audits incident to or required by any such registration (but excluding the compensation of regular employees of the
Company which shall be paid in any event by the Company). 

        "SEC"
or "Commission" means the Securities and Exchange Commission. 

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

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

        "Shares"
shall mean the B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock held by the Investors listed on  Exhibit A hereto and their permitted assigns. 

        "Special
Registration Statement" shall mean a registration statement relating to any employee benefit plan or with respect to any corporate reorganization or other transaction under
Rule 145 of the Securities Act. 

2

 

SECTION 2. REGISTRATION; RESTRICTIONS ON TRANSFER.  

        2.1    Restrictions on Transfer.    

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

          (i)  There is then in effect a registration statement under the Securities Act covering such proposed disposition and such
disposition is made in accordance with such registration statement; or 

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

       (iii)  Notwithstanding the provisions of paragraphs (i) and (ii) above, no such registration statement or
opinion of counsel shall be necessary for a transfer by a Holder which is (A) a partnership to its partners or former partners in accordance with their partnership interests, (B) a
corporation to its shareholders in accordance with their interest in the corporation, (C) a limited liability company to its members or former members in accordance with their interest in the
limited liability company, (D) to the Holder's family member or trust for the benefit of an individual Holder; provided that in each case the transferee will be subject to the terms of this
Agreement to the same extent as if such transferee were an original Holder hereunder, (E) an entity to a subsidiary, parent, or a sister entity with a common parent, or (F) Guidant
Investment Corporation (or its affiliate) to Guidant Foundation. 

        (b)   Each certificate representing Shares or Registrable Securities shall (unless otherwise permitted by the provisions of the
Agreement) be stamped or otherwise imprinted with a legend substantially similar to the following (in addition to any legend required under applicable state securities laws): 

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

        (c)   The Company shall be obligated to reissue promptly unlegended certificates at the request of any holder thereof if the
holder shall have obtained an opinion of counsel (which counsel may be counsel to the Company) reasonably acceptable to the Company to the effect that the securities proposed to be disposed of may
lawfully be so disposed of without registration, qualification or legend. 

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

        2.2    Demand Registration.    

        (a)   Subject to the conditions of this Section 2.2, if the Company shall receive a written request from the Holders of
at least thirty percent (30%) of the Registrable Securities (the "Initiating Holders") that the Company file a registration statement under the Securities Act covering the 

3

 

registration
of Registrable Securities having an anticipated aggregate offering price of at least $5,000,000 (a "Qualified Public Offering"), then the Company shall, within thirty (30) days of
the receipt thereof, give written notice of such request to all Holders, and subject to the limitations of this Section 2.2, effect, as expeditiously as reasonably possible, the registration
under the Securities Act of all Registrable Securities that the Holders request to be registered. 

        (b)   If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an
underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 2.2 or any request pursuant to Section 2.4 and the Company shall include such
information in the written notice referred to in Section 2.2(a) or Section 2.4(a), as applicable. In such event, the right of any Holder to include its Registrable Securities in such
registration shall be conditioned upon such Holder's participation in such underwriting and the inclusion of such Holder's Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such
underwriting by a majority in interest of the Initiating Holders (which underwriter or underwriters shall be reasonably acceptable to the Company). Notwithstanding any other provision of this
Section 2.2 or Section 2.4, if the underwriter advises the Company that marketing factors require a limitation of the number of securities to be underwritten (including Registrable
Securities) then the Company shall so advise all Holders of Registrable Securities which would otherwise be underwritten pursuant hereto, and the number of shares that may be included in the
underwriting shall be allocated to the Holders of such Registrable Securities on a pro rata basis based on the number of Registrable Securities held by all such Holders (including the Initiating
Holders). In no event, however, except in the Company's Initial Offering, shall any Registrable Securities be eliminated from the registration until any and all shares being sold for the account of
the Company and for the account of shareholders who are not Holders are first eliminated. Any Registrable Securities excluded or withdrawn from such underwriting shall be withdrawn from the
registration. 

        (c)   The Company shall not be required to effect a registration pursuant to this Section 2.2: 

          (i)  prior to the earlier of (A) the fourth anniversary of the date of this Agreement, or (B) one hundred
eighty (180) days following the effective date of the registration statement pertaining to the Initial Offering; 

         (ii)  after the Company has effected two (2) registrations pursuant to this Section 2.2, and such registrations
have been declared or ordered effective (and in the case of a registration subject to Section 2.2(b), the sale of such Registrable Securities shall have closed); 

       (iii)  during the period starting with the date of filing of, and ending on the date one hundred eighty (180) days
following the effective date of the registration statement pertaining to a public offering, other than pursuant to a Special Registration Statement; provided that the Company makes reasonable good
faith efforts to cause such registration statement to become effective; 

        (iv)  if within thirty (30) days of receipt of a written request from Initiating Holders pursuant to
Section 2.2(a), the Company gives notice to the Holders of the Company's intention to make its Initial Offering within ninety (90) days; 

         (v)  if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 2.2, a
certificate signed by the Chairman of the Board stating that in the good faith judgment of the Board of Directors of the Company it would be seriously detrimental to the Company and its shareholders
for such registration statement to be effected at such time, in which event the Company shall have the right to defer such filing for a period of not more than ninety (90) days after receipt of
the request of the Initiating Holders; provided that such right to delay a 

4

 

request
shall be exercised by the Company not more than once in any twelve (12) month period; or 

        (vi)  if the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on
Form S-3 pursuant to a request made pursuant to Section 2.4 below. 

        2.3    Piggyback Registrations.    The Company shall notify all
Holders of Registrable Securities in writing at least twenty (20) days prior to the filing of any registration statement under the Securities Act for purposes of a public offering of securities
of the Company (including, but not limited to, registration statements relating to secondary offerings of securities of the Company, but excluding Special Registration Statements) and will afford each
such Holder an opportunity to include in such registration statement all or part of such Registrable Securities held by such Holder. Each Holder desiring to include in any such registration statement
all or any part of the Registrable Securities held by it shall, within fifteen (15) days after the above-described notice from the Company, so notify the Company in writing. Such notice shall
state the intended method of disposition of the Registrable Securities by such Holder. If a Holder decides not to include all of its Registrable Securities in any registration statement thereafter
filed by the Company, such Holder shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be
filed by the Company with respect to offerings of its securities, all upon the terms
and conditions set forth herein. For the limited purposes of this Section 2.3, to the extent that the Founders hold or have the right to acquire upon conversion of the outstanding
Series A Preferred Stock shares of the Company's Common Stock, such shares shall be included in the definition of Registrable Securities and the Founders shall be deemed Holders and entitled to
the piggyback rights described in this Section 2.3. 

        (a)   If the registration statement under which the Company gives notice under this Section 2.3 is for an underwritten
offering, the Company shall so advise the Holders of Registrable Securities. In such event, the right of any such Holder to be included in a registration pursuant to this Section 2.3 shall be
conditioned upon such Holder's participation in such underwriting and the inclusion of such Holder's Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to
distribute their Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by
the Company. Notwithstanding any other provision of the Agreement, if the underwriter determines in good faith that marketing factors require a limitation of the number of shares to be underwritten,
the number of shares that may be included in the underwriting shall be allocated, first, to the Company; second, to the Holders (other than the Founders) on a pro rata basis based on the total number
of Registrable Securities held by such Holders; third, to the Founders on a pro rata basis; and fourth, to any other shareholders of the Company (other than a Holder or a Founder) on a pro rata basis.
No such reduction shall (i) reduce the securities being offered by the Company for its own account to be included in the registration and underwriting, or (ii) reduce the amount of
securities of the selling Holders (other than the Founders) included in the registration below twenty percent (20%) of the total amount of securities included in such registration, unless such
offering is the Initial Offering and such registration does not include shares of any other selling shareholders, in which event any or all of the Registrable Securities of the Holders may be excluded
in accordance with the immediately preceding sentence. If any Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and
the underwriter, delivered at least ten (10) business days prior to the effective date of the registration statement. Any Registrable Securities excluded or withdrawn from such underwriting
shall be excluded and withdrawn from the registration. For any Holder which is a partnership or corporation, the partners, retired partners and shareholders of such Holder, or the estates and family
members of any such partners and retired partners and any trusts for the benefit of any of the foregoing person shall be deemed to be a single "Holder," and any pro rata reduction with respect to such
"Holder" shall be based upon the aggregate amount of shares 

5

 

carrying
registration rights owned by all entities and individuals included in such "Holder," as defined in this sentence. 

        (b)   The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.3
prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration. The Registration Expenses of such withdrawn registration shall be
borne by the Company in accordance with Section 2.5 hereof. 

        2.4    Form S-3 Registration.    In case the
Company shall receive from any Holder or Holders of Registrable Securities a written request or requests that the Company effect a registration on Form S-3 (or any successor to
Form S-3) or any similar short-form registration statement and any related qualification or compliance with respect to all or a part of the Registrable Securities owned
by such Holder or Holders, the Company will: 

        (a)   promptly give written notice of the proposed registration, and any related qualification or compliance, to all other
Holders of Registrable Securities; and 

        (b)   as soon as practicable, effect such registration and all such qualifications and compliances as may be so requested and
as would permit or facilitate the sale and distribution of all or such portion of such Holder's or Holders' Registrable Securities as are specified in such request, together with all or such portion
of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within twenty (20) days after receipt of such written notice
from the Company; provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance pursuant to this Section 2.4: 

          (i)  if Form S-3 is not available for such offering by the Holders, or 

         (ii)  if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such
registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public of less than one million dollars ($1,000,000), or 

       (iii)  if within thirty (30) days of receipt of a written request from any Holder or Holders pursuant to this
Section 2.4, the Company gives notice to such Holder or Holders of the Company's intention to make a public offering within ninety (90) days, other than pursuant to a Special
Registration Statement, or 

        (iv)  if the Company shall furnish to the Holders a certificate signed by the Chairman of the Board of Directors of the
Company stating that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its shareholders for such Form S-3
registration to be effected at such time, in which event the Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than
ninety (90) days after receipt of the request of the Holder or Holders under this Section 2.4; provided, that such right to delay a request shall be exercised by the Company not more
than once in any twelve (12) month period, or 

         (v)  if the Company has, within the six (6) month period preceding the date of such request, already effected one
(1) registration on Form S-3 for the Holders pursuant to this Section 2.4, or 

        (vi)  in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general
consent to service of process in effecting such registration, qualification or compliance. 

        (c)   Subject to the foregoing, the Company shall file a Form S-3 registration statement covering the
Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of the request or requests of the Holders. Registrations effected pursuant to this
Section 2.4 

6

 

shall
not be counted as demands for registration or registrations effected pursuant to Sections 2.2 or 2.3, respectively. 

        2.5    Expenses of Registration.    Except as specifically provided
herein, all Registration Expenses incurred in connection with any registration, qualification or compliance pursuant to Section 2.2 or any registration under Section 2.3 or
Section 2.4 herein shall be borne by the Company. All Selling Expenses incurred in connection with any registrations hereunder, shall be borne by the holders of the securities so registered pro
rata on the basis of the number of shares so registered. The Company shall not, however, be required to pay for expenses of any registration proceeding begun pursuant to Section 2.2 or 2.4, the
request of which has been subsequently withdrawn by the Initiating Holders unless (a) the withdrawal is based upon material adverse information concerning the Company of which the Initiating
Holders were not aware at the time of such request or (b) the Holders of a majority of Registrable Securities agree to forfeit their right to one requested registration pursuant to
Section 2.2, in which event such right shall be forfeited by all Holders. If the Holders are required to pay the Registration Expenses, such expenses shall be borne by the holders of securities
(including Registrable Securities) requesting such registration in proportion to the number of shares for which registration was requested. If the Company is required to pay the Registration Expenses
of a withdrawn offering pursuant to clause (a) above, then the Holders shall not forfeit their rights pursuant to Section 2.2 or Section 2.4 to a demand registration. 

        2.6    Obligations of the Company.    Whenever required to effect the
registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible: 

        (a)   Prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its best
efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration
statement effective for up to ninety (90) days or, if earlier, until the Holder or Holders have completed the distribution related thereto; provided, however, that if the Company shall furnish
to the Holders a certificate signed by the Chairman of the Board stating that in the good faith judgment of the Board of Directors of the Company it would be seriously detrimental to the Company and
its shareholders for resales of Registrable Securities to be made pursuant to the registration statement, due to (i) the existence of a material development or potential material development
with respect to or involving the Company which the Company would be obligated to disclose in the prospectus contained in the registration statement, which disclosure would in the good faith judgment
of the Board of Directors of the Company be premature or otherwise inadvisable at such time, or (ii) the occurrence of any event that makes any statement made in such registration statement or
related prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or which requires the making of any changes in the registration
statement or prospectus so that it will not contain any untrue statement of a material fact required to be stated therein or necessary to make the statements therein not misleading or omit to state
any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, then upon receipt of such
certificate, the use of the registration statement and prospectus will be deferred or suspended and will not recommence until (1) such Holder's receipt from the Company of copies of the
supplemented or amended prospectus, or (2) such Holders are advised in writing by the Company that the prospectus may be used; provided further that the Company will use its best efforts to
ensure that the use of the registration statement and prospectus may be resumed, as soon as practicable and, in the case of a pending development or event referred to in (i) above as soon, in
the judgment of the Company, as disclosure of the material information relating to such pending development would not have an adverse effect on the Company's ability to consummate the transaction, if
any, to which such development relates; provided further that the period during which the Company shall be required to maintain the effectiveness of the registration statement shall be extended by one
(1) day for each full or partial day 

7

 

during
which the use of such registration statement or prospectus is deferred or suspended by the Company in accordance with this Section 2.6(a). The Company shall not be required to file,
cause to become effective or maintain the effectiveness of any registration statement that contemplates a distribution of securities on a delayed or continuous basis pursuant to Rule 415 under
the Securities Act. 

        (b)   Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in
connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration
statement for the period set forth in paragraph (a) above. 

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

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

        (e)   In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement,
in usual and customary form, with the managing underwriter(s) of such offering. Each Holder participating in such underwriting shall also enter into and perform its obligations under such an
agreement. 

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

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

        (h)   Make available for inspection by each selling Holder, any underwriter participating in any distribution pursuant to such
registration statement and any attorney, accountant or other agent retained by such selling Holder or underwriter (an "Advisor") all financial and other records, pertinent corporate documents and
properties of the Company, and cause the Company's officers, directors and employees to supply all information reasonably requested by any such selling Holder, underwriter or Advisor, subject to, in
the case of confidential information, such confidentiality agreements as are required by law or reasonably requested by the Company. Notwithstanding the foregoing, the Company shall not be obligated
under this Section 2.6(h) with respect to a competitor of the Company or such competitor's Advisors. 

8

 

        2.7    Termination of Registration Rights.    All registration rights
granted under this Section 2 shall terminate and be of no further force and effect three (3) years after the date of the Company's Initial Offering. In addition, a Holder's registration
rights shall expire if all Registrable Securities held by and issuable to such Holder (and its affiliates, partners, former partners, members and former members) may be sold under Rule 144
during any ninety (90) day period. 

        2.8    Delay of Registration; Furnishing Information.    

        (a)   No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as
the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2. 

        (b)   It shall be a condition precedent to the obligations of the Company to take any action pursuant to Section 2.2,
2.3 or 2.4 that the selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended method of disposition of such
securities as shall be required to effect the registration of their Registrable Securities. 

        (c)   The Company shall have no obligation with respect to any registration requested pursuant to Section 2.2 or
Section 2.4 if, due to the operation of subsection 2.2(b), the number of shares or the anticipated aggregate offering price of the Registrable Securities to be included in the registration does
not equal or exceed the number of shares or the anticipated aggregate offering price required to originally trigger the Company's obligation to initiate such registration as specified in
Section 2.2 or Section 2.4, whichever is applicable. 

        2.9    Indemnification.    In the event any Registrable Securities are
included in a registration statement under Sections 2.2, 2.3 or 2.4: 

        (a)   To the extent permitted by law, the Company will indemnify and hold harmless each Holder, the partners, officers and
directors of each Holder, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Securities Act
or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state law,
insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a
"Violation") by the Company: (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make
the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation
promulgated under the Securities Act, the Exchange Act or any state securities law in connection with the offering covered by such registration statement; and the Company will pay to each such Holder,
partner, officer, director, underwriter or controlling person any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the indemnity agreement contained in this Section 2.9(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or
action if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable in any such case for any such loss, claim,
damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in
connection with such registration by such Holder, partner, officer, director, underwriter or controlling person of such Holder. 

9

 

        (b)   To the extent permitted by law, each Holder will, severally and not jointly, if Registrable Securities held by such
Holder are included in the securities as to which such registration qualifications or compliance is being effected, indemnify and hold harmless the Company, each of its directors, its officers who
have signed the registration statement and each person, if any, who controls the Company within the meaning of the Securities Act, any underwriter and any other Holder selling securities under such
registration statement or any of such other Holder's partners, directors or officers or any person who controls such Holder, against any losses, claims, damages or liabilities (joint or several) to
which the Company or any such director, officer, controlling person, underwriter or other such Holder, or partner, director, officer or controlling person of such other Holder may become subject under
the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation,
in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder under an instrument duly executed by
such Holder and stated to be specifically for use in connection with such registration; and each such Holder will pay any legal or other expenses reasonably incurred by the Company or any such
director, officer, controlling person, underwriter or other Holder, or partner, officer, director or controlling person of such other Holder in connection with investigating or defending any such
loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 2.9(b) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided further, that in no event shall any indemnity
under this Section 2.9 exceed the net proceeds from the offering received by such Holder. 

        (c)   Promptly after receipt by an indemnified party under this Section 2.9 of notice of the commencement of any action
(including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.9, deliver to the indemnifying
party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an
indemnified party shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained
by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The
failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if materially prejudicial to its ability to defend such action, shall
relieve such indemnifying party of any liability to the indemnified party under this Section 2.9, but the omission so to deliver written notice to the indemnifying party will not relieve it of
any liability that it may have to any indemnified party otherwise than under this Section 2.9. 

        (d)   If the indemnification provided for in this Section 2.9 is held by a court of competent jurisdiction to be
unavailable to an indemnified party with respect to any losses, claims, damages or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified party thereunder,
shall to the extent permitted by applicable law contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the Violation(s) that resulted in such loss, claim,
damage or liability, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of law by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party
or by the indemnified party and the parties' relative intent, knowledge, access to information and opportunity to correct or 

10

 

prevent
such statement or omission; provided, that in no event shall any contribution by a Holder hereunder exceed the net proceeds from the offering received by such Holder. 

        (e)   The obligations of the Company and Holders under this Section 2.9 shall survive completion of any offering of
Registrable Securities in a registration statement and the termination of this Agreement. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each
Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified
Party of a release from all liability in respect to such claim or litigation. 

        2.10    Assignment of Registration Rights.    The rights to cause the
Company to register Registrable Securities pursuant to this Section 2 may be assigned by a Holder to a transferee or assignee of Registrable Securities which (a) is a subsidiary, parent,
sister entity with a common parent, general
partner, limited partner, retired partner, member or retired member of a Holder, (b) is Guidant Foundation, (c) is a Holder's family member or trust for the benefit of an individual
Holder, or (d) acquires at least fifty thousand (50,000) shares of Registrable Securities (as adjusted for stock splits and combinations); provided,
however, (i) the transferor shall, within ten (10) days after such transfer, furnish to the Company written notice of the name and address
of such transferee or assignee and the securities with respect to which such registration rights are being assigned and (ii) such transferee shall agree to be subject to all restrictions set
forth in this Agreement. 

        2.11    Amendment of Registration Rights.    Any provision of this
Section 2 may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the
Company, the Holders of at least two-thirds (662/3%)) of the Registrable Securities then outstanding, and, as to any amendment which would adversely affect the registration
rights of the Founders pursuant to Section 2.3, the Holders of a majority of the shares included in the definition of Registrable Securities for the limited purposes of Section 2.3 then
held by the Founders. Any amendment or waiver effected in accordance with this Section 2.11 shall be binding upon each Holder, each Founder and the Company. By acceptance of any benefits under
this Section 2, Holders of Registrable Securities hereby agree to be bound by the provisions hereunder. 

        2.12    Limitation on Subsequent Registration Rights.    Other than as
provided in Section 5.11, after the date of this Agreement, the Company shall not, without the separate prior written consents of the holders of at least a majority of (i) the
Series B Preferred Stock then outstanding, voting together as a separate class, and (ii) the Series C Preferred Stock and Series D Preferred Stock then outstanding, voting
together as a separate class, enter into any agreement with any holder or prospective holder of any securities of the Company that would grant such holder registration rights senior to those granted
to the Holders hereunder. 

        2.13    "Market Stand-Off" Agreement; Agreement to Furnish
Information.    Each Holder (including for purposes of this Section 2.13 deemed Holders for the limited purposes of Section 2.3) hereby agrees that such
Holder shall not sell, transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any Common
Stock (or other securities) of the Company held by such Holder (other than those included in the registration) for a period specified by the representative of the underwriters of Common Stock (or
other securities) of the Company not to exceed one hundred eighty (180) days following the effective date of a registration statement of the Company filed under the Securities Act; provided
that: 

          (i)  such agreement shall apply only to the Company's Initial Offering; and 

         (ii)  all executive officers and directors of the Company and holders of at least one percent (1%) of the Company's voting
securities enter into similar agreements. 

11

 

Each
Holder agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriter which are consistent with the foregoing or which are necessary to give
further effect thereto. In addition, if requested by the Company or the representative of the underwriters of Common Stock (or other securities) of the Company, each Holder shall provide, within ten
(10) days of such request, such information as may be required by the Company or such representative in connection with the completion of any public offering of the Company's securities
pursuant to a registration statement filed under the Securities Act. The obligations described in this Section 2.13 shall not apply to a registration pursuant to a Special Registration
Statement. The Company may impose stop-transfer instructions with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of said one
hundred eighty (180) day period. Each Holder agrees that any transferee of any shares of Registrable Securities shall be bound by this Section 2.13. 

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

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

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

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

SECTION 3. COVENANTS OF THE COMPANY.  

        3.1    Basic Financial Information and Reporting.    

        (a)   The Company will maintain true books and records of account in which full and correct entries will be made of all its
business transactions pursuant to a system of accounting established and administered in accordance with generally accepted accounting principles consistently applied, and will set aside on its books
all such proper accruals and reserves as shall be required under generally accepted accounting principles consistently applied. 

        (b)   As soon as practicable after the end of each fiscal year of the Company, and in any event within ninety (90) days
thereafter, the Company will furnish each Investor a balance sheet of the Company, as at the end of such fiscal year, and a statement of income and a statement of cash flows of the Company, for such
year, all prepared in accordance with generally accepted accounting principles consistently applied and setting forth in each case in comparative form the figures for the previous fiscal year, all in
reasonable detail. Such financial statements shall be accompanied by a report and opinion thereon by independent public accountants of national standing selected by the Company's Board of Directors.
Along with such annual financial statements, the Company shall also provide lists of the Company's shareholders and optionholders, as of the end of such fiscal year, showing the number of securities
held by each. 

        (c)   The Company will furnish each Investor, as soon as practicable after the end of the first, second and third quarterly
accounting periods in each fiscal year of the Company, and in any event 

12

 

within
forty-five (45) days thereafter, to the extent requested by such Investor, a balance sheet of the Company as of the end of each such quarterly period, and a statement of
income and a statement of cash flows of the Company for such period and for the current fiscal year to date, prepared in accordance with generally accepted accounting principles, with the exception
that no notes need be attached to such statements and year-end audit adjustments may not have been made. 

        (d)   The Company will furnish each Investor, to the extent requested by such Investor, as soon as practicable after the end of
each month, and in any event within thirty (30) days thereafter, a balance sheet of the Company as of the end of each such month, and a statement of income and a statement of cash flows of the
Company for such month and for the current fiscal year to date, including a comparison to plan figures for such period, prepared in accordance with generally accepted accounting principles
consistently applied, with the exception that no notes need be attached to such statements and year-end audit adjustments may not have been made. 

        3.2    Inspection Rights.    Each Major Investor shall have the right
to visit and inspect any of the properties of the Company or any of its subsidiaries, and to discuss the affairs, finances and accounts of the Company or any of its subsidiaries with its officers, and
to review such information as is reasonably requested all at such reasonable times and as often as may be reasonably requested; provided, however, that
the Company shall not be obligated under this Section 3.2 with respect to a competitor of the Company or with respect to information which the Board of Directors determines in good faith is
confidential and should not, therefore, be disclosed. 

        3.3    Observation Rights.    

        (a)   For so long as H&Q Healthcare Investors or H&Q Life Sciences Investors (collectively "H&Q") hold in the aggregate at
least 570,000 shares of Series C Preferred Stock and/or Series D Preferred Stock, the Company shall allow one representative designated by H&Q to attend all meetings of the Company's
Board of Directors in a nonvoting capacity, and in connection therewith, the Company shall give such representative copies of all notices, minutes, consents and other materials, financial or
otherwise, which the Company provides to its Board of Directors; provided, however that the Company reserves the right to exclude such representative from access to any material or meeting or portion
thereof if the Company believes upon advice of counsel that such exclusion is reasonably necessary to preserve the attorney-client privilege, to protect highly confidential proprietary information or
for other similar reasons. 

        (b)   Any time that Guidant Investment Corporation ("Guidant") is a Major Investor and has not nominated an individual serving
as a director pursuant to clause (ii) of Section 1.2(c) of the Second Amended and Restated Voting Agreement by and among the Company and certain of its shareholders, the Company shall
allow one representative designated by Guidant to attend all meetings of the Company's Board of Directors in a non-voting capacity, and in connection therewith, the Company shall give such
representative copies of all notices, minutes, consents and other materials, financial or otherwise, which the Company provides to its Board of Directors; provided, however, that the Company may
require as a condition precedent to Guidant's rights under this Section 3.3(b) that such representative proposing to attend any meeting of the Board of Directors and each person to have access
to any of the information provided by the Company to the Board of Directors shall agree in writing to hold in confidence all information so received during such meetings or otherwise; and provided
further that the Company reserves the right to exclude such representative from access to any material or meeting or portion thereof if the Company believes upon advice of counsel that such exclusion
is reasonably necessary to preserve the attorney-client privilege, or if delivery of such information or attendance at such meeting by such representative would result in disclosure of trade secrets
to such representative which could directly benefit Guidant or its affiliates to the competitive disadvantage of the Company. 

13

 

        3.4    Confidentiality of Records.    Each Investor agrees to use, and
to use its best efforts to insure that its authorized representatives use, the same degree of care as such Investor uses to protect its own confidential information to keep confidential any
information furnished to it which the Company identifies as being confidential or proprietary (so long as such information is not in the public domain), except that such Investor may disclose such
proprietary or confidential information to any partner, subsidiary or parent of such Investor for the purpose of evaluating its investment in the Company as long as such partner, subsidiary or parent
is advised of the confidentiality provisions of this Section 3.4. 

        3.5    Reservation of Common Stock.    The Company will at all times
reserve and keep available, solely for issuance and delivery upon the conversion of the Preferred Stock, all Common Stock issuable from time to time upon such conversion. 

        3.6    Stock Vesting.    Unless otherwise approved by the Board of
Directors, all stock options and other stock equivalents issued after the date of this Agreement to employees, directors, consultants and other service providers shall be subject to vesting as
follows: (a) not more than twenty-five percent (25%) of such stock shall vest at the end of the first year following the earlier of the date of issuance or such person's services
commencement date with the Company, and (b) the balance thereof shall vest at a monthly rate of not more than 1/48th of such stock over the remaining three (3) years. With respect to any
shares of stock purchased by any such person, the Company's repurchase option shall provide that upon such person's termination of employment or service with the Company, with or without cause, the
Company or its assignee (to the extent permissible under applicable securities laws and other laws) shall have the option to purchase at cost any unvested shares of stock held by such person. 

        3.7    Proprietary Information and Inventions Agreement.    The
Company shall require all employees and consultants to execute and deliver a Proprietary Information and Inventions Agreement in the form previously delivered by the Company to the Investors. 

        3.8    Directors' Expenses.    The Company shall not pay any
compensation to any member of the Company's Board of Directors in connection with the performance of their duties as a Director. 

        3.9    Approval.    The Company shall not, without the unanimous
consent of the Board of Directors, authorize or enter into any transactions with any director or management employee, or such director's or employee's immediate family. 

        3.10    Directors' Liability and Indemnification.    The Company's
Articles of Incorporation and Bylaws shall provide (i) for elimination of the liability of each director of the Company to the maximum extent permitted by law and (ii) for
indemnification of directors for acts on behalf of the Company to the maximum extent permitted by law. In addition, the Company shall enter into and use its best efforts to at all times maintain
indemnification contracts in a form to be approved by counsel for the directors, with each of its directors to indemnify such directors to the maximum extent permissible under California law. The
Company shall have in force a directors and officers liability insurance policy in an amount and with a carrier approved by the unanimous consent of the Board of Directors. The Company will use its
reasonable efforts to limit the liability, to the fullest extent permissible under California law of any director representing any of the Investors. 

        3.11    Termination of Covenants.    All covenants of the Company
contained in Section 3 of this Agreement shall expire and terminate as to each Investor upon the earlier of (i) the effective date of the registration statement pertaining to the Initial
Offering, (ii) upon (a) the sale, lease or other disposition of all or substantially all of the assets of the Company or (b) an acquisition of the Company by another corporation
or entity by consolidation, merger or other reorganization in which the holders of the Company's outstanding voting stock immediately prior to such transaction own, immediately after such transaction,
securities representing less than fifty percent (50%) of the voting power of the corporation or other entity surviving such transaction, provided that this Section 3.11(ii)(b) shall not 

14

 

apply
to a merger effected exclusively for the purpose of changing the domicile of the Company (a "Change in Control"), or (iii) the date that such Investor no longer holds Registrable
Securities. 

SECTION 4. RIGHTS OF FIRST OFFER.  

        4.1    Subsequent Offerings.    Each Major Investor shall have a right
of first offer to purchase its pro rata share of all Equity Securities, as defined below, that the Company may, from time to time, propose to sell and issue after the date of this Agreement, other
than the Equity Securities excluded by Section 4.6 hereof. Each Investor's pro rata share is equal to the ratio of (a) the number of shares of the Company's Common Stock (including all
shares of Common Stock issued or issuable upon conversion of the Shares) which such Investor is deemed to be a holder immediately prior to the issuance of such Equity Securities to (b) the
total number of shares of the Company's outstanding Common Stock (including all shares of Common Stock issued or issuable upon conversion of the Shares or upon the exercise of any outstanding warrants
or options) immediately prior to the issuance of the Equity Securities. The term "Equity Securities" shall mean (i) any Common Stock, Preferred Stock or other security of the Company,
(ii) any security convertible, with or without consideration, into any Common Stock, Preferred Stock or other security (including any option to purchase such a convertible security),
(iii) any security carrying any warrant or right to subscribe to or purchase any Common Stock, Preferred Stock or other security or (iv) any such warrant or right. 

        4.2    Exercise of Rights.    If the Company proposes to issue any
Equity Securities, it shall give each Major Investor written notice of its intention, describing the Equity Securities, the price and the terms and conditions upon which the Company proposes to issue
the same. Each Major Investor shall have fifteen (15) days from the giving of such notice to agree to purchase its pro rata share of the Equity Securities for the price and upon the terms and
conditions specified in the notice by giving written notice to the Company and stating therein the quantity of Equity Securities to be purchased. Notwithstanding the foregoing, the Company shall not
be required to offer or sell such Equity Securities to any Major Investor who would cause the Company to be in violation of applicable federal securities laws by virtue of such offer or sale. 

        4.3    Issuance of Equity Securities to Other Persons.    If the Major
Investors fail to exercise in full the rights of first offer, the Company shall have ninety (90) days thereafter to sell the Equity Securities in respect of which the Major Investor's rights
were not exercised, at a price and upon general terms and conditions materially no more favorable to the purchasers thereof than specified in the Company's notice to the Major Investors pursuant to
Section 4.2 hereof. If the Company has not sold such Equity Securities within ninety (90) days of the notice provided pursuant to Section 4.2, the Company shall not thereafter
issue or sell any Equity Securities, without first offering such securities to the Major Investors in the manner provided above. 

        4.4    Termination and Waiver of Rights of First Offer.    The rights
of first offer established by this Section 4 shall not apply to, and shall terminate upon the effective date of the registration statement pertaining to the Company's Initial Offering. The
rights of first offer established by this Section 4 may be amended, or any provision waived with the written consent of Major Investors holding a majority of the Registrable Securities held by
all Major Investors, or as permitted by Section 5.6. 

        4.5    Transfer of Rights of First Offer.    The rights of first offer
of each Major Investor under this Section 4 may be transferred to the same parties, subject to the same restrictions as any transfer of registration rights pursuant to Section 2.10. 

        4.6    Excluded Securities.    The rights of first offer established
by this Section 4 shall have no application to any of the following Equity Securities: 

        (a)   up to an aggregate of 3,700,000 shares of Common Stock (and/or options, warrants or other Common Stock purchase rights
issued pursuant to such options, warrants or other rights), as adjusted 

15

 

for
any stock dividends, combinations, splits, recapitalizations and the like, issued or to be issued after the date hereof to employees, officers or directors of, or consultants or advisors to the
Company or any subsidiary, pursuant to stock purchase or stock option plans or other arrangements that are approved by the Board of Directors; 

        (b)   stock issued pursuant to any rights or agreements outstanding as of the date of this Agreement, options and warrants
outstanding as of the date of this Agreement; and stock issued pursuant to any such rights or agreements granted after the date of this Agreement, provided that the rights of first offer established
by this Section 4 applied with respect to the initial sale or grant by the Company of such rights or agreements; 

        (c)   any Equity Securities issued for consideration other than cash pursuant to a merger, consolidation, acquisition or
similar business combination; 

        (d)   shares of Common Stock issued in connection with any stock split, stock dividend or recapitalization of the Company's
Common Stock by the Company; 

        (e)   shares of Common Stock issued upon conversion of the Shares; 

        (f)    shares of Common Stock issued and/or shares of Common Stock issued or issuable pursuant to options, warrants or other
Common Stock purchase rights issued pursuant to such options, warrants or other rights issued, pursuant to any equipment leasing arrangement, or debt financing from a bank or similar financial
institution approved by the Board of Directors, not to exceed a maximum of 200,000 shares (as adjusted for any stock dividend, combinations, splits, and other recapitalizations), plus such additional
number of shares as may be approved by the Board of Directors, including the approval of at least one Series B/C/D Director (as defined in the Company's Articles of Incorporation). 

        (g)   any Equity Securities that are issued by the Company pursuant to a registration statement filed under the Securities Act. 

        (h)   up to an aggregate of 100,000 shares of Series D Preferred Stock (as adjusted for any stock dividends,
combinations, splits, recapitalizations and the like), and the shares of Common Stock issuable upon conversion of such shares, and/or options, warrants or other rights to purchase such shares of
Series D Preferred Stock, issued or to be issued after the date hereof to employees of or consultants, advisors or other service providers to, the Company or any subsidiary, pursuant to stock
purchase agreements or other agreements approved by the Board of Directors, provided that the consideration received or to be received by the Company upon the issuance of such shares of preferred
stock shall be not less than Ten Dollars ($10.00) per share, or, insofar as such consideration consists of property or consideration other than cash, the Board of Directors determines in good faith
that the fair value of such condition is not less than Ten Dollars ($10.00) per share. 

SECTION 5. MISCELLANEOUS.  

        5.1    Governing Law.    This Agreement shall be governed by and
construed under the laws of the State of California as applied to agreements among California residents entered into and to be performed entirely within California. 

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

        5.3    Successors and Assigns.    Except as otherwise expressly
provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors, and 

16

 

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

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

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

        5.6    Amendment and Waiver.    

        (a)   Except as otherwise expressly provided, this Agreement may be amended or modified only upon the written consent of the
Company and (i) with respect to the rights of Guidant provided in Sections 1.1, 2.1(a)(iii), 2.10 and 3.3(b), Guidant, (ii) with respect to the rights of Foundation Medical provided in
Section 1.1 hereof, Foundation Medical, (iii) the holders of a majority of the Registrable Securities, voting together as a separate class, (iv) the holders sixty-six
and two-thirds percent (662/3%) of the outstanding Series B Preferred Stock, voting together as a separate class, and (v) the holders of sixty-six
and two-thirds percent (662/3%) of the outstanding Series C Preferred Stock and Series D Preferred Stock, voting together as a separate class. 

        (b)   Except as otherwise expressly provided, the obligations of the Company and the rights of the Holders under this Agreement
may be waived only with the written consent of (i) with respect to the rights of Guidant, Guidant, (ii) with respect to the rights of Foundation Medical, Foundation Medical,
(iii) the holders of a majority of the Registrable Securities, voting together as a separate class, (iv) the holders of sixty-six and two-thirds percent
(662/3%) of the outstanding Series B Preferred Stock, voting together as a separate class, and (v) the holders of sixty-six and two-thirds percent
(662/3%) of the outstanding Series C Preferred Stock and Series D Preferred Stock, voting together as a separate class. 

        (c)   Notwithstanding the foregoing, this Agreement may be amended with only the written consent of the Company to include
additional purchasers of Series D Preferred Stock as "Investors," "Holders" and parties hereto. 

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

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

17

 

        5.8    Notices.    All notices required or permitted hereunder shall
be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal
business hours of the recipient; if not, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage
prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be
sent to the party to be notified at the address as set forth on the signature pages hereof or at such other address as such party may designate by ten (10) days advance written notice to the
other parties hereto. 

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

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

        5.11    Additional Investors.    

        (a)   Notwithstanding anything to the contrary contained herein, if the Company shall issue additional shares of its
Series D Preferred Stock pursuant to the Purchase Agreement, any purchaser of such shares of Series D Preferred Stock may become a party to this Agreement by executing and delivering an
additional counterpart signature page to this Agreement and shall be deemed an "Investor" hereunder. 

        (b)   Notwithstanding anything to the contrary contained herein, if the Company shall issue Equity Securities in accordance
with Section 4.6(c) or (f) of this Agreement, any purchaser of such Equity Securities may become a party to this Agreement by executing and delivering an additional counterpart signature
page to this Agreement and shall be deemed an "Investor" hereunder. 

        5.12    Counterparts.    This Agreement may be executed in any number
of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. 

        5.13    Termination of Prior Agreement.    The Prior Agreement is
hereby terminated in its entirety. Such termination is effective upon the last to occur of the execution of this Agreement by (i) the Company; (ii) the holders of a majority of the
Registrable Securities; (iii) the holders of sixty-six and two-thirds percent (662/3%) of the outstanding Series B Preferred Stock; and
(iv) the holders of sixty-six and two-thirds percent (662/3%) of the outstanding Series C Preferred Stock. Upon such execution, all provisions of,
rights granted and covenants made in the Prior Agreement are hereby waived, released and terminated in their entirety and shall have no further force and effect. In the event this Agreement is not
executed by the holders of a majority of the shares included in the definition of Registrable Securities for the limited purposes of Section 2.3 then held by the Founders, or any holder of
Series D Preferred Stock, all references to such persons or persons who are not bound hereby shall be deleted herefrom, but the Agreement shall otherwise remain in effect, subject to the
rights, if any, of such holders under the Prior Agreement. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

18

        IN WITNESS WHEREOF, the parties hereto have executed this Second Amended and Restated Investor Rights Agreement effective as of the date
set forth in the first paragraph hereof. 

	Company:	 	 
	

CARDIONET, INC., a California Corporation	
 	

 
	

By:	
 	

/s/ James M. Sweeney
 James M. Sweeney

Chief Executive Officer	
 	

 
	

Address:	
 	

 
	

510 Market Street

San Diego, California 92101	
 	

 
	Attn:	 	James M. Sweeney

Chief Executive Officer	 	 
	
Investors:	
 	

 
	

GUIDANT INVESTMENT CORPORATION	
 	

 
	

By:	
 	

/s/ R. Frederick McCoy, Jr.
	
 	

 
	Name:	 	R. Frederick McCoy, Jr.
	 	 
	Title:	 	Vice-President
	 	 
	

Address:	
 	

 
	

1430 O'Brien Drive Suite F

Menlo Park, CA 94025

Attention: Daniel Gottlieb	
 	

 
	

INGLEWOOD VENTURES, L.P., a Delaware limited partnership	
 	

 
	

By:	
 	

Inglewood, LLC, a California limited liability company, General Partner	
 	

 
	

By:	
 	

/s/ Daniel C. Wood
 Daniel C. Wood, Member	
 	

 
	

Address:	
 	

 
	

12526 High Bluff Drive, Suite 300

San Diego, California 92130

Attn: Daniel C. Wood, CFA	
 	

 

SECOND
AMENDED AND RESTATED

INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE 

	Founders:	 	 
	

    
 JAMES M. SWEENEY	
 	

 
	

Address:

3616 Rosecroft Lane

San Diego, California 92106	
 	

 
	

    
 KARL A. KAIL, IV	
 	

 
	

Address:

13221 Denara Road

San Diego, California 92130	
 	

 
	

    
 WILLIAM G. BLOOM	
 	

 
	

Address:

552 Oceanview Avenue

Encinitas, California 92024	
 	

 
	

    
 TERRENCE P. AH SING	
 	

 
	

Address:

1525 Orangeview Drive

Encinitas, California 92024	
 	

 
	
Investors:	
 	

 
	

IDEO PRODUCT DEVELOPMENT INC., a Michigan corporation	
 	

 
	

By:	
 	

    
	
 	

 
	 	 	Name:	 	    
	 	 
	 	 	Title:	 	    
	 	 
	

Address	
 	

 
	

700 High Street

Palo Alto, California 94301

Attn: Don Westwood	
 	

 
	

BIOFRONTIER GLOBAL INVESTMENT PARTNERSHIP, a Japanese civil law partnership	
 	

 
	

By:	
 	

Biofrontier Partners Co., Ltd., General Partner	
 	

 
	

By:	
 	

/s/ Yoshihiro Ohtaki
 Yoshihiro Ohtaki, President	
 	

 
	

Address:	
 	

 
	

K.I. Kousan Tokyo Building, 3rd Floor

2-3-14 Yaesu, Chuo-ku

Tokyo, Japan 104-0028

Attn: Yoshihiro Ohtaki	
 	

 

SECOND
AMENDED AND RESTATED

INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE 

	Investors:	 	 
	
SANDERLING VENTURE PARTNERS V CO-INVESTMENT FUND, L.P.	
 	

 
	

By:	
 	

Middleton, McNeil & Mills Associates V, LLC	
 	

 
	

 	
 	

By:	
 	

/s/ Fred A. Middleton
 Fred A. Middleton

Managing Director	
 	

 
	
SANDERLING V BIOMEDICAL CO-INVESTMENT FUND, L.P.	
 	

 
	

By:	
 	

Middleton, McNeil & Mills Associates V, LLC	
 	

 
	

 	
 	

By:	
 	

/s/ Fred A. Middleton
 Fred A. Middleton

Managing Director	
 	

 
	
SANDERLING V LIMITED PARTNERSHIP	
 	

 
	

By:	
 	

Middleton, McNeil & Mills Associates V, LLC	
 	

 
	

 	
 	

By:	
 	

/s/ Fred A. Middleton
 Fred A. Middleton

Managing Director	
 	

 
	
SANDERLING V BETEILIGUNGS GMBH & CO. KG	
 	

 
	

By:	
 	

Middleton, McNeil & Mills Associates V, LLC	
 	

 
	

 	
 	

By:	
 	

/s/ Fred A. Middleton
 Fred A. Middleton

Managing Director	
 	

 
	
SANDERLING V VENTURES MANAGEMENT	
 	

 
	

By:	
 	

/s/ Fred A. Middleton
 Fred A. Middleton

Owner	
 	

 
	
SANDERLING VENTURE PARTNERS IV CO-INVESTMENT FUND, L.P.	
 	

 
	

By:	
 	

/s/ Fred A. Middleton
 Fred A. Middleton

General Partner	
 	

 
	
SANDERLING IV BIOMEDICAL CO-INVESTMENT FUND, L.P.	
 	

 
	

By:	
 	

/s/ Fred A. Middleton
 Fred A. Middleton

General Partner	
 	

 
	
SANDERLING IV VENTURE MANAGEMENT	
 	

 
	

By:	
 	

/s/ Fred A. Middleton
 Fred A. Middleton

Owner	
 	

 

SECOND
AMENDED AND RESTATED

INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE 

	SANDERLING VENTURE PARTNERS IV, L.P.	 	 
	

By:	
 	

/s/ Fred A. Middleton
 Fred A. Middleton

General Partner	
 	

 
	
SANDERLING IV LIMITED PARTNERSHIP	
 	

 
	

By:	
 	

/s/ Fred A. Middleton
 Fred A. Middleton

General Partner	
 	

 
	
SANDERLING IV BIOMEDICAL, L.P.	
 	

 
	

By:	
 	

/s/ Fred A. Middleton
 Fred A. Middleton

General Partner	
 	

 
	
SANDERLING [FERI TRUST] VENTURE PARTNERS IV	
 	

 
	

By:	
 	

/s/ Fred A. Middleton
 Fred A. Middleton

General Partner	
 	

 

SECOND
AMENDED AND RESTATED

INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE 

	Investors:	 	 
	

H&Q HEALTHCARE INVESTORS, a Massachusetts business trust	
 	

 
	

By:	
 	

/s/ Dan Omstead
 Dan Omstead, President	
 	

 
	
Limitation of Liability	
 	

 
	

The name H&Q Healthcare Investors is the designation of the Trustees for the time being under an Amended and Restated Declaration of Trust dated April 21, 1987, as amended, and all persons dealing with H&Q Healthcare Investors, must look
solely to the trust property for the enforcement of any claims against H&Q Healthcare Investors, as neither the Trustees, officers nor shareholders assume any personal liability for the obligations entered into on behalf of H&Q Healthcare
Investors.	
 	

 
	

Address:	
 	

 
	

30 Rowes Wharf, Suite 430

Boston, MA 02110-3328	
 	

 
	

H&Q LIFE SCIENCES INVESTORS, a Massachusetts business trust	
 	

 
	

By:	
 	

/s/ Dan Omstead
 Dan Omstead, President	
 	

 
	
Limitation of Liability	
 	

 
	

The name H&Q Life Sciences Investors is the designation of the Trustees for the time being under a Declaration of Trust dated February 20, 1992, as amended, and all persons dealing with H&Q Life Sciences Investors, must look solely to
the trust property for the enforcement of any claims against H&Q Life Sciences Investors, as neither the Trustees, officers nor shareholders assume any personal liability for the obligations entered into on behalf of H&Q Life Sciences
Investors.	
 	

 
	

Address:	
 	

 
	

30 Rowes Wharf, Suite 430

Boston, MA 02110-3328	
 	

 

SECOND
AMENDED AND RESTATED

INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE 

	Investors:	 	 
	

    
 ARTHUR MARKS	
 	

 
	

Address:	
 	

 
	

c/o New Enterprise Associates

11951 Freedom Drive, Suite 1240

Reston, Virginia 20190	
 	

 
	

Foundation Medical Partners, L.P., a Delaware Limited Partnership	
 	

 
	

By:	
 	

Foundation Medical Managers, LLC	
 	

 
	

By:	
 	

/s/ Jonathan Cool
	
 	

 
	Name:	 	Jonathan Cool
	 	 
	Title:	 	Managing Member
	 	 
	

105 Rowayton Avenue

Rowayton, Connecticut 06853

Attention: Jonathan M.D. Cool	
 	

 

SECOND
AMENDED AND RESTATED

INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE 

  

 
 

EXHIBIT A    
    
    SCHEDULE OF INVESTORS    
    

Arthur
Marks

Biofrontier Global Investment Partnership

Foundation Medical Partners, L.P.

Guidant Investment Corporation

H&Q Healthcare Investors

H&Q Life Sciences Investors

IDEO Product Development Inc.

IngleWood Ventures, L.P.

Sanderling [Feri Trust] Venture Partners IV

Sanderling IV Biomedical Co-Investment Fund, L.P.

Sanderling IV Biomedical, L.P.

Sanderling IV Limited Partnership

Sanderling IV Venture Management

Sanderling V Beteiligungs GmbH & Co. KG

Sanderling V Biomedical Co-Investment Fund, L.P.

Sanderling V Limited Partnership

Sanderling V Ventures Management

Sanderling Venture Partners IV Co-Investment Fund, L.P.

Sanderling Venture Partners IV, L.P.

Sanderling Venture Partners V Co-Investment Fund, L.P.

    (the above Sanderling entities are collectively referred

    to as the "Sanderling Partnerships") 

A-1

  

 
 

EXHIBIT B    
    
    SCHEDULE OF FOUNDERS    
    

James
M. Sweeney

Karl A. Kail, IV

William G. Bloom

Terrence P. Ah Sing 

B-1

 
 

AMENDMENT TO
  SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT,
  SECOND AMENDED AND RESTATED VOTING AGREEMENT
  AND
  SECOND AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT    

        THIS AMENDMENT TO SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT, SECOND AMENDED AND RESTATED VOTING AGREEMENT AND SECOND AMENDED
AND RESTATED RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT (this "Amendment") is made and entered into as of
March 8, 2007, by and among CARDIONET, INC., a California corporation (the "Company"), and
the parties who are signatories hereto (the "Holders"). 

 
 

RECITALS    
    

        WHEREAS, the Company and the Holders are parties to (i) a Second Amended and Restated Investor Rights
Agreement dated March 18, 2004 (the "Investor Rights Agreement"), (ii) a Second Amended and Restated Voting Agreement dated
March 18, 2004 (the "Voting Agreement") and (iii) a Second Amended and Restated Right of First Refusal and Co-Sale Agreement
dated March 18, 2004 (the "ROFR and Co-Sale Agreement"); 

        WHEREAS, the Company is concurrently herewith consummating an equity financing transaction pursuant to a Subscription Agreement (the  "Subscription Agreement")
pursuant to which the Company may issue up to $114,883,000 of Mandatorily Convertible Preferred Stock (the  "Mandatorily Convertible Preferred"); 

        WHEREAS, (i) the provisions of the Investor Rights Agreement may be amended or waived with the written consent of (A) the
Company, (B) the holders of a majority of the Registrable Securities (as defined in the Investor Rights Agreement), voting together as a single class, (C) the holders of
662/3% of the outstanding Series B Preferred Stock, voting together as a single class and (D) the holders of 662/3% of the outstanding Series C
Preferred Stock and Series D Preferred Stock, voting together as a single class, (ii) the provisions of the Voting Agreement may be amended or waived with the written consent of
(A) the Company, (B) a majority in interest of the Key Holders (as defined in the Voting Agreement), (C) the holders of at least 662/3% of the outstanding
Series B Preferred Stock and (D) the holders of at least 662/3% of the outstanding Series C Preferred Stock and Series D Preferred Stock, voting together as
a separate class and (iii) the provisions of the ROFR and Co-Sale Agreement may be amended or waived with the written consent of (A) as to the Company, the Company,
(B) as to the holders of the Series B Preferred Stock, persons holding at least 662/3% of the outstanding Series B Preferred Stock, (C) as to the holders of
Series C Preferred Stock and/or Series D Preferred Stock,
persons holding at least 662/3% of the outstanding Series C Preferred Stock and Series D Preferred Stock, voting together as a single class, and (D) as to any
Founder, only such Founder; 

        WHEREAS, the Holders hold the requisite number of shares needed, together with the Company's consent, to amend or waive the provisions of
the Investor Rights Agreement, the Voting Agreement and the ROFR and Co-Sale Agreement; and 

        WHEREAS, in connection with the transactions contemplated by the Subscription Agreement, the Holders and the Company desire to amend or
waive certain provisions of the Investor Rights Agreement, Voting Agreement and ROFR and Co-Sale Agreement, all as more fully set forth herein. 

 
 

AGREEMENT    
    

        NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and conditions set for the
below, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties to this Amendment hereby agree as follows: 

        1.    Amendment of Investor Rights Agreement.    The Company and the
Holders hereby agree, on behalf of themselves and all other parties to the Investor Rights Agreement, that the Investor Rights Agreement shall be amended as follows: 

        (a)   The definition of "Shares" in Section 1.1 of the Investor Rights Agreement is hereby amended and restated in its
entirety to read as follows: 

        ""Shares"
shall mean the Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series D-1 Preferred Stock held by the
Investors listed on Exhibit A hereto and their permitted assigns." 

        (b)   The following sentence is hereby added at the end of the first paragraph of Section 2.3 of the Investor Rights
Agreement: 

        "Notwithstanding
the foregoing or anything to the contrary contained herein, the rights set forth in this Section 2.3 shall not permit any Holder to include all or any part of the
Registrable Securities held by it in the registration required to be effected pursuant to Section 2.2 of the Registration Rights Agreement dated on or about March 8, 2007 by and among
the Company and the Investors listed therein (the "Registration Rights Agreement")." 

        (c)   The third sentence of Section 2.3(a) of the Investor Rights Agreement is hereby amended and restated in its
entirety to read as follows: 

        "Notwithstanding
any other provision of the Agreement, if the underwriter determines in good faith that marketing factors require a limitation of the number of shares to be underwritten,
the number of shares that may be included in the underwriting shall be allocated, first, to the Company; second, to the Holders (as defined in the Registration Rights Agreement), in accordance with
the terms of the Registration Rights Agreement; third, to the Holders (other than the Founders) on a pro rata basis based on the total number of Registrable Securities held by such Holders; fourth, to
the Founders on a pro rata basis; and fifth, to any other shareholders of the Company (other than a Holder, a Founder or a Holder under the Registration Rights Agreement) on a pro rata basis." 

        (d)   The fourth sentence of Section 2.3(a) of the Investor Rights Agreement is hereby deleted in its entirety. 

        (e)   Section 2.12 of the Investor Rights Agreement is hereby amended and restated in its entirety to read as follows: 

        "2.12 Limitation on Subsequent Registration Rights.    Other than pursuant to the Registration Rights Agreement or as otherwise
provided in Section 5.11, after the date of this Agreement, the Company shall not, without the separate prior written consents of the holders of at least a majority of (i) the
Series B Preferred Stock then outstanding, voting together as a separate class, and (ii) the Series C Preferred Stock, Series D Preferred Stock and
Series D-1 Preferred Stock then outstanding, voting together as a separate class, enter into any agreement with any holder or prospective holder of any securities of the Company
that would grant such holder registration rights senior to those granted to the Holders hereunder." 

        (f)    The reference to a "Series B/C/D Director" in Section 4.6 of the Investor Rights Agreement is hereby
amended and restated to read "Series B/C/D/D-1 Director". 

        (g)   The reference to a "3,700,000" in Section 4.6(a) of the Investor Rights Agreement is hereby amended and restated
to read "5,100,000". 

        (h)   Section 4.6 of the Investor Rights Agreement is amended to add new subsection (i) thereunder to read in
full as follows: 

        "(i)  shares
of Mandatorily Convertible Preferred Stock issued pursuant to the Subscription Agreement and the shares of Common Stock issuable upon conversion of such shares
of Mandatorily Convertible Preferred Stock." 

        (i)    The references to "Series C Preferred Stock and Series D Preferred Stock" in Sections 5.6(a) and 5.6(b) of
the Investor Rights Agreement are hereby amended and restated to read "Series C Preferred Stock, Series D Preferred Stock and Series D-1 Preferred Stock". 

        2.    Amendment of Voting Agreement.    The Company and the Holders
hereby agree, on behalf of themselves and all other parties to the Voting Agreement, that the Voting Agreement shall be amended as follows: 

        (a)   The first sentence of the first paragraph of Section 1.2 of the Voting Agreement is hereby amended and restated in
its entirety to read as follows: 

        "For
so long as an aggregate of at least 5,000,000 shares of Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and
Series D-1 Preferred Stock (collectively, the "Senior Preferred Stock") remain outstanding (subject to adjustment for stock splits, dividends or the like), the authorized size of
the Company's Board of Directors shall be fixed at eight (8) members." 

        (b)   Section 1.2(b) of the Voting Agreement is hereby amended and restated in its entirety to read as follows: 

        "At
each election of directors in which the holders of Series A Preferred Stock and Common Stock, voting together as a single class, are entitled to elect one or more
Series A/ Common Directors of the Company (as defined in Article IV, Section 3.3(b) of Article IV of the Company's Amended and Restated Articles of Incorporation, as may be
amended from time to time (the "Articles"), the Key Holders and
Investors shall vote all of their respective Key Holder Shares and Investor Shares entitled to vote for Series A/Common Directors so as to elect one or two individuals, as applicable, nominated
by the holders of a majority in interest of the Key Holder Shares as Series A/Common Directors; provided, however, that one such nominated individual shall be the Company's Chief Executive
Officer, unless otherwise agreed to by the Investors holding a majority of the outstanding Senior Preferred Stock. Any vote taken to remove any director elected pursuant to this Section 1.2(b),
or to fill any vacancy created by the resignation or death of a director elected pursuant to this Section 1.2(b), shall also be subject to the provisions of this Section 1.2(b)." 

        (c)   Section 1.2(c) of the Voting Agreement is hereby amended and restated in its entirety to read as follows: 

        "At
each election of directors in which the holders of the Senior Preferred Stock, voting together as a single class, are entitled to elect four
(4) Series B/C/D/D-1 Directors of the Company (as defined in Section 3.3(b) of Article IV of the Articles), the Investors shall vote all of their respective
Investor Shares so as to elect: (i) one (1) individual nominated by the Sanderling partnerships or funds which are parties to this Agreement (collectively, the "Sanderling
Partnerships"), or, if the Sanderling Partnerships hold less than 2,500,000 shares of the Senior Preferred Stock (subject to adjustment for stock splits, dividends or the like), one
(1) individual nominated by the holders of a majority in interest of the Investor Shares; (ii) one (1) individual nominated by Guidant Investment Corporation ("Guidant") but only
if Guidant holds at least 1,071,429 shares of the Senior Preferred Stock (subject to adjustment for stock splits, dividends or the like); (iii) one (1) individual nominated by Foundation
Medical Partners, L.P. ("Foundation Medical Partners"), or if Foundation Medical Partners holds less than 800,000 shares of the Senior Preferred Stock (subject to adjustment for stock splits,
dividends or the like), one (1) individual nominated by the holders of a majority in interest of the Investor Shares; and (iv) one (1) individual nominated by the holders of a
majority in interest of the Investor Shares. At each 

election
of directors in which the holders of the Senior Preferred Stock, voting together as a single class, are entitled to elect two (2) Series B/C/D/D-1 Directors, the
Investors shall vote all of their respective Investor Shares so as to elect: (i) one (1) individual nominated by the Sanderling Partnerships, or, if the Sanderling Partnerships hold less
than 2,500,000 shares of the Senior Preferred Stock (subject to adjustment for stock splits, dividends or the like), one (1) individual nominated by the holders of a majority in interest of the
Investor Shares; and (ii) one (1) individual nominated by Guidant but only if Guidant holds at least 1,071,429 shares of the Senior Preferred Stock (subject to adjustment for stock
splits, dividends or the like). Any vote taken to remove any director elected pursuant to this Section 1.2(c), or to fill any vacancy created by the resignation, death or removal of a director
elected pursuant to this Section 1.2(c), shall also be subject to the provisions of this Section 1.2(c). Any waiver, modification, amendment or termination of this Section 1.2(c)
as it relates to Foundation Medical Partners shall require the prior written consent of Foundation Medical Partners. Guidant acknowledges and agrees that the Company reserves the right not to provide
information to its nominee elected pursuant to clause (ii) above and to exclude such nominee from any meeting or portion thereof if delivery of such information or attendance at such meeting by
such nominee would result in disclosure of trade secrets to such nominee which could directly benefit Guidant to the competitive disadvantage of the Company or, based on the advice of counsel, would
adversely affect the attorney-client privilege between the Company and its counsel. Guidant further agrees to advise its nominee to abstain from the deliberations and voting for any matter in which
Guidant has a direct interest." 

        (d)   The reference to "Series C Preferred Stock and Series D Preferred Stock" in Section 3.5 of the
Voting Agreement is hereby amended and restated to read "Series C Preferred Stock, Series D Preferred Stock and Series D-1 Preferred Stock". 

        3.    Amendment of ROFR and Co-Sale Agreement.    The
Company and the Existing Holders hereby agree, on behalf of themselves and all other parties to the ROFR and Co-Sale Agreement, that the ROFR and Co-Sale Agreement shall be
amended as follows: 

        (a)   Section 2(f)(ii) of the ROFR and Co-Sale Agreement is hereby amended and restated in its
entirety to read as follows: 

        "(ii) that
number of shares of Series B Preferred Stock of the Company (the "Series B Preferred Stock"), Series C Preferred Stock of the Company (the
"Series C Preferred Stock"), Series D Preferred Stock of the Company (the "Series D Preferred Stock") or Series D-1 Preferred Stock of the Company (the
"Series D-1 Preferred Stock") which is at such time convertible into the number of shares of Common Stock which such Co-Sale Participant elects to sell; provided,
however, that if the prospective purchaser objects to the delivery of Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock or Series D-1
Preferred Stock in lieu of Common Stock, such Co-Sale Participant shall convert such shares of Preferred Stock into Common Stock and deliver Common Stock as provided in
Section 2(f)(i) above. The Company agrees to make any such conversion concurrent with the actual transfer of such shares to the purchaser." 

        (b)   Section 6(c)(iii) of the ROFR and Co-Sale Agreement is hereby amended and restated in its
entirety to read as follows: 

        "(iii) as
to the holders of Series C Preferred Stock, Series D Preferred Stock and/or Series D-1 Preferred Stock, persons holding at least
662/3% of the outstanding Series C Preferred Stock, Series D Preferred Stock, and Series D-1 Preferred Stock, voting together as a single class" 

        4.    Waiver of Rights of First Offer.    The undersigned Holders
hereby waive, for and on behalf of all Major Investors pursuant to Section 5.6 of the Investor Rights Agreement, the right to receive notice under Section 4 of the Investor Rights
Agreement and waive the rights of first offer set forth in Section 4 of the Investor Rights Agreement with respect to the issuance of the Mandatorily Convertible Preferred that may be issued
pursuant to the Subscription Agreement and any shares of Common Stock issuable upon conversion of the shares of Mandatorily Convertible Preferred. 

        5.    Miscellaneous.    

        (a)   Except as specifically amended by this Amendment, the terms and conditions of the Investor Rights Agreement, the Voting
Agreement and the ROFR and Co-Sale Agreement shall remain in full force and effect. 

        (b)   This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Facsimile signatures shall be as effective as original signatures. 

        (c)   Each party hereto agrees to execute and deliver, or cause to be executed and delivered, such further instruments or
documents or take such other actions as may be reasonably necessary to consummate the transactions contemplated by this Amendment. 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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

	CARDIONET, INC., a California Corporation	 	 
	

By:	

/s/  JAMES M. SWEENEY      
 James M. Sweeney

Chief Executive Officer	
 	

 
	

Address:	
 	

 
	

227 Washington Street

Suite 300

Conshohocken, PA 19428	
 	

 
	Attn:	James M. Sweeney

Chief Executive Officer	 	 
	

GUIDANT INVESTMENT CORPORATION	
 	

 
	

By:	

/s/  R. FREDERICK MCCOY, JR.      
	
 	

 
	Name:	R. Frederick McCoy, Jr.
	 	 
	Title:	Vice-President
	 	 
	

Address:	
 	

 
	

4100 Hamline Avenue N. M/S 10-214

St. Paul, MN 55112-5798

Attention: Bruce KenKnight	
 	

 
	

INGLEWOOD VENTURES, L.P., a Delaware limited partnership	
 	

 
	

By:	

Inglewood, LLC, a California limited liability company, General Partner	
 	

 
	

By:	

/s/  DANIEL C. WOOD      
 Daniel C. Wood, Member	
 	

 
	

Address:	
 	

 
	

12526 High Bluff Drive, Suite 300

San Diego, California 92130

Attn: Daniel C. Wood, CFA	
 	

 

[AMENDMENT SIGNATURE PAGE]

	/s/  JAMES M. SWEENEY      
 JAMES M. SWEENEY	 	 
	

Address:

3616 Rosecroft Lane

San Diego, California 92106	
 	

 
	

/s/  KARL A. KAIL, IV      
 KARL A. KAIL, IV	
 	

 
	

Address:

R.R.1, Box 135

Montrose, PA 18801-9728	
 	

 
	

/s/  WILLIAM G. BLOOM      
 WILLIAM G. BLOOM	
 	

 
	

Address:

552 Oceanview Avenue

Encinitas, California 92024	
 	

 
	

/s/  TERRENCE P. AH SING      
 TERRENCE P. AH SING	
 	

 
	

Address:

1525 Orangeview Drive

Encinitas, California 92024	
 	

 
	

IDEO PRODUCT DEVELOPMENT INC., a Michigan corporation	
 	

 
	

By:	
 	

    
	
 	

 
	 	 	Name:	 	    
	 	 
	 	 	Title:	 	    
	 	 
	

Address	
 	

 
	

700 High Street

Palo Alto, California 94301

Attn: Don Westwood	
 	

 
	

BIOFRONTIER GLOBAL INVESTMENT PARTNERSHIP, a Japanese civil law partnership	
 	

 
	

By:	
 	

Biofrontier Partners Co., Ltd., General Partner	
 	

 
	

By:	
 	

/s/  YOSHIHIRO OHTAKI          
 Yoshihiro Ohtaki, President	
 	

 
	

Address:	
 	

 
	

K.I. Kousan Tokyo Building, 3rd Floor

2-3-14 Yaesu, Chuo-ku

Tokyo, Japan 104-0028

Attn: Yoshihiro Ohtaki	
 	

 

[AMENDMENT SIGNATURE PAGE] 

	
SANDERLING VENTURE PARTNERS V CO-INVESTMENT FUND, L.P.	
 	

 
	

By:	
 	

Middleton, McNeil & Mills Associates V, LLC	
 	

 
	

 	
 	

By:	
 	

/s/  FRED A. MIDDLETON      
 Fred A. Middleton

Managing Director	
 	

 
	
SANDERLING V BIOMEDICAL CO-INVESTMENT FUND, L.P.	
 	

 
	

By:	
 	

Middleton, McNeil & Mills Associates V, LLC	
 	

 
	

 	
 	

By:	
 	

/s/  FRED A. MIDDLETON      
 Fred A. Middleton

Managing Director	
 	

 
	
SANDERLING V LIMITED PARTNERSHIP	
 	

 
	

By:	
 	

Middleton, McNeil & Mills Associates V, LLC	
 	

 
	

 	
 	

By:	
 	

/s/  FRED A. MIDDLETON      
 Fred A. Middleton

Managing Director	
 	

 
	
SANDERLING V BETEILIGUNGS GMBH & CO. KG	
 	

 
	

By:	
 	

Middleton, McNeil & Mills Associates V, LLC	
 	

 
	

 	
 	

By:	
 	

/s/  FRED A. MIDDLETON      
 Fred A. Middleton

Managing Director	
 	

 
	
SANDERLING V VENTURES MANAGEMENT	
 	

 
	

By:	
 	

/s/  FRED A. MIDDLETON      
 Fred A. Middleton

Owner	
 	

 
	
SANDERLING VENTURE PARTNERS IV CO-INVESTMENT FUND, L.P.	
 	

 
	

By:	
 	

/s/  FRED A. MIDDLETON      
 Fred A. Middleton

General Partner	
 	

 
	
SANDERLING IV BIOMEDICAL CO-INVESTMENT FUND, L.P.	
 	

 
	

By:	
 	

/s/  FRED A. MIDDLETON      
 Fred A. Middleton

General Partner	
 	

 
	
SANDERLING IV VENTURE MANAGEMENT	
 	

 
	

By:	
 	

/s/  FRED A. MIDDLETON      
 Fred A. Middleton

Owner	
 	

 

[AMENDMENT SIGNATURE PAGE]

	SANDERLING VENTURE PARTNERS IV, L.P.	 	 
	

By:	
 	

/s/  FRED A. MIDDLETON      
 Fred A. Middleton

General Partner	
 	

 
	
SANDERLING IV LIMITED PARTNERSHIP	
 	

 
	

By:	
 	

/s/  FRED A. MIDDLETON      
 Fred A. Middleton

General Partner	
 	

 
	
SANDERLING IV BIOMEDICAL, L.P.	
 	

 
	

By:	
 	

/s/  FRED A. MIDDLETON      
 Fred A. Middleton

General Partner	
 	

 
	
SANDERLING [FERI TRUST] VENTURE PARTNERS IV	
 	

 
	

By:	
 	

/s/  FRED A. MIDDLETON      
 Fred A. Middleton

General Partner	
 	

 

	H&Q HEALTHCARE INVESTORS, a

    Massachusetts business trust	 	 
	 	 	 	 	 
	

By:	
 	

/s/ DAN OMSTEAD
 Dan Omstead, President	
 	

 
	
Limitation of Liability	
 	

 
	

The name H&Q Healthcare Investors is the designation of the Trustees for the time being under an Amended and Restated Declaration of Trust dated April 21, 1987, as amended, and all persons dealing with H&Q Healthcare Investors, must look
solely to the trust property for the enforcement of any claims against H&Q Healthcare Investors, as neither the Trustees, officers nor shareholders assume any personal liability for the obligations entered into on behalf of H&Q Healthcare
Investors.	
 	

 
	

Address:	
 	

 
	

30 Rowes Wharf, Suite 430

Boston, MA 02110-3328	
 	

 
	

H&Q LIFE SCIENCES INVESTORS, a

    Massachusetts business trust	
 	

 
	 	 	 	 	 
	

By:	
 	

/s/ DAN OMSTEAD
 Dan Omstead, President	
 	

 
	
Limitation of Liability	
 	

 
	

The name H&Q Life Sciences Investors is the designation of the Trustees for the time being under a Declaration of Trust dated February 20, 1992, as amended, and all persons dealing with H&Q Life Sciences Investors, must look solely to
the trust property for the enforcement of any claims against H&Q Life Sciences Investors, as neither the Trustees, officers nor shareholders assume any personal liability for the obligations entered into on behalf of H&Q Life Sciences
Investors.	
 	

 
	

Address:	
 	

 
	

30 Rowes Wharf, Suite 430

Boston, MA 02110-3328	
 	

 

[AMENDMENT SIGNATURE PAGE] 

	
 ARTHUR MARKS	 	 
	

Address:	
 	

 
	

c/o New Enterprise Associates

11951 Freedom Drive, Suite 1240

Reston, Virginia 20190	
 	

 
	
FOUNDATION MEDICAL PARTNERS, L.P., 

    a Delaware Limited Partnership	
 	

 
	

By: Foundation Medical Managers, LLC	
 	

 
	 	 	 	 	 
	

By:	
 	

/s/  JONATHAN COOL      
	
 	

 
	Name:	 	Jonathan Cool
	 	 
	Title:	 	Managing Member
	 	 

105
Rowayton Avenue

Rowayton, Connecticut 06853

Attention: Harry T. Rein 

[AMENDMENT SIGNATURE PAGE] 

QuickLinks

Exhibit 10.10

CARDIONET, INC. SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

TABLE OF CONTENTS

CARDIONET, INC. SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

EXHIBIT A SCHEDULE OF INVESTORS

EXHIBIT B SCHEDULE OF FOUNDERS

AMENDMENT TO SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT, SECOND AMENDED AND RESTATED VOTING AGREEMENT AND SECOND AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT

RECITALS

AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]