Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.7    
    

 
 

EMPLOYMENT AND NON-COMPETITION AGREEMENT    
    

        THIS EMPLOYMENT AND NON-COMPETITION AGREEMENT (the "Agreement"), is made and entered into effective as of January 1st 2007, by
and between and PDSHEART, INC., a Delaware corporation (the "Company"), and Gregory A. Marsh (the "Employee"). Capitalized terms used herein and not otherwise defined herein shall have the
meanings ascribed thereto in the Certificate of Incorporation of the Corporation dated as of 1st day of October 2003. 

RECITALS  

        WHEREAS, the Employee has agreed to enter into this Agreement in order to assure the Company of Employee's involvement in the conduct of the Company's business,
subject to the terms and conditions as hereinafter provided; and 

        WHEREAS,
the Company desires to employ the Employee as Chief Financial and Operating Officer of the Company and the Employee desires to be employed by the Company in such capacity, upon
the terms and conditions set forth in this Agreement. 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto agree as follows: 

ARTICLE I  

 EMPLOYMENT AND SERVICES  

        1.01    Capacity and Services.    The Company hereby employs the Employee to serve in the capacity of Chief Financial
Officer (CFO) and or Chief Operating Officer (COO), and the Employee hereby accepts such employment, upon the terms and conditions set forth in this Agreement. During the period the Employee is
employed by the Company, the Employee shall devote substantially all of his attention and energy on a full-time basis to the business and affairs of the Company and use his best efforts to
promote its interests. While the Company employs the Employee, the Employee shall neither accept nor hold any other employment without approval of the Board of Directors (excluding the Employee, if a
director) of the Company. Such services to be provided by the Employee hereunder shall be provided for the benefit of the Company and the Affiliated Companies without regard to whether any of the
Company's operations are conducted directly by the Company or an Affiliated Company, or through any subsidiaries, joint ventures or an unincorporated division of the Company or any Affiliated Company.
As CFO and or COO of the Company, the Employee shall have the power and responsibility normally associated with such positions and shall report to the Chief Executive Officer (CEO) and the Board of
Directors. 

        1.02    "At Will" Employment.    Employee understands and acknowledges that his employment with the Company is for an
unspecified duration and constitutes "at-will" employment. Employee also understands that any representation to the contrary is unauthorized and not valid unless obtained in writing and
signed by a majority of the Board of Directors (excluding the Employee, if a director) of the Company. Employee acknowledges that his employment relationship maybe terminated at any time with or
without Cause (as defined in Section 2.01(c) herein) or for any or no reason, at the option either of the Company or Employee, notice will be
given in accordance with Section 2.01(b) below. The terms of this agreement do not create either an express or implied contract of employment with the Company for any particular period of time.
Notwithstanding any of the foregoing, the employee shall be entitled to receive any and all benefits as defined in Section 2.02(b), in the event of termination without Cause. 

        1.03    Total Compensation.    During the Term, the Company shall pay the Employee Total Compensation (herein defined)
of: an annual base salary of Two Hundred Fifty Three Thousand Dollars ($253,000.00) ("Annual Base Salary"), an Annual Health Benefit Allowance of Eleven Thousand Six Hundred ($11,600.00), and an
annual Automobile Allowance of Eight Thousand Four 

 

Hundred
Dollars ($8,400.00), which amounts shall be payable in conformity with the Company's customary practices, as such practices shall be established or modified from time to time, and which may be
increased (but not decreased) from time to time by the Compensation Committee of the Board of Directors, (the "Compensation Committee"). Total Compensation payments set forth herein shall be subject
to all applicable withholdings. "Total Compensation" means the amounts set forth herein, together with any periodic increases approved by the Compensation Committee to the base salary, fringe
benefits, business expenses, health benefits, auto allowances or severance pay, which additional amounts are automatically incorporated into this agreement by virtue of such action. 

        1.4    Bonus.    In addition to the Total Compensation, the Employee shall be eligible to receive an annual bonus as
outlined and defined by the Compensation Committee at the beginning of each year which is targeted at thirty percent (30%) of the Annual Base Salary ("Annual Bonus");  provided, that, the Employee is employed by the Company or its Affiliated Companies at
year-end. The amount of the Annual Bonus, if any, shall be determined by the CEO and approved by the Compensation Committee. 

        1.5    Fringe Benefits.    The Employee shall be entitled to participate in any incentive, savings, retirement,
welfare, premiums for family medical coverage and other employee benefit plan sponsored by the Company. The Employee shall receive four (4) weeks of paid time off. The paid time off may be
taken at such times and intervals as determined by the Employee, subject to the reasonable business needs of the Company. Accrued unused paid time off may be carried over in accordance with the
Company's policies. 

        1.06    Business Expenses.    During the Term, the Company will reimburse Employee for all reasonable travel and
out-of-pocket expenses actually incurred by him for the purpose of and in connection with performing his services to the Company hereunder. Such reimbursement shall be made
upon presentation by Employee, to the Company of vouchers or other statements itemizing such expenses in reasonable detail, and otherwise in accordance with the reimbursement policies adopted from
time to time by the Company. 

ARTICLE II  

 TERMINATION OF EMPLOYMENT  

        2.01    Termination upon Death, Disability or for Cause    

        (a)   Notwithstanding
any other provision of this Agreement to the contrary, this Agreement, and the Employee's employment under the terms of this Agreement, will terminate
immediately upon the first of the following events to occur: 

          (i)  The
Employee's death or Disability (as defined in Section 2.0l(d)); or 

         (ii)  Termination
of the Employee's employment for Cause by the Company. 

        (b)   If
the Company, by majority vote of the Board of Directors (excluding the Employee, if a director), desires to terminate the Employee for Cause, the Company shall give
the Employee written notice of termination (the "Termination Notice"), which notice shall indicate in reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Employee's employment for Cause. The Employee's employment shall be deemed terminated as of the date of the Termination Notice. Notwithstanding the foregoing, in the case of a termination based on  Section 2.01(c)(iv)
 below, the Employee shall have a period of ten (10) days after the date of the Termination Notice to provide to the
Board of Directors (excluding the Employee, if a director) any additional information deemed by the Employee to be relevant to the issue of whether "Cause" exists for termination, and at the end of
the 10-day period, the Board of Directors (excluding the Employee, if a director) will, by majority vote, make a final determination as to whether or not "Cause" exists to terminate the
Employee and will notify the Employee in writing of such determination; provided, however, the Board of
Directors (excluding the Employee, if a director), in its sole discretion, may suspend the Employee with pay 

2

 

pending
the Board of Directors's final determination, commencing on the date of the Termination Notice. 

        (c)   For
purposes of this Agreement, "Cause" shall mean the Employee (i) has materially breached the terms of this Agreement, including, without limitation,
Article III and such breach is not cured within thirty (30) days of his receipt of written notice of such breach from the Company; (ii) has materially breached a fiduciary duty or
engaged in a material breach of trust, has willfully violated an important written policy of the Company relating to the honest or ethical conduct of business, has committed a criminal act or act of
moral turpitude, has been imprisoned for any serious crime, or has perpetuated a fraud upon the Company; (iii) has materially misrepresented his or her credentials or has engaged in any other
act or omission which constitutes gross misconduct, gross incompetence or deliberate disobedience or which causes material harm to the Company. 

        (d)   For
purposes of this Agreement, "Disability" is defined and determined to exist whenever Employee, while actively employed by the Company, becomes incapable, with or
without reasonable accommodation, by reason of physical or mental impairment, of performing the essential functions of his/her job on behalf of the Company. It is understood between the parties that
disability, under the terms of this Agreement, shall always refer to total and not partial incapacity to perform the essential functions of Employee's job on behalf of the Company. Either of the
following shall be conclusive determinations of total disability as defined herein: (1) a decision by an insurance company to pay total disability benefits after a specified waiting period to
Employee, the determination of which shall relate back and be effective at the beginning of such waiting period; or (2) a decision to such effect by the Company based upon the results of a
medical examination conducted by a qualified physician who is not an employee of, or otherwise associated with, the Company. 

        2.02    Payments Upon Termination, Severance Package and Change of Ownership Provision.    

        (a)   In
the event of termination of the Employee's employment due to an event of termination set forth in  Section 2.01(a) above or due to the Employee's voluntary termination of employment, the Company
shall have no further obligations or liability to
the Employee hereunder except (i) to pay to the Employee or the Employee's estate, if applicable, the amount of the Employee's Total Compensation up to the day as of which the Employee's
employment is terminated, (ii) to reimburse the Employee or the Employee's estate, if applicable, for his business expenses incurred through the date of termination (iii) to pay any
fringe benefits pursuant to Section 1.05 which have accrued through the date of termination in accordance with Company policies in effect at the
time of termination, and (iv) any bonus amounts otherwise due for periods up to the date of termination but yet unpaid. 

        (b)   In
the event of the Company's termination of the Employee's employment due to events other than those events set forth in  Section 2.01(a) (i.e., a termination without Cause) or if a "Deemed
Termination" occurs, in any event within twelve months following a Change in
Ownership, the Employee shall be entitled to continue to receive (i) the amounts described in Section 2.02(a) above, plus (ii) as
his sole severance benefit, eighteen (18) months of his Annual Base Salary plus health coverage (including medical, dental and vision) as provided through the Company sponsored plan or in the
event that is not available to the Employee the Company shall provide payment of the COBRA benefits for the eighteen (18) month period following his termination, plus a pro-rated
portion of the Annual Bonus, assuming the maximum Annual Bonus was achieved, which shall not be subject to the Board of Directors' discretion. 

        (c)   For
purposes of this Agreement, "Deemed Termination" is defined and determined to exist whenever the Employee's position, (including status, offices, titles and
reporting requirements, authority, duties, responsibilities) and/or Total Compensation are no longer commensurate, in all material respects, with the Employees most significant position and Total
Compensation at any time during the 180 day period immediately preceding the change. "Change of Ownership" is defined as the 

3

 

sale
of substantially of the assets of the Company, the sale of 50% or greater of the equity ownership interests of the Company, or a merger, consolidation or similar transaction involving the
Company. 

        (d)   All
payments under this Section 2.02 are expressly conditioned upon the Employee's continued and strict compliance
with the terms of Article III hereunder and all other agreements to which the Company and the Employee are parties, if any. Employee's right to severance compensation described in  Section 2.02(b) is expressly conditioned on Employee's execution of a release in favor of the Company in a form reasonably satisfactory to the
Company and the Employee. 

ARTICLE III  

 RESTRICTIVE COVENANTS  

        The parties acknowledge that the Company and the Affiliated Companies either now or will in the future conduct business throughout the United States. Further, the
parties acknowledge that the Employee is extremely knowledgeable about the Company and the Affiliated Company's services, pricing, operations and customers. Employee acknowledges that Employee makes
the following restrictive covenants as consideration to protect and preserve valuable confidential business and professional information of the Company, its substantial business relationships with
specific prospective and existing clients and customers, and trade or professional practice secrets associated with its operations. 

        3.01    Confidentiality.    Under no circumstances and at no time, during or after the Employee's employment with the
Company or any Affiliated Company, shall the Employee in any manner whether directly or indirectly, use for his own benefit or the benefit of any other person, firm, entity or corporation or disclose,
divulge, render or offer, any knowledge or information with respect to the confidential affairs or plans, trade secrets or know-how of the Company or any Affiliated Company, and any of
their subsidiaries and affiliates, including, without limitation, any work product prepared by the Employee in the course of his employment with the Company ("Confidential Information"), except on
behalf of the Company in the course of the proper performance of his duties hereunder or except as compelled by any court order, subpoena or other legal proceeding (so long as the Employee provides
the Company with timely notice of such and an opportunity to contest the legal validity of such matter). The Employee acknowledges and agrees that any and all such Confidential Information will be
received and held by him in a confidential capacity, and that disclosure of such Confidential Information would pose a direct threat to the Company in the hands of its competitors. For purposes of
this Section 3.01, the term "Confidential Information" shall not include any information which is generally available to the public other than as
a result of a disclosure by the Employee or is properly obtained by the Employee from a third party who has a valid right to possess and disclose such information and is not under any obligation to
the Company to keep such information confidential. Employee shall instruct all the agents, employees, or representatives of Employee, if any, to maintain the confidentiality of all Confidential
Information. Employee shall not duplicate or reproduce any Confidential Information except as necessary to render and furnish services to the Company. If the Company requests the return of any
Confidential Information, Employee promptly (and in any event within five days) shall return to the Company all Confidential Information and all copies and any analyses, synopses, summaries, and
reproductions of Confidential Information. Employee acknowledges that the Company makes no warranty or representation concerning the accuracy or completeness of any Confidential Information. Employee
shall not place any Confidential Information on his personal storage devices. At the request of the Company at any time during or after termination of employment or engagement by the Company, Employee
shall grant the Company access to any written report or any personal computer, lap top computer, and computer tapes, diskettes, and other electronic storage devices that are owned by the Company or
Employee, for the purpose of determining whether they contain any Confidential Information that should be returned to the Company. 

4

 

        3.02    Covenant Not to Compete; Non-Solicitation.    

        (a)   During
such time as Employee is employed by the Company and for a period of two (2) years from the date on which the Employee ceases, for whatever reason, to be
employed by the Company or any Affiliated Company (the "Non-Competition Term"), the Employee hereby agrees that he will not, singly, jointly, or as an employee, agent or partner of any
partnership or as an officer, agent, employee, director, stockholder (except for not more than two percent (2%) of the outstanding stock of any company listed on a national securities exchange or
actively traded in the over-the-counter market), member or investor in any other corporation or entity, or as a consultant, advisor, or independent contractor to any such
partnership, corporation or entity, or in any other capacity, directly, indirectly or beneficially: 

          (i)  own,
manage, operate, join, control, or participate in the ownership, management, operation, or control of, or work for (as an employee, agent, consultant, advisor or
independent contractor), or permit the use of his name by, or provide financial or other assistance to, any person, partnership, corporation, or entity which is in direct or indirect competition
within the United States (the "Protected Territory") with (A) the business as conducted by the Company or any of the Affiliated Companies on the date hereof or at any time during the Employee's
employment with the Company or an Affiliated Company or (B) any other business in which the Company or an Affiliated Company, on the date hereof or at any time during Employee's employment with
the Company or an Affiliated Company, has developed an intention to engage and for which the Company or an Affiliated Company has invested in excess of $25,000, directly or indirectly, known
(Developing Business). 

         (ii)  employ,
retain or engage (as an employee, consultant or independent contractor) any person who, on the date hereof or at any time hereafter is or was an employee or
independent contractor of the Company or any of the Affiliated Companies except in the proper performance of his duties hereunder; provided,  however, that
during the time Employee is employed by the Company, the Employee may engage, at his cost, an employee of the Company or an Affiliated
Company to perform work outside of normal business hours which is not related to the business of the Company or any business described in Section 3.02(a)(i) hereof and does not interfere with
such employee's performance of his duties to the Company and its Affiliated Companies; or 

        (iii)  induce
or attempt to induce any person who, on the date hereof or at any time hereafter is an employee or independent contractor of the Company or any Affiliated
Company as of the date hereof, to terminate his or her employment or relationship with the Company or an Affiliated Company, except in the proper performance of his duties hereunder; or 

        (iv)  induce
or attempt to induce any person, business, or entity which is a contracting party or has a business relationship with the Company or any Affiliated Company, as
of the date hereof or at any time hereafter (a "Contracting Party"), to terminate or modify in any way adverse to the interests of the Company or any
Affiliated Company, any written or oral agreement or understanding with the Company or any Affiliated Company, except in the proper performance of his duties hereunder, and if any Contracting Party or
former Contracting Party attempts to induce or solicit the Employee to perform or provide any services for it other than in connection with the Company's, or an Affiliated Company's activities, which
such services would violate the provisions of this Agreement, including, without limitation, the provisions of Section 3.02(a)(i) hereof, Employee shall immediately reject such offer or
solicitation and inform such Contracting Party or former Contracting Party of the restrictions and obligations imposed on the Employee by this Agreement and inform the Company of such offer or
solicitation. 

        (b)   Employee
acknowledges, stipulates, and agrees that the preceding restrictions are reasonable as to geographical area, time, and line of business and are reasonably
necessary to protect legitimate business interests of the Company, including trade secrets and professional information, other valuable 

5

 

confidential
or business information, substantial relationships with existing or prospective customers, and customer goodwill associated with the Company's trade name, ongoing business, and the
geographical area in which the Company conducts its business. To the extent the duration, geographical area, or line of business of any of the preceding restrictions would cause them to be
unenforceable in a particular jurisdiction, the restrictions automatically will be reformed for purposes of enforcement in that jurisdiction to a duration, geographical area, or line of business that
is valid and enforceable in that jurisdiction. Reformation of a restriction to validate its enforcement in any particular jurisdiction, however, will not affect the enforcement of the restriction as
stated in any other jurisdiction in which it is enforceable stated. Also, the invalidity of a restriction in any particular jurisdiction will not affect the validity or enforcement of the restriction
in another jurisdiction where it is otherwise valid. The duration of every restriction set forth in this section will be extended by any period during which Employee is in breach of its, his, or her
obligations. 

        3.03    Specific Performance.    The Employee agrees that his breach of the provisions of  Sections 3.01 or 3.02 above will
cause irreparable damage to the Company and the Affiliated Companies and that the recovery by the Company of
money damages will not constitute an adequate remedy for such breach. Accordingly, the Employee agrees that the provisions of Sections 3.01 or
3.02 above may be specifically enforced against him in addition to any other rights or remedies available to the Company on account of any such breach, and the Employee
expressly waives the defense in any equitable proceeding that there is an adequate remedy at law for any such breach. 

        3.04    Survival.    The terms and provisions of this Article III shall survive the termination of this
Agreement whether at the end of its term (subject to any extension thereof), or otherwise. 

        3.05    Absence of Other Restrictions on Competition.    Employee represents and warrants to the Company that Employee
is not a party to any restrictive covenant limiting its, his, or her right to work or perform services for the Company in any capacity whatsoever. Employee shall indemnify and hold harmless the
Company from all costs, damages, and liabilities that the Company incurs in connection with any suit or claim arising out of any restrictive contract, covenant, or agreement to which Employee is
subject on the date of this Agreement or was subject at the date Employee began employment or its association or engagement with the Company. 

        3.06    Company Property.    After termination of his association, employment, or engagement for any reason
whatsoever, Employee shall not retain or remove, without the Company's advance written consent, any list, data, book, record, design, manual, drawing, formula, document, schedule, source code,
specification, computer program or software, other property owned by the Company, or other written or electronic information pertaining to the business and financial affairs of the Company. 

ARTICLE IV  

 MISCELLANEOUS  

        4.01    Amendments; Waiver.    Any amendment to or modification of this Agreement, and any waiver of any provision
hereof, shall be in writing and shall require the prior written approval of the Company and the Employee. Any waiver by the Company of a breach of any provision of this Agreement shall not operate or
be construed as a waiver of any subsequent breach hereof. 

        4.02    Governing Law.    This Agreement shall be governed by and construed in accordance with the laws of the State
of Florida, excluding the laws of those jurisdictions pertaining to resolution of conflicts with laws of other jurisdictions. 

        4.03    Jurisdiction and Venue.    Employee and the Company (a) consent to the personal jurisdiction of the
state and federal courts having jurisdiction in Palm Beach County Florida, (b) stipulate that the sole and exclusive venue for any legal proceeding arising out of this Agreement shall be a
state or 

6

 

federal
court having jurisdiction in Palm Beach County, Florida, and (c) waive any defense, whether asserted by motion or pleading, that the venue described in (b) is an improper or
inconvenient venue. 

        4.04    Notices.    All notices or other communications required or sent hereunder shall be in writing and either
(a) hand delivered, (b) mailed by registered mail or certified mail, return receipt requested postage pre-paid, (c) sent by overnight mail or any other overnight
courier service, or (d) sent by facsimile transmission (with confirmed proof of receipt). All such notices shall be deemed effective upon sending thereof, and shall be addressed as follows: 

        If
intended for the Company, to: 

PDSHEART

Director of Human Resources

1801 Center Park Suite #110

West Palm Beach, Florida 33401 

If
intended for the Employee, to:

Mr. Gregory Marsh

10254 Hunt Club Lane

Palm Beach Gardens, FL 33418 

        4.05    Successors and Assigns.    The Company shall have the right to assign this Agreement to its respective
successors and assigns, and all covenants and agreements hereunder shall inure to the benefit of and be enforceable by said successors or assigns. This Agreement is personal to the Employee and shall
not be assigned, transferred, hypothecated, pledged or in any way encumbered by the Employee; provided, however, that the obligations of the Employee
hereunder shall be binding upon the Employee's estate. 

        4.06    Captions; Gender and Number.    The captions of the sections of this Agreement are for convenience of
reference only and in no way define, limit or affect the scope or substance of any section of this Agreement. The gender and number used in this Agreement are used as reference terms only and shall
apply with the same effect whether the parties are of the masculine, neuter or feminine gender, corporate or other form, and the singular shall likewise include the plural. 

        4.07    WAIVER OF JURY TRIAL.    EACH OF THE PARTIES HERETO HEREBY EXPRESSLY AND KNOWINGLY WAIVES THE RIGHT TO TRIAL
BY JURY IN ANY LEGAL PROCEEDING RELATING TO THIS AGREEMENT. 

        4.08    No Conflict.    The Employee hereby represents and warrants that the Employee is not a party to or bound by
any agreement or understanding of any type with any other person or entity that in any way conflicts with the terms of this Agreement or restricts the Employee's ability to enter into this Agreement. 

        4.09    Entire Agreement.    This Agreement constitutes the entire agreement between the parties and supersedes all
prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement. 

        4.10    Counterparts.    This Agreement may be signed in one or more counterparts and all counterparts so executed
shall constitute one agreement binding on all parties hereto, notwithstanding that all parties have not signed the original or the same counterpart. 

        4.11    Inventions.    All right, title, and interest, of every kind whatsoever, in the United States and throughout
the world, in any copyrights, trademarks, and any ideas, designs, discoveries, inventions, and improvements with economic value, whether or not patentable or capable of copyright or trademark
registration, created, developed, or conceived by Employee while associated with or employed or engaged by the Company (including periods prior to the date of this Agreement), shall be the sole 

7

 

property
of the Company. Employee shall execute all documents reasonably necessary as requested by the Company to create, enforce, or evidence the Company's right in the foregoing property. 

        4.12    Third Party Enforcement.    Any holder of Series A Preferred Stock may (but is not obligated to)
enforce this Agreement on behalf of the Company if the Company, within 15 days following notice from the holder, fails to enforce the Agreement following a breach of the Agreement by Employee.
The Company shall promptly reimburse the Series A Preferred Stock holder and its representatives for all costs associated with such enforcement, including, but not limited to all advance
retainers for legal or other services, and all other costs and shall indemnify and hold the Series A Preferred Stock holder harmless from all costs and liability that arise from all actions
taken by the Series A Preferred Stock holder in reliance upon this Section 4.12. 

        4.13    Costs.    In any mediation, arbitration, or legal proceeding between Employee and the Company arising out of
this Agreement, the losing party shall reimburse the prevailing party, on demand, for all costs (including, without limitation, attorneys' and court fees and costs) incurred by the prevailing party in
enforcing, defending, or prosecuting this Agreement. 

8

 

        EMPLOYEE ACKNOWLEDGES THAT HE HAS CAREFULLY READ THIS AGREEMENT, WAS AFFORDED SUFFICIENT OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL OF HIS CHOICE AND TO ASK
QUESTIONS AND RECEIVE SATISFACTORY ANSWERS REGARDING THIS AGREEMENT, UNDERSTANDS HIS RIGHTS AND OBLIGATIONS UNDER IT, AND SIGNED IT OF HIS OWN FREE WILL AND VOLITION.

        IN
WITNESS WHEREOF, the Employee has executed this Agreement and the Company has caused this Agreement to be executed as an instrument under seal as of the day and year first above
written. 

	PDSHEART, INC., a Delaware corporation
	

By:	
 	

/s/  GREGORY A. MARSH      
 EMPLOYEE	
 	

 
	 	 	Print Name:	 	Gregory A. Marsh
	 	 

	

Accepted By:	
 	

/s/  SEAN HEYNIGER      
	
 	

[ILLEGIBLE]

	Name:  Sean Heyniger

Title:    Chief Executive Officer	 	Witness:

9

  

Human
Resources Department 

February 2,
2007 

Greg
Marsh

c/o PDSHeart, Inc.

1801 Centrepark Dr E #110

West Palm Beach, FL 33401 

Dear
Greg: 

It
is my pleasure to extend to you, concurrently with and contingent upon the closing of the proposed merger (the "Merger") involving PDSHeart, Inc. ("PDSHeart") and a wholly owned subsidiary
of CardioNet, Inc. ("CardioNet"), an offer to continue your employment with PDSHeart in the positions of Chief Operating Officer of PDSHeart, reporting to David Wood with a dotted line to
Charlie Alvarez, and Chief Financial Officer of CardioNet, reporting to David Wood, President of CardioNet. 

As
discussed with you, the principal terms and conditions of our offer consist of the following: 

	•
	a
bi-weekly salary at the annual rate of $273,000;

	•
	the
grant of an option to purchase 200,000 shares of CardioNet's common stock at an exercise price equal to the fair market value of the 200,000 shares on the date of the
grant. 25 percent of the shares subject to such option shall vest on the first anniversary of the date of the grant, provided that you are still employed by PDSHeart and/or CardioNet on that
date. The remainder of the shares shall vest in equal monthly installments over the 36 months following the first anniversary of the date of
the grant, except that if you should cease to be an employee of PDSHeart and/or CardioNet, vesting shall cease immediately;

	•
	a
stipulation that you will not be required to relocate from the West Palm Beach, Florida area in connection with this offer or your continued employment; and finally

	•
	while
CardioNet does not currently have an executive level bonus plan of any kind, in the event such a plan is put in place at some point in the future, you will be eligible
to participate in it. 

In
addition, as a condition of your continued employment with PDSHeart and in consideration of the mutual promises and covenants contained herein, the value, sufficiency and receipt of which are
hereby acknowledged, you and CardioNet hereby agree that the Employment and Non-Competition Agreement by and between PDSHeart, Inc. and Greg Marsh, dated January 1, 2007 (the
"Employment Agreement"), shall be amended as follows: 

	•
	Section 1.03
is amended so as to eliminate the "Health Benefit Allowance" and "Automobile Allowance" provisions in their entirety;

	•
	Section 1.04
providing eligibility for an annual bonus is eliminated in its entirety;

	•
	Section 2.01(b)
is amended so as to eliminate in its entirety the right to appeal to the Board of Directors whether proper grounds exist to support a termination for
cause; and

	•
	Section 4.12
providing for enforcement of certain provisions by third parties is eliminated in its entirety. 

Except
as explicitly modified or amended herein, all provisions, conditions and terms of the Employment Agreement remain unchanged and are in full force and effect. Together with the 

Employment
Agreement, this letter sets forth the entire understanding and agreement between the parties with regard to the subject matter hereof and supersedes any prior or contemporaneous agreements,
discussions, negotiations or representations between the parties, whether written, oral or otherwise, with respect thereto. Neither the Employment Agreement nor this letter may be modified or amended
except by the written agreement of the parties. 

If
the foregoing terms are acceptable, please indicate your agreement by signing one copy of this letter in the space provided below, and returning it to me by facsimile or email no later than January
    , 2007. 

We
are very enthusiastic about working with you in continuing to build our company. 

Sincerely,

	/s/  JAMES M. SWEENEY      
 James M. Sweeney

Chief Executive Officer	 

	 	AGREED AND ACCEPTED:
	

 	

/s/  GREG MARSH      
 Greg Marsh
	 	Dated: 2/4/2007

QuickLinks

Exhibit 10.7

EMPLOYMENT AND NON-COMPETITION AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.31    
    

 
  BUILDING LEASE    
    

        THIS
LEASE (the "Lease") is made as of November 2, 2007 between COLUMBUS PARK PROPERTIES, LP (herein collectively referred to as "Landlord"), a Pennsylvania limited partnership
and CARDIONET, INC. (herein referred to as "Tenant"), a California corporation. 

        1.    Premises and Common Areas.    

        (a)   Landlord
hereby leases to Tenant the premises consisting of approximately 5,990 rentable square feet (the "Premises") being the area in the building generally shown on
Exhibit A (the "Building") located at One Beacon Light Lane, Chester, Pennsylvania, (the "Property"). 

        (b)   Tenant
and its invitees shall have the right to use, in common with Landlord and other tenants, those applicable areas within the Property, including the entrances,
roads, driveways, public and fire stairways, sprinkler rooms, sidewalks, exterior ramps, parking facilities, loading docks and other similar areas which enable Tenant to obtain full use and enjoyment
of the Premises for all customary purposes (the "Common Areas"). 

        (c)   The
Premises shall be delivered to Tenant in their As-Is, Where-Is condition and except as may be required to demised the Premises from other
premises in the Building, Landlord shall not be obligated to provide any other improvements thereto or allowances therefor. Notwithstanding the foregoing, Landlord shall be obligated to cause the
Premises to comply with
applicable building, fire and life safety codes as may be applicable to the Premises as of the date hereof. 

        2.    Leasing Clause; Quiet Enjoyment.    Landlord hereby leases the Premises to Tenant and Tenant hereby accepts the
same from Landlord, in accordance with the provisions of the Lease. Landlord covenants that Tenant shall have peaceful and quiet enjoyment of the Premises during the Term (as defined below) of this
Lease. 

        3.    Permitted Use.    Tenant may use and occupy the Premises for general warehouse and light manufacturing uses,
along with uses incidental thereto and any other use consistent with the business of Tenant as may be permitted by applicable laws and regulations. 

        4.    Term; Renewal Option.    

        (a)   The
term of this Lease (the "Term") shall begin on the date that this Lease is fully executed (the "Commencement Date") and shall end on October 31, 2012 (the
"Expiration Date"), unless: (i) sooner terminated in accordance with the terms and conditions contained in this Lease; or (ii) extended pursuant to the provisions of this Lease. 

        (b)   Tenant
is hereby granted one (1) option to renew this Lease upon the following terms and conditions: 

        (i)    At
the time of the exercise of the option to renew and at the time of the said renewal, there shall not have occurred an Event of Default (as defined below) which
remains uncured under this Lease, Tenant shall have committed no act or omission which with the passage of time could result in an Event of Default and Tenant shall be in possession of the Premises
pursuant to this Lease. 

        (ii)   Notice
of the exercise of the option shall be sent to the Landlord in writing at least six (6) months before the Expiration Date. 

1

 

        (iii)  The
renewal term shall be for a period of three (3) years, to commence at the expiration of the Term, and all of the terms and conditions of this Lease, other
than the Base Rent, shall apply during any such renewal term. 

        (iv)  The
annual Base Rent to be paid during the renewal term shall not be less than that paid for the Premises during the last year of the original Term. However, if the
fair rental value per square foot at the commencement of the renewal term shall exceed the rent as established in the preceding sentence, the Tenant shall pay such fair rental value. In determining
the fair rental value, the Landlord shall notify Tenant of the fair rental value as established by Landlord. Should Tenant dispute Landlord's determination, then the Tenant shall be free to, at the
Tenant's sole cost and expense, employ the services of an appraiser familiar with buildings located within the area comparable to the Building, who shall be a member of MAI and who shall render an
appraisal. If the Landlord and the Tenant's appraiser cannot agree on the fair rental value, Landlord shall employ the services of an appraiser familiar with buildings located within the area
comparable to the Building who shall be a member of MAI and who shall render an appraisal. If the two appraisers cannot agree on the fair rental value, or in such case, on an independent appraiser
acceptable to both, either Landlord or Tenant may request the American Arbitration Association to appoint such independent appraiser who shall be a member of MAI familiar with buildings in the area of
the Building who shall render an appraisal, and in such event the judgment of a majority of the three appraisers shall be final and binding upon the parties. The parties shall share equally in the
cost of any such independent appraiser. Pending resolution of the issue of fair rental value, the Tenant shall pay the Landlord as of commencement of the renewal term, the Base Rent as established by
Landlord, subject to retroactive adjustment upon final determination of this issue. 

        5.    Rent.    

        (a)   The
Base Rent shall be payable in advance on the first day of every month by Tenant to Landlord commencing on the date (the "Rent Commencement Date") which is fifteen
(15) days following the Commencement Date, but in no event later than November 1, 2007 and thereafter, on the first day each month through and including the Expiration Date as set forth
below. Rent for any partial month shall be equitably prorated. 

	Year
 
	 	Rentable

Sq. Ft.
	 	Rate Per

Rentable Sq. Ft.
	 	Yearly Rate
	 	Monthly Installment

	Rent Commencement	 	5,990	 	$	6.50	 	$	38,935.00	 	$	3,244.58
	Date - 10/31/08	 	 	 	 	 	 	 	 	 	 	 
	11/1/08 - 10/31/09	 	5,990	 	$	6.70	 	$	40,133.00	 	$	3,344.42
	11/1/09 - 10/31/10	 	5,990	 	$	6.90	 	$	41,331.00	 	$	3,444.25
	11/1/10 - 10/31/11	 	5,990	 	$	7.11	 	$	42,588.90	 	$	3,549.08
	11/1/11 - 10/31/12	 	5,990	 	$	7.32	 	$	43,846.80	 	$	3,653.90

        (b)    Additional Rent.    In addition to Base Rent, commencing on the Rent Commencement Date and thereafter on the
first day of each month of the Term through and including the Expiration Date, Tenant shall pay in advance Additional Rent on account of Common Areas 

2

 

maintenance,
insurance and real estate taxes as set forth below. Additional Rent for any partial month shall be equitably prorated. 

	Year
 
	 	Rentable

Sq. Ft.
	 	Rate Per

Rentable Sq. Ft.
	 	Yearly Rate
	 	Monthly Installment

	Rent Commencement Date - 10/31/08	 	5,990	 	$	1.00	 	$	5,990.00	 	$	499.17
	11/1/08 - 10/31/09	 	5,990	 	$	1.03	 	$	6,169.70	 	$	514.14
	11/1/09 - 10/31/10	 	5,990	 	$	1.06	 	$	6,349.40	 	$	529.12
	11/1/10 - 10/31/11	 	5,990	 	$	1.09	 	$	6,529.10	 	$	544.09
	11/1/11 - 10/31/12	 	5,990	 	$	1.12	 	$	6,708.80	 	$	559.07

        (c)   The
parties acknowledge that currently Real Estate Taxes (defined below) have been abated with respect to the Property. Notwithstanding such abatement, if and when such
abatement expires or is otherwise terminated, Tenant shall pay, within thirty (30) days following invoice, as additional Rent and in addition to the amounts set forth in Section 5(a) and
5(b) above Tenant's proportionate share (which the parties agree shall be 3/11ths) of the Real Estate Taxes assessed against the Property arising during the Term. Real Estate Taxes shall mean all
taxes, liens, levies, impositions, charges and assessments of every kind and nature, ordinary or extraordinary, foreseen or unforeseen, general or special, levied, assessed or imposed by any
governmental authority with respect to the Property, as well as all fees or assessments payable on account of the Property being located in any special services district and/or with respect to the
Property or its operations, or the rents therefrom (including taxes based on gross
receipts) including all of Landlord's expenses, including but not limited to attorney's fees and expenses, incurred by Landlord in any effort to minimize Real Estate Taxes approved by Tenant whether
by contesting proposed increases in assessments, applying for the benefit of any tax abatement program available for the Property, appealing the denial of any such tax abatement, or contesting any
challenge to the validity of any tax abatement program or its applicability to the Property or by any other means or procedures appropriate in the circumstances; provided, however, that under no
circumstances shall Landlord have any obligation to undertake any contest, appeal or other procedure to minimize Real Estate Taxes or to obtain or maintain the benefits of any tax abatement program
for the Property, but Landlord shall provide notice to Tenant of any of such efforts. 

        6.    Security Deposit.    As additional security for the full and prompt performance by Tenant of the terms and
covenants of this Lease, Tenant has deposited with Landlord the sum of Six Thousand Four Hundred Eighty Nine and 17/100 Dollars ($6,489.17) (the "Security Deposit"). The Security Deposit shall not
constitute rent for any month (unless so applied by Landlord on account of Tenant's default hereunder). Tenant shall, upon demand, restore any portion of the Security Deposit which may be applied by
Landlord to cure any default by Tenant hereunder. To the extent that Landlord has not applied the Security Deposit or any portion thereof on account of a default, the Security Deposit, or such
remaining portion of the Security Deposit, shall be returned to Tenant, without interest, within sixty (60) days following the termination of this Lease. 

        7.    Utilities.    Tenant agrees to pay all charges for electricity, gas, light, heat or other utility used by Tenant
at the Premises. To the extent the applicable service provider will provide direct service, Tenant shall arrange for any such service directly with the utility provider. Tenant shall pay all bills for
such utility usage in accordance with invoices from such service providers or, if applicable, the Landlord and any such payments to the Landlord shall constitute Additional Rent. 

        8.    Subletting Or Assignment.    Tenant shall not be permitted to assign this Lease or sublet the Premises, without
the prior written consent of Landlord, which consent shall not be unreasonably withheld, delayed or conditioned. 

3

   
        9.    Inspection And Repair Of Premises.    Landlord may inspect the Premises at reasonable times and after
reasonable
prior notice to Tenant (except prior notice shall not be required in emergencies). Tenant shall, throughout the Term, and at Tenant's sole cost and expense clean the Premises and keep and maintain the
Premises in a neat and orderly condition; and, upon expiration of the Term or earlier termination of this Lease, Tenant shall leave the Premises in good order and condition, ordinary wear and tear,
damage by fire or other casualty alone excepted, and for that purpose and except as stated in this sentence, Tenant will make all necessary repairs and replacements to the Premises to deliver it in
such condition. Tenant's obligations include, without limitation, all heating, cooling, electrical, mechanical and plumbing systems located in and only serving the Premises, as well as docks, dock
doors, elevators and related equipment, if any. Tenant shall not permit any waste, damage or injury to the Premises. Tenant shall not use or permit the use of any portion of the Common Areas for other
than their intended use as specified by the Landlord, as applicable, from time to time. 

        10.    Damage To Premises.    

        (a)   If
the Property or any portion of the Property is damaged by fire or other casualty, then, except as provided below, the damage shall be promptly repaired by and at the
expense of Landlord to restore the Property and the Premises to substantially the same condition that existed as of the date of this Lease, to the extent of available insurance proceeds, the Tenant
being responsible for the restoration and repair of any damage to the tenant improvements or alterations performed by Tenant before or during the Term. Until such repairs and restoration are
completed, the Rent and Additional Rent shall be equitably abated to the extent that damage to the Premises and/or other portions of the Property materially and adversely interferes with the conduct
of Tenant's business. If such damage to the Property or any portion thereof shall materially and adversely interfere with the conduct of Tenant's business and shall not be susceptible of complete
repair and restoration within ninety (90) days after the occurrence of such casualty as reasonably determined by Landlord (the "Repair Period"), then Landlord may, by written notice to Tenant,
terminate this Lease as of the date of occurrence of such damage, provided such notice is given within sixty (60) days after the date of such casualty. In the event of the termination of this
Lease pursuant to this Paragraph 10, Rent and Additional Rent shall be prorated as of the date of such casualty. 

        (b)   Landlord
and Tenant do each hereby release and discharge the other party and any officer, agent, employee or representative of such party from any liability for loss or
damage to property caused by fire or other casualty for which insurance containing waiver of subrogation is required to be carried by the parties under the terms of this Lease. 

        11.    Eminent Domain.    If the Property or any portion thereof shall be taken under the power of eminent domain or
conveyed in lieu thereof, Landlord shall have the right to terminate this Lease upon notice to Tenant. If such taking materially and adversely interferes with the conduct of Tenant's business, then
Tenant shall also have the right to terminate this Lease at such time by furnishing written notice to Landlord. If Tenant does not terminate this Lease, Landlord shall proceed with due diligence to
make all repairs necessary to restore the Property to as near its former condition as circumstances will permit given the proceeds made available for such purpose and the Lease shall remain in full
force and effect, except that, effective on the date of taking or conveyance, the Premises shall be reduced by the portion of the Premises so taken or conveyed, and the Rent and Additional Rent shall
be proportionately reduced by the portion of the Premises taken or conveyed. Damages awarded Landlord for such taking or conveyance shall belong to Landlord, provided that Tenant may assert a claim
for Tenant's alterations and additions made to the Premises and which remain the property of the Tenant following the Expiration Date, personal property, fixtures and moving expenses. 

4

 

        12.    Tenant's Obligations.    

        (a)    Insurance.    Tenant shall maintain the following insurance coverages: (i) Commercial General Liability
Insurance coverage to include personal injury, bodily injury, broad form property damage, operations hazard, owner's protective coverage, contractual liability, products and completed operations
liability naming Landlord and Landlord's mortgagee or trust deed holder and ground lessors (if any) as additional named insureds in limits of not less than Three Million and 00/100 ($3,000,000.00)
Dollars and (ii) "All Risk" property insurance against fire, theft, vandalism, malicious mischief, sprinkler leakage and such additional perils as are now, or hereafter may be, included in a
standard extended coverage endorsement from time to time in general use in the Commonwealth of Pennsylvania upon property of every description and kind owned by Tenant and or under Tenant's care,
custody or control located in the Building, the Property or within the Premises or for which Tenant is legally liable or installed by or on behalf of Tenant in an amount equal to the full replacement
cost thereof. 

        (b)    Compliance with Law.    Tenant shall comply with all laws, ordinances, notices, orders, rules, regulations and
requirements of all federal, state and municipal government or any department, commission, board of officer thereof, or of the National Board of Fire Underwriters or any other body exercising similar
functions, relating to its use and occupancy of the Premises. 

        (c)    Rules and Regulations.    Tenant shall obey reasonable rules and regulations, if any, established by Landlord
from time to time for all tenants in connection with the operation, maintenance, safety or security of the Property. 

        (d)    Alterations.    During the Term, Tenant may make minor or cosmetic improvements, alterations or additions to
the Premises with an aggregate cost not to exceed $25,000 without Landlord's prior written
consent (but upon notice to Landlord) provided such work is done in a workmanlike manner with materials and finishes comparable to those then existing in the Premises, and provided that improvements,
alterations and additions to the structure or the exterior of the Building or the Building systems shall be made only with the prior written consent of Landlord, which consent may be withheld in
Landlord's sole discretion. If Tenant makes any improvements, alterations or additions, Tenant agrees to: (i) comply with all applicable laws, ordinances, rules and regulations of all
governmental authorities; (ii) discharge by payment, bond or otherwise, any mechanics' lien filed against the Property for work, labor, services or materials performed at or furnished to the
Premises on behalf of Tenant; (iii) furnish Landlord with plans of such improvements, alterations or additions (and as-built drawings upon completion); (iv) maintain such
insurance as reasonably determined by Landlord, (v) use contractors reasonably approved by Landlord, (vi) undertake such work in a manner such as not to unreasonably interfere with the
use by the other, and (vii) remove same upon Landlord's written request given on or before the Expiration Date, repair any damage caused thereby and restore the Premises to its original
condition. Notwithstanding the foregoing, Landlord hereby approves the work to be completed by Tenant in the Premises as set forth on the plans attached hereto as Exhibit B (the "Plans") at the
beginning of the Term. Except with respect to obtaining Landlord's approval of the work set forth in the Plans (which is hereby given), all such work shall be performed in accordance with this Lease
and in particular this Paragraph 12(d), provided, however, that Tenant shall not be obligated to remove such improvements at the expiration of the Term as provided in Subparagraph
12(d)(vii) above. 

        (e)    Surrender.    Upon the expiration or earlier termination of this Lease, Tenant shall surrender the Premises in
substantially as good condition as when entered, except for loss or damages resulting from casualty, condemnation, ordinary wear and tear and any improvements, alterations or additions made to the
Premises which were not required to be removed at the expiration of the Term. 

5

 

        13.    Landlord's Obligations.    

        (a)   Except
if caused by the acts or omissions of Tenant, Landlord shall maintain, repair and replace, as necessary, and keep in good order and in safe and operational
condition: (i) all structural portions of the Property including the roof, exterior walls, bearing walls, support beams, foundation, columns, (ii) exterior doors serving Common Areas
only, (iii) lateral support to the Property and the Premises, (iii) the Common Areas, (iv) the exterior improvements to the land, including curbs, driveways, parking areas,
sidewalks, lighting, and ditches and (v) snow and ice removal as is customary in comparable buildings. 

        (b)   Landlord
covenants and agrees that throughout the Term it will insure the Property and the Building against damage by fire and standard extended coverage perils and
public liability insurance in such reasonable amounts with such reasonable deductibles as required by any mortgagee or ground lessor, or, if none, as would be carried by a prudent owner of a similar
building in the area. 

        (c)    Compliance with Law.    Landlord shall comply with all laws, ordinances, notices, orders, rules, regulations
and requirements of all federal, state and municipal government or any department, commission, board of officer thereof, or of the National Board of Fire Underwriters or any other body exercising
similar functions, relating to its ownership or operation of the Property. 

        14.    Indemnification.    

        (a)   Tenant
shall defend, indemnify and hold harmless Landlord, its employees, agents and contractors from and against all liabilities, obligations, damages, penalties,
claims, costs, charges and expenses, including reasonable attorneys' fees, which may be imposed upon or incurred by or asserted by reason of any of the following which shall occur during the Term, or
during any period of time prior to the commencement date when Tenant may have been given access to or possession of all or any portion of the Premises: 

        (i)    any
work or act done by Tenant or at Tenant's request in, on or about the Premises or any part thereof, unless such work or act is done or performed by Landlord or its
agents or employees; 

        (ii)   any
negligence or other wrongful act or omission on the part of Tenant or any of its agents, contractors, subcontractors, servants, employees, subtenants, or licensees; 

        (iii)  Tenant's
use and occupancy of the Premises and/or any accident, injury or damage to any person or property occurring in, on or about the Premises or any part thereof
unless caused by the negligence of Landlord, its employees or agents; and 

        (iv)  any
failure on the part of Tenant to perform or comply with any of the covenants, agreements, terms, provisions, conditions or limitations contained in this Lease. 

        (b)   Landlord
shall defend, indemnify and hold harmless Tenant from and against any and all claims or liabilities arising either before or after the Commencement Date from
the negligent acts or willful misconduct of Landlord, its agents or affiliates. 

6

 

        15.    Defaults and Remedies.    

        (a)    Event of Default.    Tenant shall not be deemed to be in default hereunder unless an "Event of Default," as
hereinafter specified, has occurred. The following shall constitute Events of Default by Tenant hereunder: 

        (i)    Failure
to pay the Rent or any other sum of money required to be paid by Tenant herein when due and continuance of such failure for five (5) days after notice
from Landlord to Tenant; or 

        (ii)   Failure
to comply with or perform any of the other terms, covenants, conditions or agreements to be complied with or performed by Tenant and continuance of such failure
for thirty (30) days after notice from Landlord to Tenant, or, if the failure is of such a character as cannot reasonably be cured within thirty (30) days, failure to initiate within
said thirty (30) day period such action as reasonably can be taken toward curing the same and/or failure to prosecute such action as promptly as is reasonably practicable after said action is
initiated. 

        (b)    Landlord's Remedies.    If an Event of Default shall have occurred and shall be continuing, then or at any time
thereafter: 

        (i)    The
Rent for the entire unexpired balance of the term of this Lease, as well as all other reasonable charges, payments, costs and expenses herein agreed to be paid by
Tenant, shall, in addition to any and all installments of Rent already due and payable and in arrears and/or any other charge or payment herein reserved which may be due and payable and in arrears, be
taken to be due and payable and in arrears as if by the terms and provisions of this Lease the whole balance of unpaid Rent and other charges, payments, impositions, costs and expenses were on that
date payable in advance; and if this Lease or any part thereof is assigned, or if the Premises, or any part thereof, is sublet, Tenant hereby irrevocably constitutes and appoints Landlord as Tenant's
agent to collect the rents due from such assignee or sublessee and to apply the same to the Rent and other sums due hereunder; 

        (ii)   Landlord
may terminate this Lease, without any right by Tenant to reinstate its rights by payment of Rent due or other performance of the terms and conditions hereof,
on a date specified in such notice, and upon the giving of such notice, the Lease Term and the estate hereby granted shall expire on the date so specified in said notice with the same effect is if the
date specified in said notice were the date hereinbefore fixed for the expiration of the Lease Term. 

        (iii)  With
or without terminating this Lease, as Landlord may elect, Landlord may repossess the Premises in accordance with applicable law, or any part thereof, and lease
them to any other person or entity upon such terms as Landlord shall deem reasonable, for a term within or beyond the term of this Lease; provided, that any such reletting prior to termination shall
be for the account of Tenant. 

        (iv)  Any
Rent or Additional Rent overdue shall bear interest at the rate of ten percent (10%) per annum until paid. 

        (v)   No
waiver by Landlord of any breach by Tenant of any of its obligations, agreements or covenants hereunder shall be a waiver of any subsequent breach or of any other
obligation, agreement or covenant, nor shall any forbearance by Landlord to seek a remedy for any breach by Tenant be a waiver by Landlord of its rights and remedies with respect to such or any
subsequent breach. 

7

  

        (vi)  Tenant
expressly waives any right of defense which it may have based on any purported merger of any cause of action, and neither the commencement of any action or
proceeding nor the settlement thereof or entering of judgment therein shall bar Landlord from bringing subsequent actions or proceedings from time to time. 

        (vii) CONFESSION
OF JUDGMENT FOR POSSESSION. UPON THE OCCURRENCE OF AN EVENT OF DEFAULT AND FOLLOWING AN ADDITIONAL FIVE (5) BUSINESS DAYS NOTICE TO TENANT OR UPON
THE EXPIRATION OR TERMINATION OF THE TERM OF THIS LEASE, FOR THE PURPOSE OF OBTAINING POSSESSION OF THE PREMISES, TENANT HEREBY AUTHORIZES AND EMPOWERS THE PROTHONOTARY OR ANY ATTORNEY OF ANY COURT OF
RECORD IN THE COMMONWEALTH OF PENNSYLVANIA OR ELSEWHERE, AS ATTORNEY FOR TENANT AND ALL PERSONS CLAIMING UNDER OR THROUGH TENANT, TO APPEAR FOR AND CONFESS JUDGMENT AGAINST TENANT FOR POSSESSION OF
THE PREMISES, AND AGAINST ALL PERSONS CLAIMING UNDER OR THROUGH TENANT, IN FAVOR OF LANDLORD, FOR RECOVERY BY LANDLORD OF POSSESSION THEREOF, FOR WHICH THIS AGREEMENT OR A COPY HEREOF VERIFIED BY
AFFIDAVIT, SHALL BE A SUFFICIENT WARRANT; AND THEREUPON A WRIT OF POSSESSION MAY IMMEDIATELY ISSUE FOR POSSESSION OF THE PREMISES, WITHOUT ANY PRIOR WRIT OR PROCEEDING WHATSOEVER AND WITHOUT ANY STAY
OF EXECUTION. IF FOR ANY REASON AFTER SUCH ACTION HAS BEEN COMMENCED THE SAME SHALL BE TERMINATED AND THE POSSESSION OF THE PREMISES REMAINS IN OR IS RESTORED TO TENANT, LANDLORD SHALL HAVE THE RIGHT
UPON THE OCCURRENCE OF ANY SUBSEQUENT EVENT OF DEFAULT TO CONFESS JUDGMENT IN ONE OR MORE FURTHER ACTIONS IN THE MANNER AND FORM SET FORTH ABOVE TO RECOVER POSSESSION OF SAID PREMISES FOR SUCH
SUBSEQUENT DEFAULT. TENANT WAIVES ALL ERRORS IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT. NO SUCH TERMINATION OF THIS LEASE, NOR TAKING, NOR RECOVERING POSSESSION OF THE PREMISES SHALL DEPRIVE
LANDLORD OF ANY REMEDIES OR ACTION AGAINST TENANT FOR FIXED BASIC RENT, ADDITIONAL RENT OR FOR OTHER SUMS DUE HEREUNDER OR FOR DAMAGES DUE OR TO BECOME DUE FOR THE BREACH OF ANY CONDITION OR COVENANT
HEREIN CONTAINED, NOR SHALL THE BRINGING OF ANY SUCH ACTION FOR RENT AND/OR OTHER SUMS DUE HEREUNDER, OR BREACH OF COVENANT OR CONDITION NOR THE RESORT TO ANY OTHER REMEDY HEREIN PROVIDED FOR THE
RECOVERY OF RENT AND/OR OTHER SUMS DUE HEREUNDER OR DAMAGES FOR SUCH BREACH BE CONSTRUED AS A WAIVER OF THE RIGHT TO INSIST UPON THE FORFEITURE AND TO OBTAIN POSSESSION IN THE MANNER HEREIN PROVIDED. 

        (c)    Remedies Not Exclusive, Etc.    No right or remedy herein conferred upon or reserved to Landlord is intended to
be exclusive of any other right or remedy, and every right and remedy shall be cumulative and in addition to any other right or remedy given hereunder or now or hereafter existing at law. The failure
of Landlord to insist upon the strict performance of any covenant or agreement or to exercise
any option, right, power or remedy contained in this Lease shall not be construed as a waiver or relinquishment thereof for the future. Landlord shall have no obligation to mitigate its damages
following an Event of Default. 

        (d)    Performance of Tenant's Covenants    

        (i)    If
Tenant shall fail to make any payment or perform any other act on its part to be made or performed under this Lease, then Landlord, after notice to Tenant (or without
notice 

8

 

in
case of an emergency) and without waiving or releasing Tenant from any obligation of Tenant contained in this Lease, may (but shall be under no obligation to) make such payment or perform such
other act, as the case may be, and may enter upon the Premises for such purpose and take all such action thereon as may be necessary with respect thereto. 

        (ii)   All
sums paid by Landlord and all costs and expenses, including all reasonable out-of-pocket legal fees, incurred by Landlord pursuant to
Subsection 15(d)(i), together, with interest thereon at the rate often percent (10%) per annum from the respective dates of Landlord's payments of such sums or incurring of such costs or expenses,
shall constitute additional amounts payable by Tenant under this Lease and shall be paid by Tenant to Landlord promptly after demand. 

        (e)    Landlord Default.    In the event of any default by Landlord under this Lease ("Landlord Default"), Tenant may
give Landlord written notice specifying such Landlord Default and, if Tenant shall do so, then Landlord shall have 30 days in which to cure any such Landlord Default; provided, however, that if
the nature of the Landlord Default is such that more than 30 days are required for its cure, then Landlord shall not be in default if Landlord commences to cure within said 30 days and
thereafter diligently prosecutes the same to completion. In the event that Landlord shall remain in default following its said right to cure, then, in addition to all other rights and remedies
available to Tenant at law and in equity, Tenant may cure such Landlord Default on behalf of Landlord by doing the necessary work and/or making the necessary payments, and billing Landlord for the
reasonable costs thereof, which Landlord agrees to pay to Tenant within 30 days of receipt of Tenant's demand therefor and reasonable evidence of the cost of the same. If Landlord shall fail to
pay within said 30 day period, Tenant may deduct the entire cost from any rent and other charges due hereunder. 

        (f)    Landlord Duty to Mitigate.    Notwithstanding the foregoing, in the even of an Event of Default, Landlord shall
use its commercially reasonable efforts to mitigate its damages. 

        16.    Subordination.    This Lease and Tenant's rights under this Lease shall be subject and subordinate at all times
in lien and priority to any first mortgage or other primary encumbrance now or hereafter placed upon or affecting the Property or the Premises, and to any second mortgage or encumbrance with the
consent of the first mortgagee, and to all renewals, modifications, consolidations and extensions thereof, without the necessity of any further instrument or act on the part of Tenant. Tenant shall
execute and deliver upon demand any further instrument or instruments confirming the subordination of this Lease to the lien of any such first mortgage or to the lien of any other mortgage, if
requested to do so by Landlord with the consent of the first mortgagee, and any further instrument or instruments of attornment that may be desired by any such mortgagee or Landlord, provided,
however, that any holder of such lien or mortgage agrees not to disturb the use and occupancy of the Premises in accordance with the terms of this Lease upon any foreclosure. Landlord agrees to use
commercially reasonable efforts to obtain a subordination, non-disturbance and attornment agreement for Landlord's current mortgagee in favor of Tenant in such lender's standard form. 

        17.    Estoppel Certificate.    Tenant shall, upon five (5) business days prior written request of Landlord
execute, acknowledge and deliver to Landlord or its designee an estoppel certificate, certifying as to particular facts under the Lease. 

        18.    Holding Over.    If Tenant shall hold over after the expiration of the Term, its tenancy shall be (i) on
a month-to-month basis and shall be subject to all of the terms, conditions, provisions and obligations of this Lease, except that, commencing immediately following the
expiration of the Term, each monthly installment of Rent shall be one hundred fifty percent (150%) of the monthly Rent installment that applied to the last month of the Term and (ii) deemed on
Event of Default. 

9

 

        19.    Notices.    Any notice required or permitted under this Lease shall be in writing, sent by a reputable private
carrier of overnight mail or mailed by United States Certified Mail, Return Receipt Requested, postage prepaid, in each case to the address set forth below: 

	If to Tenant:	 	If to Landlord:
	

At the Premises

  

And to:	
 	

COLUMBUS PARK PROPERTIES, LP

c/o Linda O'Brien

25 Fox Brook Lane

Thornton, PA 19373
	

CardioNet, Inc.	
 	

 
	

Doreen Roberts	
 	

 
	

1010 Second Avenue # 700	
 	

 
	

San Diego, CA. 92101	
 	

 

Either
Landlord or Tenant may, by notice to the other, change the address(es) to which notices are to be sent. All notices shall be deemed effective upon receipt or upon refusal to accept delivery. 

        20.    Miscellaneous.    

        (a)   The
captions appearing within the body of this Lease have been inserted as a matter of convenience and for reference only and in no way define, limit or enlarge the
scope of meaning of this Lease or any provision of this Lease. 

        (b)   This
Lease may be executed in several counterparts, all of which constitute one and the same instrument. 

        (c)   This
Lease shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. 

        (d)   The
language of this Lease shall be construed according to its normal and usual meaning and not strictly for or against either Landlord or Tenant. The rule of
construction which allows a court to construe a document more strictly against its author shall not govern the interpretation of this Lease. 

        (e)   If
any provision of this Lease, or its application to any situation, shall be invalid or unenforceable to any extent, the remainder of this Lease, or the application
thereof to situations other than as to which it is invalid or unenforceable, shall not be affected thereby, and every provision of this Lease shall be valid and enforceable to the fullest extent
permitted by law. 

        (f)    This
Lease constitutes the entire agreement between the parties and may be amended only by written agreement of the parties. No representations, inducements, promises or
agreements, oral or otherwise, between Landlord and Tenant or any of their respective brokers, employees or agents, not embodied herein, shall be of any force or effect. 

        (g)   This
Lease shall be binding upon and shall inure to the benefit of the parties hereto, their heirs, executors, administrators, successors and permitted assigns. 

        (h)   Landlord
and Tenant agree that in fulfilling all terms and conditions of this Lease, time is of the essence. 

        (i)    Waiver
of Jury Trial. IT IS MUTUALLY AGREED BY AND BETWEEN LANDLORD AND TENANT THAT THEY HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTER-CLAIM BROUGHT BY
EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON ANY MATTER WHATSOEVER ARISING OUT OF 

10

 

OR
IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR OCCUPANCY OF THE PREMISES OR CLAIM OF INJURY OR DAMAGE. 

        (j)    Pursuant
to 68 P.S. § 250.501 (e), Landlord and Tenant agree that seven (7) days will be sufficient notice for any Notice to Quit. 

        21.    (INITIAL).    TENANT WAIVER. TENANT SPECIFICALLY ACKNOWLEDGES THAT TENANT HAS VOLUNTARILY, KNOWINGLY AND
INTELLIGENTLY WAIVED CERTAIN DUE PROCESS RIGHTS TO A PREJUDGMENT HEARING BY AGREEING TO THE TERMS REGARDING CONFESSION OF JUDGMENT AS PROVIDED IN SECTION 15(b) ABOVE. TENANT FURTHER SPECIFICALLY
AGREES THAT IN THE EVENT OF DEFAULT, LANDLORD MAY PURSUE MULTIPLE REMEDIES INCLUDING OBTAINING POSSESSION OF THE PREMISES PURSUANT TO A JUDGMENT BY CONFESSION. FURTHERMORE, TENANT SPECIFICALLY WAIVES
ANY CLAIM AGAINST LANDLORD AND LANDLORD'S COUNSEL FOR VIOLATION OF TENANT'S CONSTITUTIONAL RIGHTS IN THE EVENT THAT JUDGMENT IS CONFESSED PURSUANT TO THIS LEASE. 

[SIGNATURES
NEXT PAGE] 

11

   
        IN WITNESS WHEREOF, Landlord and Tenant, intending to be legally bound hereby, have signed this Lease as of the day and year first above written. 

	Landlord:
 	 	 
	

COLUMBUS PARK PROPERTIES, L.P.	
 	

 
	

BY:	
 	

Bellweather Associates, LLC	
 	

 
	

 	
 	

By:	

/s/  LINDA O'BRIEN                         Linda O'Brien
 Lawrence G. O'Brien, Sole Member	
 	

 

	Tenant:	 	 
	
CARDIONET, INC.	
 	

 
	

By:	
 	

/s/  JAMES M. SWEENEY      
	
 	

 
	 	 	Name:	James M. Sweeney
	 	 
	 	 	Title:	Chairman & CEO
	 	 

12

QuickLinks

Exhibit 10.31

BUILDING LEASE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}]]