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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 Charlie Alvarez (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 Executive Vice President of Sales 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 Executive Vice
President of Sales the Company 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 Executive Vice
President of Sales of the Company, the Employee shall have the power and responsibility normally associated with such position. 

        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 One Hundred Eighty Seven Thousand Dollars ($187,000.00) ("Annual Base Salary"), an Annual Health Benefit Allowance of Three Thousand Four Hundred ($3,400.00), and an annual
Automobile Allowance of Seven Thousand Eight Hundred Dollars ($7,800.00) 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 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. Furthermore any periodic increases approved by the Compensation Committee to the base salary, fringe benefits,
business expenses, including health benefits and auto allowances defined for the purposes of this agreement as "Total Compensation" or amount of severance pay is automatically incorporated into this
agreement by virtue of their action. 

        1.04    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 ("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 Compensation Committee. 

        1.05    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 2.01(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, twelve
(12) 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 twelve (12) month period following his termination, plus a pro-rated portion of the Annual Bonus 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 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. 

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        (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. 

        3.02    Covenant Not to Compete; Non-Solicitation.    

        (a)   During
such time as Employee is employed by the Company and for a period of eighteen (18) months from the date on which the Employee ceases, for whatever reason,
to be employed by the 

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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 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 

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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 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 

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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. Charlie
Alvarez

1785 Daytonia Road

Miami Beach, FL 33141 

        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
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 

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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/  CHARLES ALVAREZ      
 EMPLOYEE	
 	

 
	 	 	Print Name:	 	Charles Alvarez
	 	 

	

Accepted By:	
 	

/s/  GREGORY A. MARSH      
	
 	

[ILLEGIBLE]

	Name:  Gregory A. Marsh

Title:    Chief Operating and Financial Officer	 	Witness:

9

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Exhibit 10.7

EMPLOYMENT AND NON-COMPETITION AGREEMENTQuickLinks
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Exhibit 10.8    
    

 
  SEPARATION AND RELEASE AGREEMENT    
    

This
Separation and Release Agreement (the "Agreement") is entered into between CARDIONET, INC., a California corporation ("Employer") and David S. Wood, an individual ("Wood"), and shall be
effective on the Effective Date specified in Section 14 below. 

	1.
	Termination Date:    Wood was for a period of time an employee of Employer. Wood hereby resigns his employment and the
Employer accepts that resignation effective June 5, 2007 (the "Termination Date"). Employer agrees that, on or before the Termination Date, it will pay Wood all accrued salary earned through
the termination date, subject to standard payroll deductions, withholding taxes and other obligations. Wood is entitled to these payments regardless of whether he signs this Agreement.

	2.
	Severance Benefits:    Wood and Employer wish permanently to resolve any and all disputes arising out of Wood's employment
with Employer or the termination of that employment. Although Employer has no policy or procedure for providing severance benefits and has no obligation to provide such benefits, in exchange for the
promises and covenants set forth herein, and provided that Wood is not in breach of this Agreement and that Wood has returned to Employer all property and equipment belonging to Employer in accordance
with Section 8 herein, then Employer shall pay Wood severance pay in an amount equal to six (6) months of his base salary in effect as of the Termination Date, less standard payroll
deductions and withholding taxes.

	3.
	Stock Options:    Under the terms of Wood's stock option agreement and the applicable plan documents, vesting of Wood's stock
options will cease as of the Termination Date. Wood's option to purchase the common stock of Employer is, as of the Termination Date, vested as to 108,333 shares (the "Vested Shares"). In exchange for
the promises, benefits, and covenants set forth herein, Wood agrees that he shall exercise his option purchase right as to no more than 83,306 of the Vested Shares (the "Exercisable Shares"), and that
his option to purchase the remaining balance of the Vested Shares, 25,027 shares (the "Lapsed Shares"), shall, as of the Effective Date, lapse and become null and void, and the Lapsed Shares shall
revert to Employer's 2003 Equity Incentive Plan. Wood shall have until June 5, 2008 to exercise his right to purchase the Exercisable Shares. In all other respects, Wood's right to exercise any
vested shares, and all other rights and obligations with respect to his stock option(s), will be as set forth in his stock option agreement, grant notice and applicable plan documents.

	4.
	Loan Forgiveness:    In exchange for the promises, covenants, and releases set forth herein, Employer shall, as of the
Effective Date, forgive any and all sums due and owing, both principal and accrued interest, pursuant to the Loan Agreement between Wood and Employer dated September 25, 2006 (in the principal
sum of $230,000). On the Effective Date, the debt evidenced by said Loan Agreement shall be deemed extinguished. Employer makes no representation regarding the federal or state tax consequences of
said loan forgiveness, or any portion thereof, and Wood warrants that he shall obtain independent tax advice relating to same. Wood understands and agrees that Employer shall not be responsible for
any tax liabilities, interest or penalties under state or federal law with respect to the loan forgiveness. Wood will indemnify and hold Employer harmless as to any tax liabilities imposed on or
sought to be recovered against Employer relating to or arising from the loan forgiveness.

	5.
	Health Insurance:    To the extent provided by the federal COBRA law or, if applicable, state insurance laws, and by
Employer's current group health insurance policies, Wood will be eligible to continue his group health insurance benefits at his own expense following the Termination Date. Later, Wood may be able to
convert to an individual policy through the provider of the Company's health insurance, if he wishes. Wood will be provided with a separate notice describing his health insurance continuation rights.
Nothing herein shall be construed to limit the right of Employer to change the provider and/or the terms of its group insurance plans at any time hereafter. 

 
	6.
	Other Compensation or Benefits:    Wood acknowledges that, except as expressly provided in this Agreement, he will not
receive, and is not entitled to receive, any additional compensation from Employer, including but not limited to salary, bonus payments, commissions, severance payments or any other benefits.

	7.
	Expense Reimbursements:    Wood agrees that, within seven (7) days of the Termination Date, he will submit his final
documented expense reimbursement statement reflecting all business expenses he has incurred through the Termination Date, if any, for which he seeks reimbursement. Employer will reimburse Wood for
appropriate expenses in accordance with its regular business practice.

	8.
	Return of Company Property:    On the Termination Date, Wood agrees to return to Employer all documents (and all copies
thereof) and other property belonging to Employer that are in his possession or control, including, but not limited to, files, notes, drawings, records, business plans and forecasts, financial
information, specifications, computer-recorded information, tangible property (including, but not limited to, computers), credit cards, entry cards, identification badges, and keys, and any materials
of any kind that contain or embody any proprietary or confidential information of Employer, and all reproductions thereof. Wood's timely return of all such documents and property is a condition
precedent to his receipt of Severance Benefits under this Agreement. 

Notwithstanding
the foregoing, as a condition of this Agreement Employer will allow Wood to continue use of his Employer-issued laptop computer (the "Computer") through September 5, 2007;
provided, however, that all Employer confidential and/or proprietary information shall first be removed from the Computer by an authorized representative of the Employer's information technology
staff, specified by the Employer. By signing this Agreement, Wood certifies to Employer that he has not copied, transmitted or removed any confidential or proprietary information (as those terms are
defined in the PIIA Agreement) belonging to Employer from the Computer, and that he will not do so at any time in the future. Wood agrees to return the Computer to employer in its current condition on
or before September 5, 2007. 

Also
as a condition of this agreement, Employer will allow Wood to continue to access his web-based, Employer-provided e-mail account (the "E-mail Account") for a
period of three (3) months following the Termination Date (i.e., through and including September 5, 2007), for the sole and exclusive purpose of providing future contact information to
personal contacts of Wood's. Wood hereby agrees not to represent to any person or entity via the E-mail Account that he is still employed by, or authorized to do business on behalf of,
Employer, and agrees to promptly forward all business-related e-mails he receives via the E-mail Account to David Wood. Employer expressly reserves the right to monitor any and
all communications sent to or from the E-mail Account. 

Wood
acknowledges that, in continuing to use the Computer and the E-mail Account for the three month period, he is strictly bound by the nondisclosure and confidentiality provisions of the
PIIA Agreement as well as the noncompetition and nonsoliciation obligations contained in Section 11 herein. 

	9.
	Confidentiality of Agreement:    The provisions of this Agreement shall be held in strictest confidence by Wood and shall not
be publicized or disclosed by him in any manner whatsoever; provided, however, that: (a) Wood may disclose this Agreement in confidence to his
immediate family; (b) Wood may disclose this Agreement in confidence to his attorneys, accountants, auditors, tax preparers, and financia1 advisors; and (c) Wood may disclose this
Agreement insofar as such disclosure may be necessary to enforce its terms or as otherwise required by law. In particular, and without limitation, Wood agrees not to disclose the terms of this
Agreement to any current or former employee of Employer. 

2

 
	10.
	Propriety Information and Arbitration Obligations.    Wood hereby acknowledges his continuing obligations under his
Proprietary Information and Inventions Agreement and the Mutual Agreement to Arbitrate Claims, copies of which are attached hereto as Exhibits A and B, respectively, and are incorporated herein by
reference.

	11.
	Protection of Company Information, Personnel, and Business Relationships:    Wood acknowledges that during his employment
with Employer, he has had access to and has developed familiarity with Employer's important secrets, strategies, plans, and projects. Wood acknowledges that this information includes, but is not
limited to, marketing and business development plans and strategies, detailed knowledge of Employer's customers, vendors, suppliers, and contractors and Employer's plans and strategies relating
thereto, personnel needs and recruiting strategies, proprietary personnel data such as salaries and compensation plans, and scientific and/or technical knowledge of the workings of Employer's products
and research and development. It is agreed that it would be impossible for Wood to accept employment in or otherwise engage in business in the field of cardiac event monitoring within North America
without disclosing, or facing significant pressure to disclose, such confidential proprietary information. Accordingly, in exchange for the consideration provided in this Agreement, Wood agrees that
from the Termination Date through and including June 5, 2008, Wood will not without first obtaining the express, written consent of the Chief Executive Officer of Employer: i) provide
services of any kind, either directly or indirectly, whether as employee, director, officer, consultant, advisor, or in any other capacity, to any person or entity engaged in or attempting to engage
in or otherwise develop the business of cardiac event monitoring within North America; ii) directly or indirectly, whether as owner, shareholder, employee, consultant, director, or otherwise,
engage in or attempt to engage in or otherwise develop the business of cardiac event monitoring within North America; or iii) solicit, encourage, persuade, recruit, employ on behalf of Wood or
others, or otherwise approach any employee, customer, supplier, contractor, or consultant of Employer to terminate or otherwise limit or curtail his, her, or its employment or other business
relationship with Employer. This Section shall not be interpreted to prevent Wood from providing services to those companies currently providing only hospital monitoring  provided that the services that
Wood provides relate strictly to such in-hospital monitoring and are not used to develop or provide cardiac
event monitoring outside of a hospital

	12.
	Nondisparagement:    Wood agrees not to disparage Employer or its officers, directors, employees, shareholders and agents, in
any manner likely to be harmful to it or them, or to its or their business, business reputations or personal reputations. Similarly, Employer's officers and directors agree nor to disparage Wood in
any manner likely to be harmful to him or his business, business reputation or personal reputation. However, Wood and Employer may respond accurately and fully to any inquiry or request for
information if required by legal process.

	13.
	General Release:    In exchange for the consideration provided to Wood by this Agreement, which Wood is not otherwise
entitled to receive, Wood hereby generally and completely releases, absolves and forever discharges Employer, and any parent and subsidiary corporations, divisions and affiliated corporations,
partnerships or other affiliated entities of Employer, past and present, and each of them, as well as Employer's directors, officers, shareholders, partners, agents, employees, attorneys, assignees,
successors in interest, past and present, and each of them, from any and all claims, liabilities, demands, actions, suits, causes of action, wages, obligations, costs, expenses, attorneys' fees,
damages, judgments, orders, indemnities and liabilities of every kind and nature, in law, equity or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, that arise out
of or are in any way related to events, acts, conduct, or omissions occurring at any time prior to and including the date Wood signs this Agreement. This general release includes, but is not limited
to: (a) all claims arising out of or in any way related to Wood's employment with Employer or the termination of that employment; (b) all claims related to 

3

 

Wood's
compensation or benefits from Employer, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other
ownership interests in Employer; (c) all claims for breach of contract, wrongful termination and breach of the implied covenant of good faith and fair dealing; (d) all tort claims,
including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (e) all federal, state, and local statutory claims, inducing claims for
discriminations, harassment retaliation, attorneys' fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the
California Fair Employment and Housing Act (as amended), the Pennsylvania Human Relations Act, and the Pennsylvania Religious Protection Act. 

	14.
	ADEA:    Wood acknowledges that he is knowingly and voluntarily waiving and releasing any rights he may have under the
federal Age Discrimination in Employment Act of 1967, as amended ("ADEA"). Wood also acknowledges that the consideration, given for the waiver in the
above paragraph is in addition to anything of value to which Wood was already entitled. Wood is advised by this writing, as required by the ADEA that: (a) Wood's waiver and release do not apply
to any claims that may arise after Wood signs this Agreement; (b) Wood should consult with an attorney prior to executing this release; (c) Wood has twenty-one
(21) days within which to consider this release (although Wood may choose to voluntarily execute this release earlier); (d) Wood has seven (7) days following the execution of this
release to revoke this Agreement; and (e) this Agreement will not be effective until the eighth day after this Agreement has been signed both by Wood and by the Employer; provided that Wood has
not earlier revoked this Agreement (the "Effective Date") and Wood will not receive any of the benefits specified by this Agreement until after it
becomes effective.

	15.
	Waiver of Civil Code §1542:    In granting the release herein, which includes claims that may be unknown to Wood
at present, Wood acknowledges that he has read and understands Section 1542 of the California Civil Code: "A general release does not extend to claims which the creditor
does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the
debtor." Wood hereby expressly waives and relinquishes all rights and benefits under that section and under any law or legal principle of similar effect in any jurisdiction
with respect to the releases granted herein, including but not limited to the release of unknown and unsuspected claims granted in this Agreement.

	16.
	Change in Laws:    Should any valid federal or state law or final determination of any administrative agency or court of
competent jurisdiction affect any provision of this Agreement, the provision or provisions so affected shall be automatically conformed to the law and otherwise this Agreement shall continue in full
force and effect.

	17.
	Ownership of Rights and Claims:    Wood hereby warrants and represents that he is the owner of all rights, claims and causes
of action being released herein, and that no portions of those rights have been transferred to any other person or entity. Wood also hereby warrants and represents that there are no liens or claims of
lien or assignments at law, in equity, or otherwise, of or against any of the rights, claims, or causes of action released herein and further, that Wood is fully entitled, competent and duly
authorized to give this complete and final general release and discharge. Wood further agrees to indemnify and to hold Employer harmless from and against any and all rights, claims, or causes of
action which have been assigned or transferred by Wood contrary to the foregoing representation and from any and all losses, expenses and/or liability arising directly or indirectly from the breach of
the foregoing representation by Wood.

	18.
	Integrated Agreement:    This Agreement, including Exhibits A and B, constitutes the complete, final and exclusive embodiment
of the entire agreement between Wood and Employer with regard to its 

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subject
matter. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises,
warranties or representations. This Agreement may not be modified or amended except in a writing signed by both Wood and the Chief Executive Officer of Employer. 

	19.
	Drafting:    This Agreement is to be interpreted without regard to the drafter. The terms and intent of this Agreement, with
respect to the rights and obligations of all parties identified in this Agreement, shall be interpreted and construed on the express assumption that all parties participated equally in its drafting.

	20.
	Voluntary Execution:    Wood and Employer represent and declare that in executing this Agreement they rely solely upon their
own judgment, belief and knowledge, and the advice and recommendations of their own independently selected legal counsel, concerning the nature, extent and duration of their rights and claims, and
that they have not been influenced to any extent whatsoever in executing the same by any of the parties hereto or by any person representing them, or any of them. Wood and Employer further represent
and declare that they have carefully read this Agreement and know the contents thereof, and that they sign this Agreement freely and voluntarily.

	21.
	Severability:    If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this
determination will not affect any other provision of this Agreement and the provision in question will be modified so as to be rendered enforceable.

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

	23.
	Miscellaneous:    This Agreement will bind the heirs, personal representatives, successors and assigns of both Wood and
Employer, and inure to the benefit of both Wood and Employer, their heirs, successors and assigns. Any waiver of a breach of this Agreement shall be in writing and shall not be deemed to be a waiver
of any successive breach.

	24.
	Expiration:    Wood acknowledges that this Agreement was presented to him on June 6, 2007 and that he understands he
has twenty-one (21) days from the Termination Date (i.e., until June 27, 2007) to decide whether to agree to the terms and
conditions of this Agreement. Wood understands and agrees that Employer's offer contained in this Agreement will expire automatically if Wood has not signed and returned this Agreement to Employer,
attention Doreen Roberts, by 5:00 p.m. Pacific Time on June 27, 2007. 

By
their signatures below, the parties hereby agree to the terms and conditions of this Agreement as of the Effective Date referenced above. 

	Dated: June 5, 2007	 	Employer:
	

 	
 	

CARDIONET, INC., a California corporation
	

 	
 	

By:	

/s/ JAMES M. SWEENEY

	 	 	Name: James M. Sweeney

Title: Chairman and CEO
	 	 	 	 
	

Dated: June 10, 2007	
 	

David S. Wood
	

 	
 	

/s/ DAVID S. WOOD

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QuickLinks

Exhibit 10.8

SEPARATION AND RELEASE AGREEMENT

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