Document:

efc7-2089_ex102.htm

    EXHIBIT
      10.2

     

    The
      1115
      Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      Item
        1115
        Agreement dated as of March 7, 2006 (this
“Agreement”), between IndyMac Bank, F.S.B., a federal
        savings bank (“IndyMac Bank”), IndyMac MBS, Inc., a
        Delaware corporation (“IndyMac MBS”), IndyMac ABS,
        Inc., a Delaware corporation (“IndyMac ABS”), and Bear
        Stearns Financial Products Inc., as counterparty (the
“Counterparty”).

       

      RECITALS

       

      WHEREAS,
        IndyMac MBS and IndyMac ABS each have filed Registration Statements on Form
        S-3
        (each, a “Registration Statement”) with the Securities
        and Exchange Commission (the “Commission”) for
        purposes of offering mortgage backed or asset-backed notes and/or certificates
        (the “Securities”) through special purpose vehicles
        (each, an “SIT”).

       

      WHEREAS,
        from time to time, on the closing date (the “Closing
        Date”) of a transaction pursuant to which Securities are offered
        (each, a “Transaction”), the Counterparty and the SPV
        or an underwriter or dealer with respect to the Transaction, enter into certain
        derivative agreements (each, a “Derivative
        Agreement”), including interest rate or currency swaps, for
        purposes of providing certain yield enhancements to the SPV or the related
        trustee on behalf of the SPV or a swap or corridor contract administrator
        (each,
        an “Administrator”).

       

      NOW,
        THEREFORE, in consideration of the mutual agreements set forth herein and
        for
        other good and valuable consideration, the receipt and adequacy of which
        is
        hereby acknowledged, the parties hereby agree as follows:

       

      
        	
                Section
                  1.

              	
                Definitions

              

      

       

      Company
        Information: As defined in Section 4(a)(i).

       

      Company
        Financial Information: As defined in Section 2(a)(ii).

       

      Depositor:
        Means IndyMac MBS and IndyMac ABS with respect to the related Registration
        Statement for which the entity of the registrant.

       

      GAAP:
        As
        defined in Section 3(a)(ii).

       

      EDGAR:
        The Commission’s Electronic Data Gathering, Analysis and Retrieval
        system.

       

      Exchange
        Act: The Securities Exchange Act of 1934, as amended and the rules and
        regulations promulgated thereunder.

       

      Exchange
        Act Reports: All Distribution Reports on Form 10-D, Current Reports on Form
        8-K
        and Annual Reports on Form 10-K that are to be filed with respect to the
        related
        SPV pursuant to the Exchange Act.

       

      Free
        Writing Prospectus: The free writing prospectus dated March 7,
        2006.

       

      Master
        Agreement: The ISDA Master Agreement assumed to apply to the Derivative
        Agreement pursuant to its terms.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Prospectus
        Supplement: The prospectus supplement prepared in connection with the public
        offering and sale of the related Securities.

       

      Regulation
        AB: Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject
        to
        such clarification and interpretation as have been provided by the Commission
        in
        the adopting release (Asset-Backed Securities, Securities Act Release No.
        33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
        Commission, or as may be provided by the Commission or its staff from time
        to
        time.

       

      Securities
        Act: The Securities Act of 1933, as amended, and the rules and regulations
        promulgated thereunder.

       

      Section
        2.                      Information
        to be Provided by the Counterparty.

       

      
        	
                 

              	
                (a)

              	
                Prior
                  to printing the related Free Writing Prospectus and Prospectus
                  Supplement,

              

      

       

      
        	
                 

              	
                (i)

              	
                the
                  Counterparty shall provide to the related Depositor such information
                  regarding the Counterparty, as a derivative instrument counterparty,
                  as is
                  reasonably requested by the related Depositor for the purpose of
                  compliance with Item 1115(a)(1) of Regulation AB. Such information
                  shall
                  include, at a minimum:

              

      

       

      
        	
                 

              	
                (A)

              	
                The
                  Counterparty’s legal name (and any
                  d/b/a);

              

      

       

      
        	
                 

              	
                (B)

              	
                the
                  organizational form of the
                  Counterparty;

              

      

       

      
        	
                 

              	
                (C)

              	
                a
                  description of the general character of the business of the
                  Counterparty;

              

      

       

      
        	
                 

              	
                (D)

              	
                a
                  description of any affiliation or relationship (as set forth in
                  Item 1119)
                  between the Counterparty and any of the following
                  parties:

              

      

       

      
        	
                 

              	
                (1)

              	
                IndyMac
                  Bank (or any other sponsor identified to the Counterparty by IndyMac
                  Bank);

              

      

       

      
        	
                 

              	
                (2)

              	
                the
                  related Depositor (as identified to the Counterparty by IndyMac
                  Bank);

              

      

       

      
        	
                 

              	
                (3)

              	
                the
                  SPV;

              

      

       

      
        	
                 

              	
                (4)

              	
                IndyMac
                  Bank (or any other servicer or master servicer identified to the
                  Counterparty by IndyMac Bank);

              

      

       

      
        	
                 

              	
                (5)

              	
                Deutsche
                  Bank National Trust Company (or any other trustee identified to
                  the
                  Counterparty by IndyMac Bank);

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 

              	
                (6)

              	
                any
                  originator identified to the Counterparty by IndyMac
                  Bank;

              

      

       

      
        	
                 

              	
                (7)

              	
                any
                  enhancement or support provider identified to the Counterparty
                  by IndyMac
                  Bank; and

              

      

       

      
        	
                 

              	
                (8)

              	
                any
                  other material transaction party identified to the Counterparty
                  by IndyMac
                  Bank.

              

      

       

      
        	
                 

              	
                (ii)

              	
                if
                  requested by the related Depositor for the purpose of compliance
                  with Item
                  1115(b) with respect to a Transaction, the Counterparty
                  shall:

              

      

       

      
        	
                 

              	
                (A)

              	
                provide
                  the financial data required by Item 1115(b)(1) or (b)(2) of Regulation
                  AB
                  (as specified by the related Depositor to the Counterparty) with
                  respect
                  to the Counterparty (or any entity that consolidates the Counterparty)
                  and
                  any affiliated entities providing derivative instruments to the
                  SPV (the
                  “Company Financial Information”), in a form
                  appropriate for use in the Free Writing Prospectus, Prospectus
                  Supplement
                  and in an EDGAR-compatible form and

              

      

       

      
        	
                 

              	
                (B)

              	
                if
                  applicable, cause its accountants to issue their consent to the
                  filing of
                  such financial statements in the Registration
                  Statement.

              

      

       

      
        	
                 

              	
                (b)

              	
                Following
                  the Closing Date with respect to a
                  Transaction,

              

      

       

      
        	
                 

              	
                (i)

              	
                no
                  later than the 25th calendar day of each month, the Counterparty
                  shall (1)
                  notify the related Depositor in writing of any affiliations or
                  relationships that develop following the Closing Date between the
                  Counterparty and any of the parties specified in Section 2(a)(i)(D)
                  (and
                  any other parties identified in writing by the related Depositor)
                  and (2)
                  provide to the related Depositor a description of such proceedings,
                  affiliations or relationships as described in Section
                  2(b)(i)(1);

              

      

       

      
        	
                 

              	
                (ii)

              	
                if
                  the Counterparty provided Company Financial Information to the
                  related
                  Depositor for the Free Writing Prospectus and/or the Prospectus
                  Supplement, within 5 Business Days of the release of any updated
                  financial
                  data, the Counterparty shall (1) provide current Company Financial
                  Information as required under Item 1115(b) of Regulation AB to
                  the related
                  Depositor in an EDGAR-compatible form, and (2) if applicable, cause
                  its
                  accountants to issue their consent to filing or incorporation by
                  reference
                  of such financial statements in the Exchange Act Reports of the
                  SPV;
                  and

              

      

       

      
        	
                 

              	
                (iii)

              	
                if
                  the related Depositor requests Company Financial Information from
                  the
                  Counterparty, for the purpose of compliance with Item 1115(b) of
                  Regulation AB following the Closing Date, the Counterparty shall
                  upon five
                  Business Days written notice either (A), (1) provide current Company
                  

              

      

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Financial
        Information as required under Item 1115(b)
        of Regulation AB to the related Depositor in an EDGAR-compatible form, (2)
        if
        applicable, cause its accountants to issue their consent to filing or
        incorporation by reference of such financial statements in the Exchange Act
        Reports of the SPV and (3) within 5 Business Days of the release of any updated
        financial data, provide current Company Financial Information as required
        under
        Item 1115(b) of Regulation AB to the related Depositor in an EDGAR-compatible
        form and if applicable, cause its accountants to issue their consent to filing
        or incorporation by reference of such financial statements in the Exchange
        Act
        Reports of the SPV or (B) assign the Derivative Agreement as provided
        below.

       

       

      
        	
                Section
                  3.

              	
                Representations
                  and Warranties and Covenants of the
                  Counterparty.

              

      

       

      
        	
                 

              	
                (a)

              	
                The
                  Counterparty represents and warrants to the related Depositor,
                  as of the
                  date on which information is first provided to the related Depositor
                  under
                  Section 2(a)(ii), Section 2(b)(ii) or Section 2(b)(iii)(A), that,
                  except
                  as disclosed in writing the related Depositor prior to such
                  date:

              

      

       

      
        	
                 

              	
                (i)

              	
                The
                  accountants who certify the financial statements and supporting
                  schedules
                  included in the Company Financial Information (if applicable) are
                  independent registered public accountants as required by the Securities
                  Act.

              

      

       

      
        	
                 

              	
                (ii)

              	
                If
                  applicable, the financial statements included in the Company Financial
                  Information present fairly the consolidated financial position
                  of the
                  Counterparty (or the entity that consolidates the Counterparty)
                  and its
                  consolidated subsidiaries as of the dates indicated and the consolidated
                  results of their operations and cash flows for the periods specified;
                  except as otherwise stated in the Company Financial Information,
                  said
                  financial statements have been prepared in conformity with generally
                  accepted accounting principles (“GAAP”) applied
                  on a consistent basis; and the supporting schedules included in
                  the
                  Company Financial Information present fairly in accordance with
                  GAAP the
                  information required to be stated therein. The selected financial
                  data and
                  summary financial information included in the Company Financial
                  Information present fairly the information shown therein and have
                  been
                  compiled on a basis consistent with that of the audited financial
                  statements of the Counterparty.

              

      

       

      
        	
                 

              	
                (iii)

              	
                The
                  Company Financial Information and other Company Information included
                  or
                  incorporated by reference in the Registration Statement (including
                  through
                  filing on an Exchange Act Report), at the time they were or hereafter
                  are
                  filed with the Commission, complied in all material respects with
                  the
                  requirements of Item 1115(b) of Regulation AB (in the case of the
                  Company
                  Financial Information) and, did not and will not contain an untrue
                  statement of a material fact or omit to state a material
                  

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      fact
        required to be stated therein or necessary in
        order to make the statements therein, in the light of the circumstances under
        which they were made, not misleading.

       

      
        	
                 

              	
                (b)

              	
                The
                  Counterparty agrees that the terms of this Agreement shall be incorporated
                  by reference into any Derivative Agreement so that each SPV who
                  is a
                  beneficiary of a Derivative Agreement shall be an express third
                  party
                  beneficiary of this Agreement.

              

      

       

      
        	
                Section
                  4.

              	
                Indemnification;
                  Remedies

              

      

       

      
        	
                 

              	
                (a)

              	
                The
                  Counterparty shall indemnify IndyMac Bank and the related Depositor,
                  each
                  person responsible for the preparation, execution or filing of
                  any report
                  required to be filed with the Commission with respect to such SPV,
                  or for
                  execution of a certification pursuant to Rule 13a-14(d) or Rule
                  15d-14(d)
                  under the Exchange Act; each broker dealer acting as underwriter,
                  each
                  person who controls any of such parties (within the meaning of
                  Section 15
                  of the Securities Act and Section 20 of the Exchange Act); and
                  the
                  respective present and former directors, officers, employees and
                  agents of
                  each of the foregoing, and shall hold each of them harmless from
                  and
                  against any losses, damages, penalties, fines, forfeitures, legal
                  fees and
                  expenses and related costs, judgments, and any other costs, fees
                  and
                  expenses that any of them may sustain arising out of or based
                  upon:

              

      

       

      
        	
                 

              	
                (i)

              	
                (A)
                  any untrue statement of a material fact contained or alleged to
                  be
                  contained in any information, report, accountants’ consent or other
                  material provided in written or electronic form under Section 2
                  by or on
                  behalf of the Counterparty (collectively, the “Company
                  Information”), or (B) the omission or alleged omission to
                  state in the Company Information a material fact required to be
                  stated in
                  the Company Information or necessary in order to make the statements
                  therein, in the light of the circumstances under which they were
                  made, not
                  misleading;

              

      

       

      
        	
                 

              	
                (ii)

              	
                [reserved];
                  or

              

      

       

      
        	
                 

              	
                (iii)

              	
                any
                  breach by the Counterparty of a representation or warranty set
                  forth in
                  Section 3(a) and made as of a date prior to the Closing Date, to
                  the
                  extent that such breach is not cured by the Closing Date, or any
                  breach by
                  the Counterparty of a representation or warranty pursuant to Section
                  3 to
                  the extent made as of a date subsequent to the Closing
                  Date.

              

      

       

      
        	
                 

              	
                (b)

              	
                (i)

              	
                Any
                  failure by the Counterparty to deliver any information, report,
                  accountants’ consent or other material when and in any case only as
                  required under Section 2 or any breach by the Counterparty of a
                  representation or warranty set forth in Section 3 and made as of
                  a date
                  prior to the Closing Date, to the extent that such breach is not
                  cured by
                  the Closing Date (or in the case of information needed for purposes
                  of
                  printing the Free Writing Prospectus and the Prospectus Supplement,
                  the
                  date of 

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      printing
        of the Free Writing Prospectus or Prospectus
        Supplement, as applicable), or any breach by the Counterparty of a
        representation or warranty pursuant to Section 3 to the extent made as of
        a date
        subsequent to such closing date, shall, except as provided in clause (ii)
        of
        this paragraph, immediately and automatically, without notice or grace period,
        constitute an Additional Termination Event (as defined in the Master Agreement)
        with the Counterparty as the sole Affected Party (as defined in the Master
        Agreement) under the Derivative Agreement. Following such termination, a
        termination payment (if any) shall be payable by the applicable party as
        determined by the application of Section 6(e)(ii) of the Master Agreement,
        with
        Market Quotation and Second Method being the applicable method for determining
        the termination payment (notwithstanding anything in the Derivative Agreement
        to
        the contrary).

       

      
        	
                 

              	
                (ii)

              	
                If
                  the Counterparty has failed to deliver any information, report,
                  or
                  accountants’ consent when and as required under Section 2, which continues
                  unremedied for the lesser of ten calendar days after the date on
                  which
                  such information, report, or accountants’ consent was required to be
                  delivered or such period in which the applicable Exchange Act Report
                  for
                  which such information is required can be timely filed (without
                  taking
                  into account any extensions permitted to be filed), and the Counterparty
                  has not, at its own cost, within the period in which the applicable
                  Exchange Act Report for which such information is required can
                  be timely
                  filed, either (A) caused another entity (which meets any applicable
                  ratings threshold in the Derivative Agreement) to replace the Counterparty
                  as party to the Derivative Agreement that (i) has signed an agreement
                  with
                  IndyMac Bank and the Depositors substantially in the form of this
                  Agreement, (ii) has agreed to deliver any information, report,
                  certification or accountants’ consent when and as required under Section 2
                  hereof and (iii) is approved by the Depositor (which approval shall
                  not be
                  unreasonably withheld) and any rating agency, if applicable, on
                  terms
                  substantially similar to the Derivative Agreement, or (B) post
                  collateral
                  satisfactory to Bear Stearns Financial Products Inc. and the Depositor
                  in
                  an amount sufficient to reduce the aggregate significance percentage
                  to 5%
                  in the case that financials have been requested for the purpose
                  of
                  compliance with Item 1115(b)(1) and to 15% in the case that financials
                  have been requested for the purpose of compliance with Item 1115(b)(2),
                  then an Additional Termination Event (as defined in the Master
                  Agreement)
                  shall have occurred with the Counterparty as the sole Affected
                  Party.
                  Following such termination, a termination payment (if any) shall
                  be
                  payable by the applicable party as determined by the application
                  of
                  Section 6(e)(ii) of the Master Agreement, with Market Quotation
                  and Second
                  Method being the applicable method for determining the termination
                  payment
                  (notwithstanding anything in the Derivative Agreement to the
                  contrary).

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 

              	
                (iii)

              	
                In
                  the event that the Counterparty or the SPV has found a replacement
                  entity
                  in accordance with Section 2(b)(ii), the Counterparty shall promptly
                  reimburse the SPV for all reasonable incidental expenses incurred
                  by the
                  SPV, as such are incurred, in connection with the termination of
                  the
                  Counterparty as counterparty and the entry into a new Derivative
                  Agreement. The provisions of this paragraph shall not limit whatever
                  rights the SPV may have under other provisions of this Agreement
                  or
                  otherwise, whether in equity or at law, such as an action for damages,
                  specific performance or injunctive
                  relief.

              

      

       

      
        	
                Section
                  5.

              	
                Miscellaneous.

              

      

       

      
        	
                 

              	
                (a)

              	
                Construction.  Throughout
                  this Agreement, as the context requires, (a) the singular tense
                  and number
                  includes the plural, and the plural tense and number includes the
                  singular; (b) the past tense includes the present, and the present
                  tense
                  includes the past; and (c) references to parties, sections, schedules,
                  and
                  exhibits mean the parties, sections, schedules, and exhibits of
                  and to
                  this Agreement. The section headings in this Agreement are inserted
                  only
                  as a matter of convenience, and in no way define, limit, extend,
                  or
                  interpret the scope of this Agreement or of any particular
                  section.

              

      

       

      
        	
                 

              	
                (b)

              	
                Assignment.  None
                  of the parties may assign their rights under this Agreement without
                  the
                  prior written consent of the other parties. Subject to the foregoing,
                  this
                  Agreement shall be binding on and inure to the benefit of the parties
                  and
                  their respective successors and permitted
                  assigns.

              

      

       

      
        	
                 

              	
                (c)

              	
                No
                  Third-Party Benefits Except as Specified.  None of the
                  provisions of this Agreement are intended to benefit, or to be
                  enforceable
                  by, any third-party beneficiaries except the related SPV and any
                  trustee
                  of an SPV or any Administrator.

              

      

       

      
        	
                 

              	
                (d)

              	
                Governing
                  Law.  This Agreement shall be governed by and construed in
                  accordance with the internal laws of the State of New York without
                  regard
                  to the conflict of laws principles
                  thereof.

              

      

       

      
        	
                 

              	
                (e)

              	
                Amendment
                  and Waiver.  This Agreement may not be modified or amended
                  except by an instrument in writing signed by the parties hereto.
                  No waiver
                  of any provision of this Agreement or of any rights or obligations
                  of any
                  party under this Agreement shall be effective unless in writing
                  and signed
                  by the party or parties waiving compliance, and shall be effective
                  only in
                  the specific instance and for the specific purpose stated in that
                  writing.

              

      

       

      
        	
                 

              	
                (f)

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

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 

              	
                (g)

              	
                Additional
                  Documents.  Each party hereto agrees to execute any and all
                  further documents and writings and to perform such other actions
                  which may
                  be or become necessary or expedient to effectuate and carry out
                  this
                  Agreement.

              

      

       

      
        	
                 

              	
                (h)

              	
                Severability.  Any
                  provision hereof which is prohibited or unenforceable shall be
                  ineffective
                  only to the extent of such prohibition or unenforceability without
                  invalidating the remaining provisions
                  hereof.

              

      

       

      
        	
                 

              	
                (i)

              	
                Integration.  This
                  Agreement contains the entire understanding of the parties with
                  respect to
                  the subject matter hereof. There are no restrictions, agreements,
                  promises, representations, warranties, covenants or undertakings
                  with
                  respect to the subject matter hereof other than those expressly
                  set forth
                  or referred to herein. This Agreement supersedes all prior agreements
                  and
                  understandings between the parties with respect to its subject
                  matter.

              

      

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      IN
        WITNESS WHEREOF, the parties hereto have caused their names to be signed
        hereto
        by their respective officers thereunto duly authorized as of the day and
        year
        first above written.

       

      
        	 	INDYMAC
                MBS,
                INC.	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/	 
	 	 	Name:
                Andy
                Sciandra 	 
	 	 	
                Title:  
                  Senior Vice President 

                Secondary
                  Marketing

              	 
	 	 	 	 

      

       

      
         

        
          	 	INDYMAC
                  ABS,
                  INC.	 
	 	 	 	 
	
                   

                	
                  By:
                    

                	/s/	 
	 	 	Name:
                  Andy
                  Sciandra 	 
	 	 	
                  Title:  
                    Senior Vice President 

                  Secondary
                    Marketing

                	 
	 	 	 	 

        

         

      

      
         

        
          	 	INDYMAC
                  BANK,
                  INC.	 
	 	 	 	 
	
                   

                	
                  By:
                    

                	/s/	 
	 	 	Name:
                  Andy
                  Sciandra 	 
	 	 	
                  Title:  
                    Senior Vice President 

                  Secondary
                    Marketing

                	 
	 	 	 	 

        

         

      

      
        
           

          
            	 	BEAR
                    STEARNS
                    FINANCIAL PRODUCTS INC.	 
	 	 	 	 
	
                     

                  	
                    By:
                      

                  	/s/	 
	 	 	Name:
	 
	 	 	
                    Title:  
                      

                  	 
	 	 	 	 

          

           

        

      

      
        
           

          
            	 	BEAR
                    STEARNS
                    FINANCIAL PRODUCTS INC.	 
	 	 	 	 
	
                     

                  	
                    By:
                      

                  	/s/Annie
                    Manevit	 
	 	 	Name:
                    Annie
                    Manevit	 
	 	 	
                    Title:  
                      Authorized Signature

                    Ref
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Exhibit 4.2    
    

THIS
WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. 

 
 

WARRANT TO PURCHASE STOCK    
    

	Corporation:	 	CardioNet, Inc., a California corporation
	Number of Shares:	 	12,500
	Series and Class of Stock:	 	Series B Preferred
	Initial Exercise Price:	 	$1.47
	Issue Date:	 	Aug. 9, 2000
	Expiration Date:	 	Aug. 9, 2010

        THIS
WARRANT CERTIFIES THAT, for the agreed upon value of $1.00 and for other good and valuable consideration, SILICON VALLEY BANK ("Holder") is entitled to purchase the number of fully
paid and nonassessable shares of the series and class of securities (the "Shares") of the corporation (the "Company") at the initial exercise price per Share (the "Warrant Price") all as set forth
above and as adjusted pursuant to Article 2 of this Warrant, subject to the provisions and upon the terms and conditions set forth in this Warrant. 

ARTICLE 1. EXERCISE  

        1.1    Method of Exercise.    Holder may exercise this Warrant prior to Expiration Date by
delivering a duly executed Notice of Exercise in substantially the form attached as Exhibit A to the principal office of the Company. Unless Holder is exercising the conversion right set forth
in Section 1.2, Holder shall also deliver to the Company a check for the aggregate Warrant Price for the Shares being purchased. Notwithstanding the foregoing, Holder may not purchase less than
1,000 of the Shares at one time. 

        1.2    Conversion Right.    In lieu of exercising this Warrant as specified in
Section 1.1, Holder may from time to time prior to Expiration Date convert this Warrant, in whole or in part, into a number of Shares determined by dividing (a) the aggregate fair market
value of the Shares or other securities otherwise issuable upon exercise of this Warrant minus the aggregate Warrant Price of such Shares, by (b) the fair market value of one Share. The fair
market value of the Shares shall be determined pursuant to Section 1.4. 

        1.3    [Intentionally Omitted.]    

        1.4    Fair Market Value.    If the Shares are traded in a public market, the fair market
value of the Shares shall be the closing price of the Shares (or the closing price of the Company's stock into which the Shares are convertible) reported for the business day immediately before Holder
delivers its Notice of Exercise to the Company. If the Shares are not traded in a public market, the Board of Directors of the Company shall determine fair market value in its reasonable good faith
judgment. The foregoing notwithstanding, if Holder advises the Board of Directors in writing that Holder disagrees with such determination, then the Company and Holder shall promptly agree upon a
reputable investment banking firm to undertake such valuation. If the valuation of such investment banking firm is at least ten percent (10%) greater than that determined by the Board of Directors,
then all fees and expenses of such investment banking firm shall be paid by the Company. In all other circumstances, such fees and expenses shall be paid by Holder. 

 

        1.5    Delivery of Certificate and New Warrant.    Promptly after Holder exercises or converts
this Warrant, the Company shall deliver to Holder certificates for the Shares acquired and, if this Warrant has not been fully exercised or converted and has not expired, a new Warrant representing
the Shares not so acquired. 

        1.6    Replacement of Warrants.    On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and amount
to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, the Company at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor. 

        1.7    Repurchase on Sale, Merger, or Consolidation of the Company.    

        1.7.1    "Acquisition".    For the purpose of this Warrant,
"Acquisition" means (a) any sale, license or other disposition of all or substantially all of the assets of the Company, or (b) any reorganization, consolidation or merger of the Company
where the holders of the Company's securities before the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction. 

        1.7.2    Assumption of Warrant.    Upon the closing of any Acquisition
(as defined in Section 1.7.1(b) above) the successor entity shall assume the obligations of this Warrant, and this Warrant shall be exercisable for the same securities, cash and property as
would be payable for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were outstanding on the record date for the Acquisition and subsequent closing. The
Warrant Price shall be adjusted accordingly. 

        1.8    No Rights as Shareholder Prior to Exercise.    This Agreement does not entitle the
Holder to any voting rights or other rights as a shareholders of the Company prior to the exercise of the Holder's rights to purchase the Shares as provided for in this Agreement. 

ARTICLE 2. ADJUSTMENTS TO THE SHARES  

        2.1    Stock Dividends, Splits, Etc.    If the Company declares or pays a dividend on its
common stock (or the Shares if the Shares are securities other than common stock) payable in common stock, or other securities, subdivides the outstanding common stock into a greater amount of common
stock, or, if the Shares are securities other than common stock, subdivides the Shares in a transaction that increases the amount of common stock into which the Shares are convertible, then upon
exercise of this Warrant, for each Share acquired, Holder shall receive, without cost to Holder, the total number and kind of securities to which Holder would have been entitled had Holder owned the
Shares of record as of the date the dividend or subdivision occurred. 

        2.2    Reclassification, Exchange or Substitution.    Upon any reclassification, exchange,
substitution or other event that results in a change of the number and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall be entitled to receive, upon
exercise or conversion of this Warrant, the number and kind of securities and property that Holder would have received for the Shares if this Warrant had been exercised immediately before such
reclassification, exchange, substitution or other event. Such an event shall include any automatic conversion of the outstanding or issuable securities of the Company of the same series as the Shares
to common stock pursuant to the terms of the Company's Articles of Incorporation upon the closing of a registered public offering of the Company's common stock. The Company or its successor shall
promptly issue to Holder a new Warrant for such new securities or other property. The new Warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article 2 including, without limitation, adjustments to the Warrant Price and to the number of securities or 

2

 

property
issuable upon exercise of the new Warrant. The provisions of this Section 2.2 shall similarly apply to successive reclassifications, exchanges, substitutions or other events. 

        2.3    Adjustments for Combinations, Etc.    If the outstanding shares are combined or
consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased. 

        2.4    Adjustments for Diluting Issuances.    The Warrant Price and the number of Shares
issuable upon exercise of this Warrant or, if the Shares are Preferred Stock, the number of shares of common stock issuable upon conversion of the Shares, shall be subject to adjustment, from time to
time in the manner set forth in the Company's Second Amended and Restated Articles of Incorporation filed with the California Secretary of State on April 3, 2000. The provisions set forth for
the Shares in the Company's Second Amended and Restated Articles of Incorporation filed with the California Secretary of State on April 3, 2000 relating to the above in effect as of the Issue
Date may not be amended, modified or waived, without the prior written consent of Holder unless such amendment, modification or waiver affects Holder in the same manner as they affect all other such
shareholders of the Shares. No adjustments shall be made in connection with the public sale and issuance of Common Stock, or any options or warrants issued in connection therewith, or for any warrants
or options outstanding on the date of this Warrant, or for any Common Stock issuable upon the exercise of any such warrants or options. 

        2.5.    No Impairment.    The Company shall not, by amendment of its Articles of Incorporation
or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms to be observed or performed under this Warrant by the Company, but shall at all times in good faith assist in carrying out of all the provisions of this Article 2 and in taking
all such action as may be necessary or appropriate to protect Holder's rights under this Article against impairment. If the Company takes any action affecting the Shares or its common stock other than
as described above that adversely affects Holder's rights under this Warrant, the Warrant Price shall be adjusted downward and the number of Shares issuable upon exercise of this Warrant shall be
adjusted upward in such a manner that the aggregate Warrant Price of this Warrant is unchanged. 

        2.6    Fractional Shares.    No fractional Shares shall be issuable upon exercise or
conversion of the Warrant and the number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional share interest arises upon any exercise or conversion of the Warrant,
the Company shall eliminate such fractional share interest by paying Holder an amount computed by multiplying the fractional interest by the fair market value of a full Share. 

        2.7    Certificate as to Adjustments.    Upon each adjustment of the Warrant Price, the
Company at its expense shall promptly compute such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which such
adjustment is based. The Company shall, upon written request, furnish Holder a certificate setting forth the Warrant Price in effect upon the date thereof and the series of adjustments leading to such
Warrant Price. No adjustment in the number of Shares purchasable, or in the Warrant Price, as applicable, shall be required unless such adjustment would require an increase or decrease of at least two
percent (2%); provided, however that any adjustment which by reason of this sentence is not required to be made immediately shall be carried forward and taken into account in any subsequent
adjustment. 

3

 

ARTICLE 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY  

        3.1    Representations and Warranties.    The Company hereby represents and warrants to the
Holder as follows: 

        3.1.1 All Shares which may be issued upon the exercise of the purchase right represented by this Warrant, and all securities,
if any, issuable upon conversion of the Shares, shall, upon payment of the Warrant Price and the issuance thereof, be duly authorized, validly issued, fully paid and nonassessable, and free of any
liens and encumbrances except for restrictions on transfer provided for herein or under applicable federal and state securities laws. 

        3.1.2 The Capitalization Table attached to this Warrant is true and complete as of the Issue Date. 

        3.2    Notice of Certain Events.    If the Company proposes at any time (a) to declare
any dividend or distribution upon its common stock, whether in cash, property, stock or other securities and whether or not a regular cash dividend; (b) to offer for subscription pro rata to
the holders of any class or series of its stock any additional shares of stock of any class or series or other rights; (c) to effect any reclassification or recapitalization of common stock;
(d) to merge or consolidate with or into any other corporation as described in Section 1.7.1 above, or sell, lease, license or convey all or substantially all of its assets, or to
liquidate, dissolve or wind up; or (e) offer holders of registration rights the opportunity to participate in an underwritten public offering of the company's securities for cash, then, in
connection with each such event, the Company shall give Holder (1) at least 20 days prior written notice of the date on which a record will be taken for such dividend, distribution or
subscription rights (and specifying the date on which the holders of common stock will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in
(c) and (d) above; (2) in the case of the matters referred to in (c) and (d) above, at least 20 days prior written notice of the date when the same will take
place (and specifying the date on which the holders of common stock will be entitled to exchange their common stock for securities or other property deliverable upon the occurrence of such event); and
(3) in the case of the matter referred to in (e) above, the same notice as is given to the holders of such registration rights. 

        3.3    Information Rights.    So long as the Holder holds this Warrant and/or any of the
Shares, the Company shall deliver to the Holder, within one hundred twenty (120) days after the end of each fiscal year of the Company, the annual audited financial statements of the Company
certified by the Company's independent public accountants. 

        3.4    Registration Under Securities Act of 1933, as amended.    The Company agrees that the
Shares or, if the Shares are convertible into common stock of the Company, such common stock, shall be subject to the registration rights set forth for the Shares in Company's Investors' Rights
Agreement dated as of April 14, 2000. The provisions set forth in Company's Investors' Rights Agreement dated as of April 14, 2000 relating to the above in effect as of the Issue Date
may not be amended, modified or waived without the prior written consent of Holder unless such amendment, modification or waiver affects Holder in the same manner as they affect all other such
shareholders of the Shares. 

ARTICLE 4. REPRESENTATIONS AND COVENANTS OF HOLDER  

        4.1    Representations and Warranties.    This Agreement has been entered into by the Company
in reliance upon the following representations and covenants of the Holder, which the Holder hereby confirms: 

        4.1.1    Purchase Entirely for Own Account.    The Warrant and any
Shares issued pursuant to this Warrant are being acquired for investment for the Holder's own account, not as a nominee or 

4

 

agent,
and not with a view to the resale or distribution of any thereof, and the Holder has no present intention of selling, granting any participation in or otherwise distributing the same. 

        4.1.2    Investment Experience.    The Holder is an investor in
securities of companies in the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial or
business matters that it is capable of evaluating the merits and risks of the investment in the Warrant and the Shares. 

        4.1.3    Residency.    The Holder's chief executive office is located
in the State of California. 

        4.1.4    Restrictions on Acquired Securities.    Holder acknowledges
that any securities acquired pursuant to this Agreement may not be sold, pledged, assigned or transferred in any manner, except pursuant to registration and qualification under applicable securities
laws, or if an exemption from such registration or qualification is applicable in the reasonable judgment of Company's legal counsel. 

        4.1.5    Legend.    It is understood that the Shares issuable upon
exercise of the Warrant, and any securities issued in respect thereof or exchange therefor, will bear the legend set forth in Section 5.2 below. 

        4.1.6    No General Solicitation.    Holder has not seen or received
any advertisement or general solicitation in connection with this Warrant. 

ARTICLE 5. MISCELLANEOUS  

        5.1    Term.    This Warrant is exercisable, in whole or in part, at any time and from time to
time on or before the Expiration Date set forth above. 

        5.2    Legends.    This Warrant and the Shares (and the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in substantially the following form: 

        THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER
SUCH ACT OR PURSUANT TO RULE 144, OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. TRANSFER OF THIS WARRANT IS ALSO RESTRICTED BY
THE WARRANT TO PURCHASE STOCK BETWEEN THE COMPANY AND HOLDER, A COPY OF WHICH IS AVAILABLE FROM THE COMPANY. 

        5.3    Compliance with Securities Laws on Transfer.    This Warrant and the Shares issuable
upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part without compliance
with applicable federal and state securities laws by the transferor and the transferee (including, without limitation, the delivery of investment representation letters and legal opinions reasonably
satisfactory to the Company, as reasonably requested by the Company). The Company shall not require Holder to provide an opinion of counsel if the transfer is to an affiliate of Holder or if there is
no material question as to the availability of current information as referenced in Rule 144(c), Holder represents that it has complied with Rule 144(d) and (e) in reasonable
detail, the selling broker represents that it has complied with Rule 144(f), and the Company is provided with a copy of Holder's notice of proposed sale. 

        5.4    Transfer Procedure.    Subject to the provisions of Section 4.3, Holder may
transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities issuable, directly 

5

 

or
indirectly, upon conversion of the Shares, if any) at any time to Silicon Valley Bancshares or The Silicon Valley Bank Foundation, or to any affiliate of Holder, or to any other transferree
reasonably acceptable to the Company by giving the Company notice of the portion of the Warrant being transferred setting forth the name, address and taxpayer identification number of the transferee
and surrendering this Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable). All transferees shall be deemed the "Holder" for purpose of this Warrant. Unless the
Company is filing financial information with the SEC pursuant to the Securities Exchange Act of 1934, the Company shall have the right to refuse to transfer any portion of this Warrant to any person
who competes with the Company. 

        5.5    Notices.    All notices and other communications from the Company to the Holder, or
vice versa, shall be deemed delivered and effective when given personally, sent by a recognized overnight delivery service, mailed by first-class registered or certified mail (return receipt
requested) at such address as may have been furnished to the Company or the Holder, or by telefacsimile, as the case may be, in writing by the Company or such holder from time to time. All notices to
be provided under this Warrant shall be sent to the following address: 

Silicon
Valley Bank

3003 Tasman Drive

Santa Clara, CA 95054

Attn: Treasury Department 

        5.6    Waiver.    This Warrant and any term hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 

        5.7    Attorneys Fees.    In the event of any dispute between the parties concerning the terms
and provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys' fees. 

        5.8    Governing Law.    This Warrant shall be governed by and construed in accordance with
the laws of the State of California, without giving effect to its principles regarding conflicts of law. 

        5.9    Entire Agreement.    This Agreement constitutes the final, complete and exclusive
agreement between the parties pertaining to the subject matter of this Agreement, and supersedes all prior and contemporaneous agreements. Any amendments or supplements to this Agreement must be in
writing and signed by both of the parties. 

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

	 	 	"Company"
	

 	
 	

CARDIONET, INC., a California corporation
	

 	
 	

By:	

/s/  JAMES M. SWEENEY      
 James M. Sweeney, Chairman of the Board and Chief Executive Officer
	

 	
 	

By:	

/s/  DOREEN M. ROBERTS      
 DOREEN M. ROBERTS

V.P. & CORP. SEC.

        [SIGNATURES
CONTINUE] 

6

 

	 	 	"Holder"
	

 	
 	

SILICON VALLEY BANK
	

 	
 	

By:	
 	

/s/  SUSAN L. WORSHAM      

	 	 	 	 	Name:	VICE PRESIDENT

	 	 	 	 	Title:	SUSAN L. WORSHAM

        [SIGNATURES
END] 

7

NOTICE OF EXERCISE  

        1.     The
undersigned hereby elects to purchase                        shares of the Common/Series B Preferred [STRIKE ONE] Stock of
CardioNet, Inc. pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price of such shares in full. 

        1.     The
undersigned hereby elects to convert the attached Warrant into Shares in the manner specified in the Warrant. This conversion is exercised with respect to
                        of the Shares covered by the Warrant. 

        [STRIKE
PARAGRAPH THAT DOES NOT APPLY.] 

        2.     Please
issue a certificate or certificates representing said shares in the name of the undersigned or in such other name as is specified below: 

	
 (Name)	 
	

	

 
	

 (Address)	

 

        3.     In
exercising its rights to acquire the Shares of the Company, the undersigned hereby acknowledges and confirms the representations and warranties made in
Section 4 of this Agreement as of the date set forth below. 

	
 Date	 	 	 	
 (Signature)

Exhibit
A 

QuickLinks

Exhibit 4.2

WARRANT TO PURCHASE STOCK

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