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Exhibit 10.5    
    

 
 

CARDIONET, INC.
  2007 EMPLOYEE STOCK PURCHASE PLAN    
    

ADOPTED BY THE BOARD OF DIRECTORS: [            ], 2007

APPROVED BY THE STOCKHOLDERS: [            ], 2007  

1.    GENERAL.    

         (a)   The purpose of the Plan is to provide a means by which Eligible Employees of the Company and certain designated Related Corporations may
be given
an opportunity to purchase shares of Common Stock. The Plan is intended to permit the Company to grant a series of Purchase Rights to Eligible Employees under an Employee Stock Purchase Plan. 

        (b)   The Company, by means of the Plan, seeks to retain the services of such Employees, to secure and retain the services of new Employees and
to
provide incentives for such persons to exert maximum efforts for the success of the Company and its Related Corporations. 

2.    ADMINISTRATION.    

         (a)   The Board shall administer the Plan unless and until the Board delegates administration of the Plan to a Committee or Committees, as
provided in
Section 2(c). 

        (b)   The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

           (i)  To determine how and when Purchase Rights to purchase shares of Common Stock shall be granted and the provisions of each Offering
comprised of
such Purchase Rights (which need not be identical). 

          (ii)  To designate from time to time which Related Corporations of the Company shall be eligible to participate in the Plan. 

       (iii)  To construe and interpret the Plan and Purchase Rights, and to establish, amend and revoke rules and regulations for administration of the
Plan. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan, in a manner and to the extent it shall deem necessary or expedient to make the Plan or
Purchase Rights fully effective. 

         (iv)  To settle all controversies regarding the Plan and Purchase Rights granted under it. 

         (v)  To suspend or terminate the Plan at any time. Suspension or termination of the Plan shall not impair rights and obligations under any
Purchase
Right granted while the Plan is in effect except with the written consent of the affected Participant. 

         (vi)  To amend the Plan in any respect the Board deems necessary or advisable. However, except as provided in Section 12(a) relating to
Capitalization Adjustments, stockholder approval shall be required for any amendment of the Plan that either (i) materially increases the number of shares of Common Stock available for issuance
under the Plan, (ii) materially expands the class of individuals eligible to become Participants and receive Purchase Rights under the Plan, (iii) materially increases the benefits
accruing to Participants under the Plan or materially reduces the price at which shares of Common Stock may be purchased under the Plan, (iv) materially extends the term of the Plan, or
(v) expands the types of awards available for issuance under the Plan, but in each of (i) through (v) only to the extent required by applicable law or listing requirements. Except as provided
above, the rights and obligations under any Purchase Rights granted before amendment of the Plan shall not be impaired by any amendment of the Plan except: (i) with the consent of the person to
whom such Purchase Rights were granted, or (ii) as 

1

 

necessary
to comply with any laws or governmental regulations (including, without limitation, the provisions of the Code and the regulations promulgated thereunder relating to Employee Stock Purchase
Plans). 

        (vii)  Generally, to exercise such powers and to perform such acts as it deems necessary or expedient to promote the best interests of the Company and
its Related Corporations and to carry out the intent that the Plan be treated as an Employee Stock Purchase Plan. 

      (viii)  To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees who are
foreign nationals or employed outside the United States. 

         (c)   The Board may delegate some or all of the administration of the Plan to a Committee or Committees. If administration is delegated to a
Committee,
the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the power to delegate to
a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee), subject,
however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may retain the authority to concurrently administer the Plan
with the Committee and may, at any time, revest in the Board some or all of the powers previously delegated. 

         (d)   All determinations, interpretations and constructions made by the Board in good faith shall not be subject to review by any person and
shall be
final, binding and conclusive on all persons. 

3.    SHARES OF COMMON STOCK SUBJECT TO THE PLAN.    

         (a)   Subject to the provisions of Section 12(a) relating to Capitalization Adjustments, the aggregate number of shares of Common Stock
that may
be sold pursuant to Purchase Rights shall not exceed [                        ] (
[                        ]) shares. In addition, the number of shares of Common Stock
available for issuance under the Plan shall automatically increase on January 1st of each year commencing in 2008 and ending on (and including) January 1, 2017, in an amount equal to the
lesser of (i) [three percent (3%)] of the total number of shares of Common Stock outstanding on December 31st of the preceding calendar year, or
(ii) [                        ] (
[                        ]) shares of Common Stock. Notwithstanding the foregoing, the Board may act prior to the first day of any
calendar year, to provide that there shall be no increase in the share reserve for such calendar year or that the increase in the share reserve for such calendar year shall be a lesser number of
shares of Common Stock than would otherwise occur pursuant to the preceding sentence. 

         (b)   If any Purchase Right granted under the Plan shall for any reason terminate without having been exercised, the shares of Common Stock not
purchased under such Purchase Right shall again become available for issuance under the Plan. 

        (c)   The stock purchasable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares repurchased
by the
Company on the open market. 

4.    GRANT OF PURCHASE RIGHTS; OFFERING.    

         (a)   The Board may from time to time grant or provide for the grant of Purchase Rights to purchase shares of Common Stock under the Plan to
Eligible
Employees in an Offering (consisting of one or more Purchase Periods) on an Offering Date or Offering Dates selected by the Board. Each Offering shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate, which shall comply with the requirement of Section 423(b)(5) of the Code that all Employees granted Purchase Rights shall have the same rights
and privileges. The terms and conditions of an Offering shall be incorporated by reference into the Plan and treated as part of the Plan. The provisions of separate Offerings need not be identical,
but each Offering shall include (through 

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incorporation
of the provisions of this Plan by reference in the document comprising the Offering or otherwise) the period during which the Offering shall be effective, which period shall not exceed
twenty-seven (27) months beginning with the Offering Date, and the substance of the provisions contained in Sections 5 through 8. 

         (b)   If a Participant has more than one Purchase Right outstanding under the Plan, unless he or she otherwise indicates in agreements or
notices
delivered hereunder: (i) each agreement or notice delivered by that Participant shall be deemed to apply to all of his or her Purchase Rights under the Plan, and (ii) a Purchase Right
with a lower exercise price (or an earlier-granted Purchase Right, if different Purchase Rights have identical exercise prices) shall be exercised to the fullest possible extent before a Purchase
Right with a higher exercise price (or a later-granted Purchase Right if different Purchase Rights have identical exercise prices) shall be exercised. 

         (c)   The Board shall have the discretion to structure an Offering so that if the Fair Market Value of a share of Common Stock on any Purchase
Date
within that Offering is less than or equal to the Fair Market Value of a share of Common Stock on the Offering Date for that Offering, then (i) that Offering shall terminate immediately
following the purchase of shares of Common Stock on such Purchase Date, and (ii) Participants in the terminated Offering automatically shall be enrolled in the Offering that commences
immediately after such Purchase Date. 

5.    ELIGIBILITY.    

         (a)   Purchase Rights may be granted only to Employees of the Company or, as the Board may designate as provided in Section 2(b), to
Employees
of a Related Corporation. Except as provided in Section 5(b), an Employee shall not be eligible to be granted Purchase Rights under the Plan unless, on the Offering Date, such Employee has been
in the employ of the Company or the Related Corporation, as the case may be, for such continuous period preceding such Offering Date as the Board may require, but in no event shall the required period
of continuous employment be greater than two (2) years. In addition, the Board may provide that no Employee shall be eligible to be granted Purchase Rights under the Plan unless, on the
Offering Date, such Employee's customary employment with the Company or the Related Corporation is more than twenty (20) hours per week and more than five (5) months per calendar year or
such other criteria as the Board may determine consistent with Section 423 of the Code. 

         (b)   The Board may provide that each person who, during the course of an Offering, first becomes an Eligible Employee shall, on a date or
dates
specified in the Offering which coincides with the day on which such person becomes an Eligible Employee or which occurs thereafter, receive a Purchase Right under that Offering, which Purchase Right
shall thereafter be deemed to be a part of that Offering. Such Purchase Right shall have the same characteristics as any Purchase Rights originally granted under that Offering, as described herein,
except that:

           (i)  the date on which such Purchase Right is granted shall be the "Offering Date" of such Purchase Right for all purposes, including
determination
of the exercise price of such Purchase Right; 

          (ii)  the period of the Offering with respect to such Purchase Right shall begin on its Offering Date and end coincident with the end of such
Offering; and 

       (iii)  the Board may provide that if such person first becomes an Eligible Employee within a specified period of time before the end of the Offering,
he or she shall not receive any Purchase Right under that Offering. 

         (c)   No Employee shall be eligible for the grant of any Purchase Rights under the Plan if, immediately after any such Purchase Rights are
granted,
such Employee owns stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the 

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Company
or of any Related Corporation. For purposes of this Section 5(c), the rules of Section 424(d) of the Code shall apply in determining the stock ownership of any Employee, and
stock which such Employee may purchase under all outstanding Purchase Rights and options shall be treated as stock owned by such Employee. 

         (d)   As specified by Section 423(b)(8) of the Code, an Eligible Employee may be granted Purchase Rights under the Plan only if such
Purchase
Rights, together with any other rights granted under all Employee Stock Purchase Plans of the Company and any Related Corporations, do not permit such Eligible Employee's rights to purchase stock of
the Company or any Related Corporation to accrue at a rate which exceeds twenty five thousand dollars ($25,000) of Fair Market Value of such stock (determined at the time such rights are granted, and
which, with respect to the Plan, shall be determined as of their respective Offering Dates) for each calendar year in which such rights are outstanding at any time. 

         (e)   Officers of the Company and any designated Related Corporation, if they are otherwise Eligible Employees, shall be eligible to
participate in
Offerings under the Plan. Notwithstanding the foregoing, the Board may provide in an Offering that Employees who are highly compensated Employees within the meaning of Section 423(b)(4)(D) of
the Code shall not be eligible to participate. 

6.    PURCHASE RIGHTS; PURCHASE PRICE.    

         (a)   On each Offering Date, each Eligible Employee, pursuant to an Offering made under the Plan, shall be granted a Purchase Right to purchase
up to
that number of shares of Common Stock purchasable either with a percentage or with a maximum dollar amount, as designated by the Board, but in either case not exceeding twenty percent (20%) of such
Employee's earnings (as defined by the Board in each Offering) during the period that begins on the Offering Date (or such later date as the Board determines for a particular Offering) and ends on the
date stated in the Offering, which date shall be no later than the end of the Offering. 

         (b)   The Board shall establish one (1) or more Purchase Dates during an Offering as of which Purchase Rights granted pursuant to that
Offering
shall be exercised and purchases of shares of Common Stock shall be carried out in accordance with such Offering. 

         (c)   In connection with each Offering made under the Plan, the Board may specify a maximum number of shares of Common Stock that may be
purchased by
any Participant on any Purchase Date during such Offering. In connection with each Offering made under the Plan, the Board may specify a maximum aggregate number of shares of Common Stock that may be
purchased by all Participants pursuant to such Offering. In addition, in connection with each Offering that contains more than one Purchase Date, the Board may specify a maximum aggregate number of
shares of Common Stock that may be purchased by all Participants on any Purchase Date under the Offering. If the aggregate purchase of shares of Common Stock issuable upon exercise of Purchase Rights
granted under the Offering would exceed any such maximum aggregate number, then, in the absence of any Board action otherwise, a pro rata allocation of the shares of Common Stock available shall be
made in as nearly a uniform manner as shall be practicable and equitable. 

        (d)   The purchase price of shares of Common Stock acquired pursuant to Purchase Rights shall be not less than the lesser of:

           (i)  an amount equal to eighty-five percent (85%) of the Fair Market Value of the shares of Common Stock on the Offering Date; or

          (ii)  an amount equal to eighty-five percent (85%) of the Fair Market Value of the shares of Common Stock on the applicable Purchase Date.

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7.    PARTICIPATION; WITHDRAWAL; TERMINATION.    

         (a)   A Participant may elect to authorize payroll deductions pursuant to an Offering under the Plan by completing and delivering to the
Company,
within the time specified in the Offering, an enrollment form (in such form as the Company may provide). Each such enrollment form shall authorize an amount of Contributions expressed as a percentage
of the submitting Participant's earnings (as defined in each Offering) during the Offering (not to exceed the maximum percentage specified by the Board). Each Participant's Contributions shall be
credited to a bookkeeping account for such Participant under the Plan and shall be deposited with the general funds of the Company except where applicable law requires that Contributions be deposited
with a third party. To the extent provided in the Offering, a Participant may begin such Contributions after the beginning of the Offering. To the extent provided in the Offering, a Participant may
thereafter reduce (including to zero) or increase his or her Contributions. To the extent specifically provided in the Offering, in addition to making Contributions by payroll deductions, a
Participant may make Contributions through the payment by cash or check prior to each Purchase Date of the Offering. 

        (b)   During an Offering, a Participant may cease making Contributions and withdraw from the Offering by delivering to the Company a notice of
withdrawal in such form as the Company may provide. Such withdrawal may be elected at any time prior to the end of the Offering, except as provided otherwise in the Offering. Upon such withdrawal from
the Offering by a Participant, the Company shall distribute to such Participant all of his or her accumulated Contributions (reduced to the extent, if any, such Contributions have been used to acquire
shares of Common Stock for the Participant) under the Offering, and such Participant's Purchase Right in that Offering shall thereupon terminate. A Participant's withdrawal from an Offering shall have
no effect upon such Participant's eligibility to participate in any other Offerings under the Plan, but such Participant shall be required to deliver a new enrollment form in order to participate in
subsequent Offerings. 

         (c)   Purchase Rights granted pursuant to any Offering under the Plan shall terminate immediately upon a Participant ceasing to be an Employee
for any
reason or for no reason (subject to any post-employment participation period required by law) or other lack of eligibility. The Company shall distribute to such terminated or otherwise
ineligible Employee all of his or her accumulated Contributions (reduced to the extent, if any, such Contributions have been used to acquire shares of Common Stock for the terminated or otherwise
ineligible Employee) under the Offering. 

         (d)   Purchase Rights shall not be transferable by a Participant except by will, the laws of descent and distribution, or by a beneficiary
designation
as provided in Section 10. During a Participant's lifetime, Purchase Rights shall be exercisable only by such Participant. 

         (e)   Unless otherwise specified in an Offering, the Company shall have no obligation to pay interest on Contributions. 

8.    EXERCISE OF PURCHASE RIGHTS.    

         (a)   On each Purchase Date during an Offering, each Participant's accumulated Contributions shall be applied to the purchase of shares of
Common Stock
up to the maximum number of shares of Common Stock permitted pursuant to the terms of the Plan and the applicable Offering, at the purchase price specified in the Offering. No fractional shares shall
be issued upon the exercise of Purchase Rights unless specifically provided for in the Offering. 

        (b)   If any amount of accumulated Contributions remains in a Participant's account after the purchase of shares of Common Stock and such
remaining
amount is less than the amount required to purchase one share of Common Stock on the final Purchase Date of an Offering, then such remaining amount shall be held in such Participant's account for the
purchase of shares of Common Stock under the next Offering under the Plan, unless such Participant withdraws from such next Offering, as provided in Section 7(b), or is not eligible to
participate in such Offering, as provided in Section 5, in 

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which
case such amount shall be distributed to such Participant after the final Purchase Date, without interest. If the amount of Contributions remaining in a Participant's account after the purchase
of shares of Common Stock is at least equal to the amount required to purchase one (1) whole share of Common Stock on the final Purchase Date of the Offering, then such remaining amount shall
be distributed in full to such Participant at the end of the Offering without interest. 

         (c)   No Purchase Rights may be exercised to any extent unless the shares of Common Stock to be issued upon such exercise under the Plan are
covered by
an effective registration statement pursuant to the Securities Act and the Plan is in material compliance with all applicable federal, state, foreign and other securities and other laws applicable to
the Plan. If on a Purchase Date during any Offering hereunder the shares of Common Stock are not so registered or the Plan is not in such compliance, no Purchase Rights or any Offering shall be
exercised on such Purchase Date, and the Purchase Date shall be delayed until the shares of Common Stock are subject to such an effective registration statement and the Plan is in such compliance,
except that the Purchase Date shall not be delayed more than twelve (12) months and the Purchase Date shall in no event be more than twenty-seven (27) months from the Offering Date. If,
on the Purchase Date under any Offering hereunder, as delayed to the maximum extent permissible, the shares of Common Stock are not registered and the Plan is not in such compliance, no Purchase
Rights or any Offering shall be exercised and all Contributions accumulated during the Offering (reduced to the extent, if any, such Contributions have been used to acquire shares of Common Stock)
shall be distributed to the Participants without interest. 

9.    COVENANTS OF THE COMPANY.    

        The
Company shall seek to obtain from each federal, state, foreign or other regulatory commission or agency having jurisdiction over the Plan such authority as may be required to issue
and sell shares of Common Stock upon exercise of the Purchase Rights. If, after commercially reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the
authority that counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan,
the Company shall be relieved from any liability for failure to issue and sell Common Stock upon exercise of such Purchase Rights unless and until such authority is obtained. 

10.    DESIGNATION OF BENEFICIARY.    

         (a)   A Participant may file a written designation of a beneficiary who is to receive any shares of Common Stock and/or cash, if any, from the
Participant's account under the Plan in the event of such Participant's death subsequent to the end of an Offering but prior to delivery to the Participant of such shares of Common Stock or cash. In
addition, a Participant may file a written designation of a beneficiary who is to receive any cash from the Participant's account under the Plan in the event of such Participant's death during an
Offering. Any such designation shall be on a form provided by or otherwise acceptable to the Company. 

         (b)   The Participant may change such designation of beneficiary at any time by written notice to the Company. In the event of the death of a
Participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Participant's death, the Company shall deliver such shares of Common Stock and/or
cash to the executor or administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its sole
discretion, may deliver such shares of Common Stock and/or cash to the spouse or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the
Company, then to such other person as the Company may designate. 

11.    MISCELLANEOUS PROVISIONS.    

        (a)   The Plan and Offering do not constitute an employment contract. Nothing in the Plan or in the Offering shall in any way alter the at will
nature
of a Participant's employment or be deemed to 

6

 

create
in any way whatsoever any obligation on the part of any Participant to continue in the employ of the Company or a Related Corporation, or on the part of the Company or a Related Corporation to
continue the employment of a Participant. 

        (b)   The provisions of the Plan shall be governed by the laws of the State of Delaware without resort to that state's conflicts of laws rules.

         (c)   Proceeds from the sale of shares of Common Stock pursuant to Purchase Rights shall constitute general funds of the Company. 

         (d)   A Participant shall not be deemed to be the holder of, or to have any of the rights of a holder with respect to, shares of Common Stock
subject
to Purchase Rights unless and until the Participant's shares of Common Stock acquired upon exercise of Purchase Rights are recorded in the books of the Company (or its transfer agent). 

12.    ADJUSTMENTS UPON CHANGES IN COMMON STOCK; CORPORATE
TRANSACTIONS.    

         (a)   In the event of a Capitalization Adjustment, the Board shall appropriately and proportionately adjust:(i) the class(es) and maximum
number
of securities subject to the Plan pursuant to Section 3(a), (ii) the class(es) and maximum number of securities by which the share reserve is to increase automatically each year pursuant
to Section 3(a), (iii) the class(es) and number of securities subject to outstanding Purchase Rights, and (iv) the class(es) and number of securities imposed by purchase limits
under each ongoing Offering. The Board shall make such adjustments, and its determination shall be final, binding and conclusive. 

         (b)   In the event of a Corporate Transaction, then: (i) any surviving corporation or acquiring corporation (or the surviving or acquiring
corporation's parent company) may assume or continue Purchase Rights outstanding under the Plan or may substitute similar rights (including a right to acquire the same consideration paid to the
stockholders in the Corporate Transaction) for those outstanding under the Plan, or (ii) if any surviving or acquiring corporation (or its parent company) does not assume or continue such
Purchase Rights or does not substitute similar rights for Purchase Rights outstanding under the Plan, then the Participants' accumulated Contributions shall be used to purchase shares of Common Stock
within ten (10) business days prior to the Corporate Transaction under any ongoing Offerings, and the Participants' Purchase Rights under the ongoing Offerings shall terminate immediately after
such purchase. 

13.    TERMINATION OR SUSPENSION OF THE PLAN.    

         (a)   The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate at the time that all of the
shares of
Common Stock reserved for issuance under the Plan, as increased and/or adjusted from time to time, have been issued under the terms of the Plan. No Purchase Rights may be granted under the Plan while
the Plan is suspended or after it is terminated. 

         (b)   Any benefits, privileges, entitlements and obligations under any Purchase Rights while the Plan is in effect shall not be impaired by
suspension
or termination of the Plan except (i) as expressly provided in the Plan or with the consent of the person to whom such Purchase Rights were granted, (ii) as necessary to comply with any
laws, regulations or listing requirements, or (iii) as necessary to ensure that the Plan and/or Purchase Rights comply with the requirements of Section 423 of the Code. 

14.    EFFECTIVE DATE OF PLAN.    

        The
Plan shall become effective on the IPO Date, but no Purchase Rights shall be exercised unless and until the Plan has been approved by the stockholders of the Company, which approval
shall be within twelve (12) months before or after the date the Plan is adopted by the Board. 

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15.    DEFINITIONS.    

        As
used in the Plan, the following definitions shall apply to the capitalized terms indicated below:

         (a)   "Board" means the Board of Directors of the Company. 

        (b)   "Capitalization Adjustment" means any change that is made in, or other events that
occur with
respect to, the Common Stock subject to the Plan or subject to any Purchase Right after the Effective Date without the receipt of consideration by the Company (through merger, consolidation,
reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in
corporate structure or other transaction not involving the receipt of consideration by the Company). Notwithstanding the foregoing, the conversion of any convertible securities of the Company shall
not be treated as a transaction "without the receipt of consideration" by the Company. 

        (c)   "Code" means the Internal Revenue Code of 1986, as
amended.

         (d)   "Committee" means a committee of one (1) or more members of the Board to whom
authority
has been delegated by the Board in accordance with Section 2(b)(viii). 

        (e)   "Common Stock" means the common stock of the Company. 

         (f)    "Company" means CardioNet, Inc., a Delaware corporation. 

         (g)   "Contributions" means the payroll deductions and other additional payments
specifically provided
for in the Offering, that a Participant contributes to fund the exercise of a Purchase Right. A Participant may make additional payments into his or her account, if specifically provided for in the
Offering, and then only if the Participant has not already had the maximum permitted amount withheld during the Offering through payroll deductions. 

         (h)   "Corporate Transaction" means the occurrence, in a single transaction or in a
series of related
transactions, of any one or more of the following events:

          (i)  the consummation of a sale or other disposition of all or substantially all, as determined by the Board in its sole discretion, of
the
consolidated assets of the Company and its Subsidiaries; 

          (ii)  the consummation of a sale or other disposition of at least ninety percent (90%) of the
outstanding securities of the Company; 

       (iii)  the consummation of a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or 

         (iv)  the consummation of a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares of
Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other
property, whether in the form of securities, cash or otherwise. 

        (i)    "Director" means a member of the Board. 

         (j)    "Eligible Employee" means an Employee who meets the requirements set forth in
the Offering for
eligibility to participate in the Offering, provided that such Employee also meets the requirements for eligibility to participate set forth in the Plan. 

        (k)   "Employee" means any person, including Officers and Directors, who is employed for
purposes of
Section 423(b)(4) of the Code by the Company or a Related Corporation. However, service solely as a Director, or payment of a fee for such services, shall not cause a Director to be considered
an "Employee" for purposes of the Plan. 

8

 

        (l)    "Employee Stock Purchase Plan" means a plan that grants Purchase Rights
intended to be options
issued under an "employee stock purchase plan," as that term is defined in Section 423(b) of the Code. 

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

        (n)   "Fair Market Value" means, as of any date, the value of the Common Stock determined
as
follows:

           (i)  If the Common Stock is listed on any established stock exchange or traded on the Nasdaq Global Select Market or the Nasdaq Global
Market, the
Fair Market Value of a share of Common Stock shall be the closing sales price for such stock as quoted on such exchange (or the exchange or market with the greatest volume of trading in the Common
Stock) on the date of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable. 

          (ii)  In the absence of such markets for the Common Stock, the Fair Market Value shall be determined by the Board in good faith and in a
manner that
complies with Section 409A of the Code. 

         (o)   "IPO Date" means the date of the underwriting agreement between the Company and the
underwriter(s) managing the initial public offering of the Common Stock, pursuant to which the Common Stock is priced for the initial public offering. 

         (p)   "Offering" means the grant of Purchase Rights to purchase shares of Common Stock
under the Plan
to Eligible Employees. 

         (q)   "Offering Date" means a date selected by the Board for an Offering to commence.

        (r)   "Officer" means a person who is an officer of the Company within the meaning of
Section 16
of the Exchange Act and the rules and regulations promulgated thereunder. 

         (s)   "Participant" means an Eligible Employee who holds an outstanding Purchase Right
granted pursuant
to the Plan. 

        (t)    "Plan" means this CardioNet, Inc. 2007 Employee Stock Purchase Plan.

         (u)   "Purchase Date" means one or more dates during an Offering established by the Board
on which
Purchase Rights shall be exercised and as of which purchases of shares of Common Stock shall be carried out in accordance with such Offering. 

         (v)   "Purchase Period" means a period of time specified within an Offering beginning on
the Offering
Date or on the next day following a Purchase Date within an Offering and ending on a Purchase Date. An Offering may consist of one or more Purchase Periods. 

         (w)  "Purchase Right" means an option to purchase shares of Common Stock granted pursuant to
the Plan. 

         (x)   "Related Corporation" means any "parent corporation" or "subsidiary corporation" of
the Company
whether now or subsequently established, as those terms are defined in Sections 424(e) and 424(f), respectively, of the Code. 

        (y)   "Securities Act" means the Securities Act of 1933, as amended. 

         (z)   "Trading Day" means any day on which the exchange(s) or market(s) on which shares
of Common Stock
are listed, including an established stock exchange, the Nasdaq Global Select Market or the Nasdaq Global Market, the Nasdaq Capital Market, is open for trading. 

9

  

 
 

CARDIONET, INC.    
    
    2007 EMPLOYEE STOCK PURCHASE PLAN
  OFFERING DOCUMENT    
    
    ADOPTED BY THE BOARD OF DIRECTORS:
[                        ], 2007    

        In this document, capitalized terms not otherwise defined shall have the same definitions of such terms as in the CardioNet, Inc. 2007 Employee Stock
Purchase Plan. 

1.    GRANT; OFFERING DATE.    

        (a)   The Board hereby authorizes a series of Offerings pursuant to the terms of this Offering document. 

        (b)   The first Offering hereunder (the "Initial Offering") shall begin on the
date the Common Stock is first offered to the public under a registration statement declared effective under the Securities Act and shall end on [            , 2009], unless
terminated earlier as provided below. The Initial Offering shall consist of four (4) Purchase Periods, with the first Purchase Period ending on [            , 2008],
the second Purchase Period ending on [            , 2008], the third Purchase Period ending on [            , 2009], and the
fourth Purchase
Period ending on [            , 2009]. 

        (c)   After the Initial Offering commences, a concurrent Offering shall begin on [            ,
2007] and each [            ] and [            ] beginning in [2008] over the term of the Plan and shall be
approximately twenty-four (24) months in duration. Each Offering shall consist of four (4) Purchase Periods, each of which shall be approximately six (6) months in
length ending on or about [            ] and [            ] each year. Except as provided below, a Purchase Date is the last day
of a Purchase
Period or of an Offering, as the case may be. 

        (d)   Notwithstanding the foregoing: (i) if any Offering Date falls on a day that is not a Trading Day, then such
Offering Date shall instead fall on the next subsequent Trading Day, and (ii) if any Purchase Date falls on a day that is not a Trading Day, then such Purchase Date shall instead fall on the
immediately preceding Trading Day. 

        (e)   Prior to the commencement of any Offering, the Board may change any or all terms of such Offering and any subsequent
Offerings. The granting of Purchase Rights pursuant to each Offering hereunder shall occur on each respective Offering Date unless prior to such date (i) the Board determines that such Offering
shall not occur, or (ii) no shares of Common Stock remain available for issuance under the Plan in connection with the Offering. 

        (f)    Notwithstanding anything in this Section 1 to the contrary, if the Fair Market Value of a share of Common Stock on
any Purchase Date during an Offering is less than or equal to the Fair Market Value of a share of Common Stock on the Offering Date for that Offering, then that Offering shall terminate immediately
following the purchase of shares of Common Stock on such Purchase Date. Participants in the terminated Offering automatically shall be enrolled in the Offering that commences immediately after such
Purchase Date. 

2.    ELIGIBLE EMPLOYEES.    

        (a)   Each Eligible Employee who has been an Employee for a continuous period of at least seven (7) days ending on the
Offering Date of an Offering hereunder and is either (i) an employee of the Company; (ii) an employee of a Related Corporation incorporated in the United States; or (iii) an
employee of a Related Corporation that is not incorporated in the United States, provided that the Board has designated the employees of such Related Corporation as eligible to participate in the
Offering, shall be granted a Purchase Right on the Offering Date of such Offering. 

        (b)   Each person who first becomes an Eligible Employee during an Offering shall not be granted a Purchase Right under such
Offering. 

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        (c)   Notwithstanding the foregoing, the following Employees shall not be Eligible Employees or be granted Purchase Rights
under an Offering: 

          (i)  Employees whose customary employment is twenty (20) hours per week or less or five (5) months per calendar
year or less; 

         (ii)  five percent (5%) stockholders (including ownership through unexercised and/or unvested stock options) as described in
Section 5(c) of the Plan; or 

       (iii)  Employees in jurisdictions outside of the United States if, as of the Offering Date of the Offering, the grant of such
Purchase Rights would not be in compliance with the applicable laws of any jurisdiction in which the Employee resides or is employed. 

3.    PURCHASE RIGHTS.    

        (a)   Subject to the limitations herein and in the Plan, a Participant's Purchase Right shall permit the purchase of the number
of shares of Common Stock purchasable with up to fifteen percent (15%) of such Participant's Earnings paid during the period of such Offering beginning immediately after such Participant first
commences participation; provided, however, that no Participant may have more than fifteen percent (15%) of such Participant's Earnings applied to
purchase shares of Common Stock under all ongoing Offerings under the Plan and all other plans of the Company and Related Corporations that are intended to qualify as Employee Stock Purchase Plans. 

        (b)   For Offerings hereunder, "Earnings" means the base compensation paid in
cash to a Participant, including all salary and wages (including amounts elected to be deferred by such Participant, that would otherwise have been paid, under any cash or deferred arrangement or
other deferred compensation program established by the Company or a Related Corporation), but excluding overtime pay, commissions, bonuses, all other remuneration paid directly to such Participant,
profit sharing, the cost of employee benefits paid for by the Company or a Related Corporation, education or tuition reimbursements, imputed income arising under any Company or Related Corporation
group insurance or benefit program, short-term disability payments, traveling expenses, business and moving expense reimbursements, income received in connection with stock options,
contributions made by the Company or a Related Corporation under any employee benefit plan, and similar items of compensation. 

        (c)   Notwithstanding the foregoing, the maximum number of shares of Common Stock that a Participant may purchase on any
Purchase Date in an Offering shall be such number of shares as has a Fair Market Value (determined as of the Offering Date for such Offering) equal to (x) $25,000 multiplied by the number of
calendar years in which the Purchase Right under such Offering has been outstanding at any time, minus (y) the Fair Market Value of any other shares of Common Stock (determined as of the
relevant Offering Date with respect to such shares) that, for purposes of the limitation of Section 423(b)(8) of the Code, are attributed to any of such calendar years in which the Purchase
Right is outstanding. The amount in clause (y) of the previous sentence shall be determined in accordance with regulations applicable under Section 423(b)(8) of the Code based on
(i) the number of shares previously purchased with respect to such calendar years pursuant to such Offering or any other Offering under the Plan, or pursuant to any other Company or Related
Corporation plans intended to qualify as Employee Stock Purchase Plans, and (ii) the number of shares subject to other Purchase Rights outstanding on the Offering Date for such Offering
pursuant to the Plan or any other such Company or Related Corporation Employee Stock Purchase Plan. 

        (d)   The maximum aggregate number of shares of Common Stock available to be purchased by all Participants under an Offering
shall be the number of shares of Common Stock remaining available under the Plan on the Offering Date. If the aggregate purchase of shares of Common Stock upon exercise of Purchase Rights granted
under all concurrent Offerings would exceed the maximum aggregate number of shares available, the Board shall make a uniform and equitable allocation of the 

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shares
available. Any Contributions not applied to the purchase of available shares of Common Stock shall be refunded to the Participants without interest. 

        (e)   Notwithstanding the foregoing, the maximum number of shares of Common Stock that may be purchased on any single Purchase
Date by each Eligible Employee under all ongoing Offerings shall not exceed twenty-five thousand (25,000) shares. Any Contributions not applied to the purchase of available shares of
Common Stock shall be refunded to the Participants without interest. 

4.    PURCHASE PRICE.    

        The
purchase price of shares of Common Stock under the Offering shall be the lesser of: (i) eighty-five percent (85%) of the Fair Market Value of such shares of Common
Stock on the Offering Date, or (ii) eighty-five percent (85%) of the Fair Market Value of such shares of Common Stock on the applicable Purchase Date. For the Initial Offering, the
Fair Market Value of the shares of Common Stock at the time when the Offering commences shall be the price per share at which shares are first sold to the public in the Company's initial public
offering as specified in the final prospectus for that initial public offering. 

5.    PARTICIPATION.    

        (a)   An Eligible Employee may elect to participate in an Offering on the Offering Date. An Eligible Employee may enroll in
only one Offering at a time. An Eligible Employee shall elect his or her payroll deduction percentage on such enrollment form as the Company provides. The completed enrollment form must be delivered
to the Company at least seven (7) days prior to the date participation is to be effective, unless a later time for filing the enrollment form is set by the Company for all Eligible Employees
with respect to a given Offering. Payroll deduction percentages must be expressed in whole percentages of Earnings, with a minimum percentage of one percent (1%) and a maximum percentage of fifteen
percent (15%). Except as provided in Section 5(e), a Participant may participate only by way of payroll deductions. 

        (b)   A Participant may increase his or her participation level once during an Offering. In addition, a Participant may
decrease (including a decrease to zero percent (0%)) his or her participation level no more than twice during a Purchase Period (and the second decrease in participation level must be to zero percent
(0%)). Any such change in participation level shall be made by delivering a notice to the Company or a designated Related Corporation, in such form as the Company may provide at least ten
(10) days (or such shorter period of time as determined by the Company and communicated to Participants) prior to the payroll date for which it is to be effective. A Participant may also
increase his or her participation level effective for a subsequent Purchase Period. 

        (c)   A Participant may withdraw from an Offering and receive a refund of his or her Contributions (reduced to the extent, if
any, such Contributions have been used to acquire shares of Common Stock for the Participant on any prior Purchase Date) without interest, at any time prior to the end of the Offering, excluding the
ten (10)-day period immediately preceding a Purchase Date (or such shorter period of time determined by the Company and communicated to Participants), by delivering a withdrawal notice to
the Company or a designated Related Corporation in such form as the Company may provide. A Participant who has withdrawn from an Offering shall not again participate in such Offering, but may
participate in subsequent Offerings under the Plan in accordance with the terms of the Plan and the terms of such subsequent Offerings. 

        (d)   Notwithstanding the foregoing or any other provision of this Offering document or of the Plan to the contrary, neither
the enrollment of any Eligible Employee in the Plan nor any forms relating to participation in the Plan shall be given effect until such time as a registration statement 

3

 

covering
the shares reserved under the Plan that are subject to the Offering has been filed by the Company and has become effective. 

        (e)   If the provisions of Section 5(d) are applicable, the Company shall establish such procedures as will enable the
purposes of the Plan to be satisfied while complying with applicable securities laws. Such procedures may include, for example, allowing Participants to participate other than by means of payroll
deduction and/or allowing Participants to increase their level of participation during a Purchase Period. Except as otherwise provided by the Company pursuant to the preceding sentence, for the
initial Purchase Period ending [            , 2007], no payroll deductions shall be required from the Eligible Employee until such time as the Eligible Employee
affirmatively elects to commence such payroll deductions following the Eligible Employee's receipt of the Securities Act prospectus for the Plan. Each Eligible Employee shall automatically be enrolled
in such initial Purchase Period with a contribution rate equal to fifteen percent (15%) of Earnings and will have a limited opportunity to make all or part of the contributions in a lump sum payment,
rather than through payroll deductions, prior to the end of the initial Purchase Period. To the extent that the Eligible Employee's payroll deductions for such initial Purchase Period are less than
fifteen percent (15%) of Earnings paid to the Eligible Employee during such initial Purchase Period, the Eligible Employee may make an additional cash payment at any time on or prior to
[                        , 2008] in order to fund the purchase of shares of Common Stock purchased on behalf of the Eligible
Employee on such initial Purchase Date. 

6.    PURCHASES.    

        Subject
to the limitations contained herein, on each Purchase Date, each Participant's Contributions (without any increase for interest) shall be applied to the purchase of whole shares,
up to the maximum number of shares permitted under the Plan and the Offering. 

7.    NOTICES AND AGREEMENTS.    

        Any
notices or agreements provided for in an Offering or the Plan shall be given in writing, in a form provided by the Company (including documents delivered in electronic form, if
authorized by the Committee), and unless specifically provided for in the Plan or this Offering, shall be deemed effectively given upon receipt or, in the case of notices and agreements delivered by
the Company, five (5) days after deposit in the United States mail, postage prepaid. 

8.    EXERCISE CONTINGENT ON STOCKHOLDER APPROVAL.    

        The
Purchase Rights granted under an Offering are subject to the approval of the Plan by the stockholders of the Company as required for the Plan to obtain treatment as an Employee Stock
Purchase Plan. 

9.    OFFERING SUBJECT TO PLAN.    Each Offering is subject to all the provisions of
the Plan, and the provisions of the Plan are hereby made a part of the Offering. The Offering is further subject to all interpretations, amendments, rules and regulations which may from time to time
be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of an Offering and those of the Plan (including interpretations, amendments, rules and regulations
which may from time to time be promulgated and adopted pursuant to the Plan), the provisions of the Plan shall control. 

*
* * * 

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QuickLinks

Exhibit 10.5

CARDIONET, INC. 2007 EMPLOYEE STOCK PURCHASE PLAN

CARDIONET, INC. 2007 EMPLOYEE STOCK PURCHASE PLAN OFFERING DOCUMENT ADOPTED BY THE BOARD OF DIRECTORS: [ ], 2007QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.6    
    

 
 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT    
    

        THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement")
is made and entered into effective as of November 1, 2005 (the "Effective Date") by and between  CardioNet, Inc., a California corporation
(the "Company"), and James M.
Sweeney, an individual ("Employee"). The Company and Employee are hereinafter collectively referred to as the  "Parties," and individually referred to as each or any "Party."

RECITALS  

        A.    The
Parties previously entered into that certain Amended and Restated Employment Agreement effective as of August 1, 2004 (the "Prior
Agreement"), which sets forth the terms and conditions of Employee's employment with the Company. 

        B.    The
Company desires assurance of the continued association and services of Employee in order to retain Employee's experience, skills, abilities, background and knowledge
in the management and operation of the Company, and is willing to continue to retain Employee's services on the terms and conditions set forth in this Agreement. 

        C.    Employee
desires to continue in the employ of the Company, and is willing to accept such continued employment on the terms and conditions set forth in this Agreement. 

        D.    This
Agreement is intended to supersede, amend and restate in its entirety the Prior Agreement. 

AGREEMENT  

        In consideration of the foregoing premises and the mutual promises made in this Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows: 

1.     Employment.  

        1.1   The Company hereby employs Employee, and Employee hereby accepts employment by the Company, upon the terms and conditions
set forth in this Agreement. 

        1.2   Employee shall be the Company's Chief Executive Officer. 

        1.3   Employee shall do and perform all services, acts or things necessary or advisable to manage and conduct the business of
the Company; provided, however, that at all times during his employment Employee shall be subject to the direction and policies from time to time
established by the Board of Directors of the Company (the "Board of Directors"). 

        1.4   Unless the Parties otherwise agree in writing, during the employment term, Employee shall perform the services he is
required to perform pursuant to this Agreement at the Company's office located at 1010 Second Avenue, Suite 700, San Diego, California 92101, or 227 Washington Street #300, Conshohocken, Pennsylvania
19428, which office shall be mutually agreed to by the Parties; provided, however, that the Company may from time to time require Employee to travel
temporarily to either of these or any other locations in connection with the Company's business. 

1

 

2.     Loyal and Conscientious Performance; Noncompetition.  

        During his employment by the Company, Employee shall devote substantial energies, interest, abilities and productive time to the proper and efficient performance
of this Agreement, and shall not engage or in any manner participate in any activity which is directly competitive with or intentionally injurious to the Company, whether alone, as a partner, as a
shareholder, officer or director of any other corporation, or as a trustee, fiduciary or in a similar representative capacity. Employee shall not serve as an outside director of more than two
(2) other corporations during the term of this Agreement. 

3.     Term of Employment.  

        Subject to earlier termination pursuant to Section 7 hereof, Employee shall be employed by the Company pursuant to this Agreement for an initial term,
commencing on the Effective Date and ending on December 31, 2006, provided that the term of this Agreement shall continue from month to month after such time in the absence of 30 days
written notice to the contrary from either Party to the other Party (the "Termination Date"). 

4.     Compensation of Employee.  

        4.1   During the term of this Agreement (commencing as of the Effective Date), the Company shall pay Employee an annual salary
(the "Base Salary") of Four Hundred Sixty Thousand Dollars ($460,000), payable in semi-monthly installments on each of the fifteenth (15th)
and the last day of each calendar month. Such salary may be increased each year in the sole and absolute discretion of the Board of Directors. 

        4.2   During the term of this Agreement, Employee shall also be eligible to receive an annual performance bonus (the  "Bonus") at the end of each
fiscal year beginning with the fiscal year ending on December 31, 2006. The amount of such Bonus, if any, shall be
determined by the Board of Directors in its sole and absolute discretion. Any Bonus awarded to Employee shall be paid to Employee within ninety (90) days of the end of the fiscal year of the
Company in which such Bonus is earned. 

        4.3   If this Agreement is terminated prior to the expiration of its term pursuant to Section 7 hereof, Employee shall
receive the compensation, if any, described in such Section 7. 

5.     Other Benefits.  

        5.1   Employee shall be eligible to participate in and be covered by any pension and profit sharing, life insurance, accident
insurance, health insurance, dental insurance, hospitalization, disability, medical reimbursement or other plan(s) maintained from time to time by the Company for its employees. Employee's dependents
may be added to such coverage, if eligible, at Employee's own expense. 

        5.2   Employee shall earn four (4) weeks of vacation per calendar year at full salary. It is understood that vacations
need not be taken during the year earned. Employee agrees that such vacation shall be taken only at such times as the Company and Employee shall mutually determine from time to time. Employee shall be
entitled to additional time, also at full salary, to attend such meetings or courses as are necessary or advisable, as mutually determined by Employee and the Company. Employee shall further be
entitled to reasonable time off, also at full salary, for sickness or matters of personal emergency up to a maximum of two (2) weeks per year. 

        5.3   The Company shall pay on Employee's behalf, or reimburse Employee for, expenses reasonably incurred in connection with
his employment. Employee agrees to submit receipts or other documentation to support the above expenses as a condition of reimbursement therefor. 

2

 

        5.4   The Company shall, to the maximum extent permitted by law, indemnify and hold Employee harmless against any costs and
expenses, including reasonable attorneys' fees, judgments, fines, settlements and other amounts incurred in connection with any proceeding arising out of, by reason of or relating to Employee's
employment by the Company. The Company shall also advance to Employee any costs and expenses incurred in defending any such proceeding to the maximum extent permitted by law. 

6.     Relocation. 

        6.1    Benefits.    Employee shall be entitled to reimbursement by the Company for the reasonable and customary
out-of-pocket relocation expenses of the type described on Exhibit A hereto incurred by Employee in connection with
Employee's relocation from Pennsylvania to San Diego, California at such time as is mutually agreed to by Employee and the Board of Directors or under the circumstances, and solely under the
circumstances, set forth in Section 7 below (collectively, the "Relocation Benefits"). The Parties agree that the amounts listed on  Exhibit A opposite the Relocation Benefits represent the good faith estimate of the Company and Employee of the aggregate amount of Relocation
Benefits to be provided to Employee pursuant to this Section 6.1; provided, however, that such good faith estimate shall not either limit or set a floor for the aggregate value of the
reasonable and customary Relocation Benefits to be provided to Employee pursuant hereto. 

        6.2    Payment of Taxes.    In addition to the Relocation Benefits described above and subject to the limitations set
forth in Section 7 below, Employee shall be entitled to a one time reimbursement by the Company for additional federal and state taxes arising from the Relocation Benefits provided by the
Company to or for the benefit of Employee pursuant to Section 6.1 above. This one time reimbursement shall be calculated by multiplying the marginal federal tax rate on the employee's federal
tax return times the income to be recognized for federal purposes by the employee in the year such taxes are owed. The state reimbursement shall be calculated as the marginal tax rate for the employee
in Pennsylvania times the income to be recognized on the employee's Pennsylvania tax return, if any taxes are due and payable in Pennsylvania. These amounts shall be summed together and shall be paid
by the Company on or before these taxes become due and payable by the Employee. At either party's election, this matter can be referred to an outside accounting firm who can make an independent
verification of the amounts eligible to be paid pursuant to this paragraph based on the Employee's tax returns for the year, and the provisions of this Agreement. 

        6.3   The Company and Employee may agree to furnish to outside Accountants such information and documents the Accountants may
reasonably request in order to make a determination under this Section 6.2. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations
contemplated by this Section 6.2. 

7.     Termination and Severance Compensation.  

        7.1    Definition of "Cause".    For purposes of this Agreement, "Cause" for termination shall mean:
(i) Employee's dishonesty, embezzlement or fraud against the Company; (ii) Employee's commission of any malicious mischief which results in injury to the Company or property of the
Company; (iii) Employee's refusal or failure to follow lawful and reasonable directions of the Board of Directors following written notice of such directions by the Board of Directors to
Employee and Employee's failure to follow such directions within a reasonable period of time following the date of such notice; (iv) Employee's failure to disclose material information to, or
his providing materially misleading information to, the Board of Directors; (v) Employee's conviction of any felony involving moral turpitude; or (vi) Employee's gross negligence or
gross misconduct in the performance of his duties under this Agreement. 

3

 

        7.2    Cause.    The Company shall have the right to terminate Employee's employment hereunder for Cause upon written
notice to Employee. If the Company terminates Employee's employment for Cause, the Employee's sole and exclusive right and remedy hereunder shall be the right to receive his accrued base compensation
and outstanding expense reimbursements through the date of such termination. Except as set forth in this Section 7.2, the Company shall have no responsibility for the payment of any
compensation or benefits to Employee (including, for purposes of clarification, the benefits described in Section 6 hereof) for any time period subsequent to such termination except as may be
expressly required by law or the respective terms of benefit arrangements to be paid even upon termination for cause or voluntary termination. 

        7.3    Voluntary Termination.    Employee shall have the right voluntarily to terminate this Agreement at any time
upon thirty (30) days prior written notice to the Company. 

        7.3.1    Voluntary Termination Prior to 180 Days Following IPO or Acquisition
Transaction.    If Employee voluntarily terminates his employment hereunder prior to the first to occur of one hundred eighty (180) days following the closing
of (i) the Company's first firm commitment underwritten public offering of its Common Stock registered under the Securities Act of 1933, as amended (the  "IPO") or (ii) a bona fide
acquisition transaction involving the Company and an unaffiliated third party entity effected pursuant to a merger,
consolidation, sale of assets or similar transaction (irrespective of whether the Company's shareholders immediately prior thereto hold outstanding voting securities representing more than 50% of the
combined outstanding voting power of the surviving entity following the closing of such merger, consolidation, sale of assets or similar transaction) (an "Acquisition
Transaction"), Employee's sole and exclusive rights and remedies hereunder shall be (x) the right to receive his accrued base compensation and outstanding expense
reimbursements through the date of such termination and (y) the right to receive the Relocation Benefits and Tax Reimbursement set forth in Section 6 hereof;  provided, however, that Employee's
right to receive the benefits described in this Section 7.3.1 are subject to Employee having used his best
efforts to manage the Company prior to his voluntary termination pursuant to this Section 7.3.1. Except as set forth in this Section 7.3.1, the Company shall have no responsibility for
the payment of any compensation or benefits to Employee for any time period subsequent to such termination except as may be expressly required by law or the respective terms of benefit arrangements to
be paid even upon termination for cause or voluntary termination. 

        7.3.2    Retirement or Voluntary Termination 180 Days or More Following IPO or Acquisition
Transaction.    If Employee retires or voluntarily terminates his employment hereunder following the first to occur of more than one hundred eighty (180) days
following the closing of (i) an IPO or (ii) an Acquisition Transaction, Employee's sole and exclusive rights and remedies hereunder shall be (x) the right to receive his accrued
base compensation and outstanding expense reimbursements through the date of such termination and for a period of twelve (12) months following the date of such termination and (y) the
right to receive the Relocation Benefits and Tax Reimbursement set forth in Section 6 hereof. Except as set forth in this Section 7.3.2, the Company shall have no responsibility for the
payment of any compensation or benefits to Employee for any time period subsequent to such termination except as may be expressly required by law or the respective terms of benefit arrangements to be
paid even upon termination for cause or voluntary termination. 

        7.4    Involuntary Termination Without Cause; Disability.    The Company shall have the right to terminate Employee's
employment hereunder without Cause upon written notice to Employee. Should Employee be terminated without Cause or in the event of Employee's complete disability, as defined in Section 8
hereof, the Company shall pay to Employee (i) his accrued and unpaid base compensation to the date of termination and for a period of twelve (12) months following the date of such
termination and (ii) the Relocation Benefits and Tax Reimbursement set forth in Section 6 hereof. Except as set 

4

 

forth
in this Section 7.4, the Company shall have no responsibility for the payment of any other compensation or benefits to Employee for any time period subsequent to such termination except
as may be expressly required by law or the respective terms of benefit arrangements to be paid even upon termination for cause or voluntary termination. 

        7.5    Manner of Payment.    All amounts payable to Employee pursuant to this Section 7 shall be subject to
applicable withholding and payroll taxes and shall be payable in accordance with the Company's general payroll practices and not as a lump sum. 

8.     Disability During Term of Employment.  

        The term "completely disabled" as used in this Agreement shall mean the inability of Employee to perform his duties under this Agreement because he has become
permanently disabled within the meaning of any policy of disability income insurance covering employees of the Company then in force. In the event the Company has no policy of disability income
insurance covering employees of the Company in force when Employee becomes disabled, the term "completely disabled" shall mean the inability of Employee to substantially perform his duties under this
Agreement by reason of any incapacity, physical or mental, which the Board of Directors, based upon a medical opinion provided by a licensed physician acceptable to the Board of Directors, determines
to have incapacitated Employee from substantially performing his required services for the Company during the foreseeable future.
Based upon such medical opinion, the action of the Board of Directors shall be final and binding and the date such action is taken shall be the date of such complete disability for purposes of this
Agreement. 

9.     Employee's Duties on Termination.  

        Upon the termination of this Agreement, Employee shall promptly deliver to the Company all equipment, notebooks, documents, memoranda, reports, files, books,
correspondence, lists and other written or graphic records, and the like, relating to the Company's business, which are property of the Company and are in Employee's possession or under his control. 

10.   Assignment and Binding Effect.  

        This Agreement shall be binding upon and inure to the benefit of Employee and Employee's heirs, executors, administrators and legal representatives. This
Agreement shall be binding upon and inure to the benefit of the Company and its successors, permitted assigns and legal representatives. Neither this Agreement nor any rights or obligations under this
Agreement shall be assignable by either Party without the prior written consent of the other Party. 

11.   Notices.  

        All notices or demands of any kind required or permitted to be given by the Company or Employee under this Agreement shall be given in writing and shall be
personally delivered (and receipted for) or mailed by certified mail, return receipt requested, postage prepaid, addressed as follows: 

If
to the Company: 

CardioNet, Inc.

1010 Second Avenue, Suite 700

San Diego, California 92101

Attn: Secretary 

5

 

If
to Employee: 

James
M. Sweeney

537 County Line Road

Radnor, PA 19087 

        Any
such written notice shall be deemed received when personally delivered or three (3) days after its deposit in the United States mail as specified above. Either Party may
change its address for notices by giving notice to the other Party in the manner specified in this section. 

12.   Governing Law.  

        This Agreement is made and entered into in San Diego, California, and it shall be construed and interpreted in accordance with the laws of the State of California
as applied to agreements among California residents entered into and to be performed entirely within California. 

13.   Integration.  

        This Agreement contains the entire agreement of the Parties relating to the subject matter of this Agreement, and supersedes all prior oral and written employment
agreements or arrangements between the Parties. This Agreement cannot be amended or modified except by a written agreement signed by Employee and an authorized officer the Company (other than
Employee). 

14.   Waiver.  

        No term, covenant or condition of this Agreement or any breach thereof shall be deemed waived, except with the written consent of the Party against whom the
waiver is claimed, and any waiver of any such term, covenant, condition or breach shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other term, covenant,
condition or breach. 

15.   Severability.  

        The unenforceability, invalidity or illegality of any provision of this Agreement shall not render any other provision of this Agreement unenforceable, invalid or
illegal. 

16.   Interpretation; Construction.  

        The headings set forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement. The Parties acknowledge that each Party
and its counsel has reviewed and revised, or had an opportunity to review and revise, this Agreement, and the normal rule of construction to the effect that any ambiguities are to be resolved against
the drafting party shall not be employed in the interpretation of this Agreement. 

17.   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. 

18.   Binding Arbitration.  

        18.1 Any dispute, claim or controversy with respect to Employee's termination of employment with the Company (whether the
termination of employment is voluntary or involuntary), and any dispute, claim or controversy with respect to incidents or events leading to such termination or the method or manner of such
termination, and/or any compensation or stock owed to Employee of any type, and any 

6

 

question
of arbitrability hereunder, shall be settled, to the fullest extent permitted by law, exclusively by arbitration. 

        18.2 Employee and the Company each waive their constitutional rights to have such matters determined by a jury. Instead of a
jury trial, an arbitrator shall be chosen by the Company and Employee. The Parties hereby acknowledge that arbitration is preferred because, among other reasons, it is quicker, less expensive and less
formal than litigation in court. 

        18.3 The arbitrator shall not have the authority to alter, amend, modify, add to or eliminate any condition or provision of
this Agreement. The arbitration shall be held in San Diego County, California. The award of the arbitrator shall be final and binding on the Parties. Judgment upon the arbitrator's award may be
entered in any court, state or federal, having jurisdiction over the Parties. Each Party shall bear its respective costs of arbitration. 

        18.4 Should any court determine that any provision(s) of this Agreement to arbitrate is void or invalid, the Parties
specifically intend every other provision of this Agreement to arbitrate to remain enforceable and intact. Each Party hereby acknowledges that it prefers arbitration to recourse to the courts, for the
reasons described above, and has prescribed arbitration as its sole and exclusive method of dispute resolution. 

19.   Entire Agreement.  

        This Agreement constitutes the full and entire understanding and agreement between the Parties with regard to the subject matter hereof and amends, supersedes and
replaces in its entirety the Prior Agreement. 

        [REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK] 

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        IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the date first above written. 

	 	 	COMPANY
	

 	
 	
CARDIONET, INC., a California corporation
	

 	
 	

By:	

/s/  FRED MIDDLETON      

	 	 	Name:	Fred Middleton
	 	 	Title:	Chairman, Compensation Committee of the Board of Directors
	

 	
 	
EMPLOYEE
	

 	
 	

/s/  JAMES M. SWEENEY      
 James M. Sweeney

        [SIGNATURE
PAGE TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT] 

8

 
Exhibit A  

RELOCATION BENEFITS  

	 
	 	Description of Benefits
	 	Estimate of Dollar Amount

	1.	 	Reasonable costs associated with the relocation of Employee's family and personal effects to San Diego, California (including packing, moving, insurance and storage of belongings).	 	$	30,000
	

2.	
 	

Transfer taxes associated with the sale of Employee's principal residence in Pennsylvania.	
 	
$	

40,000
	

3.	
 	

Real estate broker commission equal to 5% of the sales price of principal residence of Employee in Pennsylvania.	
 	
$	

100,000
	

4.	
 	

Closing costs associated with the purchase of Employee's principal residence in San Diego, California upon Employee's relocation from Pennsylvania.	
 	
$	

10,000
	

5.	
 	

Miscellaneous out of pocket expenses associated with Items 1 through 4 above.	
 	
$	

20,000

9

QuickLinks

Exhibit 10.6

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

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