Arrhythmia Research Technology, Inc. (NYSEMKT:HRT) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

Arrhythmia Research Technology, Inc. (NYSEMKT:HRT) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

Item 5.02 Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers.

Approval of Executive Incentive Plan

On November 30, 2016, the Board of Directors of Arrhythmia
Research Technology, Inc. (the Company) based on the
recommendation of the Compensation Committee (the Compensation
Committee), approved an Executive Incentive Plan (the EIP).The
EIP establishes cash and equity incentive awards that may be
earned by executives approved for participation in the EIP,
including the Named Executive Officers of the Company (each, an
Executive), based on the Companys achievement of certain
corporate performance metrics during the Companys 2017 fiscal
year.Any bonuses will be paid, if at all, from a bonus pool
consisting of 10% of the Companys net income before bonus,
excluding certain extraordinary items in accordance with the
budget approved by the Board.The payout of the bonus pool shall
be measured 90% on net income and the remaining 10% will be
determined by the Board in its discretion.In order for the pool
to be funded, actual revenue must equal or exceed 90% of budgeted
revenue.Funding of the pool is scaled relative to the extent of
achievement of the plan as follows:

Bonuses will be established for each Executive based on position
level and will be typically expressed as a percentage of the
Executives annual base salary rate as of the last day of the
applicable fiscal year.Annual base salary does not include other
forms of compensation (such as, without limitation, bonus
payments, long-term incentives, overtime compensation, stock
based compensation and other variable compensation).Awards under
the EIP may also be a specified fixed dollar amount.

Awards shall be comprised of cash and equity.The CEO and CFO
awards shall be payable 50% in cash and 50% in equity, until such
time as stock ownership guidelines are met, at which time the
full award may be payable in cash.Awards, and the split between
cash and equity, for other Executives shall be determined by the
Compensation Committee.Awards will be payable in the form of
equity may take the form of stock options or restricted stock
units at the discretion of the Executive, or other forms of stock
based compensation in accordance with the Companys 2010 Equity
Incentive Plan.Stock awards may also be in the form of stock
grants at the sole discretion of the Board and in accordance with
the 2010 Equity Incentive Plan.

The EIP also contains a long-term incentive plan (LTIP) to reward
Executives for achievement of the Companys strategic objectives
that lead to maximization of shareholder value by continual
growth of earnings per share (EPS).EPS targets shall be
determined annually by the Board.In the event targeted EPS growth
has been achieved, an equity award equal to one times the current
year equity portion of the EIP, if awarded, or as otherwise
determined by the Board shall be awarded in the form of
stock-based compensation in accordance with the Companys 2010
Equity Incentive Plan.

The foregoing description of the Executive Incentive Plan is
qualified in its entirety by the terms of the Executive Incentive
Plan which is attached as Exhibit 10.1 hereto.

Item 9.01.Financial Statements and Exhibits.

Exhibit Description

10.1 Executive Incentive Plan (EIP)

About Arrhythmia Research Technology, Inc. (NYSEMKT:HRT)
Arrhythmia Research Technology, Inc. is a contract manufacturing organization. The Company, through its subsidiary, Micron Products, Inc. (Micron), produces medical device technologies requiring precision machining and injection molding. Micron provides design, engineering, quality and regulatory expertise across the Company’s product lines, including machining, plastic injection molding and sensors. It manufactures replacement knee systems, including femorals, tibial trays, inserts and instrumentation from investment castings (F-75, stainless steel), ultra-high-molecular-weight polyethylene (UHMWPE), ultrasonic cleaning and passivation. Its plastic injection molding services include clean room molding and tight tolerance specifications of engineered materials. It provides its customers with services, including the design, manufacture and rehabilitation of injection molding tools. Micron is a manufacturer and distributor of silver-plated and non-silver plated conductive resin sensors. Arrhythmia Research Technology, Inc. (NYSEMKT:HRT) Recent Trading Information
Arrhythmia Research Technology, Inc. (NYSEMKT:HRT) closed its last trading session down -0.02 at 3.99 with 1,658 shares trading hands.