Document:

Exhibit 10.43

    Exhibit
      10.43

    
 

    EXECUTIVE
      EMPLOYMENT AGREEMENT

     

    AGREEMENT,
      dated as of the 4th day of December, 2006, by and between Arrhythmia Research
      Technology, Inc., a Delaware corporation (“ART”) having an office and place of
      business at 25 Sawyer Passway, Fitchburg, Massachusetts 01420 (hereinafter,
      together with any consolidated subsidiary, referred to as the “Company”) and
      David A. Garrison, an individual (hereinafter referred to as
“Executive”).

     

    W
      I T N E
      S S E T H:

     

    WHEREAS,
      the Company recognizes the Executive’s past and potential contribution to the
      growth and success of the Company and the Board of Directors, on the advice
      of
      its Compensation Committee, desires to assure the Executive’s employment in an
      executive capacity and Executive desires to continue to render services to
      the
      Company in such capacity; and

     

    WHEREAS,
      Executive is currently employed by the Company pursuant to an Employment
      Agreement dated October 5,2001, and 

     

    WHEREAS,
      the parties desire to further the goals of stability and security, both with
      respect to the Company and with respect to the Executive by entering into this
      Executive Employment Agreement (this “Agreement”);

     

    NOW,
      THEREFORE, in consideration of these premises and other good and valuable
      consideration, the receipt, adequacy and sufficiency of which are hereby
      acknowledged, the Company and Executive hereby agree as follows:

     

    1.  Employment.
      During
      the Period of Employment (as hereinafter defined), and subject of the provisions
      of this Agreement, the Company agrees to employ Executive, and Executive agrees
      to be so employed in the capacity of President and Chief Executive Officer
      of
      ART and its wholly-owned subsidiary, Micron Products, Inc. 

     

    2.  Term.
      This
      Agreement shall be effective as of October 5, 2006, (the “Effective Date”).
      Subject to the terms hereinafter provided, the term of employment shall be
      from
      the Effective Date through the fifth anniversary of the Effective Date (the
      “Period of Employment”).

     

    3.  Duties.
      Executive agrees to perform such reasonable responsibilities and duties
      commensurate with such executive and managerial positions as set forth in the
      respective Bylaws of ART and Micron and shall at all times during the Period
      of
      Employment discharge his duties, in accordance with the policies of the Company
      as established from time to time, under the supervision and direction of the
      Company's Board of Directors. Executive shall conscientiously devote all of
      his
      time and attention and best efforts during working hours in the discharging
      of
      his duties. It is understood and agreed that Executive’s present duties
      generally require a minimum of forty (40) hours during each working
      week.

     

    4.  Compensation.
      For all
      services rendered by the Executive in any capacity during the Period of
      Employment, including, without limitation, services as an executive officer,
      director or member of any committee of the Company, or any subsidiary, affiliate
      or division thereof, the Executive shall be compensated as follows:

     

    a.  Base
      Compensation.
      The
      Company shall pay to Executive base compensation at the rate of $230,000 per
      annum, commencing as of October 5, 2006, which base compensation shall be paid
      to Executive in installments in accordance with the general practice of the
      Company, subject to withholding and other applicable taxes. The Executive’s base
      compensation, bonus and other perquisites shall be subject to an annual review
      and modification by the Board of Directors in its discretion upon the
      recommendation of the Compensation Committee, provided, however, that
      Executive’s base compensation shall be increased by at least $10,000 as of
      October 5, 2007, and by at least $10,000 as of October 5, 2008. 

     

    b.  Bonus
      Compensation and Option Plans.
      In
      addition to his base compensation set forth in Section 4(a) above, Executive
      shall be entitled to participate in such bonus compensation and employee benefit
      plans as the Company may institute from time to time in the discretion of the
      Compensation Committee upon the approval of the Board of Directors, including
      fringe benefit, defined compensation and stock option and stock award plans
      or
      programs of the Company, if any, to the extent that his position, tenure and
      other qualifications make him eligible to participate, subject to the terms
      of
      such plans or programs and the discretion of the Compensation
      Committee.

     

    c.  Expenses.
      The
      Executive shall be entitled to receive prompt reimbursement for all reasonable
      expenses incurred by him in accordance with the policies and procedures
      established by the Board for the senior executive officers of the Company in
      performing services hereunder and as required to preserve any deductions for
      federal income taxation purposes to which the Company may be
      entitled.

     

    d.  Other
      Benefits.
      The
      Company agrees to provide to Executive such hospital, surgical, dental and
      medical benefits and at a cost that is normally provided to its other executive
      officers under the Company's group health plans together with paid sick leave,
      all in accordance with the policies of the Company. In addition, the company
      agrees to purchase, at its expense, a term life insurance policy on the life
      of
      the Executive in the amount of $500,000 for the benefit of Executive’s estate or
      other beneficiary selected by Executive from time to time.

     

    5.  Non-Disclosure,
      Inventions, Non-Solicitation and Non-Compete.
      The
      parties hereto recognize that it is fundamental to the business and operation
      of
      the Company, its affiliates, subsidiaries and divisions thereof to preserve
      the
      specialized knowledge, trade secrets, and confidential information of the
      Company including, but not limited to, the research, development, design,
      manufacturing processes, formulas, data, engineering and manufacturing,
      know-how, design, improvements, discoveries, strategies, forecasts, projections,
      proprietary software programs, trade secrets, licenses, prices, costs, supplier
      lists, marketing practices, pricing practices, profit margins, analytical
      techniques, concepts, ideas, customer and client agreements, vendor and supplier
      agreements and information with respect to the Company’s proprietary processes
      (whether or not patentable) which are not in the public domain (collectively,
      the “Confidential Information”). In addition, the strength and good will of the
      Company is derived from the specialized knowledge, trade secrets, and
      confidential information generated from experience through the activities
      undertaken by the Company, its affiliates, subsidiaries and divisions thereof.
      The disclosure of any of such information and the knowledge thereof on the
      part
      of competitors would be beneficial to such competitors and detrimental to the
      Company, its affiliates, subsidiaries and divisions thereof. By reason of his
      position with the Company, in the course of his employment, the Executive has
      or
      shall have access to, and has obtained or shall obtain, specialized knowledge,
      trade secrets and confidential information such as that described herein about
      the business and operation of the Company, its affiliates, subsidiaries and
      divisions thereof. Therefore, the Executive hereby agrees as follows,
      recognizing and acknowledging that the Company is relying on the following
      in
      entering into this Agreement:

     

    a.  Confidential
      Information.
      Except
      as required in the course of performing his duties hereunder, the Executive
      shall keep secret and retain in strict confidence the Confidential Information,
      and shall not use, disclose to others, or publish any information, other than
      information which is in the public domain or becomes publicly available through
      no wrongful act on the part of the Executive (which information shall be deemed
      not to be Confidential Information) relating to the business, operation or
      other
      affairs of the Company, any affiliates, subsidiaries and divisions thereof,
      including but not limited to Confidential Information and any and all other
      trade secrets and Confidential Information acquired by him in the course of
      his
      past or future services for the Company or any affiliate, subsidiary or division
      thereof. The Executive shall hold as the Company's property all notes,
      memoranda, books, records, papers, letters, formulas and other data and all
      copies thereof and therefrom in any way relating to the business, operation
      or
      other affairs of the Company, its affiliates, subsidiaries and divisions
      thereof, whether made by him or otherwise coming into his possession. Upon
      termination of his employment or upon the demand of the Company, at any time,
      the Executive shall deliver the same to the Company within twenty-four (24)
      hours of such termination or demand.

     

    Executive
      represents that he has not previously, other than as required to perform his
      duties as an executive officer of the Company, disclosed any information or
      knowledge that would have fallen within the definition of "Confidential
      Information", that he has not transferred the physical embodiment of such
      information or knowledge, and that he has not appropriated such information
      or
      knowledge for the benefit of himself or any third party. 

     

    b.  Inventions.
      Executive hereby assigns and conveys and agrees to assign and convey to the
      Company all of his right, title,
      and
      interest in and to any Proprietary Inventions (as hereinafter defined) and
      acknowledges that the Company is and shall be the exclusive owner of any
      Proprietary Inventions, including patents and other rights related to any
      discovery, invention, improvement, process, formula, or technique, whether
      or
      not patentable, that Executive made, may make, conceived, or reduced to
      practice, either alone or with others, either (i) in the course of performing
      work for the Company or at the Company's expense, or (ii) that results from
      tasks assigned to him by the Company, or (iii) which relates to the business
      of
      the Company whose creation ordinarily would be associated with his then current
      responsibilities as an Executive of the Company (hereinafter “Proprietary
      Inventions”). 

     

    Executive
      will promptly disclose to the Company all such Proprietary Inventions and will
      help the Company, at its expense, obtain and enforce patents or Proprietary
      Inventions in any countries it selects, and Executive will execute any related
      documents, including, without limitation, application papers for patents,
      assignments, affidavits and oaths of facts within his knowledge, and assignment
      of his right, title and interest in and to Proprietary Inventions and related
      patent applications and patents to the Company or its designee. Executive will
      do any other things the Company requests to convey to, or vest in, the Company
      the rights, titles, benefits, and privileges intended to be conveyed.
      Executive's obligation under this paragraph shall continue after the termination
      of his employment, subject to the Company's compensating him at a reasonable
      rate for time actually spent by him at the Company's request after termination.
      

     

    Executive
      acknowledges that all works of authorship (including, without limitation, works
      or authorship that contain software program code) that Executive produces
      during, and within the scope of, his employment by the Company under this
      Agreement or any prior or subsequent employment agreement, whether they are
      or
      are not created on the Company's premises or during hours in which he is
      supposed to be rendering services to the Company, are works made for hire and
      are the property of the Company, and that copyrights in those works of
      authorship are the property of the Company. If for any reason it appears that
      the Company is not the author of any such works of authorship for copyright
      purposes, Executive hereby expressly assigns all of his rights in and to that
      work to the Company and agrees to sign any instrument of specific assignment
      requested. 

     

    If
      Executive is identified as an inventor in any application for any United States
      or foreign patent where the invention (i) is claimed to have been made,
      conceived, or reduced to practice during the first year after termination of
      his
      employment by the Company and (ii) would have been a Proprietary Invention
      relating to the Company’s business if it occurred before the termination of his
      employment, then that invention shall be rebuttably presumed to be a Proprietary
      Invention.

     

    c.  Non-Competition.
      While
      Executive is employed by the Company and for a period which is the greater
      of
      (i) two (2) years after Executive’s employment by the Company terminates or (ii)
      the period for which Executive receives payments in accordance with Section
      7(d)
      hereof, he will not directly or indirectly engage in activities in competition
      with the business activities of the Company, its subsidiaries and divisions,
      or
      perform services for or invest in any person, entity, or organization
      competitive with the Company, whether as an individual, owner, partner,
      stockholder, director, officer, employee, representative or consultant,
      provided, however, that nothing herein shall limit or restrict the Executive’s
      investment in less than 5% of the securities of a corporation subject to the
      reporting requirements of Section 13 or Section 15(d) of the Securities Exchange
      Act of 1934, as amended. 

     

    d.  Non-Solicitation.
      While
      Executive is employed by the Company and for a period which is the greater
      of
      (i) two (2) years after Executive’s employment by the Company terminates or (ii)
      the period for which Executive receives payments in accordance with Section
      7(d)
      hereof, he will not individually, or on behalf of or through any third party,
      directly or indirectly, solicit, entice or persuade any employee, other
      executive officer of or consultant to the Company to leave the services of
      the
      Company for any reason. 

     

    6.  Assignment.
      The
      rights and obligations of the parties hereto shall bind and inure to the benefit
      of each of the parties hereto and shall also bind and inure to the benefit
      of
      any successor or successors of the Company by reorganization, merger or
      consolidation and any assignee of all or substantially all of the Company’s
      business and properties, but, except as to any such successor or assignee of
      the
      Company, neither this Agreement nor any rights or benefits hereunder may be
      assigned by the Company or the Executive.

     

    7.  Termination.
      This
      Agreement may be terminated during the Period of Employment as
      follows:

     

    a.  Termination
      for Cause by the Company; without Good Reason by Executive.
      If the
      Company terminates the Executive’s employment for “Cause” (as hereinafter
      defined) or the Executive terminates his employment other than for “Good Reason”
(as hereinafter defined), the Period of Employment shall terminate immediately
      and Executive shall be entitled to the compensation earned prior to the date
      of
      termination as provided for in this Agreement, computed pro rata up to and
      including the date of termination. Executive shall be entitled to no further
      compensation or benefits under this Agreement. 

     

    For
      purposes of this Agreement, “Cause” for Executive’s termination shall exist at
      any time after the happening of one or more of the following
      events:

     

    i.  Executive
      shall have committed any material breach of any material provisions or covenants
      herein which the Executive does not or is unable to cure within fifteen (15)
      days after the Company provides written notice of such breach to the Executive,
      or 

     

    ii.  Executive
      shall have (x) committed any act of malfeasance or dishonesty against the
      Company, or (y) been convicted of, or pleaded guilty or no contest to, fraud,
      misappropriation or embezzlement or a felony involving a crime of moral
      turpitude, or (z) engaged in conduct materially injurious to the Company; or
      

     

    iii.  Executive
      shall have (x) willfully violated one or more written policies of the Company,
      (y) failed or refused to comply with a lawful directive of the Board of
      Directors, or (z) engaged in willful or gross neglect of duties for which the
      Executive is employed (other than on account of a medically determinable
      Disability (as hereinafter defined) which renders the Executive incapable of
      performing such services). 

     

    For
      purposes of this section, except upon failure to comply with a lawful directive
      of the Board, no act or failure to act on the Executive’s part shall be
      considered “willful” if done or omitted to be done by him in good faith and upon
      reasonable belief that his act or omission was in the best interest of the
      Company. 

     

    b.  Termination
      for Other Specified Causes.
      The
      Period of Employment shall terminate immediately on the occurrence of any one
      of
      the following events: 

     

    i.  The
      occurrence of circumstances that make it impossible or impracticable for the
      business of the Company to be continued (other than a Change of Control (as
      hereinafter defined));

     

    ii.  The
      death
      of Executive; or

     

    iii.  The
      Disability (as hereinafter defined) of Executive, unless waived by the
      Company.

     

    For
      purposes of this Agreement, “Disability” shall mean the continued incapacity
      (due to a cause other than an industrial accident) on the part of Executive
      (i)
      because of which the Executive is unable to perform the principal duties of
      his
      employment for a continuous period of 180 days or (ii) which, in the judgment
      of
      the Board of Directors based on a written certificate of a physician (reasonably
      acceptable to the Company and the Executive or Executive’s personal
      representative) renders the Executive incapable of performing the principal
      duties of his employment. The determination of the physician selected under
      this
      Paragraph 7(b)(iii) will be binding on both parties. The Executive must submit
      to a reasonable number of examinations by the physician making the determination
      of disability under this Section 7(b) and the Executive hereby authorizes the
      disclosure and release to the Company of such determination and all supporting
      medical records. If the Executive is not legally competent, the Executive’s
      legal guardian or duly authorized attorney-in-fact will act in the Executive’s
      stead for the purposes of selecting the physician, submitting the Executive
      to
      the examinations, and providing the authorization of disclosure as required
      under this Section 7(b). If the Company and Executive (or Executive’s
      representative) are unable to agree upon an acceptable physician, then the
      determination of Disability shall be made by the majority vote of a panel of
      three (3) physicians, one selected by Employer, one selected by Executive (or
      Executive’s representative) and the third selected by the first
      two.

     

    In
      the
      event of the termination of the Period of Employment for any of the reasons
      set
      forth in Paragraphs 7(b)(i), (ii) or (iii) Executive shall be entitled to the
      compensation earned prior to the date of termination as provided for in this
      Agreement, computed pro rata up to and including the date of termination. In
      addition, in the event of termination of the Period of Employment for reasons
      set forth in Paragraph 7(b)(ii) or (iii), the Executive, or the Executive’s
      surviving spouse and dependents in the event of Executive’s death, shall be
      entitled to continued coverage under the Company’s hospital, surgical, dental
      and medical plans to the same extent as provided prior to the death or
      Disability of Executive for the greater of the remaining Period of Employment
      as
      in effect immediately prior to such termination or two (2) years following
      the
      death or Disability of Executive. 

     

    c.  Termination
      Without Cause by Company; For Good Reason by Executive.
      If the
      Company terminates the Executive’s employment during the Period of Employment
      without Cause upon giving thirty (30) days’ notice to Executive, or if the
      Executive terminates his employment with Good Reason upon giving thirty (30)
      days’ notice to the Company, the Period of Employment shall immediately upon the
      conclusion of such notice period terminate and the Executive shall be entitled
      to no further payments or benefits hereunder except that the Company shall
      pay
      to Executive the greater of his then current annual base compensation for the
      remaining Period of Employment as in effect immediately prior to such
      termination or his then current annual base compensation for a period of
      twenty-four (24) months from the date of termination. Any such payment shall
      be
      payable in four (4) bi-annual payments, the first of which must be paid within
      thirty (30) days of such termination. Executive shall also be entitled to all
      hospital, surgical, dental and medical benefits to which he would be entitled
      if
      he remained in the employ of the Company until the earlier of (i) twenty-four
      (24) months from the date of termination or (ii) the date Executive becomes
      eligible to be enrolled in a new employer-sponsored medical insurance plan.
      Executive shall not be entitled to any other severance payment. 

     

    “Good
      Reason” shall mean the occurrence of any of the following during the Period of
      Employment:

     

    i.  Any
      reduction in the Executive’s then current annual base compensation without the
      Executive’s prior written consent; or

     

    ii.  A
      material change in the Executive’s position causing it to be of materially less
      stature or responsibility or a material change in the Executive’s duties,
      authorities, responsibilities or reporting relationship, but in each case only
      without the Executive’s prior consent and if the Company does not cure such
      change within thirty (30) days after the Executive provides written notice
      of
      such material change to the Company; or

     

    iii.  The
      Company materially breaches this Agreement and does not cure such breach within
      thirty (30) days after the Executive provides written notice of such breach
      to
      the Company. 

     

    d.  Termination
      Following Change of Control.
      If
      during the Period of Employment the Company terminates the Executive’s
      employment or the Executive terminates his employment for Good Reason, in either
      case in accordance with Section 7(c), during the pendency of or following a
      Change of Control (as hereinafter defined), the Period of Employment shall
      immediately thereafter terminate and the Executive shall be entitled to no
      further payments or benefits hereunder, other than accrued payments or benefits
      and benefits in accordance with this Section 7(d), except that the Company
      shall
      pay to Executive the greater of two (2) times the Executive’s then current
      annual base compensation or the Executive’s then current annual base
      compensation for the remaining Period of Employment as in effect immediately
      prior to such termination. Any such payment shall be payable in four (4)
      bi-annual payments, the first of which must be paid within thirty (30) days
      of
      such termination. Executive shall also be entitled to all hospital, surgical,
      dental and medical benefits to which he would be entitled if he remained in
      the
      employ of the Company until the earlier of (i) twenty-four (24) months from
      the
      date of termination or (ii) the date Executive becomes eligible to be enrolled
      in a new employer-sponsored medical insurance plan. As used in this Section
      7(d)
      the term “Company” shall mean the resulting or surviving transferee corporation,
      partnership or joint venture or other entity upon conclusion of a Change of
      Control. 

     

    For
      purposes of this Agreement, a “Change of Control” shall be deemed to occur upon
      closing of the following:

     

    i.  A
      merger,
      consolidation, liquidation or reorganization of the Company into or with another
      company or other legal person, after which merger, consolidation, liquidation
      or
      reorganization the capital stock of the Company outstanding prior to
      consummation of the transaction is not converted into or exchanged for or does
      not represent more than 50% of the aggregate voting power of the surviving
      or
      resulting entity;

     

    ii.  The
      direct or indirect acquisition by any person (as the term “person” is used in
      Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended)
      of more than fifty percent (50%) of the voting capital stock of the Company,
      in
      a single or series of related transactions; or

     

    iii.  The
      sale,
      exchange, or transfer of all or substantially all of the Company’s assets (other
      than a sale, exchange or transfer to one or more entities where the stockholders
      of the Company immediately before such sale, exchange or transfer retain,
      directly or indirectly, at least a majority of the beneficial interest in the
      voting stock of the entity or entities to which the assets were
      transferred).

     

    8.  Remedies
      for Breach.
      The
      parties recognize that the services to be performed by Executive are special
      and
      unique. Accordingly, if Executive breaches the terms and conditions of this
      Agreement, or shall threaten a breach of any such terms and conditions, then
      the
      Company shall be entitled to institute legal and equitable proceedings in any
      court of competent jurisdiction. Notwithstanding anything else contained herein,
      the Company may seek to obtain damages for any breach of this Agreement, to
      enforce its specific performance by Executive, or to obtain injunctive relief,
      without the necessity of posting a bond, to protect itself from such
      breach.

     

    9.  Partial
      Invalidity.
      Wherever possible each provision of this Agreement shall be interpreted in
      such
      manner as to be effective and valid under applicable law. Moreover, in the
      event
      that any one or more of the provisions hereof shall be held to be excessively
      broad as to duration, geographic scope, activity or subject, such provision
      shall be construed by limiting and reducing it in accordance with a judgment
      of
      a court of competent jurisdiction, so as to be enforceable under the specific
      circumstances of the particular case. Such holding shall, to the extent
      possible, not affect the validity or enforceability of any other provision
      hereof or of this Agreement as a whole. The parties acknowledge that they have
      closely examined and carefully negotiated the terms of this Agreement, deem
      such
      terms fair and adequate and wish them to be preserved.

     

    10.  Notices.
      Any
      notice to be delivered under this Agreement shall be deemed sufficiently given
      if in writing and delivered personally or mailed by certified mail, postage
      prepaid, to Executive at his then current residence address as on file with
      the
      Company, and to the Company at 25 Sawyer Passway, Fitchburg, Massachusetts
      01420, Attn: Chairman of the Board, or to any changed address that either party
      may designate by like notice. The effective date of such notice shall be its
      mailing date. 

     

    11.  Surviving
      Clauses.
      The
      provisions of Sections 5, 7, 9 and 12(f) will survive the expiration or
      termination of this Agreement and will continue in full force and
      effect.

     

    12.  Miscellaneous.

     

    a.  Entire
      Agreement.
      This
      Agreement contains the entire agreement between the parties with respect to
      its
      subject matter and supersedes any previous oral or written communications,
      representations, understandings or agreements. Any amendment, modification
      or
      waiver of this Agreement shall be effective only if evidenced by a written
      instrument executed by both parties, and in the case of the Company, upon
      written authorization of the Company's Board of Directors. 

     

    b.  Binding
      Effect.
      All
      terms and provisions of this Agreement shall be binding upon and inure to the
      benefit of and be enforceable by the parties, and their respective heirs,
      successors, assigns, and legal representatives. 

     

    c.  Non-Waiver.
      No
      delay or omission in enforcing any of the terms or conditions of this Agreement
      shall be construed as or constitute a waiver thereof or bar thereto; nor shall
      a
      waiver on any one occasion be construed as a bar to or waiver of any right
      or
      remedy on any future occasion.

     

    d.  Applicable
      Law.
      This
      Agreement shall be governed by, subject to, and interpreted in accordance with
      the laws of the Commonwealth of Massachusetts. 

     

    e.  Headings.
      Headings in this Agreement shall not be used to interpret or construe its
      provisions.

     

    f.  Arbitration.
      Any
      controversy or claim arising out of or relating to this Agreement or to the
      breach thereof shall be first submitted to mediation within thirty (30) days
      of
      either party requesting same and, if not successful, shall be settled by binding
      arbitration in accordance with the laws of the State of Massachusetts conducted
      in the City of Boston or some other mutually agreed upon location, in accordance
      with the commercial rules of the American Arbitration Association. Judgment
      upon
      the award rendered by the arbitrators may be entered in any court having
      jurisdiction thereof. The arbitrator shall have the authority to award any
      and
      all remedies, whether equitable or compensable that could have been awarded
      by
      any court of competent jurisdiction, including attorney’s fees and costs, if
      appropriate. The cost of any arbitration proceeding conducted hereunder shall
      be
      borne equally between the Executive and the Company.

     

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

     

    
 

    EXECUTED
      under seal as of the date set forth above.

     

    
      	 	
              ARRHYTHMIA
                RESEARCH TECHNOLOGY, INC.

               

            
	 	
              By:

            	
              /s/
                E.P. Marinos

            
	 	 	
              E.P.
                Marinos, Chairman of the Board

            
	 	 	 
	 	 	 
	 	
              EXECUTIVE:

            
	 	 
	 	
              /s/
                James E. Rouse

            
	 	
              James
                E. RouseExhibit 10.44

    Exhibit
      10.44

    

      EXECUTIVE
        EMPLOYMENT AGREEMENT

       

      AGREEMENT,
        dated as of the 7th day of February, 2007, by and between Arrhythmia Research
        Technology, Inc., a Delaware corporation (“ART”) having an office and place of
        business at 25 Sawyer Passway, Fitchburg, Massachusetts 01420 (hereinafter,
        together with any consolidated subsidiary, referred to as the “Company”) and
        David A. Garrison, an individual (hereinafter referred to as
“Executive”).

       

      W
        I T N E
        S S E T H:

       

      WHEREAS,
        the Company recognizes the Executive’s past and potential contribution to the
        growth and success of the Company and the Board of Directors, on the advice
        of
        its Compensation Committee, desires to assure the Executive’s employment in an
        executive capacity and Executive desires to continue to render services to
        the
        Company in such capacity; and

       

      WHEREAS,
        Executive is currently employed by the Company as an at will employee, and
        

       

      WHEREAS,
        the parties desire to further the goals of stability and security, both with
        respect to the Company and with respect to the Executive by entering into
        this
        Executive Employment Agreement (this “Agreement”);

       

      NOW,
        THEREFORE, in consideration of these premises and other good and valuable
        consideration, the receipt, adequacy and sufficiency of which are hereby
        acknowledged, the Company and Executive hereby agree as follows:

       

      1.  Employment.
        During
        the Period of Employment (as hereinafter defined), and subject of the provisions
        of this Agreement, the Company agrees to employ Executive, and Executive
        agrees
        to be so employed in the capacity of Executive Vice President and Chief
        Financial Officer of ART. 

       

      2.  Term.
        This
        Agreement shall be effective as of January 1, 2007, (the “Effective Date”).
        Subject to the terms hereinafter provided, the term of employment shall be
        from
        the Effective Date through the fifth anniversary of the Effective Date (the
        “Period of Employment”).

       

      3.  Duties.
        Executive agrees to perform such reasonable responsibilities and duties
        commensurate with such executive and managerial positions as set forth in
        the
        respective Bylaws of ART and Micron and shall at all times during the Period
        of
        Employment discharge his duties, in accordance with the policies of the Company
        as established from time to time, under the supervision and direction of
        the
        Company's Board of Directors. Executive shall conscientiously devote all
        of his
        time and attention and best efforts during working hours in the discharging
        of
        his duties. It is understood and agreed that Executive’s present duties
        generally require a minimum of forty (40) hours during each working
        week.

       

      4.  Compensation.
        For all
        services rendered by the Executive in any capacity during the Period of
        Employment, including, without limitation, services as an executive officer,
        director or member of any committee of the Company, or any subsidiary, affiliate
        or division thereof, the Executive shall be compensated as follows:

       

      a.  Base
        Compensation.
        The
        Company shall pay to Executive base compensation at the rate of $150,000
        per
        annum, commencing as of January 1, 2007, which base compensation shall be
        paid
        to Executive in installments in accordance with the general practice of the
        Company, subject to withholding and other applicable taxes. The Executive’s base
        compensation, bonus and other perquisites shall be subject to an annual review
        and modification by the Board of Directors in its discretion upon the
        recommendation of the Compensation Committee. 

       

      b.  Bonus
        Compensation and Option Plans.
        In
        addition to his base compensation set forth in Section 4(a) above, Executive
        shall be entitled to participate in such bonus compensation and employee
        benefit
        plans as the Company may institute from time to time in the discretion of
        the
        Compensation Committee upon the approval of the Board of Directors, including
        fringe benefit, defined compensation and stock option and stock award plans
        or
        programs of the Company, if any, to the extent that his position, tenure
        and
        other qualifications make him eligible to participate, subject to the terms
        of
        such plans or programs and the discretion of the Compensation
        Committee.

       

      c.  Expenses.
        The
        Executive shall be entitled to receive prompt reimbursement for all reasonable
        expenses incurred by him in accordance with the policies and procedures
        established by the Board for the senior executive officers of the Company
        in
        performing services hereunder and as required to preserve any deductions
        for
        federal income taxation purposes to which the Company may be
        entitled.

       

      d.  Other
        Benefits.
        The
        Company agrees to provide to Executive such hospital, surgical, dental and
        medical benefits and at a cost that is normally provided to its other executive
        officers under the Company's group health plans together with paid sick leave,
        all in accordance with the policies of the Company. 

       

      5.  Non-Disclosure,
        Inventions, Non-Solicitation and Non-Compete.
        The
        parties hereto recognize that it is fundamental to the business and operation
        of
        the Company, its affiliates, subsidiaries and divisions thereof to preserve
        the
        specialized knowledge, trade secrets, and confidential information of the
        Company including, but not limited to, the research, development, design,
        manufacturing processes, formulas, data, engineering and manufacturing,
        know-how, design, improvements, discoveries, strategies, forecasts, projections,
        proprietary software programs, trade secrets, licenses, prices, costs, supplier
        lists, marketing practices, pricing practices, profit margins, analytical
        techniques, concepts, ideas, customer and client agreements, vendor and supplier
        agreements and information with respect to the Company’s proprietary processes
        (whether or not patentable) which are not in the public domain (collectively,
        the “Confidential Information”). In addition, the strength and good will of the
        Company is derived from the specialized knowledge, trade secrets, and
        confidential information generated from experience through the activities
        undertaken by the Company, its affiliates, subsidiaries and divisions thereof.
        The disclosure of any of such information and the knowledge thereof on the
        part
        of competitors would be beneficial to such competitors and detrimental to
        the
        Company, its affiliates, subsidiaries and divisions thereof. By reason of
        his
        position with the Company, in the course of his employment, the Executive
        has or
        shall have access to, and has obtained or shall obtain, specialized knowledge,
        trade secrets and confidential information such as that described herein
        about
        the business and operation of the Company, its affiliates, subsidiaries and
        divisions thereof. Therefore, the Executive hereby agrees as follows,
        recognizing and acknowledging that the Company is relying on the following
        in
        entering into this Agreement:

       

      a.  Confidential
        Information.
        Except
        as required in the course of performing his duties hereunder, the Executive
        shall keep secret and retain in strict confidence the Confidential Information,
        and shall not use, disclose to others, or publish any information, other
        than
        information which is in the public domain or becomes publicly available through
        no wrongful act on the part of the Executive (which information shall be
        deemed
        not to be Confidential Information) relating to the business, operation or
        other
        affairs of the Company, any affiliates, subsidiaries and divisions thereof,
        including but not limited to Confidential Information and any and all other
        trade secrets and Confidential Information acquired by him in the course
        of his
        past or future services for the Company or any affiliate, subsidiary or division
        thereof. The Executive shall hold as the Company's property all notes,
        memoranda, books, records, papers, letters, formulas and other data and all
        copies thereof and therefrom in any way relating to the business, operation
        or
        other affairs of the Company, its affiliates, subsidiaries and divisions
        thereof, whether made by him or otherwise coming into his possession. Upon
        termination of his employment or upon the demand of the Company, at any time,
        the Executive shall deliver the same to the Company within twenty-four (24)
        hours of such termination or demand.

       

      Executive
        represents that he has not previously, other than as required to perform
        his
        duties as an executive officer of the Company, disclosed any information
        or
        knowledge that would have fallen within the definition of "Confidential
        Information", that he has not transferred the physical embodiment of such
        information or knowledge, and that he has not appropriated such information
        or
        knowledge for the benefit of himself or any third party. 

       

      b.  Inventions.
        Executive hereby assigns and conveys and agrees to assign and convey to the
        Company all of his right, title,
        and
        interest in and to any Proprietary Inventions (as hereinafter defined) and
        acknowledges that the Company is and shall be the exclusive owner of any
        Proprietary Inventions, including patents and other rights related to any
        discovery, invention, improvement, process, formula, or technique, whether
        or
        not patentable, that Executive made, may make, conceived, or reduced to
        practice, either alone or with others, either (i) in the course of performing
        work for the Company or at the Company's expense, or (ii) that results from
        tasks assigned to him by the Company, or (iii) which relates to the business
        of
        the Company whose creation ordinarily would be associated with his then current
        responsibilities as an Executive of the Company (hereinafter “Proprietary
        Inventions”). 

       

      Executive
        will promptly disclose to the Company all such Proprietary Inventions and
        will
        help the Company, at its expense, obtain and enforce patents or Proprietary
        Inventions in any countries it selects, and Executive will execute any related
        documents, including, without limitation, application papers for patents,
        assignments, affidavits and oaths of facts within his knowledge, and assignment
        of his right, title and interest in and to Proprietary Inventions and related
        patent applications and patents to the Company or its designee. Executive
        will
        do any other things the Company requests to convey to, or vest in, the Company
        the rights, titles, benefits, and privileges intended to be conveyed.
        Executive's obligation under this paragraph shall continue after the termination
        of his employment, subject to the Company's compensating him at a reasonable
        rate for time actually spent by him at the Company's request after termination.
        

       

      Executive
        acknowledges that all works of authorship (including, without limitation,
        works
        or authorship that contain software program code) that Executive produces
        during, and within the scope of, his employment by the Company under this
        Agreement or any prior or subsequent employment agreement, whether they are
        or
        are not created on the Company's premises or during hours in which he is
        supposed to be rendering services to the Company, are works made for hire
        and
        are the property of the Company, and that copyrights in those works of
        authorship are the property of the Company. If for any reason it appears
        that
        the Company is not the author of any such works of authorship for copyright
        purposes, Executive hereby expressly assigns all of his rights in and to
        that
        work to the Company and agrees to sign any instrument of specific assignment
        requested. 

       

      If
        Executive is identified as an inventor in any application for any United
        States
        or foreign patent where the invention (i) is claimed to have been made,
        conceived, or reduced to practice during the first year after termination
        of his
        employment by the Company and (ii) would have been a Proprietary Invention
        relating to the Company’s business if it occurred before the termination of his
        employment, then that invention shall be rebuttably presumed to be a Proprietary
        Invention.

       

      c.  Non-Competition.
        While
        Executive is employed by the Company and for a period which is the greater
        of
        (i) two (2) years after Executive’s employment by the Company terminates or (ii)
        the period for which Executive receives payments in accordance with Section
        7(d)
        hereof, he will not directly or indirectly engage in activities in competition
        with the business activities of the Company, its subsidiaries and divisions,
        or
        perform services for or invest in any person, entity, or organization
        competitive with the Company, whether as an individual, owner, partner,
        stockholder, director, officer, employee, representative or consultant,
        provided, however, that nothing herein shall limit or restrict the Executive’s
        investment in less than 5% of the securities of a corporation subject to
        the
        reporting requirements of Section 13 or Section 15(d) of the Securities Exchange
        Act of 1934, as amended. 

       

      d.  Non-Solicitation.
        While
        Executive is employed by the Company and for a period which is the greater
        of
        (i) two (2) years after Executive’s employment by the Company terminates or (ii)
        the period for which Executive receives payments in accordance with Section
        7(d)
        hereof, he will not individually, or on behalf of or through any third party,
        directly or indirectly, solicit, entice or persuade any employee, other
        executive officer of or consultant to the Company to leave the services of
        the
        Company for any reason. 

       

      6.  Assignment.
        The
        rights and obligations of the parties hereto shall bind and inure to the
        benefit
        of each of the parties hereto and shall also bind and inure to the benefit
        of
        any successor or successors of the Company by reorganization, merger or
        consolidation and any assignee of all or substantially all of the Company’s
        business and properties, but, except as to any such successor or assignee
        of the
        Company, neither this Agreement nor any rights or benefits hereunder may
        be
        assigned by the Company or the Executive.

       

      7.  Termination.
        This
        Agreement may be terminated during the Period of Employment as
        follows:

       

      a.  Termination
        for Cause by the Company; without Good Reason by Executive.
        If the
        Company terminates the Executive’s employment for “Cause” (as hereinafter
        defined) or the Executive terminates his employment other than for “Good Reason”
(as hereinafter defined), the Period of Employment shall terminate immediately
        and Executive shall be entitled to the compensation earned prior to the date
        of
        termination as provided for in this Agreement, computed pro rata up to and
        including the date of termination. Executive shall be entitled to no further
        compensation or benefits under this Agreement. 

       

      For
        purposes of this Agreement, “Cause” for Executive’s termination shall exist at
        any time after the happening of one or more of the following
        events:

       

      i.  Executive
        shall have committed any material breach of any material provisions or covenants
        herein which the Executive does not or is unable to cure within fifteen (15)
        days after the Company provides written notice of such breach to the Executive,
        or 

       

      ii.  Executive
        shall have (x) committed any act of malfeasance or dishonesty against the
        Company, or (y) been convicted of, or pleaded guilty or no contest to, fraud,
        misappropriation or embezzlement or a felony involving a crime of moral
        turpitude, or (z) engaged in conduct materially injurious to the Company;
        or

       

      iii.  Executive
        shall have (x) willfully violated one or more written policies of the Company,
        (y) failed or refused to comply with a lawful directive of the Board of
        Directors, or (z) engaged in willful or gross neglect of duties for which
        the
        Executive is employed (other than on account of a medically determinable
        Disability (as hereinafter defined) which renders the Executive incapable
        of
        performing such services). 

       

      For
        purposes of this section, except upon failure to comply with a lawful directive
        of the Board, no act or failure to act on the Executive’s part shall be
        considered “willful” if done or omitted to be done by him in good faith and upon
        reasonable belief that his act or omission was in the best interest of the
        Company. 

       

      b.  Termination
        for Other Specified Causes.
        The
        Period of Employment shall terminate immediately on the occurrence of any
        one of
        the following events: 

       

      i.  The
        occurrence of circumstances that make it impossible or impracticable for
        the
        business of the Company to be continued (other than a Change of Control (as
        hereinafter defined));

       

      ii.  The
        death
        of Executive; or

       

      iii.  The
        Disability (as hereinafter defined) of Executive, unless waived by the
        Company.

       

      For
        purposes of this Agreement, “Disability” shall mean the continued incapacity
        (due to a cause other than an industrial accident) on the part of Executive
        (i)
        because of which the Executive is unable to perform the principal duties
        of his
        employment for a continuous period of 180 days or (ii) which, in the judgment
        of
        the Board of Directors based on a written certificate of a physician (reasonably
        acceptable to the Company and the Executive or Executive’s personal
        representative) renders the Executive incapable of performing the principal
        duties of his employment. The determination of the physician selected under
        this
        Paragraph 7(b)(iii) will be binding on both parties. The Executive must submit
        to a reasonable number of examinations by the physician making the determination
        of disability under this Section 7(b) and the Executive hereby authorizes
        the
        disclosure and release to the Company of such determination and all supporting
        medical records. If the Executive is not legally competent, the Executive’s
        legal guardian or duly authorized attorney-in-fact will act in the Executive’s
        stead for the purposes of selecting the physician, submitting the Executive
        to
        the examinations, and providing the authorization of disclosure as required
        under this Section 7(b). If the Company and Executive (or Executive’s
        representative) are unable to agree upon an acceptable physician, then the
        determination of Disability shall be made by the majority vote of a panel
        of
        three (3) physicians, one selected by Employer, one selected by Executive
        (or
        Executive’s representative) and the third selected by the first
        two.

       

      In
        the
        event of the termination of the Period of Employment for any of the reasons
        set
        forth in Paragraphs 7(b)(i), (ii) or (iii) Executive shall be entitled to
        the
        compensation earned prior to the date of termination as provided for in this
        Agreement, computed pro rata up to and including the date of termination.
        In
        addition, in the event of termination of the Period of Employment for reasons
        set forth in Paragraph 7(b)(ii) or (iii), the Executive, or the Executive’s
        surviving spouse and dependents in the event of Executive’s death, shall be
        entitled to continued coverage under the Company’s hospital, surgical, dental
        and medical plans to the same extent as provided prior to the death or
        Disability of Executive for the greater of the remaining Period of Employment
        as
        in effect immediately prior to such termination or two (2) years following
        the
        death or Disability of Executive. 

       

      c.  Termination
        Without Cause by Company; For Good Reason by Executive.
        If the
        Company terminates the Executive’s employment during the Period of Employment
        without Cause upon giving thirty (30) days’ notice to Executive, or if the
        Executive terminates his employment with Good Reason upon giving thirty (30)
        days’ notice to the Company, the Period of Employment shall immediately upon the
        conclusion of such notice period terminate and the Executive shall be entitled
        to no further payments or benefits hereunder except that the Company shall
        pay
        to Executive the greater of his then current annual base compensation for
        the
        remaining Period of Employment as in effect immediately prior to such
        termination or his then current annual base compensation for a period of
        twenty-four (24) months from the date of termination. Any such payment shall
        be
        payable in four (4) bi-annual payments, the first of which must be paid within
        thirty (30) days of such termination. Executive shall also be entitled to
        all
        hospital, surgical, dental and medical benefits to which he would be entitled
        if
        he remained in the employ of the Company until the earlier of (i) twenty-four
        (24) months from the date of termination or (ii) the date Executive becomes
        eligible to be enrolled in a new employer-sponsored medical insurance plan.
        Executive shall not be entitled to any other severance payment. 

      
        “Good
        Reason” shall
        mean the occurrence of any of the following during the Period of
        Employment:

       

      i.  Any
        reduction in the Executive’s then current annual base compensation without the
        Executive’s prior written consent; or

       

      ii.  A
        material change in the Executive’s position causing it to be of materially less
        stature or responsibility or a material change in the Executive’s duties,
        authorities, responsibilities or reporting relationship, but in each case
        only
        without the Executive’s prior consent and if the Company does not cure such
        change within thirty (30) days after the Executive provides written notice
        of
        such material change to the Company; or

       

      iii.  The
        Company materially breaches this Agreement and does not cure such breach
        within
        thirty (30) days after the Executive provides written notice of such breach
        to
        the Company. 

       

      d.  Termination
        Following Change of Control.
        If
        during the Period of Employment the Company terminates the Executive’s
        employment or the Executive terminates his employment for Good Reason, in
        either
        case in accordance with Section 7(c), during the pendency of or following
        a
        Change of Control (as hereinafter defined), the Period of Employment shall
        immediately thereafter terminate and the Executive shall be entitled to no
        further payments or benefits hereunder, other than accrued payments or benefits
        and benefits in accordance with this Section 7(d), except that the Company
        shall
        pay to Executive the greater of two (2) times the Executive’s then current
        annual base compensation or the Executive’s then current annual base
        compensation for the remaining Period of Employment as in effect immediately
        prior to such termination. Any such payment shall be payable in four (4)
        bi-annual payments, the first of which must be paid within thirty (30) days
        of
        such termination. Executive shall also be entitled to all hospital, surgical,
        dental and medical benefits to which he would be entitled if he remained
        in the
        employ of the Company until the earlier of (i) twenty-four (24) months from
        the
        date of termination or (ii) the date Executive becomes eligible to be enrolled
        in a new employer-sponsored medical insurance plan. As used in this Section
        7(d)
        the term “Company” shall mean the resulting or surviving transferee corporation,
        partnership or joint venture or other entity upon conclusion of a Change
        of
        Control. 

       

      For
        purposes of this Agreement, a “Change of Control” shall be deemed to occur upon
        closing of the following:

       

      i.  A
        merger,
        consolidation, liquidation or reorganization of the Company into or with
        another
        company or other legal person, after which merger, consolidation, liquidation
        or
        reorganization the capital stock of the Company outstanding prior to
        consummation of the transaction is not converted into or exchanged for or
        does
        not represent more than 50% of the aggregate voting power of the surviving
        or
        resulting entity;

       

      ii.  The
        direct or indirect acquisition by any person (as the term “person” is used in
        Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended)
        of more than fifty percent (50%) of the voting capital stock of the Company,
        in
        a single or series of related transactions; or

       

      iii.  The
        sale,
        exchange, or transfer of all or substantially all of the Company’s assets (other
        than a sale, exchange or transfer to one or more entities where the stockholders
        of the Company immediately before such sale, exchange or transfer retain,
        directly or indirectly, at least a majority of the beneficial interest in
        the
        voting stock of the entity or entities to which the assets were
        transferred).

       

      8.  Remedies
        for Breach.
        The
        parties recognize that the services to be performed by Executive are special
        and
        unique. Accordingly, if Executive breaches the terms and conditions of this
        Agreement, or shall threaten a breach of any such terms and conditions, then
        the
        Company shall be entitled to institute legal and equitable proceedings in
        any
        court of competent jurisdiction. Notwithstanding anything else contained
        herein,
        the Company may seek to obtain damages for any breach of this Agreement,
        to
        enforce its specific performance by Executive, or to obtain injunctive relief,
        without the necessity of posting a bond, to protect itself from such
        breach.

       

      9.  Partial
        Invalidity.
        Wherever possible each provision of this Agreement shall be interpreted in
        such
        manner as to be effective and valid under applicable law. Moreover, in the
        event
        that any one or more of the provisions hereof shall be held to be excessively
        broad as to duration, geographic scope, activity or subject, such provision
        shall be construed by limiting and reducing it in accordance with a judgment
        of
        a court of competent jurisdiction, so as to be enforceable under the specific
        circumstances of the particular case. Such holding shall, to the extent
        possible, not affect the validity or enforceability of any other provision
        hereof or of this Agreement as a whole. The parties acknowledge that they
        have
        closely examined and carefully negotiated the terms of this Agreement, deem
        such
        terms fair and adequate and wish them to be preserved.

       

      10.  Notices.
        Any
        notice to be delivered under this Agreement shall be deemed sufficiently
        given
        if in writing and delivered personally or mailed by certified mail, postage
        prepaid, to Executive at his then current residence address as on file with
        the
        Company, and to the Company at 25 Sawyer Passway, Fitchburg, Massachusetts
        01420, Attn: Chairman of the Board, or to any changed address that either
        party
        may designate by like notice. The effective date of such notice shall be
        its
        mailing date. 

       

      11.  Surviving
        Clauses.
        The
        provisions of Sections 5, 7, 9 and 12(f) will survive the expiration or
        termination of this Agreement and will continue in full force and
        effect.

       

      12.  Miscellaneous.

       

      a.  Entire
        Agreement.
        This
        Agreement contains the entire agreement between the parties with respect
        to its
        subject matter and supersedes any previous oral or written communications,
        representations, understandings or agreements. Any amendment, modification
        or
        waiver of this Agreement shall be effective only if evidenced by a written
        instrument executed by both parties, and in the case of the Company, upon
        written authorization of the Company's Board of Directors. 

       

      b.  Binding
        Effect.
        All
        terms and provisions of this Agreement shall be binding upon and inure to
        the
        benefit of and be enforceable by the parties, and their respective heirs,
        successors, assigns, and legal representatives. 

       

      c.  Non-Waiver.
        No
        delay or omission in enforcing any of the terms or conditions of this Agreement
        shall be construed as or constitute a waiver thereof or bar thereto; nor
        shall a
        waiver on any one occasion be construed as a bar to or waiver of any right
        or
        remedy on any future occasion.

       

      d.  Applicable
        Law.
        This
        Agreement shall be governed by, subject to, and interpreted in accordance
        with
        the laws of the Commonwealth of Massachusetts. 

       

      e.  Headings.
        Headings in this Agreement shall not be used to interpret or construe its
        provisions.

       

      f.  Arbitration.
        Any
        controversy or claim arising out of or relating to this Agreement or to the
        breach thereof shall be first submitted to mediation within thirty (30) days
        of
        either party requesting same and, if not successful, shall be settled by
        binding
        arbitration in accordance with the laws of the State of Massachusetts conducted
        in the City of Boston or some other mutually agreed upon location, in accordance
        with the commercial rules of the American Arbitration Association. Judgment
        upon
        the award rendered by the arbitrators may be entered in any court having
        jurisdiction thereof. The arbitrator shall have the authority to award any
        and
        all remedies, whether equitable or compensable that could have been awarded
        by
        any court of competent jurisdiction, including attorney’s fees and costs, if
        appropriate. The cost of any arbitration proceeding conducted hereunder shall
        be
        borne equally between the Executive and the Company.

       

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

      
 

       

      EXECUTED
        under seal as of the date set forth above.

       

      
        	 	
                ARRHYTHMIA
                  RESEARCH TECHNOLOGY, INC.

                 

              
	 	
                By:

              	
                /s/
                  E.P. Marinos

              
	 	 	
                E.P.
                  Marinos, Chairman of the Board

              
	 	 	 
	 	 	 
	 	
                EXECUTIVE:

              
	 	 
	 	
                /s/
                  David A. Garrison

              
	 	
                David
                  A. Garrison

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