Document:

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Exhibit 10.1
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                                   AGREEMENT

      THIS AGREEMENT entered into as of the 1st day of JULY, 2010 (this
"Agreement"), by and between JOHN RAJALA ("Rajala"), and DYNATRONICS
CORPORATION, a corporation organized and existing under the laws of the State of
Utah (the "Company").

      WHEREAS, Rajala is an employee and shareholder of the Company; and

      WHEREAS, Rajala desires to sell back to the Company and the Company
desires to redeem certain shares of Common Stock of the Company issued to and
held by Rajala; and

      WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Company shall purchase, from time to time as
provided herein, and Rajala shall sell, up to Three Hundred Thousand Dollars
($300,000) of Common Stock (as defined below).

      NOW, THEREFORE, the parties hereto agree as follows:

                                   ARTICLE I
                              CERTAIN DEFINITIONS

      Section 1.1 Defined Terms. As used in this Agreement, the following terms
shall have the following meanings specified or indicated (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):

      "Agreement" shall have the meaning specified in the preamble hereof.

      "Articles" shall mean the Articles of Incorporation of the Company, as
amended to date.

      "Bylaws" shall mean the bylaws of the Company, as amended to date.

      "Closing" shall mean one of the closings of a Redemption pursuant to
Section 2.3.

      "Closing Bid Price" shall mean the closing bid price as reported by the
Principal Market.

      "Common Stock" shall mean the Company's common stock, no par value per
share, and any shares of any other class of common stock whether now or
hereafter authorized, having the right to participate in the distribution of
dividends (as and when declared) and assets (upon liquidation of the Company).

      "Company" shall have the meaning specified in the preamble to this
Agreement.

      "Exchange Act" shall mean the Securities Exchange Act of 1934 and the
rules and regulations promulgated thereunder.

      "FINRA" shall mean the Financial Industry Regulatory Authority, Inc.

      "Market Price" shall mean the Closing Bid Price on the trading day
immediately preceding the Redemption Date.

      "Material Adverse Effect" shall mean any effect on the business,
operations, properties, or financial condition of the Company that is material
and adverse to the Company and/or any condition, circumstance, or situation that
would prohibit or otherwise materially interfere with the ability of the Company
to enter into and perform its obligations under this Agreement.

                                       1
<PAGE>

      "Maximum Redemption Amount" shall mean, with respect to all Redemptions
permitted under this Agreement, shares having an aggregate Purchase Price of
Three Hundred Thousand Dollars ($300,000).

      "Principal Market" shall mean the Nasdaq Stock Market, or other principal
exchange which is at the time the principal trading exchange or market for the
Common Stock.

      "Purchase Price" shall mean the Market Price on such date on which the
Purchase Price is calculated in accordance with the terms and conditions of this
Agreement.

      "Redemption" shall mean the right of Rajala to require the Company to
purchase shares of Common Stock, subject to the terms and conditions of this
Agreement, for proceeds of up to $100,000 in any twelve-month period commencing
July 1, 2010, 2011, or 2012, and up to $300,000 in the aggregate.

      "Redemption Date" shall mean any Trading Day that a Redemption Notice is
deemed delivered pursuant to Section 2.2(b).

      "Redemption Notice" shall mean a written notice to the Company setting
forth the Redemption amount with respect to which Rajala intends to require the
Company to purchase shares of Common Stock pursuant to the terms of this
Agreement.

      "Redemption Shares" shall mean all shares of Common Stock redeemable
pursuant to a Redemption that has been exercised or may be exercised in
accordance with the terms and conditions of this Agreement.

      "Regulation D" shall mean Regulation D promulgated under the Securities
Act.

      "SEC" shall mean the Securities and Exchange Commission.

      "Securities Act" shall have the meaning specified in the recitals of this
Agreement.

      "SEC Documents" shall mean, as of a particular date, all reports and other
documents file by the Company pursuant to Section 13(a) or 15(d) of the Exchange
Act since the beginning of the Company's then most recently completed fiscal
year as of the time in question (provided that if the datein question is within
ninety days of the beginning of the Company's fiscal year, the term shall
include all documents filed since the beginning of the second preceding fiscal
year).

      "Short Sales" shall mean all "short sales" as defined in Rule 200 of
Regulation SHO under the Exchange Act.

      "Trading Day" shall mean a day on which the Principal Market shall be open
for business.

                                   ARTICLE II
                       PURCHASE AND SALE OF COMMON STOCK

      Section 2.1 Redemptions.

            (a) Upon the terms and conditions set forth herein, at any time
during the term of this Agreement, subject to the provisions of Section 2.2(a),
below, Rajala may require the Company to purchase shares of Common Stock then
held by Rajala (up to the Maximum Redemption Amount), which shares were acquired
by Rajala in connection with the sale of his distribution business to the
Company in 2007, by the delivery of a Redemption Notice. The Redemption Notice
shall specify the dollar value of the Redemption Shares (the "Redemption
Amount") Rajala desires to sell and the Company is required to purchase pursuant
to this Agreement. The number of Redemption Shares that the Company shall
purchase pursuant to such Redemption shall be determined by dividing the
Redemption Amount specified in the Redemption Notice by the Purchase Price with
respect to such Redemption Notice.

                                       2
<PAGE>

            (b) Rajala may redeem shares with an aggregate Purchase Price of
$100,000 in the first year of this Agreement, up to $200,000 in the second year
(less any amount purchased in the first year), and up to $300,000 in the third
year (less any amount purchased in the first two years), until the Maximum
Redemption Amount has been redeemed.

      Section 2.2 Mechanics.

            (a) Redemption Notice. At any time and from time to time during the
first five (5) business days of a fiscal quarter of the Company, Rajala may
deliver a Redemption Notice to the Company, which shall not exceed the amounts
indicated in Section 2.1(b).

            (b) Date of Delivery of Redemption Notice. A Redemption Notice shall
be deemed delivered on (i)the Trading Day it is received by facsimile or
otherwise by the Company if such notice is received on or prior to 12:00 noon
Utah time, or (ii) the immediately succeeding Trading Day if it is received by
facsimile or otherwise after 12:00 noon Utah time on a Trading Day or at anytime
on a day which is not a Trading Day.

      Section 2.3 Closings. On or prior to each Closing Date for any Redemption,
(a) Rajala shall deliver to the Company one or more certificates representing
the Redemption Shares purchased by the Company pursuant to Section 2.1 herein,
registered in the name of Rajala and (b) the Company shall deliver the
Redemption Amount specified in the Redemption Notice by check or wire transfer
of immediately available funds to an account designated by Rajala within ten
(10) days of receipt of the Redemption Shares. In addition, on or prior to such
Closing Date, each of the Company and Rajala shall deliver to each other all
documents, instruments and writings required to be delivered by either of them
pursuant to this Agreement in order to implement and effect the transactions
contemplated herein.

                                  ARTICLE III
                    REPRESENTATIONS AND WARRANTIES OF RAJALA

      Rajala represents and warrants to the Company that:

      Section 3.1 No Legal Advice from the Company. Rajala acknowledges that he
has had the opportunity to review this Agreement and the transactions
contemplated by this Agreement with his own legal counsel and investment and tax
advisors. Rajala is relying solely on such counsel and advisors and not on any
statements or representations of the Company or any of its representatives or
agents for legal, tax or investment advice with respect to this investment, the
transactions contemplated by this Agreement or the securities laws of any
jurisdiction.

      Section 3.2 Sophisticated Investor. Rajala is a sophisticated investor (as
described in Rule 506(b)(2)(ii) of Regulation D) and an accredited investor (as
defined in Rule 501 of Regulation D), and Rajala has such experience in business
and financial matters that he is capable of evaluating the merits and risks of
an investment in the Common Stock. Rajala acknowledges that an investment in the
Common Stock is speculative and involves a high degree of risk.

                                       3
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      Section 3.3 Authority.

            (a) Rajala has the requisite power and authority to enter into and
perform his obligations under this Agreement and the transactions contemplated
hereby in accordance with its terms;

            (b) The execution and delivery of this Agreement and the
consummation by Rajala of the transactions contemplated hereby and thereby have
been duly authorized by all necessary action and no further consent or
authorization is required; and

            (c) This Agreement has been duly authorized and validly executed and
delivered by Rajala and constitutes a valid and binding obligation of Rajala
enforceable against him in accordance with its terms, subject to applicable
bankruptcy, insolvency, or similar laws relating to, or affecting generally the
enforcement of, creditors' rights and remedies or by other equitable principles
of general application.

      Section 3.4 Not an Affiliate. Rajala is not an officer, director or
"affiliate" (as that term is defined in Rule 405 of the Securities Act) of the
Company.

      Section 3.5 Absence of Conflicts. The execution and delivery of this
Agreement and any other document or instrument contemplated hereby, and the
consummation of the transactions contemplated hereby and thereby, and compliance
with the requirements hereof and thereof, will not:

            (a) violate any law, rule, regulation, order, writ, judgment,
injunction, decree or award binding on Rajala,

            (b) violate any provision of any indenture, instrument or agreement
to which Rajala is a party or is subject, or by which Rajala or any of his
assets is bound, or conflict with or constitute a material default thereunder,

            (c) result in the creation or imposition of any lien pursuant to the
terms of any such indenture, instrument or agreement, or constitute a breach of
any fiduciary duty owed by Rajala to any third party, or

            (d) require the approval of any third-party (that has not been
obtained) pursuant to any material contract, instrument, agreement, relationship
or legal obligation to which Rajala is subject or to which any of his assets,
operations or management may be subject.

      Section 3.6 Disclosure and Access to Information. Rajala has had an
opportunity to review copies of the SEC Documents filed on behalf of the Company
and has had access to all publicly available information with respect to the
Company.

                                   ARTICLE IV
                 REPRESENTATIONS AND WARRANTIES OF THE COMPANY

      The Company represents and warrants to Rajala that, except as disclosed in
the SEC Documents:

                                       4
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      Section 4.1 Organization. The Company is a corporation duly organized and
validly existing and in good standing under the laws of the State of Utah and
has all requisite power and authority to own, lease and operate its properties
and to carry on its business as now being conducted. The Company is duly
qualified as a foreign corporation to do business and is in good standing in
every jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, other than those in which the
failure so to qualify would not have a Material Adverse Effect.

      Section 4.2 Authority.

            (a) The Company has the requisite corporate power and authority to
enter into and perform its obligations under this Agreement;

            (b) The execution and delivery of this Agreement by the Company and
the consummation by it of the transactions contemplated hereby and thereby have
been duly authorized by all necessary corporate action and no further consent or
authorization of the Company or its Board of Directors or stockholders is
required; and

            (c) This Agreement has been duly executed and delivered by the
Company and constitutes a valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, or similar
laws relating to, or affecting generally the enforcement of, creditors' rights
and remedies or by other equitable principles of general application.

      Section 4.3 Common Stock. The Company has registered the Common Stock
pursuant to Section 12(b) or 12(g) of the Exchange Act and is in full compliance
with all reporting requirements of the Exchange Act, and the Company has
maintained all requirements for the continued listing or quotation of the Common
Stock, and such Common Stock is currently listed or quoted on the Principal
Market. The Company has taken no action designed to, or which to its knowledge
is likely to have the effect of, terminating the registration of the Common
Stock under the Exchange Act nor has the Company received any notification that
the SEC is contemplating terminating such registration.

      Section 4.4 SEC Documents. The Company may make available to Rajala true
and complete copies of the SEC Documents (including, without limitation, proxy
information and solicitation materials). To the Company's knowledge, the Company
has not provided to Rajala any information that, according to applicable law,
rule or regulation, should have been disclosed publicly prior to the date hereof
by the Company, but which has not been so disclosed. As of their respective
dates, the SEC Documents complied in all material respects with the requirements
of the Securities Act or the Exchange Act, as the case may be, and other
federal, state and local laws, rules and regulations applicable to such SEC
Documents, and none of the SEC Documents contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. The financial
statements of the Company included in the SEC Documents comply as to form and
substance in all material respects with applicable accounting requirements and
the published rules and regulations of the SEC or other applicable rules and
regulations with respect thereto. Such financial statements have been prepared
in accordance with generally accepted accounting principles applied on a
consistent basis during the periods involved (except (a) as may be otherwise
indicated in such financial statements or the notes thereto or (b) in the case
of unaudited interim statements, to the extent they may not include footnotes or
may be condensed or summary statements) and fairly present in all material
respects the financial position of the Company as of the dates thereof and the
results of operations and cash flows for the periods then ended (subject, in the
case of unaudited statements, to normal year-end audit adjustments).

                                       5
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      Section 4.5 No Conflicts. The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby, do not and will not

            (a) result in a violation of the Articles or Bylaws, or

            (b) conflict with, or constitute a material default (or an event
that with notice or lapse of time or both would become a material default)
under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, indenture, instrument or any "lock-up"
or similar provision of any underwriting or similar agreement to which the
Company is a party, or

            (c) result in a violation of any federal, state or local law, rule,
regulation, order, judgment or decree (including federal and state securities
laws and regulations) applicable to the Company or by which any property or
asset of the Company is bound or affected (except for such conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations as would
not, individually or in the aggregate, have a Material Adverse Effect) nor is
the Company otherwise in violation of, conflict with or in default under any of
the foregoing. The business of the Company is not being conducted in violation
of any law, ordinance or regulation of any governmental entity, except for
possible violations that either singly or in the aggregate do not and will not
have a Material Adverse Effect. The Company is not required under federal, state
or local law, rule or regulation to obtain any consent, authorization or order
of, or make any filing or registration with, any court or governmental agency in
order for it to execute, deliver or perform any of its obligations under this
Agreement; provided that, for purposes of the representation made in this
sentence, the Company is assuming and relying upon the accuracy of the relevant
representations and agreements of Rajala herein.

      Section 4.6 No Material Adverse Change. Since June 30, 2009 no event has
occurred that would have a Material Adverse Effect on the Company, except as
disclosed in the SEC Documents.

      Section 4.7 No Undisclosed Liabilities. The Company has no liabilities or
obligations that are material, individually or in the aggregate, and that are
not disclosed in the SEC Documents or otherwise publicly announced, other than
those incurred in the ordinary course of the Company's businesses since June 30,
2009 and which, individually or in the aggregate, do not or would not have a
Material Adverse Effect on the Company.

      Section 4.8 No Undisclosed Events or Circumstances. Since June 30, 2009,
no event or circumstance has occurred or exists with respect to the Company or
its businesses, properties, operations or financial condition, that, under
applicable law, rule or regulation, requires public disclosure or announcement
prior to the date hereof by the Company but which has not been so publicly
announced or disclosed in the SEC Documents.

      Section 4.9 Litigation and Other Proceedings. Except as may be set forth
in the SEC Documents, there are no lawsuits or proceedings pending or to the
knowledge of the Company threatened, against the Company, nor has the Company
received any written or oral notice of any such action, suit, proceeding or
investigation, which would have a Material Adverse Effect. Except as set forth
in the SEC Documents, no judgment, order, writ, injunction or decree or award
has been issued by or, so far as is known by the Company, requested of any
court, arbitrator or governmental agency which would have a Material Adverse
Effect.

                                       6
<PAGE>

      Section 4.10 Material Non-Public Information.

      The Company is not in possession of, nor has the Company or its agents
disclosed to Rajala, any material non-public information that

            (a) if disclosed, would reasonably be expected to have a materially
adverse effect on the price of the Common Stock or

            (b) according to applicable law, rule or regulation, should have
been disclosed publicly by the Company prior to the date hereof but which has
not been so disclosed.

                                   ARTICLE V
                              COVENANTS OF RAJALA

      Section 5.1 Compliance with Law; Trading in Securities. Rajala's trading
activities with respect to shares of the Common Stock will be in compliance with
all applicable state and federal securities laws, rules and regulations and the
rules and regulations of FINRA and the Principal Market on which the Common
Stock is listed or quoted.

      Section 5.2 Short Sales and Confidentiality. Neither Rajala nor any
affiliate of Rajala acting on its behalf or pursuant to any understanding with
it will execute any Short Sales during the period from the date hereof to the
final redemption hereunder. Other than to other persons party to this Agreement,
Rajala has maintained the confidentiality of all disclosures made to it in
connection with this transaction (including the existence and terms of this
transaction).

                                   ARTICLE VI
                            COVENANTS OF THE COMPANY

      Section 6.1 Notice of Certain Events Affecting Securities; Suspension of
Right to Make a Redemption. The Company shall promptly notify Rajala upon the
occurrence of any of the following events in respect of a Redemption which has
not otherwise been publicly disclosed by the Company through a press release or
any filing made by the Company under the Exchange Act:

            (a) receipt of any request by the SEC or any other federal or state
governmental authority;

            (b) the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the trading of the Company's
securities or the initiation of any proceedings for that purpose;

            (c) receipt of any notification with respect to the suspension of
the qualification or exemption from qualification of any of the Company's
securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose; or

            (d) the happening of any event that makes any statement made in the
Company's SEC Documents or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or that
requires the making of any changes in the SEC Documents so that they will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein
not misleading, and that in the case of the related prospectus, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading.

                                       7
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                                  ARTICLE VII
                                    NOTICES

      Section 7.1 Notices. All notices, demands, requests, consents, approvals,
and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (a) personally served, (b)
deposited in the mail, registered or certified, return receipt requested,
postage prepaid, (c) delivered by reputable air courier service with charges
prepaid, or (d) transmitted by hand delivery, telegram, or facsimile, addressed
as set forth below or to such other address as such party shall have specified
most recently by written notice given in accordance herewith. Any notice or
other communication required or permitted to be given hereunder shall be deemed
effective (i) upon hand delivery or delivery by facsimile, with accurate
confirmation generated by the transmitting facsimile machine, at the address or
number designated below (if delivered on a business day during normal business
hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (ii) on the second business day
following the date of mailing by express courier service or on the fifth
business day after deposited in the mail, in each case, fully prepaid, addressed
to such address, or upon actual receipt of such mailing, whichever shall first
occur.

The addresses for such communications shall be:

If to the Company:

                          Dynatronics Corporation
                          7030 Park Centre Drive
                          Salt Lake City, Utah 84121
                          Attn: Robert Cardon
                          Tel: (801) 568-7000
                          Fax: (801) 568-7711

 With a copy (which shall not constitute notice) to:

                          Durham Jones & Pinegar, P.C.
                          Attention: Kevin R. Pinegar
                          111 East Broadway, Suite 900
                          Tel: (801) 415-3000
                          Fax: (801) 415-3500

If to Rajala:

                          John Rajala
                          12 Red Maple Place
                          Danville, CA  94506
                          Tel: (925) 640-8515

                                       8
<PAGE>

Either party hereto may from time to time change its address or facsimile number
for notices under this Section 7.1 by giving at least ten (10) days' prior
written notice of such changed address or facsimile number to the other party
hereto.

                                  ARTICLE VIII
                                 MISCELLANEOUS

      Section 8.1 Governing Law; Jurisdiction. This Agreement shall be governed
by and interpreted in accordance with the laws of the State of Utah without
regard to the principles of conflicts of law. Each of the Company and Rajala
hereby submit to the exclusive jurisdiction of the United States Federal and
state courts located in Salt Lake County, Utah with respect to any dispute
arising under this Agreement, the agreements entered into in connection herewith
or the transactions contemplated hereby or thereby.

      Section 8.2 Jury Trial Waiver. The Company and Rajala hereby waive a trial
by jury in any action, proceeding or counterclaim brought by either of the
parties hereto against the other in respect of any matter arising out of or in
connection with this Agreement.

      Section 8.3 Assignment. This Agreement shall be binding upon and inure to
the benefit of the Company and Rajala and their respective successors and
permitted assigns. Neither this Agreement nor any rights of Rajala or the
Company hereunder may be assigned by either party to any other person without
the prior written consent of the other party, which shall not be unreasonably
withheld.

      Section 8.4 No Third Party Beneficiaries. This Agreement is intended for
the benefit of the Company and Rajala and their respective successors and
permitted assigns, and is not for the benefit of, nor may any provision hereof
be enforced by, any other person.

      Section 8.5 Termination. Rajala may terminate this Agreement at any time
by written notice to the Company. Additionally, this Agreement shall terminate
on June 30, 2013 or such earlier date as the Maximum Redemption Amount
($300,000) has been purchased by the Company, or as otherwise provided herein
(unless extended by the agreement of the Company and Rajala).

      Section 8.6 Entire Agreement, Amendment, No Waiver. This Agreement and the
instruments referenced herein contain the entire understanding of the Company
and Rajala with respect to the matters covered herein and therein and, except as
specifically set forth herein or therein, neither the Company nor Rajala makes
any representation, warranty, covenant or undertaking with respect to such
matters. No provision of this Agreement may be waived or amended other than by
an instrument in writing signed by the party to be charged with enforcement.

      Section 8.7 Fees and Expenses. Each of the Company and Rajala agrees to
pay its own expenses in connection with the preparation of this Agreement and
performance of its obligations hereunder.

      Section 8.8 Counterparts. This Agreement may be executed in multiple
counterparts, each of which may be executed by less than all of the Parties and
shall be deemed to be an original instrument which shall be enforceable against
the parties actually executing such counterparts and all of which together shall
constitute one and the same instrument. This Agreement may be delivered to the
other parties hereto by facsimile transmission of a copy of this Agreement
bearing the signature of the parties so delivering this Agreement.

                                       9
<PAGE>

      Section 8.9 Severability. In the event that any provision of this
Agreement becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, this Agreement shall continue in full force and
effect without said provision; provided that such severability shall be
ineffective if it materially changes the economic benefit of this Agreement to
any party.

      Section 8.10 No Strict Construction. The language used in this Agreement
will be deemed to be the language chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any party.

      Section 8.11 Title and Subtitles. The titles and subtitles used in this
Agreement are used for the convenience of reference and are not to be considered
in construing or interpreting this Agreement.

      Section 8.12 Reporting Entity for the Common Stock. The reporting entity
relied upon for the determination of the Closing Bid Price of the Common Stock
on any given Trading Day for the purposes of this Agreement shall be the
Principal Market or any successor thereto. The written mutual consent of Rajala
and the Company shall be required to employ any other reporting entity.

      Section 8.13 Publicity. The Company and Rajala shall consult with each
other in issuing any press releases or otherwise making public statements with
respect to the transactions contemplated hereby and no party shall issue any
such press release or otherwise make any such public statement without the prior
written consent of the other parties, which consent shall not be unreasonably
withheld or delayed, except that no prior consent shall be required if such
disclosure is required by law, in which such case the disclosing party shall
provide the other parties with prior notice of such public statement. Rajala
acknowledges that this Agreement and all or part of the Transaction Documents
may be deemed to be "material contracts" as that term is defined by Item
601(b)(10) of Regulation S-K, and that the Company may therefore be required to
file such documents as exhibits to reports or registration statements filed
under the Securities Act or the Exchange Act. Rajala further agrees that the
status of such documents and materials as material contracts shall be determined
solely by the Company, in consultation with its counsel.

                         [SIGNATURES ON FOLLOWING PAGE]

                                       10
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by the undersigned, thereunto duly authorized, as of the date first set
forth above.

                                              /s/ John Rajala
                                              ----------------------------------
                                              John Rajala

                                              Dynatronics Corporation

                                              By: /s/ Kelvyn Cullimore, Jr.
                                                 -------------------------------

                                              Its: President and CEO
                                                  ------------------------------

                                       11

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Exhibit 10.2
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                              EMPLOYMENT AGREEMENT
                              --------------------

      THIS EMPLOYMENT AGREEMENT (this "Agreement") executed and effective the
1st day of July, 2010 (the "Effective Date"), by and between Dynatronics
Corporation, a Utah corporation having its principal place of business in Salt
Lake City, Utah (the "Company"), and John Rajala, a resident of California
("Employee").

                                    RECITALS

      A. The Company desires to retain the services of Employee, and Employee
desires to render such services, upon the terms and conditions contained herein.

      B. Employee desires to provide the services to the Company on the terms
and subject to the conditions contained in this Agreement.

                                   AGREEMENT

      NOW, THEREFORE, in consideration of the covenants contained herein, the
above recitals and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

                                   ARTICLE I
                                     DUTIES

      1.01 Duties. The Company hereby employs Employee, and Employee hereby
accepts employment, as a Direct Sales Representative and Territory Manager upon
the terms and conditions contained herein. Employee shall devote his best
efforts to the duties of representing Dynatronics within the assigned territory.
Employee shall be prohibited from selling product lines for other companies
unless expressly approved in writing by the Company. Any secondary employment
must also be approved in writing by an officer of the Company.

      1.02 Territory. You will be permitted to sell all lines of Dynatronics
products within your designated Territory. The Company reserves certain accounts
as national accounts or special accounts. In such cases, you will be informed of
the commission participation, if any, on those accounts. From time to time a
territory boundary may be amended due to product lines, other sales
representatives or other considerations, in the Company's sole discretion. Your
Territory is specifically defined in the attached Exhibit A and shown on the map
attached to Exhibit A.

      1.03 Other Duties. During the Contract Term, Employee agrees to assist the
Company relative to product sourcing, vendor relations and sales management.
Travel outside the Territory to provide such assistance shall be limited to 10
days per fiscal year. Any request by Company for additional out of Territory
assistance shall be compensated at a rate mutually agreed upon by the parties.
All expenses associated with out of Territory meetings shall be paid by the
Company.

                                       1
<PAGE>
                                   ARTICLE II
                               TERM OF AGREEMENT

      The term of this Agreement shall commence on the Effective Date and shall
remain in effect for three years terminating on June 30, 2013 (the "Contract
Term") unless terminated sooner as provided for in this Agreement. If the
Employee continues to be employed by Company following termination of the
Agreement such continued employment shall be as an at-will employee.

                                  ARTICLE III
                                  COMPENSATION

      During the Contract Term, the Company shall pay, or cause to be paid to
Employee in cash in accordance with the normal payroll practices of the Company
(including deductions, withholdings and collections as required by law), the
following:

      3.01 Sales Commissions. Employee agrees to be compensated according to
Dynatronics commission policy as that policy may from time to time be amended.
Commissions are paid on sales made by Employee to customers in the Territory
(with the exception of sales to national accounts or other special circumstances
which will be communicated to Employee in advance). Commissions are calculated
by multiplying the gross profit on a sale (which is defined as gross sales price
less cost of goods sold) times the applicable commission rate. Presently, the
Company has two commission rates. For all of the Company's own manufactured
products, modalities, tables, supplies, etc., commissions are 24% of the gross
profit. For all distributed (non-manufactured) products commissions are 40% of
the gross profit. Occasionally, the Company may have a product which does not
fit into the above categories for which a special commission rate will be
established. As previously mentioned, commissions on sales within the Territory
to a "national account" may or may not be commissionable. These arrangements
will be fully disclosed. Any sale by Employee outside the Territory will not be
eligible for commission unless written approval is given by the Company in
advance of the sale.

      3.02 Earned Commission. Commissions are not actually earned or owed on
eligible sales made by Employee until payment in full is received by the Company
on those sales. Nevertheless, the Company will pay a draw against commissions
and will advance the balance of the estimated commission to you as provided in
this Agreement. Such draws and advances must be repaid to the Company to the
extent all or part of the advanced commissions do not become eared due to a
customer's return of the product or their failure to pay. That repayment is
typically achieved through an adjustment to the estimated future commission
payments according to Company policy. Employee specifically consents to such
adjustments for unearned commissions.

                                       2
<PAGE>

      3.03 Payment of Commissions. Commissions are calculated at the end of each
month based on actual invoiced sales made in the Territory during the month. A
monthly draw of $2000 will be paid at the end of each month. The Company
reserves the right to adjust the amount of the monthly draw based on actual
commissions earned. Typically, the draw will not exceed 50% of the six month
average of monthly commissions paid. On the 15th of each month, Employee will be
advanced the balance of the calculated commissions for the prior month (i.e.,
the calculated commissions for the prior month less the draw previously paid for
that month). Because commissions are not considered earned until the customer
has paid its account in full, reimbursement of advanced commissions will be
required when products are returned, a customer fails to pay or other account
adjustments are required. The Company may provide a reconciliation report
periodically reflecting the amount of commissions that must be reimbursed by
Employee. Reimbursement will be offset against future commissions. By your
signature below, Employee authorizes the Company to offset against future
commission advances the amounts owed in reimbursement of commissions for
returned product, account adjustments, and uncollected or delinquent sales
according to Company policy. Employee will be provided with a monthly commission
report. A final reconciliation between earned and advanced commissions will
occur upon termination.

                                   ARTICLE IV
                                 OTHER BENEFITS

      4.01 Employee Benefits. During the Contract Term:

            (a) Employee shall be entitled to participate in the Company's
401(k) program, including the Company's annual matching contribution (currently
up to $500),

            (b) Employee shall receive health insurance equivalent to the
coverage provided to Employee during the 12 months prior to the date of this
Agreement. Specifically this means coverage for John and Mary Jo Rajala. This
benefit will extend only through December 31, 2010 by which point Employee is
expected to opt out of the Company provided insurance unless the parties
mutually agree to extend the date for opting out. Upon opting out of the Company
provided insurance, the Company will reimburse employee up to $500 per month
toward the actual out of pocket costs for Employee under their selected optional
insurance,

            (c) Employee shall be eligible for any other employee benefit
program that is generally offered to all employees of the Company except that
any stock options must be specifically approved by the Company's Board of
Directors.

      4.02 Expense Reimbursement.

            (a) Employee shall receive a monthly expense allowance of one
thousand dollars ($1,000). Employee may elect within the first 30 days of this
Agreement to have the monthly reimbursement paid based on receipts provided or
advanced as additional 1099 income without obligation to provide receipts.
Eligible expenses for reimbursement shall include (i) receipted expenditures for
vehicle operation, including fuel, maintenance and repairs, monthly vehicle
payments, licensing, taxes and insurance, (ii) cellular phone usage, (iii) home
computer use, (iv) work related local entertainment and local travel expenses
within assigned Territory, and (v) any other job related expenses approved by
the Company.

                                       3
<PAGE>

            (c) In addition to the expense allowance and reimbursement provided
elsewhere in this Agreement, Employee shall be entitled to receive prompt
reimbursement for all reasonable, non-local employment-related expenses incurred
by Employee, including regional or overnight travel, attending trade shows,
meetings at the Company's headquarters, and other non-local business-related
travel requested by the Company. Employee shall be reimbursed upon the Company's
receipt of documentation in accordance with practices, policies and procedures
of the Company.

                                   ARTICLE V
                             RESTRICTIVE COVENANTS

      5.01 Trade Secrets; Confidential and Proprietary Business Information.

            (a) The Company has advised Employee and Employee has acknowledged
that it is the policy of the Company to maintain as secret and confidential all
Protected Information (as defined below), and that Protected Information has
been and will be developed at substantial cost and effort to the Company. For
purposes of this Agreement,"Protected Information" means trade secrets,
confidential and proprietary business information of the Company, any
information of the Company other than information which has entered the public
domain (unless such information entered the public domain through effects of or
on account of Employee), and all valuable and unique information and techniques
acquired, developed or used by the Company relating to its business, operations,
employees, customers and suppliers, which give the Company a competitive
advantage over those who do not know the information and techniques and which
are protected by the Company from unauthorized disclosure, including but not
limited to, customer lists (including potential customers), sources of supply,
processes, plans, materials, pricing information, internal memoranda, marketing
plans, internal policies, and products and services which may be developed from
time to time by the Company and its agent or employees.

            (b) Employee acknowledges that Employee has through prior employment
and will through continued employment acquire Protected Information with respect
to the Company and its successors in interest, which information is a valuable,
special and unique asset of the Company's business and operations and that
disclosure of such Protected Information would cause irreparable damage to the
Company.

            (c) During the term of this Agreement and for a period of two (2)
years following termination of employment by the Company, Employee shall not,
directly or indirectly, divulge, furnish or make accessible to any person, firm,
corporation, association or other entity (otherwise than as may be required in
the regular course of Employee's employment) nor use in any manner, any
Protected Information, or cause any such information of the Company to enter the
public domain.

                                       4
<PAGE>

            (d) From the date hereof until two (2) years after Employee's
termination of employment with the Company, Employee, and any person or entity
directly or indirectly controlling, controlled by or under common control with
Employee, shall not, directly or indirectly (a) encourage any employee,
supplier, or customer of the Company, its affiliates, or its successors in
interest to leave his or her employment with the Company, its affiliates, or its
successors in interest, (b) employ, hire, solicit or cause to be employed, hired
or solicited (other than by the Company, its affiliates, or its successors in
interest), or encourage others to employ or hire any person who within one (1)
year prior thereto was employed by the Company, its affiliates, or its
successors in interest, or (c) establish a business with, or encourage others to
establish a business with, any person who within one (1) year prior thereto was
an employee, supplier, or customer of the Company, its affiliates, or its
successors in interest.

      5.02 Survival of Undertakings and Injunctive Relief.

            (a) The provisions of Section 5.01 shall survive the termination of
Employee's employment with the Company irrespective of the reasons therefor.

            (b) Employee acknowledges and agrees that the restrictions imposed
upon Employee by Section 5.01 and the purpose of such restrictions are
reasonable and are designed to protect the Protected Information and the
continued success of the Company without unduly restricting Employee's future
employment by others. Furthermore, Employee acknowledges that, in view of the
Protected Information which Employee has or will acquire or has or will have
access to and in view of the necessity of the restrictions contained in Section
5.01, any violation of any provision of Section 5.01 hereof would cause
irreparable injury to the Company and its successors in interest with respect to
the resulting disruption in their operations. By reason of the foregoing,
Employee consents and agrees that if Employee violates any of the provisions of
Section 5.01 of this Agreement, the Company and its successors in interest, as
the case may be, shall be entitled, in addition to any other remedies that they
may have, including money damages, to an injunction to be issued by a court of
competent jurisdiction, restraining Employee from committing or continuing any
violation of such Sections of this Agreement.

      In the event of any such violation of Section 5.01 of this Agreement,
Employee further agrees that the time periods set forth in such Sections shall
be extended by the period of such violation.

                                   ARTICLE VI
                                  TERMINATION

      6.01 Termination of Employment. Employee's employment may be terminated
(i) at any time during the Contract Term by mutual agreement of the parties, or
(ii) as otherwise provided in this Article.

      6.02 Termination by Company without Cause/Termination by Employee for Good
Reason. The Company may terminate Employee's employment without Cause (as
defined below), and the Employee may terminate Employee's employment for Good
Reason (as defined below), in either case by giving the other party hereto seven
(7) days prior written notice of such termination. In the event Employee's
employment is terminated by the Company without Cause or Employee terminates
Employee's employment for Good Reason, during the first one half (1/2) of
Employee's Contract Term, Employee shall be entitled to receive an amount

                                       5
<PAGE>

equivalent to the average monthly commission earned for the prior twelve month
period or paid salary as the case may be, multiplied times nine payable within
thirty (30) days of the notice of termination, and no other benefits. In the
event Employee's employment is terminated by the Company without Cause or
Employee terminates Employee's employment for Good Reason, during the last one
half (1/2) of Employee's Contract Term, Employee shall be entitled to receive an
amount equal to the average monthly commission earned for the twelve months
prior to the termination date multiplied by the number of months remaining on
the contract, payable on the 15th of each month for the prior month as patterned
by commission payments under this Agreement, and all benefits that Employee
would have been entitled to receive under paragraph 4.01(b), during the
remainder of the Contract Term.

            (a) For purposes of this Agreement, "Good Reason" shall mean:

                  (i) A diminution in the compensation of the Employee (which
diminution was not mutually agreed upon or not for "Cause" (as defined below) or
the result of the Employee's disability);

                  (ii) The Company's transfer or assignment of the Employee,
without the Employee's prior express written consent, to any location or
position requiring the Employee to relocate from Employee's current residence,
except for required travel on Company business to an extent that does not
constitute a substantial abrupt departure from the Employee's normal business
travel obligations; or

                  (iii) The failure by the Company to continue in effect any
material benefit or compensation plan, health and medical benefit plan, or any
other benefit plan in which the Employee is a participant, or the taking of any
action by the Company that would adversely affect the Employee's right to
participate in, or materially reduce the Employee's benefits under, any of such
plans or benefits, or deprive the Employee of any material fringe benefit
enjoyed by the Employee except as such elimination of benefit may be applicable
to all employees of the Company.

      6.03 Death or Disability. In the event Employee, during the Contract Term,
dies or becomes permanently disabled or incapacitated such that he is unable to
perform his duties under this Agreement, the Company shall pay Employee or
Employee's surviving spouse, but not Employee's estate, pursuant to Section 6.02
as if Employee had been terminated without Cause.

      6.04 Termination for Cause. The Company may terminate Employee's
employment for Cause by giving Employee seven (7) days prior written notice of
such termination. For purposes of this Agreement, "Cause" for termination shall
mean:

                  (i) the willful failure or refusal to carry out the reasonable
directions of the Board, the Chief Executive Officer, or the President, which
directions are consistent with Employee's duties as set forth under this
Agreement and have been given to Employee in writing but which directions
Employee has materially failed to follow or reasonably implement within fifteen
(15) days after said written notice, other than a failure resulting from
Employee's complete or partial incapacity due to physical or mental illness or
impairment;

                                       6
<PAGE>

                  (ii) material failure to follow Company policy or specific
instructions from Employee's superior(s), which failures continue after fifteen
(15) days after written notice thereof by the Company; however, no warning shall
be required in the case of significant insubordination causing financial harm to
the Company or significant harm to the reputation of the Company;

                  (iii) a conviction for a violation of a state or federal
criminal law involving the commission of a felony or a misdemeanor or other
crime involving moral turpitude;

                  (iv) a willful act by Employee that constitutes gross
negligence in the performance of Employee's duties under this Agreement and
which materially injures the Company. No act, or failure to act, by Employee
shall be considered "willful" unless committed without good faith and without a
reasonable belief that the act or omission was in the Company's best interest;

                  (v) a material breach by Employee of the terms of this
Agreement, which breach has not been cured by Employee within fifteen (15) days
of written notice of said breach by the Company;

                  (vi) repeated material unethical business practices by
Employee in connection with the Company's business, which unethical business
practices continue after fifteen (15) days after written notice thereof by the
Company;

                  (vii) habitual use of alcohol or drugs by Employee;

                  (viii) intentional misuse of or damage to material Company
property;

                  (ix) theft or willful destruction of property, money or goods
belonging to the Company or its employees;

                  (x) falsification of Company records;

                  (xi) gambling while on Company property or while engaged in
Company activities;

                  (xii) excessive absenteeism or failure to report to work
without proper excuse; or

                  (xiii) violation of the Company's sexual harassment policies.

                                       7
<PAGE>

      Upon termination for Cause, Employee shall not be entitled to payment of
any compensation other than commission and benefits under this Agreement earned
up to the date of such termination. Notwithstanding any provision to the
contrary in any option or equity award agreement between the Company and
Employee, in the event Employee's employment shall terminate on account of
Termination for Cause, Employee shall forfeit and shall not be entitled to
exercise any unexercised options, warrants, or similar rights to equity of the
Company, whether or not vested or unvested, as of the date of termination.

                                  ARTICLE VII
                                 MISCELLANEOUS

      7.01 Assignment, Successors. This Agreement may not be assigned by either
party hereto without the prior written consent of the other party; provided,
however, that the merger or sale of the Company or the sale of substantially all
of its assets shall not be deemed an assignment of this Agreement for purposes
of this Section 7.01. This Agreement shall be binding upon and inure to the
benefit of Employee and Employee's estate and the Company and any assignee of or
successor to the Company.

      7.02 Nonalienation of Benefits. Benefits payable under this Agreement
shall not be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution or levy of any
kind, either voluntary or involuntary, prior to actually being received by
Employee, and any such attempt to dispose of any right to benefits payable
hereunder shall be void.

      7.03 Severability. If all or any part of this Agreement is declared by any
court or governmental authority to be unlawful or invalid, such unlawfulness or
invalidity shall not serve to invalidate any portion of this Agreement not
declared to be unlawful or invalid. Any paragraph or part of a paragraph so
declared to be unlawful or invalid shall, if possible, be construed in a manner
which will give effect to the terms of such paragraph or part of a paragraph to
the fullest extent possible while remaining lawful and valid.

      7.04 Amendment and Waiver. This Agreement shall not be altered, amended or
modified except by written instrument executed by the Company and Employee. A
waiver of any term, covenant, agreement or condition contained in this Agreement
shall not be deemed a waiver of any other term, covenant, agreement or condition
and any waiver of any other term, covenant, agreement or condition, and any
waiver of any default in any such term, covenant, agreement or condition shall
not be deemed a waiver of any later default thereof or of any other term,
covenant, agreement or condition.

      7.05 Notices. All notices and other communications hereunder shall be in
writing and delivered by hand or by first class registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

                                       8
<PAGE>

         If to the Company:                Dynatronics Corporation
                                           7030 Park Centre Drive
                                           Salt Lake City, Utah 84121

         With a copy to:                   DURHAM JONES & PINEGAR
                                           Attn: Kevin Pinegar, Esq.
                                           111 East Broadway, Suite 900
                                           P.O. Box 4050
                                           Salt Lake City, Utah 84110

         If to Employee:                  John Rajala
                                           12 Red Maple Place
                                           Danville, CA  94506

Either party may from time to time designate a new address by notice given in
accordance with this Section. Notice and communications shall be effective when
actually received by the addressee.

      7.06 Counterpart Originals. This Agreement may be executed in
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

      7.07 Entire Agreement. This Agreement forms the entire agreement between
the parties hereto with respect to any severance payment and with respect to the
subject matter contained in the Agreement.

      7.08 Applicable Law. The provisions of this Agreement shall be interpreted
and construed in accordance with the laws of the state of Utah, without regard
to its choice of law principles.

      7.10 Effect on Other Agreements. This Agreement shall supersede entirely
all prior agreements (including, without limitation, any existing employment
agreement), promises and representations regarding employment by the Company and
severance or other payments contingent upon termination of employment not
referenced by this agreement.

      7.11 Extension or Renegotiation. The parties hereto agree that at any time
prior to the expiration of this Agreement, they may extend or renegotiate this
Agreement upon mutually agreeable terms and conditions.

      7.12 Attorneys' Fees. If any legal action or other proceeding is brought
for the enforcement of this Agreement, or because of an alleged dispute, breach,
default, or misrepresentation in connection with any of the provisions of this
Agreement, the successful or prevailing party shall be entitled to recover
reasonable attorneys' fees, and any other fees and costs incurred in the action
or proceeding, in addition to any other relief to which such party may be
entitled. Without limiting the generality of the foregoing, any reasonable costs
and expenses, including without limitation reasonable attorneys' fees, incurred
in enforcing any judgment or arbitration award shall be recoverable by the
prevailing party as a separate item of recovery, and this provision is intended
to be severable from the other provisions of this Agreement and shall survive
any judgment or arbitration award and shall not be deemed to be merged into the
judgment or award.

                                       9
<PAGE>

      IN WITNESS WHEREOF the parties have executed this Employment Agreement on
the date first written above.

                                           Dynatronics Corporation,
                                           a Utah corporation

                                           By: /s/ Kelvyn H. Cullimore, Jr.
                                              ---------------------------------
                                           Name: Kelvyn H. Cullimore, Jr.
                                                -------------------------------
                                           Title: President and CEO
                                                 ------------------------------

                                           John Rajala,
                                           an individual

                                           /s/ John Rajala
                                           ------------------------------------
                                           John Rajala

                                       10
<PAGE>

                                   EXHIBIT A

Title: Territory Sales Manager                 Report to: Region 1 Sales Manager

Responsibilities:

      Manager shall have duties and responsibilities commensurate with
representing the Company in soliciting sales within the defined territory.
Employee also agrees to provide assistance as provided in section 1.03.

      Territory shall include the following cities in Contra Costa and Alameda
Counties, California

Graphic Eliminated

                                   California
                           please ask DynaPacific, or
                             Regional Sales Manager
                                  Pete Rajala
                                  Tehama

Pleasanton                        Lafayette
San Ramon                         Pacheco
Danville
Castro Valley
Alamo
Clayton
Walnut Creek
Pleasant Hill
Livermore
Sunol
Diablo
Concord
Martinez
Pittsburg
Antioch
Bay Point
Benicia
Orinda
Moraga

                                       11

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