Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(“Agreement”) is made effective as of February 21, 2022 (“Effective Date”) by and between Electromed, Inc.,
a Minnesota corporation (the “Corporation”) and Michelle Wirtz an individual residing in Minnesota (“Employee”)
(collectively “Parties” or individually “Party”).

 

RECITALS

 

WHEREAS,
the Corporation desires to employ Employee pursuant to the terms of this Agreement and Employee desires to accept such
employment; and

 

WHEREAS,
during Employee’s employment with the Corporation, Employee will become acquainted with technical and nontechnical
information which the Corporation has developed, acquired and uses, or which the Corporation will develop, acquire or use, and
which is commercially valuable to the Corporation and which the Corporation desires to protect, and Employee may contribute to
such information through inventions, discoveries, improvements or otherwise.

 

NOW,
THEREFORE, in consideration of the employment of Employee by the Corporation, and further in consideration of the salary,
wages or other compensation and benefits to be provided by the Corporation to Employee, and for additional mutual covenants and
conditions, the receipt and sufficiency of which are hereby acknowledged, the Corporation and Employee, intending legally to be
bound, hereby agree as follows:

 

AGREEMENT

 

In consideration of the
above recitals and the mutual promises set forth in this Agreement, the Parties agree as follows:

 

		1.	Nature and Capacity of Employment.

 

1.1          
Title and Duties. Effective as of the Effective Date, the Corporation will employ Employee as its Corporate Controller
or such other title as may be assigned to Employee by the Corporation’s Chief Financial Officer or his or her designee from
time to time, pursuant to the terms and conditions set forth in this Agreement. Employee will perform such duties and responsibilities
for the Corporation as the Corporation’s Chief Financial Officer or his or her designee may assign to Employee from time
to time consistent with Employee’s position. Employee shall serve the Corporation faithfully and to the best of Employee’s
ability and shall at all times act in accordance with the law. Employee shall devote Employee’s full working time, attention
and efforts to performing Employee’s duties and responsibilities under this Agreement and advancing the Corporation’s
business interests. Employee shall follow applicable policies and procedures adopted by the Corporation from time to time, including
without limitation the Corporation’s Confidentiality Policy and other Corporation policies, including those relating to business
ethics, conflict of interest and non-discrimination. Employee shall not, without the prior written consent of the Corporation’s
Board of Directors (the “Board”) accept other employment or engage in other business activities during Employee’s
employment with the Corporation that may prevent Employee from fulfilling the duties or responsibilities as set forth in or contemplated
by this Agreement.

 

2.1           Location.
Employee’s employment will be a hybrid arrangement consistent of working from home in Minneapolis and coming into the New
Prague corporate office 1 to 2 days per week.

 

     

     

    

 

2.     
     Term. Unless terminated at an earlier date in accordance with Section 5, the term
of Employee’s employment with the Corporation under the terms and conditions of this Agreement will be for the period
commencing on the Effective Date and ending on the two (2) year anniversary of the Effective Date (the “Initial
Term”). On the two (2) year anniversary of the Effective Date, and on each succeeding one-year anniversary of the
Effective Date (each an “Anniversary Date”), the Term shall be automatically extended until the next Anniversary
Date (each a “Renewal Term”), subject to termination on an earlier date in accordance with Section 5 or unless
either Party gives written notice of non-renewal to the other Party at least ninety (90) days prior to the Anniversary Date
on which this Agreement would otherwise be automatically extended that the Party providing such notice elects not to extend
the Term; provided, however, that if a Change of Control (as defined in Section 6.4) occurs during the Initial Term or during
any Renewal Term then the Term will expire on the one-year anniversary of the date of the Change of Control. The Initial Term
together with any Renewal Terms is the “Term.” If Employee remains employed by the Corporation after the Term
ends for any reason, then such continued employment shall be according to the terms and conditions established by the
Corporation from time to time (provided that any provisions of this Agreement and the Restrictive Covenants Agreement (as
defined in Section 3) that by their terms survive the termination of the Term shall remain in full force and effect).

 

3.           Restrictive Covenants Agreement. Effective as of the Effective Date, and as a condition of Employee’s employment
with the Corporation and the Corporation entering into this Agreement, Employee is entering into a Non-Competition, Non-Solicitation,
and Confidentiality Agreement (the “Restrictive Covenants Agreement”). Employee acknowledges that Employee has a copy
of the Restrictive Covenants Agreement, that Employee has read the Restrictive Covenants Agreement before signing this Agreement,
and that the consideration Employee is receiving in exchange for signing the Restrictive Covenants Agreement is adequate and reasonable.
Nothing in this Agreement is intended to modify, amend, cancel or supersede the Restrictive Covenants Agreement in any manner.

 

		4.	Compensation, Benefits and Business Expenses.

 

4.1.          Base
Salary. As of the Effective Date, the Corporation agrees to pay Employee an annualized base salary of $180,000 (the “Base
Salary”) for full-time employment, less all legally required and authorized deductions and withholdings, which Base Salary
will be earned by Employee on a pro rata basis as Employee performs services and which shall be paid according to the Corporation’s
normal payroll practices. Employee shall be eligible for a merit-based increase of the Base Salary payable under this Section
4.1 on or about July 1, 2022 and on or about July 1 of each year during the Term thereafter, with any adjustment to Employee’s
Base Salary subject to approval by the Corporation’s Chief Financial Officer.

 

4.2           Annual Incentive Compensation. For each of the Corporation’s fiscal years during the Term starting with the
Corporation’s 2022 fiscal year, Employee will be eligible to earn an annualized cash bonus as determined by the Corporation’s
President and Chief Executive Officer in his or her discretion and subject to the terms of any written document addressing such
annual cash bonus as the Corporation’s President and Chief Executive Officer may adopt in Employee’s sole discretion.
For the Corporation’s 2022 fiscal year, Employee’s target annualized cash bonus under this Section 4.2 will be twenty
percent (20%) of Employee’s annualized Base Salary for the Corporation’s 2022 fiscal year, subject to the terms and
conditions identified in the Corporation’s Fiscal Year 2022 Management Bonus Plan. Future annual cash bonus opportunities
will be determined by Corporation’s Chief Financial Officer in his or her discretion. Unless specified otherwise a written
annual cash bonus document applicable to Employee, Employee must be employed on the date any annual cash bonus is paid in order
to each such bonus.

 

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4.3         Employee Benefits. While Employee is employed by the Corporation during the Term, Employee shall be entitled to participate
in the retirement plans, health plans, and all other employee benefits made available by the Corporation, and as they may be changed
from time to time. Employee acknowledges and agrees that Employee will be subject to all eligibility requirements and all other
provisions of these benefits plans, and that the Corporation is under no obligation to Employee to establish and maintain any employee
benefit plan in which Employee may participate. The terms and provisions of any employee benefit plan of the Corporation are matters
within the exclusive province of the Board, subject to applicable law.

 

4.4         Vacation and Sick Leave. While Employee is employed by the Corporation during the Term, Employee shall be entitled
to the Electromed’s standard Discretionary Time Off policy.

 

4.5         Business Expenses. While Employee is employed by the Corporation during the Term, the Corporation shall reimburse
Employee for all reasonable and necessary out-of-pocket business, travel and entertainment expenses incurred by Employee in the
performance of Employee’s duties and responsibilities hereunder, subject to the Corporation’s normal policies and procedures
for expense verification and documentation.

 

4.6         Other Benefits: The Corporation shall provide a corporate credit card for approved business expenses and shall otherwise
reimburse the Employee for, or pay directly, all reasonable business expenses incurred by the Employee in the performance of Employee’s
duties under this Agreement, provided that the Employee incurs and accounts for such expenses in accordance with all Corporation
policies and directives in effect from time to time.

 

		5.	Termination of Employment.

 

5.1         Termination of Employment Events. Employee’s employment with the Corporation is at-will. Employee’s employment
with the Corporation will terminate immediately upon:

 

		(a)	The date of Employee’s receipt of written notice from the Corporation of the termination
of Employee’s employment (or any later date specified in such written notice from the Corporation);

 

		(b)	Employee’s abandonment of Employee’s employment or the effective date of Employee’s
resignation for any reason (as specified in written notice from Employee);

 

		(c)	Employee’s Disability (as defined below); or

 

		(d)	Employee’s death.

 

5.2       
Termination Date. The date upon which Employee’s termination of employment with the Corporation is effective
is the “Termination Date.” For purposes of Section 6.1 only, with respect to the timing of the Severance Payment and
the Benefits Continuation Payments thereunder, the Termination Date means the date on which a “separation from service”
has occurred for purposes of Section 409A of the Internal Revenue Code, as amended, and the regulations and guidance thereunder
(the “Code”).

 

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		6.	Payments Upon Termination of Employment.

 

6.1.       
Termination of Employment Without Cause During the Term and Within Twelve (12) Months After the First Change of Control.
If Employee’s employment with the Corporation is terminated during the Term by the Corporation for any reason other than
for Cause (as defined in Section 6.3), and the Termination Date occurs on the date of the first Change of Control (as defined in
Section 6.4) to occur during the Term or before the twelve (12) month anniversary of such Change of Control, then the Corporation
shall, in addition to paying Employee’s Base Salary and other compensation earned through the Termination Date, and subject
to Section 6.7,

 

		(a)	pay to Employee as severance pay an amount equal to the sum of one times (100%) the Employee’s
annualized Base Salary as of the Termination Date, plus (ii) an amount equal to 100 percent (100%) of Employee’s target annual
bonus based on Employee’s individual performance for the fiscal year in which the Termination Date occurs, plus (iii) an
amount equal to Employee’s target annual bonus based on the Corporation’s performance for the fiscal year in which
the Termination Date, multiplied by a fraction, the numerator of which is the number of days Employee was employed by the Corporation
during the fiscal year in which the Termination Date occurs and the denominator of which is 365, less all legally required and
authorized deductions and withholdings, payable in a lump sum on the Corporation’s first regular payroll date that is after
the expiration of all rescission periods identified in the Release (as defined in Section 6.7) but in no event later than seventy-five
(75) days after the Termination Date (the “Severance Payment”); and

 

		(b)	if Employee is eligible for and takes all steps necessary to continue Employee’s group health
insurance coverage with the Corporation following the Termination Date (including completing and returning the forms necessary
to elect COBRA coverage), pay for the portion of the premium costs for such coverage that the Corporation would pay if Employee
remained employed by the Corporation, at the same level of coverage that was in effect as of the Termination Date, through the
earliest of: (i) the twelve (12) month anniversary of the Termination Date, (ii) the date Employee becomes eligible for group health
insurance coverage from any other employer, or (iii) the date Employee is no longer eligible to continue Employee’s group
health insurance coverage with the Corporation under applicable law (“Benefits Continuation Payments”).

 

6.2.       
Other Termination of Employment Events. If Employee’s employment with the Corporation is terminated by the
Corporation or Employee for any reason upon or following the expiration of the Term, or if Employee’s employment with the
Corporation is terminated during the Term by reason of:

 

		(a)	Employee’s abandonment of Employee’s employment or Employee’s resignation for
any reason;

 

		(b)	termination of Employee’s employment by the Corporation
for Cause;

 

		(c)	termination of Employee’s employment by the Corporation
without Cause before the date of the first Change of Control to occur during the Term; or

 

		(d)	Employee’s death or Disability,

 

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then
the Corporation shall pay to Employee or Employee’s beneficiary or Employee’s estate, as the case may be, Employee’s
Base Salary and other compensation earned through the Termination Date and Employee shall not be eligible or entitled to receive
any severance pay or benefits from the Corporation.

 

6.3.        Cause
Defined. “Cause” hereunder means:

 

		(a)	Employee’s material failure to perform Employee’s job duties competently as reasonably
determined by the Corporation’s President and Chief Executive Officer or the Board;

 

		(b)	gross misconduct by Employee which the Corporation’s President and Chief Executive Officer
or the Board determines is (or will be if continued) demonstrably and materially damaging to the Corporation;

 

		(c)	fraud, misappropriation, or embezzlement by Employee;

 

		(d)	conviction of a felony crime or a crime of moral turpitude;

 

		(e)	conduct in the course of employment that the Corporation’s President and Chief Executive
Officer or the Board determines is unethical; or

 

		(f)	the material breach of this Agreement of the Restrictive Covenants Agreement by Employee.

 

With respect to Section 6.3(a)
and Section 6.3(e), the Corporation shall first provide Employee with written notice and an opportunity to cure such breach, if
curable, in the reasonable discretion of the Corporation’s President and Chief Executive Officer or the Board, and identify
with specificity the action needed to cure within thirty (30) days of Employee’s receipt of written notice from the Corporation.
If the Corporation terminates Employee’s employment for Cause pursuant to this Section 6.3, then Employee shall not be eligible
or entitled to receive any severance pay or benefits from the Corporation.

 

6.4.        Change
of Control Defined. “Change of Control” hereunder means:

 

		(a)	A “change in ownership,” as described in Section 1.409A-3(i)(5)(v) of the Treasury
Regulations;

 

		(b)	A “change in effective control,” as described in Section 1.409A-3(i)(5)(vi) of the
Treasury Regulations; or

 

		(c)	A “change in ownership of a substantial portion of the assets,” as described in Section
1.409A-3(i)(5)(vii) of the Treasury Regulations.

 

6.5.        Disability
Defined. “Disability” hereunder means the inability of Employee to perform on a full-time basis, with or without
reasonable accommodation, the duties and responsibilities of Employee’s employment with the Corporation by reason of Employee’s
illness or other physical or mental impairment or condition, if such inability continues for an uninterrupted period of at least
one hundred (100) days or more during any 360-day period. A period of inability shall be “uninterrupted” unless and
until Employee returns to full-time work for a continuous period of at least thirty (30) days.

 

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6.6.        The
Corporation’s Sole Obligation. In the event of termination of Employee’s employment, the sole obligation of the
Corporation shall be its obligation to make the payments called for by Section 6.1 or Section 6.2, as the case may be, and the
Corporation shall have no other obligation to Employee or to Employee’s beneficiary or Employee’s estate, except for
any amounts due under the terms of any employee benefit plans or programs then maintained by the Corporation in which Employee
participates.

 

6.7.        Conditions
To Receive the Severance Payment and the Benefits Continuation Payments. Notwithstanding the foregoing provisions of this Section
6, the Corporation will not be obligated to make the Severance Payment or the Benefits Continuation Payments to or on behalf of
Employee under Section 6.1 unless (a) Employee signs a release of claims in favor of the Corporation in a form to be prescribed
by the Corporation (the “Release”), (b) all applicable consideration periods and rescission periods provided by law
with respect to the Release have expired without Employee rescinding the Release, and (c) Employee is in strict compliance with
the terms of this Agreement and the Restrictive Covenants Agreement and any other written agreement between Employee and the Corporation.

 

7.            Section
409A and Taxes Generally.

 

7.1          Taxes.
The Corporation shall be entitled to withhold on and report the making of such payments as may be required by law as determined
in the reasonable discretion of the Corporation. Except for any tax amounts withheld by the Corporation from any compensation that
Employee may receive in connection with Employee’s employment with the Corporation and any employer taxes required to be
paid by the Corporation under applicable laws or regulations, Employee is solely responsible for payment of any and all taxes owed
in connection with any compensation, benefits, reimbursement amounts or other payments Employee receives from the Corporation under
this Agreement or otherwise in connection with Employee’s employment with the Corporation. The Corporation does not guarantee
any particular tax consequence or result with respect to any payment made by the Corporation.

 

7.2          Section
409A. This Agreement is intended to provide for payments that satisfy, or are exempt from, the requirements of Section 409A,
including Sections 409A(a)(2), (3) and (4) of the Code and current and future guidance and regulations interpreting such provisions,
and should be interpreted accordingly. In furtherance of the foregoing, the provisions set forth below shall apply notwithstanding
any other provision in this Agreement:

 

(a)          
all payments to be made to Employee hereunder, to the extent they constitute a deferral of compensation subject to the requirements
of Section 409A (after taking into account all exclusions applicable to such payments under Section 409A), shall be made no later,
and shall not be made any earlier, than at the time or times specified in this Agreement or in any applicable plan for such payments
to be made, except as otherwise permitted or required under Section 409A;

 

(b)          
the date of Employee’s “separation from service”, as defined in Section 409A (and as determined by applying
the default presumptions in Treas. Reg. §1.409A-1(h)(1)(ii)), shall be treated as the date of Employee’s termination
of employment for purposes of determining the time of payment of any amount that becomes payable to Employee related to Employee’s
termination of employment under Section 6.1, and any reference to Employee’s “Termination Date” or “termination”
of Employee’s employment in Section 6.1 shall mean the date of Employee’s “separation from service”, as
defined in Section 409A (and as determined by applying the default presumptions in Treas. Reg. §1.409A-1(h)(1)(ii));

 

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(c)          
in the case of any amounts payable to Employee under this Agreement that may be treated as payable in the form of “a series
of installment payments”, as defined in Treas. Reg. §1.409A-2(b)(2)(iii), Employee’s right to receive such payments
shall be treated as a right to receive a series of separate payments for purposes of Treas. Reg. §1.409A-2(b)(2)(iii);

 

(d)          
to the extent that the reimbursement of any expenses eligible for reimbursement or the provision of any in-kind benefits under
any provision of this Agreement would be considered deferred compensation under Section 409A (after taking into account all exclusions
applicable to such reimbursements and benefits under Section 409A): (i) reimbursement of any such expense shall be made by the
Corporation as soon as practicable after such expense has been incurred, but in any event no later than December 31st
of the year following the year in which Employee incurs such expense; (ii) the amount of such expenses eligible for reimbursement,
or in-kind benefits to be provided, during any calendar year shall not affect the amount of such expenses eligible for reimbursement,
or in-kind benefits to be provided, in any calendar year; and (iii) Employee’s right to receive such reimbursements or in-kind
benefits shall not be subject to liquidation or exchange for another benefit;

 

(e)          
to the extent any payment or delivery otherwise required to be made to Employee hereunder on account of Employee’s separation
from service is properly treated as a deferral of compensation subject to Section 409A after taking into account all exclusions
applicable to such payment and delivery under Section 409A, and if Employee is a “specified employee” under Section
409A at the time of Employee’s separation from service, then such payment and delivery shall not be made prior to the first
business day after the earlier of (i) the expiration of six months from the date of Employee’s separation from service,
or (ii) the date of Employee’s death (such first business day, the “Delayed Payment Date”), and on the Delayed
Payment Date, there shall be paid or delivered to Employee or, if Employee has died, to Employee’s estate, in a single payment
or delivery (as applicable) all entitlements so delayed, and in the case of cash payments, in a single cash lump sum, an amount
equal to aggregate amount of all payments delayed pursuant to the preceding sentence. Except for any tax amounts withheld by the
Corporation from the payments or other consideration hereunder and any employment taxes required to be paid by the Corporation,
Employee shall be responsible for payment of any and all taxes owed in connection with the consideration provided for in this
Agreement; and

 

(f)          
the Parties agree that this Agreement may be amended, as may be necessary to fully comply with, or to be exempt from, Section
409A and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional
cost to either Party.

 

8.           Miscellaneous.

 

8.1.        Integration.
This Agreement and the Restrictive Covenants Agreement embody the entire agreement and understanding among the Parties relative
to subject matter hereof and combined supersede all prior agreements and understandings relating to such subject matter, including but not limited to any earlier offers to Employee by the Corporation.

 

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8.2.          Applicable
Law. All matters relating to the interpretation, construction, application, validity and enforcement of this Agreement are
governed by the laws of the State of Minnesota without giving effect to any choice or conflict of law provision or rule, whether
of the State of Minnesota or any other jurisdiction, that would cause the application of laws of any jurisdiction other than the
State of Minnesota.

 

8.3.          Choice
of Jurisdiction. Employee and the Corporation consent to jurisdiction of the courts of the State of Minnesota and/or the federal
district courts, District of Minnesota, for the purpose of resolving all issues of law, equity, or fact, arising out of or in connection
with this Agreement or Employee’s employment with the Corporation or the termination of such employment. Any action involving
claims for interpretation, breach or enforcement of this Agreement or related to Employee’s employment with the Corporation
or the termination of such employment shall be brought in such courts. Each party consents to personal jurisdiction over such party
in the state and/or federal courts of Minnesota and hereby waives any defense of lack of personal jurisdiction or inconvenient
forum.

 

8.4.          Employee’s
Representations. Employee represents that Employee is not subject to any agreement or obligation that would prevent or limit
Employee from entering into this Agreement or that would be breached upon performance of Employee’s duties under this Agreement,
including but not limited to any duties owed to any former employers not to compete. If Employee possesses any information that
Employee knows or should know is considered by any third party, such as a former employer of Employee’s, to be confidential,
trade secret, or otherwise proprietary, Employee shall not disclose such information to the Corporation or use such information
to benefit the Corporation in any way.

 

8.5.          Counterparts.
This Agreement may be executed in several counterparts and as so executed shall constitute one agreement binding on the Parties.

 

8.6.          Assignment
and Successors. The rights and obligations of the Corporation under this Agreement shall inure to the benefit of and will be
binding upon the successors and assigns of the Corporation. Neither party may, without the written consent of the other party,
assign or delegate any of its rights or obligations under this Agreement except that the Corporation may, without any further consent
of Employee, assign or delegate any of its rights or obligations under this Agreement to any corporation or other business entity
(a) with which the Corporation may merge or consolidate, (b) to which the Corporation may sell or transfer all or substantially
all of its assets or capital stock or equity, or (c) any affiliate or subsidiary of the Corporation. After any such assignment
or delegation by the Corporation, the Corporation will be discharged from all further liability hereunder and such assignee will
thereafter be deemed to be the “Corporation” for purposes of all terms and conditions of this Agreement, including
this Section 8.6. Employee may not assign this Agreement or any rights or obligations hereunder. Any purported or attempted assignment
or transfer by Employee of this Agreement or any of Employee’s duties, responsibilities, or obligations hereunder is void.

 

8.7.         
Modification. This Agreement shall not be modified or amended except by a written instrument signed by the Parties.

 

8.8.          Severability.
The invalidity or partial invalidity of any portion of this Agreement shall not invalidate the remainder thereof, and said remainder
shall remain in fully force and effect.

 

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8.9.         Opportunity
to Obtain Advice of Counsel. Employee acknowledges that Employee has been advised by the Corporation to obtain legal advice
prior to executing this Agreement, and that Employee had sufficient opportunity to do so prior to signing this Agreement.

 

8.10.       280G
Limitations. In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Employee
(a) constitute “parachute payments” within the meaning of Section 280G of the Code and (b) would be subject to the
excise tax imposed by Code Section 4999, then such benefits shall be either be: (i) delivered in full, or (ii) delivered as to
such lesser extent which would result in no portion of such severance benefits being subject to excise tax under Code Section 4999,
whichever of the foregoing amounts, taking into account the applicable federal, state and local income and employment taxes and
the excise tax imposed by Code Section 4999, results in the receipt by Employee, on an after-tax basis, of the greatest amount
of benefits, notwithstanding that all or some portion of such benefits may be subject to excise tax under Code Section 4999. Any
determination required under this Section 8.10 will be made in writing by an accounting firm selected by the Corporation or such
other person or entity to which the parties mutually agree (the “Accountants”), whose determination will be conclusive
and binding upon Employee and the Corporation for all purposes. For purposes of making the calculations required by this Section
8.10, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable,
good faith interpretations concerning the application of Code Sections 280G and 4999. The Corporation and the Employee shall furnish
to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under
this Section. The Corporation shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated
by this Section 8.10. Any reduction in payments and/or benefits required by this Section 8.10 shall occur in the following order:
(A) cash payments shall be reduced first and in reverse chronological order such that the cash payment owed on the latest date
following the occurrence of the event triggering such excise tax will be the first cash payment to be reduced; (B) accelerated
vesting of stock awards, if any, shall be cancelled/reduced next and in the reverse order of the date of grant for such stock awards
(i.e., the vesting of the most recently granted stock awards will be reduced first), with full-value awards reversed before any
stock option or stock appreciation rights are reduced; and (C) deferred compensation amounts subject to Section 409A shall be reduced
last.

 

[Signature Page Follows]

 

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THIS EMPLOYMENT
AGREEMENT was voluntarily and knowingly executed by the Parties effective as of the Effective Date first set forth above.

 

	 	ELECTROMED, INC.
	 	 
	Date: March 10, 2022	
		By:	Mike MacCourt

	 	Its:	Chief Financial Officer

		 
	

	 	EMPLOYEE:
	Date: March 10, 2022	
	 	Michelle Wirtz
	 	Its: Corporate ControllerExhibit 10.2

 

AMENDMENT
TO 

EMPLOYMENT AGREEMENT

 

This
Amendment to Employment Agreement (“Amendment”) is made effective as of May 31, 2022 (“Effective Date”)
by and between Electromed, Inc., a Minnesota corporation (the “Corporation”) and Michelle Wirtz an individual residing
in Minnesota (“Employee”) (collectively “Parties” or individually “Party”).

 

RECITALS

 

WHEREAS,
the Corporation and Employee are parties to that certain Employment Agreement made and entered into effective as of March 3, 2022
(the “Agreement”); and

 

WHEREAS,
the Corporation and Employee desire to amend the Agreement, to address certain changes to Employee’s title, duties, compensation,
and benefits; and

 

WHEREAS,
the Corporation and Employee desire to amend the provisions of the Agreement as set forth in this Amendment;

 

NOW,
THEREFORE, in consideration of the foregoing recitals, and for other valuable consideration, the receipt and adequacy of which
is hereby acknowledged, the Corporation and Employee agree as follows:

 

AGREEMENT

 

In
consideration of the above recitals and the mutual promises set forth in this Amendment, the Parties agree as follows:

 

		1.	Effective
                                         as of June 1, 2022, Section 1.1 of the Agreement is deleted in its entirety and replaced
                                         with the following language:

 

1.1     
Title and Duties. Effective as of June 1, 2022, the Corporation will employ Employee as its Interim Chief Financial Officer
or such other title as may be assigned to Employee by the Corporation’s President and Chief Executive Officer or their designee
from time to time, pursuant to the terms and conditions set forth in this Agreement. If Employee performs satisfactorily as the
Corporation’s Interim Chief Financial Officer, then the Corporation may in the future appoint Employee as the Corporation’s
Chief Financial Officer, but Employee also acknowledges and agrees that the Corporation may in the future appoint Employee as
its Controller or such other title as may be assigned to Employee by the Corporation’s President and Chief Executive Officer
or their designee from time to time. Employee will perform such duties and responsibilities for the Corporation as the Corporation’s
President and Chief Executive Officer or their designee may assign to Employee from time to time consistent with Employee’s
then-current position. Employee shall serve the Corporation faithfully and to the best of Employee’s ability and shall at
all times act in accordance with the law. Employee shall devote Employee’s full working time, attention, and efforts to
performing Employee’s duties and responsibilities under this Agreement and advancing the Corporation’s business interests. Employee shall follow applicable policies and procedures
adopted by the Corporation from time to time, including without limitation the Corporation’s Confidentiality Policy and
other Corporation policies, including those relating to business ethics, conflict of interest and non-discrimination. Employee
shall not, without the prior written consent of the Corporation’s Board of Directors (the “Board”) accept other
employment or engage in other business activities during Employee’s employment with the Corporation that may prevent Employee
from fulfilling the duties or responsibilities as set forth in or contemplated by this Agreement.

 

     

     

    

 

		2.	Effective
                                         as of June 1, 2022, Section 4.1 of the Agreement is deleted in its entirety and replaced
                                         with the following language:

 

4.1.     
Base Salary. As of June 1, 2022, the Corporation agrees to pay Employee an annualized base salary of $220,000 (the “Base
Salary”) for full-time employment, less all legally required and authorized deductions and withholdings, which Base Salary
will be earned by Employee on a pro rata basis as Employee performs services and which shall be paid according to the Corporation’s
normal payroll practices. Employee shall be eligible for a merit-based increase of the Base Salary payable under this Section
4.1 on or about July 1, 2023 and on or about July 1 of each year during the Term thereafter, with any adjustment to Employee’s
Base Salary subject to approval by the Corporation’s President and Chief Executive Officer.

 

		3.	Effective
                                         as of June 1, 2022, Section 4.2 of the Agreement is deleted in its entirety and replaced
                                         with the following language:

 

4.2     
Annual Incentive Compensation. For each of the Corporation’s fiscal years during the Term, Employee will be eligible
to earn an annualized cash bonus as determined by the Corporation’s President and Chief Executive Officer in their discretion
and subject to the terms of any written document addressing such annual cash bonus as the Corporation’s President and Chief
Executive Officer may adopt in Employee’s sole discretion. For the Corporation’s 2023 fiscal year, Employee’s
target annualized cash bonus under this Section 4.2 will be thirty percent (30%) of Employee’s annualized Base Salary for
the Corporation’s 2023 fiscal year, subject to the terms and conditions identified in the Corporation’s Fiscal Year
2023 Management Bonus Plan. Future annual cash bonus opportunities will be determined by Corporation’s President and Chief
Executive Officer in their discretion. Unless specified otherwise a written annual cash bonus document applicable to Employee,
Employee must be employed on the date any annual cash bonus is paid in order to earn such bonus.

 

		4.	Effective
                                         as of June 1, 2022, Section 4.6 of the Agreement is deleted in its entirety and replaced
                                         with the following language:

 

4.6     
Other Benefits: During the Term, the Corporation shall provide a corporate credit card for approved business expenses and
shall otherwise reimburse the Employee for,
or pay directly, all reasonable business expenses incurred by the Employee in the performance of Employee’s duties under
this Agreement, provided that the Employee incurs and accounts for such expenses in accordance with all Corporation policies and
directives in effect from time to time. Additionally, as of June 1, 2022 and continuing thereafter during the Term, the Corporation
shall provide Employee an automobile allowance of up to an aggregate amount of $600.00 per month.

 

     

     

    

 

		5.	Employee
                                         understands and voluntarily consents to each of the changes to the Agreement as included
                                         in this Amendment.

 

		6.	All
                                         capitalized terms not otherwise defined herein shall have the meanings ascribed to such
                                         terms in the Agreement. Other than as expressly amended in this Amendment, the Agreement
                                         shall continue in full force and effect, as so amended by this Amendment.

 

[signature
page follows]

 

     

     

    

 

THIS
AMENDMENT was voluntarily and knowingly executed by the Parties effective as of the Effective Date first set forth above.

 

	 	ELECTROMED,
    INC.
	 	 
	Date: 6/1/2022	 
	 	 
	 	By: Kathleen S. Skarvan
	 	 
	 	Its: President and Chief Executive Officer
	 	 
	 	EMPLOYEE:
	 	 
	Date: 6 /1/2022	 
	 	 
	 	Michelle Wirtz
	 	 
	 	Its: Corporate Controller

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