Document:

Exhibit 10.2

 

AMENDED AND RESTATED EMPLOYMENT
AGREEMENT

 

This Amended and Restated
Employment Agreement (“Agreement”) is made effective as of September 21, 2017 (“Effective Date”) by
and between Electromed, Inc., a Minnesota corporation (the “Corporation”) and Jeremy T. Brock, an individual residing
in Minnesota (“Employee”) (collectively “Parties” or individually “Party”).

 

RECITALS

 

WHEREAS, the
Corporation and Employee previously entered into an Agreement, dated as of October 18, 2011, as amended by the Amended and Restated
Employment Agreement, dated as of July 1, 2014 (the “Original Agreement”); and

 

WHEREAS, the
Parties desire to enter into this Agreement, and it is the intention of the Parties that this Agreement entirely supersedes the
Original Agreement; and

 

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

 

WHEREAS, during
Employee’s employment with the Corporation, Employee has become acquainted with and 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 has contributed
and may contribute to such information through inventions, discoveries, improvements or otherwise.

 

NOW, THEREFORE,
in consideration of the continued 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 Effective Date, the Corporation will continue to employ Employee as its Chief Financial Officer,
or such other title as may be assigned to Employee by the Corporation’s President and Chief Executive 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 President and Chief Executive 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.

 

     

     

    

 

1.2           Location.
Employee’s employment will be based at the Corporation’s corporate headquarters. Employee acknowledges and agrees that
Employee’s position, duties and responsibilities will require regular travel, both in the U.S. and internationally.

 

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 6.5) 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. Employee acknowledges entering into a Non-Competition, Non-Solicitation, and Confidentiality Agreement
dated effective October 18, 2011 (the “Restrictive Covenants Agreement”) and hereby reaffirms Employee’s commitments
and obligations under the Restrictive Covenants Agreement. Employee further acknowledges that Employee has a copy of the Restrictive
Covenants Agreement, that Employee has read the Restrictive Covenants Agreement again before signing this Agreement, and that the
consideration Employee received in exchange for signing the Restrictive Covenants Agreement was 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 $230,000.00 (the “Base
Salary”), 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, 2018 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.

 

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 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 his or her sole discretion. For the Corporation’s 2018 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
2018 fiscal year, subject to the terms and conditions identified in the Corporation’s Fiscal Year 2018 Management Bonus Plan.
Future annual cash bonus opportunities will be determined by Corporation’s President and Chief Executive 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.

 

4.3           [RESERVED].

 

4.4.          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

 

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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.

 

4.5.        Vacation
and Sick Leave. While Employee is employed by the Corporation during the Term, Employee shall be entitled to vacation leave
of up to twenty (20) days per calendar year during the Term, prorated for any partial calendar year of employment during the Term.
Employee will use Employee’s vacation leave at times and in a manner so as to minimize disruption to the operations of the
Corporation. The Corporation also agrees that Employee shall be entitled to sick leave of up to five (5) days per calendar year
during the Term, prorated for any partial calendar year of employment during the Term. Employee will accrue and be permitted to
use vacation and sick leave in accordance with the Corporation’s vacation and sick leave policies and practices as in effect
from time to time.

 

4.6         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.

 

4.7         Other
Benefits:  During the Term, the Corporation shall directly pay the cost of a cell phone or wireless handheld device
for the Employee’s use. Additionally, during the Term, the Corporation shall provide Employee an automobile allowance of
up to $400.00 per month. The Corporation shall also 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 Good Reason (as defined below) or any other 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 Sections 6.1 or 6.2 only, with respect to the timing of the Pre-CIC Severance Payments or the Post-CIC
Severance Payment (as applicable) and the Pre-CIC Benefits Continuation Payments or the Post-CIC Benefits Continuation Payments
(as applicable), 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 or by Employee for Good Reason During the Term and Before 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 6.4), or by Employee for Good Reason (as defined in Section 6.6), and the Termination Date occurs before the date of
the first Change of Control (as defined in Section 6.5) to occur during the Term, then the Corporation shall, in addition to paying
Employee’s Base Salary and other compensation and benefits earned through the Termination Date, and subject to Section 6.9,

 

		(a)	pay to Employee as severance pay an amount equal to the sum of (i) one (1) times Employee’s
annualized Base Salary as of the Termination Date, plus (ii) an amount equal to one hundred 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 substantially equal installments in accordance with the Corporation’s
regular payroll cycle during the twelve (12) month period immediately following the Termination Date, provided, however, that any
installments that otherwise would be payable on the Corporation’s regular payroll dates between the Termination Date and
the 45th calendar day after the Termination Date will be delayed until the Corporation’s first regular payroll
date that is more than forty-five (45) days after the Termination Date and included with the installment payable on such payroll
date (the “Pre-CIC Severance Payments”); 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 (“Pre-CIC Benefits Continuation Payments”).

 

6.2         Termination
of Employment Without Cause or by Employee for Good Reason 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 6.4), or by Employee for Good Reason (as defined in Section 6.6), and the Termination
Date occurs on or within twelve (12) months after the date of the first Change of Control (as defined in Section 6.5) to occur
during the Term, then the Corporation shall, in addition to paying Employee’s Base Salary and other compensation and benefits
earned through the Termination Date, and subject to Section 6.9,

 

		(a)	pay to Employee as severance pay an amount equal to the sum of (i) 1.5 times Employee’s annualized
Base Salary as of the Termination Date, plus (ii) an amount equal to one hundred fifty percent (150%) 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

 

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	 	 	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 6.9) but in no event later than seventy-five
(75) days after the Termination Date (the “Post-CIC 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 eighteen (18) 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 (“Post-CIC Benefits Continuation Payments”).

 

6.3.         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 other than Good Reason;

 

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

 

		(d)	Employee’s death or Disability,

 

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.

 

6.4.         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.

 

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With respect to Section 6.4(a)
and Section 6.4(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 6.4, then Employee shall not be eligible
or entitled to receive any severance pay or benefits from the Corporation.

 

6.5.         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.

 

6.6.         Good
Reason Defined. “Good Reason” hereunder means the initial occurrence of any of the following events without Employee’s
consent:

 

		(a)	a material diminution in the Employee’s responsibilities,
authority or duties; or

 

		(b)	a material diminution in the Employee’s salary, other
than pursuant to a reduction in the salary for all executive employees of the Corporation and its affiliates, applied on a pro
rata basis to all salaried executives including Employee; or

 

		(c)	the material breach of this Agreement by the Corporation.

 

provided, however, that “Good
Reason” shall not exist unless Employee has first provided written notice to the Corporation of the initial occurrence of
one or more of the conditions under clauses (a) through (c) above within thirty (30) days of the condition’s occurrence,
such condition is not fully remedied by the Corporation within thirty (30) days after the Corporation’s receipt of written
notice from Employee, and the Termination Date as a result of such event occurs within ninety (90) days after the initial occurrence
of such event.

 

6.7.         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.

 

6.8.         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, Section 6.2 or Section 6.3, 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.

 

6.9.         Conditions
To Receive the Pre-CIC Severance Payments or the Post-CIC Severance Payment and the Pre-CIC Benefits Continuation Payments or the
Post-CIC Benefits Continuation Payments. Notwithstanding the foregoing provisions of this Section 6, the Corporation will not
be obligated to make the Pre-CIC Severance Payments under Section 6.1 or the Post-CIC Severance Payment under Section 6.2 (as applicable)
or the Pre-CIC Benefits Continuation Payments under Section 6.1 or the

 

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Post-CIC Benefits Continuation Payments under Section 6.2
(as applicable) to or on behalf of Employee 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 or Section 6.2, and any reference to Employee’s “Termination Date” or “termination”
of Employee’s employment in Section 6.1 or Section 6.2 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));

 

(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

 

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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 the Original Agreement and any earlier offers to Employee by the Corporation.

 

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.

 

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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.

 

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.        Indemnification.
As to acts or omissions of Employee which are within the scope of Employee’s authority as an officer, director, or employee
of the Corporation and/or any affiliate of the Corporation, the Corporation will indemnify Employee in accordance with and subject
to the limitations contained in its Articles of Incorporation, Bylaws and Section 302A.521 of the Minnesota Business Corporations
Act. If Employee is made or threatened to be made a party to any threatened, pending, or completed civil, criminal, administrative,
arbitration, or investigative proceeding, including a proceeding by or in the right of the corporation, Employee is entitled, upon
written request to the Corporation, to payment or reimbursement by the Corporation of reasonable expenses, including attorneys’
fees and disbursements, incurred by Employee in advance of the final disposition of the proceeding, (a) upon receipt by the Corporation
of a written affirmation by Employee of a good faith belief that the criteria for indemnification set forth in Section 302A.521,
subdivision 2 of the Minnesota Business Corporations Act have been satisfied and a written undertaking by Employee to repay all
amounts so paid or reimbursed by the Corporation, if it is ultimately determined that the criteria for indemnification have not
been satisfied, and (b) after a determination that the facts then known to those making the determination would not preclude indemnification
under the Corporation’s Articles of Incorporation and Bylaws and Section 302A.521 of the Minnesota Business Corporations
Act, including but not limited to whether the alleged misconduct by Employee that is the subject of the proceeding is within the
course and scope of Employee’s employment.

 

8.11.        D&O
Insurance. The Corporation shall maintain an insurance policy or policies providing directors’ and officers’ liability insurance,
comprehensive general liability insurance, and errors and omissions insurance, and the Employee shall be covered by such policy
or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any officer of the Corporation.

 

8.12.        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,

 

    9 

     

    

 

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 8.12 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
8.12, 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 8.12. Any reduction in payments and/or benefits required by this Section 8.12 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]

 

    10 

     

    

 

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

 

	 	 	 	ELECTROMED, INC.	 
	 	 	 	 	 
	Date:	September 21, 2017	 	/s/ Kathleen S.
Skarvan	 
	 	 	 	By: Kathleen S. Skarvan	 
	 	 	 	Its: President and Chief Executive Officer	 
	 	 	 	 	 
	 	 	 	EMPLOYEE:	 
	 	 	 	 	 
	Date:	September 21, 2017	 	/s/ Jeremy T.
Brock	 
	 	 	 	Jeremy T. BrockExhibit
10.3

 

September
[_], 2017

 

To:
All Holders of the NanoVibronix, Inc. 

Convertible
Promissory Notes

 

Re:
NanoVibronix, Inc. 2017 Convertible Promissory Notes

 

Reference
is made to those certain Convertible Promissory Notes in the aggregate principal amount of $1,230,000 (the “Notes”),
by and between NanoVibronix, Inc. (the “Company”) and the lenders named therein (collectively, the “Lenders”,
and each, a “Lender”). All capitalized terms in this letter (the “Letter Agreement”)
shall have the meanings assigned to them under the Notes, unless otherwise defined herein.

 

By
signature and countersignature below, the Company and the Lenders agree to the following:

 

		1)	Election
                                         to Receive Equity Securities. Notwithstanding anything in the Notes to the contrary,
                                         the Lenders hereby agree that, in the event the Company consummates a Qualified Financing
                                         prior to December 31, 2017 pursuant to a firm commitment underwritten offering that results
                                         in the Common Stock being contemporaneously listed on the NYSE American, the Nasdaq Capital
                                         Market, the Nasdaq Global Market or the Nasdaq Global Select Market, (i) on the closing
                                         date of such Qualified Financing, the entire outstanding principal amount of the Notes,
                                         together with all accrued and unpaid interest thereon, shall automatically convert, without
                                         any action on the part of the Lenders, into shares of the same class and series of Equity
                                         Securities sold on the closing date[, or at the Lender’s option, into the Company’s
                                         Series C Preferred Stock,] in such Qualified Financing at a price per share equal to
                                         the lesser of: (a) 80% (i.e., a 20% discount) of the price per share at which such securities
                                         are sold in such Qualified Financing and (b) $5.90 per share.

 

		2)	“Market
                                         Stand-off” Agreement. Subject to the limitations herein, the Lenders hereby
                                         agree that they will not, without the prior written consent of the managing underwriter,
                                         during the period commencing on the date of the final prospectus relating to the registration
                                         by the Company of shares of its Common Stock or any other equity securities under the
                                         Securities Act on a registration statement on Form S-1, and ending on the date specified
                                         by the Company and the managing underwriter (such period not to exceed one hundred eighty
                                         (180) days, or such other period as may be requested by the Company or an underwriter
                                         to accommodate regulatory restrictions on (1) the publication or other distribution of
                                         research reports, and (2) analyst recommendations and opinions, including, but not limited
                                         to, the restrictions contained in Financial Industry Regulatory Authority Rule 2711(f)(4)
                                         or New York Stock Exchange Rule 472(f)(4), or any successor provisions or amendments
                                         thereto), (i) lend; offer; pledge; sell; contract to sell; sell any option or contract
                                         to purchase; purchase any option or contract to sell; grant any option, right, or warrant
                                         to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares
                                         of Common Stock or any securities convertible into or exercisable or exchangeable (directly
                                         or indirectly) for Common Stock (whether such shares or any such securities are then
                                         owned by the Lender or are thereafter acquired) issued to the Lenders upon a conversion
                                         pursuant to Section 1 of this Letter Agreement, or (ii) enter into any swap or
                                         other arrangement that transfers to another, in whole or in part, any of the economic
                                         consequences of ownership of such securities, whether any such transaction described
                                         in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities,
                                         in cash, or otherwise. The foregoing provisions of this Section 2 shall not apply
                                         to the sale of any shares to an underwriter pursuant to an underwriting agreement, or
                                         the transfer of any shares to any trust for the direct or indirect benefit of a Lender
                                         or the immediate family of such Lender, provided that the trustee of the trust
                                         agrees to be bound in writing by the restrictions set forth herein, and provided further
                                         that any such transfer shall not involve a disposition for value. Furthermore, the
                                         restrictions in this Section 2 shall be applicable to the Lenders only if all
                                         officers and directors are subject to the same restrictions and the Company uses commercially
                                         reasonable efforts to obtain a similar agreement from all stockholders individually owning
                                         more than five percent (5%) of the Company’s outstanding Common Stock. The underwriters
                                         in connection with such registration are intended third-party beneficiaries of this Section
                                         2 and shall have the right, power and authority to enforce the provisions hereof
                                         as though they were a party hereto. The Lenders further agree to execute such agreements
                                         as may be reasonably requested by the underwriters in connection with such registration
                                         that are consistent with this Section 2 or that are necessary to give further
                                         effect thereto.

 

     

     

    

 

		3)	Integration.
                                         Except as otherwise modified pursuant to the paragraphs above, no other changes or modifications
                                         to the Notes are intended or implied and in all other respects the Notes are specifically
                                         deemed ratified, restated and confirmed by the parties hereto, effective as of the date
                                         hereof. To the extent that there exists any conflict between the terms of this Letter
                                         Agreement and the Notes, the terms of this Letter Agreement shall control. This Letter
                                         Agreement together with the Notes shall be read and construed as one agreement.

 

		4)	Prior
                                         Agreements. This Letter Agreement supersedes all prior written or contemporaneous
                                         oral agreements, understandings and negotiations with respect to the subject matter hereof.

 

		5)	Counterparts.
                                         This Letter Agreement may be signed in counterparts (which may include counterparts delivered
                                         by any standard form of telecommunication), each of which shall be an original and all
                                         of which together shall constitute one and the same instrument.

 

Please
return an executed, counter-signed copy of this Letter Agreement to the Company.

 

[Signature
Page Follows]

 

     

     

    

 

[Company
Signature Page to Side Letter]

 

	 	Very
    truly yours,
	 	 	 	 
	 	COMPANY
	 	 	 	 
	 	NanoVibronix,
    Inc.
	 	 	 	 
	 	By:	 	 
	 	Name:
	 	Title:

 

     

     

    

 

[Lender
Signature Page to Side Letter]

  

	Acknowledged
    and Agreed:	 	 
	 	 	 	 
	LENDER
    (if an individual)	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	LENDER
    (if an entity)	 	 
	 	 
	(please
    print entity name above)	 
	 	 	 	 
	 	 	 	 
	By:	 	 	 
	Name:	 	 
	Title:

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