Document:

EXHIBIT 10.1 

Execution Version 

WAIVER AGREEMENT

          This WAIVER
AGREEMENT (this “Agreement”), made and entered into as of
November 13, 2012, is by and between Electromed, Inc., a Minnesota corporation
(the “Borrower”), and U.S. Bank National Association, a national banking
association (the “Bank”).

RECITALS

          A.     The
Bank and the Borrower entered into that certain Amended and Restated Credit
Agreement dated as of November 7, 2011, between the Bank and the Borrower, as
amended by that certain First Amendment to Credit Agreement dated as of
December 30, 2011, that certain Consent and Waiver and Second Amendment to
Credit Agreement dated as of May 14, 2012, and that certain Waiver and Third
Amendment to Credit Agreement dated as of September 28, 2012 (as further
amended, restated or otherwise modified from time to time, the “Credit
Agreement”).

          B.     Section
6.15 of the Credit Agreement forbids the Borrower from permitting the Fixed
Charge Coverage Ratio as of the last day of any fiscal quarter for the four
consecutive fiscal quarters ending on that date to be less than 1.2 to 1.0. The
Borrower has informed the Bank that the Fixed Charge Coverage Ratio for the
fiscal quarter ending September 30, 2012, is less than 1.2 to 1.0, which constitutes
an Event of Default under Section 7.1(c) of the Credit Agreement (the “FCCR
Event of Default”).

          C.     Section
6.16 of the Credit Agreement forbids the Borrower from permitting the Total
Cash Flow Leverage Ratio as of the last day of any fiscal quarter for the four
consecutive fiscal quarters ending on that date to be more than 3.5 to 1.0. The
Borrower has informed the Bank that the Total Cash Flow Leverage Ratio for the
fiscal quarter ending September 30, 2012, is more than 3.5 to 1.0, which
constitutes an Event of Default under Section 7.1(c) of the Credit Agreement
(the “TCFL Event of Default” and together with the FCCR Event of
Default, collectively, the “Existing Defaults”).

          The
Bank has agreed to waive the Existing Defaults, subject to the terms and
conditions set forth in this Agreement.

AGREEMENT

          NOW,
THEREFORE, for good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto hereby
covenant and agree to be bound as follows:

          Section
1.     Capitalized Terms.
Capitalized terms used and not otherwise defined herein shall have the meanings
assigned to them in the Credit Agreement, unless the context otherwise
requires.

          Section
2.     Waiver.

	
  

 	
  

 
	
  

 	
           2.1.     Waiver.
 Upon the effectiveness of this Agreement pursuant to Section 3 hereof, the
 Bank hereby waives the Existing Defaults.

 
	
  

 	
  

 
	
  

 	
           2.2.     Scope
 of Waiver. The waiver set forth in Section 2.1 hereof
 is limited to the express terms thereof, and nothing herein shall be deemed a
 consent or waiver by the Bank with respect to any other term, condition,
 representation, or covenant applicable to the Borrower under the Credit
 Agreement or any of the other agreements, documents, or instruments executed
 and delivered in connection therewith, or of the covenants described therein.
 The waiver set forth herein shall not be deemed to be a course of action upon
 which the Borrower or its Subsidiaries may rely in the future.

 

          Section
3.     Effectiveness of Waiver.
The waiver set forth in Section 2.1 hereof shall become effective upon the
delivery of, or compliance with, the following:

	
  

 	
  

 
	
  

 	
           3.1.     This
 Agreement, duly executed by the Borrower and delivered (including by way of
 telecopy or other electronic transmission (including by e-mail in .pdf
 format), in each case with original signatures to follow promptly thereafter)
 to the Bank.

 
	
  

 	
  

 
	
  

 	
           3.2.     The
 Borrower shall have satisfied such other conditions as specified by the Bank,
 including payment of all unpaid legal fees and expenses incurred by the Bank
 through the date of this Agreement in connection with the Credit Agreement
 and this Agreement and requested to be paid by the Bank.

 

          Section
4.     Release, No Waiver, Representations,
Warranties, Authority, No Adverse Claim. 

	
  

 	
  

 
	
  

 	
           4.1.     Release
 of Claims. The Borrower, for itself and on behalf of
 its legal representatives, successors, and assigns, hereby (a) expressly
 waives, releases, and relinquishes the Bank from any and all claims, offsets,
 defenses, affirmative defenses, and counterclaims of any kind or nature
 whatsoever that the Borrower has asserted, or might assert, against the Bank
 with respect to the Obligations, the Credit Agreement (including as affected
 by this Agreement), and any other Loan Document, in each case arising on or
 before the date hereof, such waiver and release being with full knowledge and
 understanding of the circumstances and effect thereof, and (b) expressly
 covenants and agrees never to institute, cause to be instituted, or continue
 prosecution of any suit or other form of action or proceeding of any kind or
 nature whatsoever against the Bank by reason of or in connection with any of
 the foregoing matters, claims, or causes of action.

 
	
  

 	
  

 
	
  

 	
           4.2.     No
 Waiver. The execution of this Agreement and acceptance
 of any documents related hereto shall not be deemed to be a waiver of any
 Default or Event of Default under the Credit Agreement (other than as
 specifically set forth in Section 2 of this Agreement) or breach,
 default, or event of default under any Security Document or other document
 held by the Bank, whether or not known to the Bank and whether or not
 existing on the date of this Agreement.

 

2

	
  

 	
  

 
	
  

 	
           4.3.     Reassertion
 of Representations and Warranties, No Default. The
 Borrower hereby represents that on and as of the date hereof and after giving
 effect to this Agreement (a) all of the representations and warranties
 in the Credit Agreement and the Security Documents are true, correct, and
 complete in all material respects, without duplication as to any materiality
 modifiers, qualifications, or limitations set forth in Article IV of the
 Credit Agreement, in each case as of the date hereof as though made on and as
 of such date, except (i) for changes permitted by the terms of the
 Credit Agreement and (ii) to the extent that any such representations
 and warranties expressly relate to an earlier date, in which case such
 representations and warranties were true and correct in all material respects
 as of such earlier date, and (b) there will exist no Default or Event of
 Default under the Loan Documents as affected by this Agreement on such date
 that the Bank has not expressly waived in writing.

 
	
  

 	
  

 
	
  

 	
           4.4.     Authority,
 No Conflict, No Consent Required. The Borrower
 represents and warrants that it has the power, legal right, and authority to
 enter into the Agreement and has duly authorized as appropriate the execution
 and delivery of the Agreement by proper corporate action, and neither the
 Agreement nor the agreements herein contravene or constitute a default under
 any agreement, instrument, or indenture to which the Borrower is a party or a
 signatory, any provision of the Borrower’s articles of incorporation or
 bylaws, or any other agreement or requirement of law, or result in the
 imposition of any Lien on any of its property under any agreement binding on
 or applicable to the Borrower or any of its property except, if any, in favor
 of the Bank. The Borrower represents and warrants that no consent, approval,
 or authorization of or registration or declaration with any Person, including
 but not limited to any governmental authority, is required in connection with
 the execution and delivery of the Agreement or the performance of obligations
 of the Borrower therein described, except for those that the Borrower has
 obtained or provided and as to which the Borrower has delivered certified
 copies of documents evidencing each such action to the Bank.

 
	
  

 	
  

 
	
  

 	
           4.5.     No
 Adverse Claim. The Borrower warrants, acknowledges, and
 agrees that no events have taken place and no circumstances exist at the date
 hereof that would give the Borrower a basis to assert a defense, offset, or
 counterclaim to any claim of the Bank with respect to the Obligations.

 

          Section
5.     Affirmation of Loan Documents, Further
References, Affirmation of Security Interest. Each of the
Bank and the Borrower acknowledge and affirm that the Credit Agreement, the
Security Documents, and each of the other Loan Documents to which it is a party
is hereby ratified and confirmed in all respects and all terms, conditions, and
provisions of each such Loan Document shall remain unmodified and in full force
and effect. The Borrower confirms to the Bank that the Obligations are and
continue to be secured by the security interest granted in favor of the Bank
under the Security Documents and that all of the terms, conditions, provisions,
agreements, requirements, promises, obligations, duties, covenants, and
representations of the Borrower under such documents and any and all other
documents and agreements entered into with respect to the obligations under the
Credit Agreement are hereby ratified, assumed, and affirmed in all respects by
the Borrower.

3

          Section
6. Merger and Integration, Superseding Effect. This
Agreement, on and after the date hereof, embodies the entire agreement and
understanding between the parties hereto and supersedes and has merged into
this Agreement all prior oral and written agreements on the same subjects by
and between the parties hereto with the effect that this Agreement shall
control with respect to the specific subjects hereof and thereof.

          Section
7.     Severability. Whenever
possible, each provision of this Agreement and any other statement, instrument,
or transaction contemplated hereby or relating hereto shall be interpreted so
as to be effective, valid, and enforceable under the applicable law of any
jurisdiction, but if any provision of this Agreement or any other statement,
instrument, or transaction contemplated hereby or relating hereto is held to be
prohibited, invalid, or unenforceable under the applicable law, such provision
shall be ineffective in such jurisdiction only to the extent of such
prohibition, invalidity, or unenforceability, without invalidating or rendering
unenforceable the remainder of such provision or the remaining provisions of
this Agreement or any other statement, instrument, or transaction contemplated
hereby or relating hereto in such jurisdiction, or affecting the effectiveness,
validity, or enforceability of such provision in any other jurisdiction.

          Section
8.     Successors. This
Agreement shall be binding upon the Borrower, the Bank, and their respective
successors and assigns, and shall inure to the benefit of the Borrower, the
Bank, and the successors and assigns of the Bank.

          Section
9.     Expenses. The Borrower
shall pay the Bank, upon execution of this Agreement, the fees and expenses as
provided in Section 8.2 of the Credit Agreement.

          Section
10.     Headings. The
headings of various sections of this Agreement are for reference only and shall
not be deemed to be a part of this Agreement.

          Section
11.     Counterparts. This
Agreement may be executed in several counterparts as deemed necessary or
convenient, each of which, when so executed, shall be deemed an original,
provided that all such counterparts shall be regarded as one and the same
document.

          Section
12.     Governing Law. THE VALIDITY,
CONSTRUCTION AND ENFORCEABILITY OF THIS AGREEMENT SHALL BE GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF
LAWS PRINCIPLES THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS OF THE UNITED STATES
APPLICABLE TO NATIONAL BANKS. 

[The remainder of
this page is intentionally left blank]

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          IN
WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed as of the date and year first above written.

	
  

 	
  

 	
  

 
	
  

 	
 BORROWER:

 
	
  

 	
  

 	
  

 
	
  

 	
 ELECTROMED, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Jeremy T. Brock

 
	
  

 	
 Name: Jeremy T. Brock

 
	
  

 	
 Title: Chief Financial
 Officer

 
	
  

 	
  

 	
  

 
	
  

 	
 BANK:

 
	
  

 	
  

 	
  

 
	
  

 	
 U.S. BANK NATIONAL
 ASSOCIATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Daniel J. Miller

 
	
  

 	
 Name: Daniel J. Miller

 
	
  

 	
 Title: Vice
 President

 

Signature Page to Waiver

5EXHIBIT 10.2

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

          This
Amended and Restated Employment Agreement (“Amended Agreement”) is effective as
of November 15, 2012 (the “Effective Date”), by and among Electromed, Inc., a
Minnesota corporation (the “Corporation”), and Jeremy Brock (“Employee”). 

RECITALS

	
  

 	
  

 
	
 A.

 	
 Employee is currently employed by the Corporation as its Chief
 Financial Officer, and the Corporation and the Employee are parties to an
 Employment Agreement, dated as of October 18, 2011 (the “Original
 Agreement”).

 
	
  

 	
  

 
	
 B.

 	
 The Corporation wishes to continue to employ Employee to the position
 of Chief Financial Officer and Employee wishes to continue his employment
 pursuant to the terms and conditions set forth in this Amended Agreement.

 
	
  

 	
  

 
	
 C.

 	
 The Corporation and Employee desire to enter into this Amended
 Agreement, and it is the intention of the Corporation and Employee that this
 Amended Agreement entirely supersedes any prior agreements with respect
 hereto.

 

AGREEMENT

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

          1.    Nature
and Capacity of Employment. Effective as of the Effective Date, the
Corporation hereby agrees to continue to employ the Employee as its Chief
Financial Officer, subject to the direction of the Board of Directors of the
Corporation and pursuant to the terms and conditions set forth in this Amended
Agreement. The Employee hereby agrees to continue acting in that capacity under
the terms and conditions set forth in this Amended Agreement. The Employee
agrees to perform or be available to perform the functions of this position,
pursuant to the terms of this Amended Agreement. 

          2.    Term
of Employment. The term of the Employee’s employment hereunder shall
commence on the Effective Date of this Amended Agreement and shall continue
thereafter through the last day of fiscal year 2014 (“Initial Term”), unless
terminated earlier in accordance with Paragraph 4 of this Amended Agreement.
The term of this Amended Agreement and the Employee’s employment hereunder
shall automatically renew for successive one year periods beyond the expiration
of the Initial Term (the “Renewal Term”), unless at least ninety (90) days
prior to the expiration of the Initial Term or any Renewal Term either party
hereto gives written notice to the other party that it does not intend to renew
this Amended Agreement for the coming year. During the Initial Term or any Renewal
Term, this Amended Agreement may be terminated pursuant to the terms of
Paragraph 4 of this Amended Agreement. 

1

          3.       Compensation
and Benefits. 

          3.1.    Base
Salary. As of the Effective Date, the Corporation agrees to pay the Employee
an annualized base salary of $145,000.00, which amount shall be earned by the
Employee on a pro rata basis as the Employee performs services and which shall
be paid according to the Corporation’s normal payroll practices. The Board of
Directors acting reasonably shall review and determine the amount of Base
Salary payable pursuant to this Paragraph 3.1. 

          3.2    Non-Equity
Incentive Compensation. For the fiscal year ending June 30, 2013, Employee
shall receive a bonus in the maximum aggregate amount of 20% of the base salary
set forth in Paragraph 3.1 only if he achieves the goals and milestones set
forth in the Fiscal 2013 CFO Bonus Plan, as such goals have been determined by,
and as achievement against such goals will be evaluated by, the Personnel and
Compensation Committee of the Board of Directors. Future Non-Equity Incentive
Compensation will be determined by the Personnel and Compensation Committee or
the Board of Directors in their discretion. 

          3.3    Incentive
Stock Option. On the second business day following the release of the
Corporation’s Form 10-Q for the first quarter of its 2013 fiscal year, Employee
shall be granted a non-qualified stock option to purchase 20,000 shares of the
Corporation’s common stock pursuant to the Corporation’s 2012 Stock Incentive
Plan. The option shall have an exercise price equal to the fair market value of
the Corporation’s common stock on the date of the grant, shall have a 10-year
term, and shall vest as to 6,667 shares on the last day of each of the
Corporation’s fiscal years ending June 30, 2013, 2014 and 2015 (as to the final
6,666 shares). The remaining terms of the option will be governed by the 2012
Stock Incentive Plan and the non-qualified stock option agreement to be
executed by the Corporation and the Employee on or about the date of grant. 

          3.4.    Employee
Benefits. During the Employee’s employment with the Corporation, the
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. The Employee acknowledges and agrees
that he will be subject to all eligibility requirements and all other
provisions of these benefits plans, and that the Corporation is under no
obligation to the Employee to establish and maintain any employee benefit plan
in which the Employee may participate. The terms and provisions of any employee
benefit plan of the Corporation are matters within the exclusive province of the
Corporation’s Board of Directors, subject to applicable law. 

          3.5.    Paid
Time Off. The Corporation agrees that the Employee shall be entitled to
Paid Time Off (“PTO”) of up to fifteen (15) days per calendar year, prorated
for any partial calendar year of employment, without reduction of the minimum
annual base salary payable to the Employee pursuant to Paragraph 3.1 of this
Amended Agreement. PTO which is unused at the end of any calendar year will carry over to the next calendar
year, subject to the Corporation’s limitations on carry-over and accrual
maximums. At the end of Employee’s employment for any reason, the Corporation
will pay Employee for his ending balance of unused PTO. 

2

          3.6.    Other
Benefits: During the Initial Term or Renewal Term, the Corporation shall
directly pay the cost of a cell phone or wireless handheld device for the
Employee’s use. Additionally, during the Initial Term or any Renewal Term, the
Corporation shall provide automobile lease payments up to an amount of $400 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 his duties under this Amended 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. 

          4.       Termination
of Employment Prior to the End of the Initial Term or Renewal Term. The
Employee’s employment may be terminated prior to the expiration of the Term or
a Renewal Term as follows: 

          4.1.    For
Cause Termination, Without Severance. Notwithstanding anything contained
herein to the contrary, the Corporation may discharge the Employee for Cause
and terminate this Amended Agreement immediately upon written notice to the
Employee. For the purposes of this Amended Agreement, “Cause” shall mean the
occurrence of any of the following: 

	
 

	
 

	
 

	
(i)      Employee’s material failure to perform his job duties competently as
reasonably determined by the Corporation’s Board of Directors; or 

	
 

	
 

	
 

	
(ii)     gross misconduct by the Employee which the Corporation’s Board of Directors
determines is (or will be if continued) demonstrably and materially damaging
to the Corporation; or 

	
 

	
 

	
 

	
(iii)    fraud, misappropriation, or embezzlement by the Employee; or 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
(v)     conduct in the course of employment that the Corporation’s Board of Directors
determines is unethical; or 

	
 

	
 

	
 

	
(vii)   the material breach of this Amended Agreement by the Employee. 

          If
the Corporation terminates the Employee’s employment for Cause pursuant to this
Paragraph 4.1, the Employee shall not be entitled to severance pay. 

          4.2.    Without
Cause, With Severance. The Corporation may terminate the Employee’s
employment immediately at any time and for any reason without Cause upon
providing notice to the Employee. However, in such event, provided that the
Employee meets all of the conditions set forth in this paragraph for receiving
severance pay, the Corporation shall pay the Employee severance pay in the
amount of one year’s base salary at his then current base salary (the
“Severance Amount”) payable in a lump sum within sixty (60) days after
termination. The Employee shall only be entitled to receive the Severance
Amount described herein if the Employee (a) complies with his separate
Non-Competition, Non-Solicitation, and Confidentiality Agreement with an
effective date of October 18, 2011 and (b) signs, does not rescind, and
complies with a Confidential Separation Agreement at the time of termination in
a form prepared by the Corporation that includes in part: (i) agreement to a
general release of any and all legal claims; (ii) return of all of the
Corporation’s property in the Employee’s possession; and (iii) agreement not to
disparage the Corporation and its representatives.

3

          4.3.    Resignation
by the Employee Due to Change of Control, With Severance. For purposes of
this Amended Agreement, “Change of Control” means: 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          iii.      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. 

          Employee
shall have the right to terminate the Employee’s employment for any reason
within six (6) months following a Change of Control in the Corporation upon
providing thirty (30) days advance written notice to the Corporation. The
Corporation may then elect either (a) to have the Employee continue performing
work for the Corporation throughout the 30 day notice period; or (b) to accept
the Employee’s resignation effective immediately. 

          In
the event of the Employee’s termination of employment with the Corporation
following a Change of Control under this Paragraph 4.3, provided that the
Employee meets all of the conditions set forth in this paragraph for receiving
severance pay, the Corporation shall pay the Employee the Severance Amount
outlined in Paragraph 4.2 above in a lump sum within sixty (60) days after
termination. The Employee shall only be entitled to receive the Severance
Amount described herein if the Employee (a) complies with his separate
Non-Competition, Non-Solicitation, and Confidentiality Agreement with an
effective date of October 18, 2011 and (b) signs, does not rescind, and
complies with a Confidential Separation Agreement at the time of termination in
a form prepared by the Corporation that includes in part: (i) agreement to a
general release of any and all legal claims; (ii) return of all of the
Corporation’s property in the Employee’s possession; and (iii) agreement not to
disparage the Corporation and its representatives. 

          4.4.    
Other Resignation by the Employee, Without Severance. The Employee may
resign the Employee’s position upon providing sixty (60) days advance, written
notice to the Corporation. The Corporation may then elect either (a) to have
the Employee continue performing work for the Corporation throughout the 60 day
notice period; or (b) to accept the Employee’s resignation effective
immediately. In the event of the Employee’s termination of employment with the
Corporation under this Paragraph 4.4, the Employee shall not be paid any
severance pay. 

4

          4.5.    Because
of Death, Disability or Incapacity of the Employee, Without Severance. In
the event of the Employee’s death, this Amended Agreement shall terminate
immediately. If the Employee is unable to perform the Employee’s essential job
functions, with or without reasonable accommodation, for more than ninety (90)
days, or such longer period as required by law, in any consecutive twelve (12)
month period by reason of physical or mental disability or incapacity, the
Corporation may terminate the Employee’s employment upon thirty (30) days
advance written notice to the Employee. This Paragraph does not relieve the
Corporation of any duty to reasonably accommodate a qualifying disability under
the Americans with Disabilities Act, the Minnesota Human Rights Act, any legal
duty under the Family Medical Leave Act, or any of its other duties pursuant to
applicable law. If the Employee’s employment is terminated pursuant to this
Paragraph, the Employee shall not be entitled to severance pay. 

          4.6    Non-Renewal
By Either Party Upon Expiration of the Initial or Renewal Term. For the
avoidance of doubt, the parties agree that either party may elect, with or
without cause, not to renew this Amended Agreement at the end of the
then-current Term and that Employee shall not be entitled to severance pay in
the event of non-renewal by either party. 

          4.7    Section
409A and Taxes Generally. 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. Notwithstanding anything in
this Agreement to the contrary, if at the time of Employee’s separation from
service within the meaning of Section 409A of the Internal Revenue Code,
Corporation determines that Employee is a “specified employee” within the
meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment
or benefit that Employee becomes entitled to under this agreement on account of
Employees’ separation from service would be considered deferred compensation
subject to the twenty percent (20%) additional tax imposed pursuant to Section
409(A)(a) of the Code as a result of the application of Section
409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such
benefit shall not be provided until the date that is the earlier of (a) six
months and one day after Employee’s separation from service and (b) Employee’s
death. The parties intend that this Agreement will be administered in
accordance with Section 409A of the Code and to the extent that any provision
of this Agreement is ambiguous as to its compliance with Section 409A of the
Code, the provision shall be read in such a manner so that all payments
hereunder comply with, or are exempt from, Section 409A of the Code. The
parties agree that this Agreement may be amended, as may be necessary to fully
comply with, or to be exempt from, Section 409A of the Code and all related
rules and regulations in order to preserve the payments and benefits provided
hereunder without additional cost to either party. 

          5.       Miscellaneous.

          5.1.    Integration.
This Amended Agreement embodies the entire agreement and understanding among
the parties relative to subject matter hereof and supersedes all prior
agreements and understandings relating to such subject matter, including but
not limited to any earlier employment agreements of or offer letters to the
Employee. Notwithstanding the foregoing, this Amended Agreement does not
replace or otherwise impact the enforceability of the separate Non-Competition,
Non-Solicitation, and Confidentiality Agreement with an effective date of
October 18, 2011. 

5

          5.2.    Applicable
Law. This Amended Agreement and the rights of the parties shall be governed
by and construed and enforced in accordance with the laws of the state of
Minnesota. 

          5.3.    Payments.
All amounts paid under this Amended Agreement shall be subject to normal
withholdings or such other treatment as required by law. 

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

          5.5.    Counterparts.
This Amended Agreement may be executed in several counterparts and as so
executed shall constitute one agreement binding on the parties hereto. 

          5.6.    Binding
Effect. Except as herein or otherwise provided to the contrary, this
Amended Agreement shall be binding upon and inure to the benefit of the
Corporation and its successors, assigns and personal representatives without
any requirement of the consent of the Employee for assignment of its rights or
obligations hereunder. 

          5.7.    Modification.
This Amended Agreement shall not be modified or amended except by a written
instrument signed by the parties. 

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

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

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blank—signature page to follow*****

6

THIS AMENDED AGREEMENT was voluntarily and knowingly executed by the parties
effective as of the date and year first set forth above.  

	
 

	
 

	
 

	
 

	
ELECTROMED,
INC.

	
 

	
 

	
 

	
Date:    November 15, 2012   

	
     /s/
Dr. James Cassidy

	
 

	
By:

	
Dr. James Cassidy

	
 

	
Its:

	
Interim Chief Executive
Officer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EMPLOYEE:

	
 

	
 

	
 

	
Date:    11/15/2012   

	
          /s/
Jeremy Brock

	
 

	
Jeremy Brock

7

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