ELECTROMED, INC. (NYSEMKT:ELMD) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01

On December 13, 2016, Electromed, Inc. (the Company) renewed its
$2,500,000 revolving line of credit with Venture Bank to a
Business Loan Agreement (Asset Based), Rider to Business Loan
Agreement (Asset Based) and Change in Terms Agreement
(collectively, the Renewal Documents). The Renewal Documents
provide that the line of credit will be extended for an
additional year and mature on December 18, 2017. Upon
effectiveness of the renewal on December 18, 2016, interest on
borrowings on the line of credit will continue to accrue at the
prime rate, with no interest rate floor, and will remain payable
monthly. The amount eligible for borrowing on the line of credit
will remain limited to the lesser of $2,500,000 or 57.00% of
eligible accounts receivable. Payment obligations under the line
of credit also will remain secured by a security interest in
substantially all of the tangible and intangible assets of the
Company.

The foregoing description of the line of credit, as renewed, is
qualified by reference to the text of the Renewal Documents,
copies of which are attached as Exhibits 10.1, 10.2, and 10.3 and
incorporated herein by reference.

Additionally, on December 13, 2016, the Company refinanced its
outstanding term loan with Venture Bank (the Term Loan) to a
Business Loan Agreement, Change in Terms Agreement and related
Rider to Business Loan Agreement (collectively, the Term Loan
Documents). The Change in Terms Agreement provides that the
interest rate on the Term Loan will be reduced from 5.00% to
3.88% effective on December 18, 2016. The Term Loan will have an
outstanding principal balance of $1,178,391 as of December 18,
2016, and will mature of December 18, 2018. The Term Loan will
require monthly payments of principal and interest of
approximately $7,932 and a final payment of principal and
interest of approximately $1,084,893 due on the maturity date. If
the Term Loan is prepaid prior to June 20, 2018, a prepayment
penalty is payable by the Company. Payment obligations under the
Term Loan will remain secured by a mortgage on the Companys real
property.

The foregoing description of the Term Loan, as refinanced, is
qualified by reference to the text of the Term Loan Documents,
copies of which are attached as Exhibits 10.4, 10.5 and 10.6 and
incorporated herein by reference.

The information set forth in response to Item 1.01 of this
Current Report on Form 8-K is incorporated herein by reference.

(d) Exhibits:

About ELECTROMED, INC. (NYSEMKT:ELMD)

Electromed, Inc. develops, manufactures and markets airway clearance products, which apply High Frequency Chest Wall Oscillation (HFCWO) therapy in pulmonary care for patients of all ages. The Company’s products include the SmartVest Airway Clearance System (SmartVest System), the SmartVest SQL System and others. As of June 30, 2016, the SmartVest System is available in two models: SV2100 and SQL. The SmartVest System consists of an inflatable therapy garment, a programmable air pulse generator and a single-hose, which delivers air pulses from the generator to the garment. The SmartVest SQL System is small, quiet and light, and offers generator programmability. The Company markets the Single Patient Use (SPU) SmartVest and SmartVest Wrap to healthcare providers, particularly those working in intensive care units. The Company sells its products to the home healthcare market for patients with chronic lung issues, including bronchiectasis, cystic fibrosis and neuromuscular disease.

ELECTROMED, INC. (NYSEMKT:ELMD) Recent Trading Information

ELECTROMED, INC. (NYSEMKT:ELMD) closed its last trading session down -0.14 at 3.76 with 27,134 shares trading hands.