<SEC-DOCUMENT>0000897101-15-001268.txt : 20150929
<SEC-HEADER>0000897101-15-001268.hdr.sgml : 20150929
<ACCEPTANCE-DATETIME>20150929163016
ACCESSION NUMBER:		0000897101-15-001268
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20151113
FILED AS OF DATE:		20150929
DATE AS OF CHANGE:		20150929
EFFECTIVENESS DATE:		20150929

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Electromed, Inc.
		CENTRAL INDEX KEY:			0001488917
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
		IRS NUMBER:				411732920
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34839
		FILM NUMBER:		151131128

	BUSINESS ADDRESS:	
		STREET 1:		500 SIXTH AVENUE NW
		CITY:			NEW PRAGUE
		STATE:			MN
		ZIP:			56071
		BUSINESS PHONE:		952-758-9299

	MAIL ADDRESS:	
		STREET 1:		500 SIXTH AVENUE NW
		CITY:			NEW PRAGUE
		STATE:			MN
		ZIP:			56071
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>elmd153310_def14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">
<P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>UNITED STATES</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SECURITIES AND EXCHANGE COMMISSION</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Washington, D.C. 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>SCHEDULE
14A</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Proxy
Statement Pursuant to Section 14(a) of<BR>
the Securities Exchange Act of 1934</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Filed by the Registrant <FONT STYLE="font: 10pt Wingdings">&thorn;</FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Filed
by a Party other than the Registrant &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Check the appropriate box:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD STYLE="width: 96%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Preliminary Proxy Statement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Confidential, for Use of the Commission Only (as permitted by
    Rule 14a-6(e)(2))</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Wingdings">&thorn;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Definitive Proxy Statement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Definitive Additional Materials</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Soliciting Material Pursuant to &sect;240.14a-12</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: Black 1px solid; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Electromed,
    Inc.</B></FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Name
    of Registrant as Specified In Its Charter)</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 1px solid; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Name
    of Person(s) Filing Proxy Statement, if other than the Registrant)</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 94%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Payment of Filing Fee (Check the appropriate box):</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Wingdings">&thorn;</FONT></td>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">No fee required.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Fee computed on table below per Exchange Act Rules
    14a-6(i)(4) and 0-11.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title of each class of securities to which transaction applies:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Aggregate number of securities to which transaction applies:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(3)</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Per unit price or other underlying value of transaction computed
    pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(4)</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Proposed maximum aggregate value of transaction:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(5)</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Total fee paid:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&#9744;</TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Fee paid previously with preliminary materials.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Check box if any part of the fee is offset as provided
    by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous
    filing by registration statement number, or the Form or Schedule and the date of its filing.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Amount Previously Paid:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form, Schedule or Registration Statement No.:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(3)</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Filing Party:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(4)</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Date Filed:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Persons who are to respond to the collection of information
    contained in this form are not required to respond unless the form displays a currently valid OMB control number.</B></FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>
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    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>ELECTROMED,
INC.</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>500 Sixth Avenue Northwest</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>New Prague, MN 56071</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(952) 758-9299</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>NOTICE
OF ANNUAL MEETING OF SHAREHOLDERS</B><BR>
<B>TO BE HELD ON FRIDAY, NOVEMBER 13, 2015</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">To
our Shareholders:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Fiscal 2016 Annual Meeting of the Shareholders (the &ldquo;Annual Meeting&rdquo;) of Electromed, Inc. (the &ldquo;Company&rdquo;)
will be held at the Company&rsquo;s offices at 628 Sixth Street Northwest, New Prague, Minnesota 56071 on Friday, November 13,
2015 at 9:45 a.m. Central Time, for the following purposes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Election
                                         of the directors named in the accompanying proxy statement, thereby setting the number
                                         of directors at six;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Ratification
                                         of the appointment of McGladrey LLP as our independent registered public accounting firm;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Approval,
                                         on a non-binding and advisory basis, of our executive compensation; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transaction
                                         of any other business properly brought before the meeting or any adjournment thereof.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Board of Directors has fixed the close of business on September 22, 2015 as the record date for determining the shareholders entitled
to notice of and to vote at the Annual Meeting and any adjournments thereof. The stock transfer books of the Company will not
be closed.</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<tr style="vertical-align: top">
    <td style="width: 50%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 50%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By order of the Board of Directors, </FONT></td></tr>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<tr style="vertical-align: top">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td><IMG SRC="a153310001_v1.jpg" ALT="-s- Stephen H. Craney"></td></tr>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<tr style="vertical-align: top">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Stephen H. Craney</FONT></td></tr>
<tr style="vertical-align: top">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chairman of the Board</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; margin-left: 0in; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; margin-left: 0in; text-indent: 0in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>THE
PROMPT SUBMISSION OF PROXIES WILL SAVE THE COMPANY THE EXPENSE OF FURTHER REQUESTS FOR PROXIES IN ORDER TO ENSURE A QUORUM. AN
ADDRESSED ENVELOPE IS ENCLOSED FOR YOUR CONVENIENCE, OR YOU MAY VOTE ONLINE OR BY PHONE.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Important
Notice Regarding the Availability of Proxy Materials</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>for the Annual Meeting to be held on November 13, 2015<BR>
The Notice, Proxy
Statement, Form of Proxy Card, Annual Report on Form 10-K, and Shareholder Letter are available at http://www.smartvest.com/electromed/investor-relations/annual-meeting/</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A NAME="toc"></A><B>Table
of Contents</B></FONT></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="vertical-align: top; width: 95%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 5%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><A HREF="#a153310a001_v1"><FONT STYLE="font-size: 10pt">QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING AND VOTING</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><A HREF="#a153310a002_v1"><FONT STYLE="font-size: 10pt">ELECTION OF DIRECTORS</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">7</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a003_v1"><FONT STYLE="font-size: 10pt">Nominees for Election as Directors at the Annual Meeting</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">7</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a004_v1"><FONT STYLE="font-size: 10pt">Required Vote and Board Recommendation</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">9</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: left"><A HREF="#a153310a005_v1"><FONT STYLE="font-size: 10pt">RATIFICATION OF THE APPOINTMENT OF THE COMPANY&rsquo;S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">10</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a006_v1"><FONT STYLE="font-size: 10pt">Audit Fees</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">10</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a007_v1"><FONT STYLE="font-size: 10pt">Audit Committee Pre-Approval</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">10</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a008_v1"><FONT STYLE="font-size: 10pt">Required Vote and Board Recommendation</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">10</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><A HREF="#a153310a009_v1"><FONT STYLE="font-size: 10pt">ADVISORY APPROVAL OF EXECUTIVE COMPENSATION</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">11</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.125in"><A HREF="#a153310a010_v1"><FONT STYLE="font-size: 10pt">Required Vote and Board Recommendation</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">11</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><A HREF="#a153310a011_v1"><FONT STYLE="font-size: 10pt">CORPORATE GOVERNANCE</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">12</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a012_v1"><FONT STYLE="font-size: 10pt">Independence</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">12</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a013_v1"><FONT STYLE="font-size: 10pt">Code of Ethics</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">12</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a014_v1"><FONT STYLE="font-size: 10pt">Director Attendance at Annual Meetings</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">12</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a015_v1"><FONT STYLE="font-size: 10pt">Board Leadership Structure</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">12</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a016_v1"><FONT STYLE="font-size: 10pt">Risk Oversight</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">13</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a017_v1"><FONT STYLE="font-size: 10pt">Board and Committee Meetings</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">13</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a018_v1"><FONT STYLE="font-size: 10pt">Committee Membership</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">13</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a019_v1"><FONT STYLE="font-size: 10pt">Audit Committee</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">14</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a020_v1"><FONT STYLE="font-size: 10pt">Personnel and Compensation Committee</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">15</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a021_v1"><FONT STYLE="font-size: 10pt">Nominating and Governance Committee</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">15</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><A HREF="#a153310a022_v1"><FONT STYLE="font-size: 10pt">SECURITY HOLDER COMMUNICATIONS TO THE BOARD OF DIRECTORS</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">16</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><A HREF="#a153310a023_v1"><FONT STYLE="font-size: 10pt">COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">16</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><A HREF="#a153310a024_v1"><FONT STYLE="font-size: 10pt">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">17</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><A HREF="#a153310a025_v1"><FONT STYLE="font-size: 10pt">EXECUTIVE COMPENSATION</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">18</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a026_v1"><FONT STYLE="font-size: 10pt">Executive Compensation Components for Fiscal 2015</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">18</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a027_v1"><FONT STYLE="font-size: 10pt">Compensation Actions for Fiscal 2016</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">20</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a028_v1"><FONT STYLE="font-size: 10pt">Employment Agreements</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">20</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a029_v1"><FONT STYLE="font-size: 10pt">Summary Compensation Table for Fiscal 2015</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">22</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt"><A HREF="#a153310a030_v1"><FONT STYLE="font-size: 10pt">Outstanding Equity Awards at June 30, 2014</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">22</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 17.3pt; text-indent: -8.65pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><A HREF="#a153310a031_v1"><FONT STYLE="font-size: 10pt">DIRECTOR COMPENSATION</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">23</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><A HREF="#a153310a032_v1"><FONT STYLE="font-size: 10pt">EQUITY COMPENSATION PLAN INFORMATION</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">23</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><A HREF="#a153310a033_v1"><FONT STYLE="font-size: 10pt">CERTAIN TRANSACTIONS AND BUSINESS RELATIONSHIPS</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">24</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><A HREF="#a153310a034_v1"><FONT STYLE="font-size: 10pt">OTHER MATTERS</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">24</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><A HREF="#a153310a035_v1"><FONT STYLE="font-size: 10pt">ADDITIONAL INFORMATION</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">24</FONT></TD></TR>
</TABLE>


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    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>ELECTROMED,
INC.&nbsp;</B></FONT></P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt"><B>Proxy Statement</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">Fiscal 2016 Annual Meeting of Shareholders</FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">Friday, November 13, 2015</FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">10:00 a.m. Central Time</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This
proxy statement is furnished in connection with the solicitation of proxies by the Board of Directors (the &ldquo;Board&rdquo;)
of Electromed, Inc., a Minnesota corporation (the &ldquo;Company&rdquo;), for use at the Fiscal 2016 Annual Meeting of Shareholders
of the Company to be held on Friday, November 13, 2015 (the &ldquo;Annual Meeting&rdquo;), and at any adjournment thereof. The
Annual Meeting will be held at the Company&rsquo;s offices at 628 Sixth Street Northwest, New Prague, Minnesota 56071. Registration
for the Annual Meeting will begin at approximately 9:45 a.m. Central Time and the Annual Meeting will commence at 10:00 a.m. Central
Time. This solicitation is being made by mail; however, the Company may also use its officers, directors, and employees (without
providing them with additional compensation) to solicit proxies from shareholders in person or by telephone, facsimile, email
or letter. Distribution of this proxy statement and the proxy card via U.S. Mail is scheduled to begin on or about September 29,
2015.</FONT></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a153310a001_v1"></A><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>QUESTIONS
AND ANSWERS ABOUT THE ANNUAL MEETING AND VOTING</B></FONT></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="width: 5%; text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 90%; text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Why
    did I receive this proxy statement?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Company
    is soliciting your proxy vote at the Annual Meeting because you were the owner of record of one or more shares of common stock
    of the Company at the close of business on September 22, 2015, the record date for the meeting, and are therefore entitled
    to vote at the Annual Meeting.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>What
    is a proxy?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">A proxy
    is your legal designation of another person or persons (the &ldquo;proxy&rdquo; or &ldquo;proxies,&rdquo; respectively) to
    vote on your behalf. By completing and returning the enclosed proxy card, you are giving Stephen H. Craney and Kathleen S.
    Skarvan, the designated proxies, the authority to vote your shares of common stock at the Annual Meeting in the manner you
    indicate on your proxy card. If you sign and return the enclosed proxy card but do not give direction with respect to any
    nominee or other proposal, the proxies will vote your shares as recommended by the Board. The proxies are authorized to vote
    in their discretion (except as otherwise provided below) if other matters are properly submitted at the Annual Meeting, or
    any adjournments thereof.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>When
    and where is the Annual Meeting?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Annual
    Meeting will be held on Friday, November 13, 2015, at the Company&rsquo;s building located at 628 Sixth Street Northwest,
    New Prague, Minnesota. Registration for the meeting will begin at approximately 9:45 a.m. Central Time. The Annual Meeting
    will commence at approximately 10:00 a.m. Central Time.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>What
    am I voting on?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">You are
    voting on the following matters:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Symbol">&#183;</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Proposal 1 </B>&mdash;
    To elect the directors named in this proxy statement, thereby setting the number of directors at six;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Symbol">&#183;</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Proposal 2 </B>&mdash;
    To ratify the appointment of McGladrey LLP as our independent registered public accounting firm; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Symbol">&#183;</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Proposal 3 </B>&mdash;
    To approve, on a non-binding and advisory basis, our executive compensation.</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

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    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>
<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 12pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font-size: 12pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: justify; width: 90%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>What
    does the Board recommend?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Board
    recommends a vote:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Symbol">&#183;</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>FOR</B> the election
    of all of the directors named in this proxy statement, thereby setting the number of directors at six (see Proposal 1);</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Symbol">&#183;</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>FOR</B> the ratification
    of the appointment of McGladrey LLP as the Company&rsquo;s independent registered public accounting firm (see Proposal 2);
    and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Symbol">&#183;</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>FOR</B> the approval,
    by a non-binding vote, of named executive officer compensation (see Proposal 3).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>How
    many votes do I have?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On any
    matter which may properly come before the Annual Meeting, each shareholder entitled to vote thereon will have one (1) vote
    for each share of common stock owned of record by such shareholder as of the close of business on September 22, 2015.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>How
    many shares of common stock may vote at the Annual Meeting?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">At the
    close of business on the record date, there were 8,163,857 outstanding shares of common stock each of which is eligible to
    cast one vote on matters presented at the Annual Meeting.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>What
    vote is required to approve each of the Proposals?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Provided
    a quorum is present in person or by proxy at the Annual Meeting each proposal will be subject to the following requirements:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Proposal
    1</B> &ndash; Election of Directors &mdash; The nominees receiving the greatest number of votes relative to the votes cast
    for the other nominees will be elected, regardless of whether an individual nominee receives votes from a majority of the
    quorum of shares represented at the Annual Meeting (in person or by proxy). Election of the six directors named in this proxy
    statement will be deemed to be shareholder approval of setting the number of directors at six.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Proposal
    2</B> &ndash; Ratification of the Appointment of McGladrey LLP as the Company&rsquo;s Independent Registered Public Accounting
    Firm &mdash; The affirmative vote of the holders of a majority of the shares of common stock present at the Annual Meeting
    (whether in person or by proxy) will result in approval of the proposal to ratify the appointment of McGladrey LLP as the
    Company&rsquo;s independent registered public accounting firm.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Proposal
    3</B> &ndash; Approval, by a Non-Binding Vote, of Named Executive Officer Compensation &mdash; The affirmative vote of the
    holders of a majority of the shares of common stock represented at Annual Meeting (whether in person or by proxy) and entitled
    to vote on the proposal will result in the approval of our named executive officer compensation. However, this is a non-binding
    advisory vote, which means that the result of the vote is not binding on the Company, our Board or the Personnel and Compensation
    Committee. To the extent there is any significant vote against our named executive officer compensation as disclosed in this
    proxy statement, the Personnel and Compensation Committee will evaluate whether any actions are necessary to address the concerns
    of shareholders.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Shareholders
    do not have cumulative voting rights with respect to the election of directors or any other matter. With respect to each director
    nominee, shareholders will be able to cast one vote per share owned by such shareholder as of the record date. Accordingly,
    a holder of 100 shares will be able to cast 100 votes for each nominee.</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>

<P STYLE="margin: 0"></P>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; width: 90%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>What
    constitutes a quorum?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transaction
    of business may occur at the Annual Meeting if a quorum is present. In order to achieve a quorum, shareholders holding at
    least a majority of the Company&rsquo;s issued and outstanding shares of common stock entitled to vote as of the record date
    must be present in person or by proxy at the Annual Meeting. Based on the number of shares outstanding as of the record date,
    the presence of 4,081,929 shares will constitute a quorum for the transaction of business on all proposals properly brought
    before the Annual Meeting. If you submit a proxy or vote in person at the meeting, your shares will be counted in determining
    whether a quorum is present at the Annual Meeting. Broker non-votes and abstentions are also counted for the purpose of determining
    a quorum, as discussed below.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q.</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>What
    is the effect of abstentions and withhold votes?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">You may
    either vote FOR or WITHHOLD authority to vote for each nominee for the Board. If you WITHHOLD authority to vote on any or
    all nominees, your vote will have no effect on the outcome of the election. You may vote FOR, AGAINST or ABSTAIN on proposals
    2, and 3. If you ABSTAIN from voting on proposals 2 or 3, your shares will be deemed present but will not be deemed to have
    voted in favor of the proposal, and your vote therefore has the same effect as a vote against the proposal. If you sign and
    submit your proxy card without providing voting instructions, your shares will be voted FOR each director nominee and FOR
    proposals 2 or 3.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>What
    is the effect of broker non-votes?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Shares
    that are held by stock brokers in &ldquo;street name&rdquo; may be voted by the stock broker on &ldquo;routine&rdquo; matters,
    such as the number of directors and ratification of our independent registered public accounting firm. To vote on &ldquo;non-routine&rdquo;
    matters, the stock broker must obtain shareholder direction. When the stock broker does not obtain direction to vote the shares,
    the stock broker&rsquo;s abstention is referred to as a &ldquo;broker non-vote.&rdquo;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Brokers
    do not have discretion to vote shares for the election of directors, for the advisory vote on our executive officer compensation
    or for any other non-routine matters that may be brought before the meeting. Accordingly, if your shares are held in street
    name and you do not submit voting instructions to your broker, your shares will not be counted in determining the outcome
    of these proposals. Brokers will have discretion to vote on the number of directors and the ratification of McGladrey LLP
    as the Company&rsquo;s independent registered public accounting firm if you do not provide voting instructions.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Broker
    non-votes will be considered present for quorum purposes at the Annual Meeting. Broker non-votes in connection with the election
    of directors are not deemed &ldquo;votes cast,&rdquo; and, since directors are elected by a plurality, will have no effect
    on the election. Approval of other non-routine business matters requires the affirmative vote of the majority of the shares
    present in person or by proxy and entitled to vote at the Annual Meeting. Because broker non-votes are not entitled to vote
    on non-routine business matters, they will have no effect on the outcome of the vote on such matters.</FONT></TD></TR>
</TABLE>

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    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>

<P STYLE="margin: 0"></P>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 12pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font-size: 12pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: justify; width: 90%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>How
    do I vote my shares?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If you
    are a shareholder of record, you may vote your shares at the Annual Meeting using one of the following methods:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Symbol">&#183;</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Proxy Card</B>.
    The enclosed proxy card is a means by which a shareholder may authorize the voting of his, her, its or their shares of common
    stock at the Annual Meeting. The shares of common stock represented by each properly-executed proxy card will be voted at
    the Annual Meeting in accordance with the shareholder&rsquo;s directions. The Company urges you to specify your choices by
    marking the appropriate boxes on the enclosed proxy card. After you have marked your choices, please sign and date the proxy
    card and mail the proxy card to the Company&rsquo;s stock transfer agent, Wells Fargo Shareowner Services, in the enclosed
    envelope. If you sign and return the proxy card without specifying your choices, your shares will be voted <B>FOR</B> the
    Board&rsquo;s nominees, <B>FOR </B>the ratification of the appointment of McGladrey LLP as the Company&rsquo;s independent
    registered public accounting firm, and <B>FOR</B> the approval, by a non-binding vote, of named executive officer compensation.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Symbol">&#183;</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>By telephone</B>.
    You may authorize the voting of your shares of common stock at the Annual Meeting by calling (800) 690-6903 using a touch
    tone telephone. Complete instructions for telephone voting are provided on the proxy card.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Symbol">&#183;</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Online</B>. You
    may authorize the voting of your shares of common stock at the Annual Meeting by visiting the website www.proxyvote.com. Complete
    instructions for voting online are provided on the proxy card.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Symbol">&#183;</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>In person at the
    Annual Meeting</B>. All shareholders of record as of the record date may vote in person at the Annual Meeting. Even if you
    plan to attend the Annual Meeting, the Company requests that you vote ahead of time using one of the methods above.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">You are
    a &ldquo;street name&rdquo; holder rather than a &ldquo;shareholder of record&rdquo; if your shares are held in the name of
    a stock broker, bank, trust or other nominee as a custodian, and this proxy statement was forwarded to you by that organization.
    If you are a &ldquo;street name&rdquo; holder, you must instruct your nominee as to your voting preferences. Please contact
    your nominee/custodian to do so. Because a beneficial owner is not the shareholder of record, you may not vote your shares
    in person at the Annual Meeting unless you obtain a legal proxy from the broker, bank, trustee or nominee that holds your
    shares, giving you the right to vote the shares at the Annual Meeting.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Can
    I change my vote after I have mailed in my proxy card?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Proxies
    solicited by the Board may be revoked at any time prior to the Annual Meeting. No specific form of revocation is required.
    You may revoke your proxy by:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Symbol">&#183;</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Voting in person
    at the Annual Meeting;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Symbol">&#183;</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Returning a later-dated
    signed proxy card; or</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Symbol">&#183;</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Giving personal or
    written notice of the revocation to the inspector of election at the commencement of the Annual Meeting.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If your
    shares are held in street name through a broker or other nominee, you will need to contact that nominee if you wish to change
    your voting instructions.</FONT></TD></TR>
</TABLE>

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<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 12pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font-size: 12pt; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: justify; width: 90%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>How
    will my shares be voted if I do not specify how they should be voted?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If you
    are a record holder and sign and return your proxy card, but do not mark choices for a particular proposal, then the proxies
    solicited by the Board will be voted in accordance with the Board&rsquo;s recommendation for that proposal, as set forth in
    this proxy statement.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If you
    are a street name holder and do not submit specific voting instructions to your broker, the organization that holds your shares
    would be permitted to vote your shares with respect to &ldquo;routine&rdquo; items, but not with respect to &ldquo;non-routine&rdquo;
    items. On non-routine items for which you do not submit specific voting instructions to your broker, the shares will be treated
    as &ldquo;broker non-votes.&rdquo; Broker non-votes will be counted for purposes of determining whether a quorum is present,
    but will not be considered shares entitled to vote on the proposal and therefore will not be treated as affirmative or opposing
    votes. The proposal to ratify the appointment of McGladrey LLP as our independent registered public accounting firm is considered
    routine and therefore may be voted upon by your broker if you do not give instructions to your broker. The other proposals
    set forth on the Notice of Annual Meeting are non-routine matters.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Who
    can attend the Annual Meeting?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">All shareholders
    of record as of the close of business on the record date may attend the Annual Meeting. We will request identification in
    order to ensure an orderly meeting.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If you
    are not a shareholder of record but hold shares through a broker, bank, trustee, or other nominee as custodian (i.e., in street
    name), we will request proof of your beneficial ownership as of the record date, such as an account statement, a copy of the
    voting instruction card provided by your custodian, a legal proxy provided by your custodian, or other similar evidence of
    ownership.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>What
    is the record date for the Annual Meeting?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Board
    has fixed September 22, 2015, as the record date.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Who
    will count the votes?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">All proxies
    submitted to the Company and all votes cast at the Annual Meeting will be tabulated by Broadridge Financial Solutions.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Who
    is paying for this proxy solicitation?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The entire
    cost of this proxy solicitation will be borne by the Company. The cost will include the cost of supplying necessary additional
    copies of the solicitation materials for beneficial owners of shares held of record by brokers, dealers, banks and voting
    trustees and their nominees and, upon request, the reasonable expenses of such record holders for completing the mailing of
    such materials to such beneficial owners.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>How
    do I nominate a candidate for election as a director at next year&rsquo;s Annual Meeting?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Nominations
    for director are made by the Board upon recommendation by the Nominating and Governance Committee, which is composed of independent
    directors. Shareholders may nominate a candidate for director to stand for election at the Fiscal 2017 Annual Meeting by following
    the procedures explained below in this proxy statement under &ldquo;CORPORATE GOVERNANCE&ndash;Nominating and Governance Committee-Director
    Nominations&rdquo; and contained in the rules and regulations of the Securities and Exchange Commission (the &ldquo;SEC&rdquo;).</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; width: 90%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>What
    is a shareholder proposal?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">A shareholder
    proposal is a proposal submitted by a shareholder that, if approved, would recommend or require that the Company and/or the
    Board take the proposed action. If you intend to submit a shareholder proposal, the proposal should state as clearly as possible
    the course of action that you believe the Company should follow. If your proposal is included in the Company&rsquo;s proxy
    statement, then the Company must also provide the means for shareholders to vote on the matter via the proxy card. The deadlines
    and procedures for submitting shareholder proposals for the Fiscal 2017 Annual Meeting are explained in the following question
    and answer. The Company reserves the right to reject, rule out of order, or take appropriate action with respect to any proposal
    that does not comply with these and other applicable requirements.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Q:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>When
    are shareholder proposals and director nominations due for the Fiscal 2017 Annual Meeting?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-weight: bold"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>A:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In order
    to be considered for inclusion in next year&rsquo;s proxy statement, shareholder proposals must be submitted in writing to
    the Company no later than June 1, 2016 (120 days prior to the one-year anniversary of the mailing of this proxy statement).
    The Company suggests that proposals for the Fiscal 2017 Annual Meeting of Shareholders be submitted by certified mail, return
    receipt requested. The proposal must be in accordance with the provisions of Rule 14a-8 promulgated by the SEC under the Exchange
    Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Shareholders
    who intend to present a shareholder proposal at the Fiscal 2017 Annual Meeting of Shareholders without including such proposal
    in the Company&rsquo;s proxy statement must provide the Company notice of such proposal no later than August 15, 2016 (90
    days prior to the one-year anniversary of the Annual Meeting). The Company reserves the right to reject, rule out of order,
    or take appropriate action with respect to any proposal that does not comply with these and other applicable requirements.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Shareholders
    who intend to present a director nomination at the Fiscal 2017 Annual Meeting of Shareholders, without including such nomination
    in the Company&rsquo;s proxy statement must provide the Company notice of such nomination no later than August 15, 2016 (90
    days prior to the one-year anniversary of the Annual Meeting) and no earlier than July 16, 2016 (120 days prior to the one-year
    anniversary of the Annual Meeting). The Company reserves the right to reject, rule out of order, or take appropriate action
    with respect to any nomination that does not comply with these and other applicable requirements.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If the
    Company does not receive notice of a shareholder proposal or director nomination intended to be submitted to the Fiscal 2017
    Annual Meeting of Shareholders by the dates set forth above, the persons named in the proxy statement and on the proxy card
    accompanying the notice of meeting for next year&rsquo;s annual meeting may vote on any such proposal in their discretion
    without notice of such proposal appearing in such proxy statement.</FONT></TD></TR>
</TABLE>


<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>



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    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a153310a002_v1"></A>ELECTION OF DIRECTORS<BR>
(Proposal 1)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board is currently
composed of six directors. Six individuals, all of whom are current directors, have been nominated for re-election at the Annual
Meeting. If elected, each director will hold office until the Fiscal 2017 Annual Meeting of Shareholders and until his or her successor
is elected and qualified, or until his or her earlier death, resignation, disqualification or removal. Each of the director nominees
has consented to be named in this proxy statement and to serve, if elected. The Company has no reason to believe that any of the
director nominees named below will be unable or unwilling to serve as director if elected. If for any reason any nominee withdraws
or is unable to serve as director (neither of which is expected at this time), the shares represented by all valid proxies will
be voted for the election of a substitute nominee recommended by the Board or, alternatively, not voted for any nominee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The six nominees receiving
the highest number of affirmative votes cast will be elected as directors. Except as otherwise directed on the proxy cards, the
proxies will vote all valid proxies for the six nominees identified below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Bylaws of the
Company, as amended (the &ldquo;Bylaws&rdquo;), provide that the number of directors shall be determined by the shareholders annually.
The Board has recommended that the number of directors be set at six. The Board believes that the current number of directors strikes
an optimal balance between providing diversity of viewpoints and expertise while allowing each director to influence the strategic
direction of the Company. If each of the six directors named in this proxy statement are elected at the Annual Meeting, then their
election will be deemed to be shareholder approval of setting the number of directors at six.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a003_v1"></A>Nominees for Election as Directors at the Annual Meeting</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board has nominated
each of the following persons for election to serve as directors and recommends that shareholders vote &ldquo;FOR&rdquo; the election
of each such nominee:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1px solid"><FONT STYLE="font-size: 8pt">Name</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1px solid"><FONT STYLE="font-size: 8pt">Age</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1px solid"><FONT STYLE="font-size: 8pt">Director
    <BR>
Since</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #d6f3e8">
    <TD STYLE="width: 56%; text-align: left">Stephen H. Craney&#9;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: center">71</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: center">2010</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">William V. Eckles&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">40</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2011</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #d6f3e8">
    <TD STYLE="text-align: left">Stan K. Erickson&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">64</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2014</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Lee A. Jones&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">58</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2014</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #d6f3e8">
    <TD STYLE="text-align: left">Kathleen S. Skarvan&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">59</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2013</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">George H. Winn&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">78</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2005</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Biographical information
relating to each of the director nominees is set forth below:</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Stephen H. Craney</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Mr. Craney has served
on the Board since November 2010 and has served as Chairman of the Board since May 2012. Since 1984, Mr. Craney has founded and
operated a number of successful companies, including RiverSide Electronics, Ltd., RiverBend Electronics, Ltd., RiverStar, Inc.,
Custom Control Systems, Inc., RiverStyks, LLC, and JMW Enterprises, Inc. Before becoming an entrepreneur, Mr. Craney worked as
an engineer, having earned an electrical engineering degree from the University of Wisconsin-Madison. Mr. Craney is also an active
member of a number of community groups, such as the Winona Historical Society. In addition, he has provided support and advice
to startup companies for more than 20 years through a local entrepreneur network. Among other attributes, skills, experiences and
qualifications, our Board believes that Mr. Craney&rsquo;s experience developing companies with a strong record of growth, his
technical knowledge in the electronics field, his research and development experience and his connections within the business community
make him uniquely qualified to serve as a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>William V. Eckles </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Mr. Eckles has been
a member of the Board since July 2011. Mr. Eckles has served as the President and Chief Executive Officer of Blue Earth Valley
Communications, Inc. since 2003. He also serves as a director of First Bank Blue Earth, FNB Bancshares, Inc. (Blue Earth, Minnesota),
and Hector Communications Corporation (New Ulm, Minnesota). Mr. Eckles received his undergraduate degree from the University of
St. Thomas in 1999, and received an MBA from the University of St. Thomas in 2007. Among other attributes, skills, experiences
and qualifications, our Board believes that Mr. Eckles&rsquo; experience leading and setting the strategic direction of growing
companies allow him to make a significant contribution to the Board.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Stan K. Erickson </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Mr. Erickson was first
elected to the Board at the Fiscal 2014 Annual Meeting of Stockholders held in November 2014.<I>&nbsp;</I>Mr. Erickson is currently
President and Chief Executive Officer of Liberty Capital, Inc., a company he co-founded in September, 2013 to provide capital and
advisory services. In November, 2012, he retired from a 32 year career at ZieglerCat, Inc., one of the largest Caterpillar dealers
in the U.S. where he most recently served as President and Chief Operating Officer. Mr. Erickson is a veteran of the United States
Marine Corps, earned a Business degree from the University of Minnesota, a CPA Certification and began his business career as an
auditor and tax professional. Mr. Erickson has actively participated on several private company boards, advisory committees and
associations. Among other attributes, skills, experiences and qualifications, our Board believes that Mr. Erickson will be an asset
to the Board due to Mr. Erickson&rsquo;s extensive experience in finance and management.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Lee A. Jones</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Ms. Jones was first
elected to the Board in September 2014 and has also been a director of Uroplasty, Inc. since August 2006. Since November 2011 Ms.
Jones has served as the President and CEO of Rebiotix, Inc., a biotechnology company that develops and commercializes medical therapies.
She has more than 30 years of healthcare and medical device industry experience. Until September 2013, Ms. Jones was on the board
of Algos Preclinical Services, Inc. From June 2010 until June 2011, she was a CEO-in-Residence at the University of Minnesota Venture
Center and from February 2009 until June 2010, Ms. Jones was the Chief Administrative Officer of the Schulze Diabetes Institute
of the University of Minnesota. Among other attributes, skills, experiences and qualifications, our Board believes that Ms. Jones
will be an asset to the Board due to Ms. Jones&rsquo;s knowledge of our industry, experience operating a company in the medical
device business and experience as an executive officer of a medical products company.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Kathleen S. Skarvan </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Ms. Skarvan has served
as the Chief Executive Officer of the Company since December 2012 and was elected to the Board in November 2013. Most recently,
she was appointed to the additional position of President of the Company in August 2015. Previously, Ms. Skarvan served as Vice
President of Operations at OEM Fabricators from November 2011 until October 2012. Prior to her position with OEM Fabricators, Ms.
Skarvan served in various roles at Hutchinson Technology Incorporated, most recently as the President of the Disk Drive Components
Division from April 2007 until March 2011. As President of the Disk Drive Components Division, Ms. Skarvan managed a public company
division with annual revenues in excess of $300 million. Ms. Skarvan also served as a Senior Vice President of Hutchinson Technology
Incorporated from December 2010 to March 2011, and as Vice President of Sales &amp; Marketing of the Disk Drive Components Division
from October 2003 until April 2007. Among other attributes, skills, experiences and qualifications, our Board believes that, as
the Chief Executive Officer of the Company, Ms. Skarvan is the person most familiar with the Company&rsquo;s day to day operations
and most capable of effectively identifying strategic priorities and leading the execution of strategy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Dr. George H. Winn, D.D.S. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Dr. Winn was first
elected to the Board in 2005 and has served as Vice Chairman since May 2012. He has practiced dentistry with emphasis in orthodontics
and facial pain management in New Prague, MN, for forty-six years. He is a graduate of Mankato State College, B.A., the University
of Minnesota, B.S., and the University of Minnesota School of Dentistry, Doctor of Dental Surgery. He has served as an associate
clinical professor in the Department of Operative Dentistry and participates in a medical ethics program of the American College
of Dentists at the School of Dentistry, University of Minnesota. Among other attributes, skills, experiences and qualifications,
our Board believes that, in addition to the industry relationships that Dr. Winn has developed, his education and experience give
him insight into the medical device industry, which makes him uniquely qualified to serve as a director.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a004_v1"></A>Required Vote and Board Recommendation</P>

<P STYLE="margin: 0pt 0">&nbsp;</P>

<P STYLE="margin: 0pt 0; text-align: justify">The Board recommends that you vote &ldquo;<B>FOR</B>&rdquo; each of the
nominees to the Board, thereby setting the number of directors at six. The election of each nominee requires the affirmative
vote of a plurality of the voting power of the shareholders present, whether in person or by proxy, and entitled to vote at
the Annual Meeting, provided that a quorum is present.</P>

<P STYLE="margin: 0pt 0">&nbsp;</P>

<P STYLE="margin: 0pt 0"></P>

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<P STYLE="margin: 0pt 0"></P>


<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a153310a005_v1"></A>RATIFICATION OF THE APPOINTMENT OF THE
COMPANY&rsquo;S<BR>
INDEPENDENT&nbsp;REGISTERED&nbsp;PUBLIC&nbsp;ACCOUNTING&nbsp;FIRM<BR>
(Proposal 2)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board, acting
on the recommendation of the Company&rsquo;s Audit Committee, has selected McGladrey LLP (&ldquo;McGladrey&rdquo;) as the Company&rsquo;s
independent registered public accounting firm for the fiscal year ending June 30, 2016. McGladrey was the Company&rsquo;s independent
registered public accounting firm for the most recent completed fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Notwithstanding its
selection of McGladrey, the Audit Committee, in its discretion, may appoint another independent registered public accounting firm
at any time during the year if the Audit Committee believes that such a change would be in the best interests of the Company and
its shareholders. If the appointment of McGladrey is not ratified by our shareholders, the Audit Committee may reconsider whether
it should appoint another independent registered public accounting firm.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">A representative of
McGladrey is expected to be present at the Annual Meeting. Such representative will have an opportunity to make a statement if
he or she desires to do so, and will be available to respond to appropriate questions regarding preparation of the Company&rsquo;s
financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a006_v1"></A>Audit Fees</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The following table
presents fees billed by McGladrey to the Company for the audit of the Company&rsquo;s annual financial statements, the review of
the Company&rsquo;s interim financial statements, and various other audit and non-audit services provided in connection with the
fiscal year ended June 30, 2015, or &ldquo;fiscal 2015,&rdquo; and the fiscal year ended June 30, 2014, or &ldquo;fiscal 2014.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
    <TD ROWSPAN="2" STYLE="border-bottom: black 1px solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt"><B>Category</B></FONT></td>
    <TD STYLE="text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1px solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt"><B>Year
    Ended June 30, </B></FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1px solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt"><B>2015</B></FONT></td>
    <TD STYLE="text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1px solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt"><B>2014</B></FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: #d6f3e8">
    <TD STYLE="width: 76%; text-align: justify; text-indent: 0in">Audit Fees<sup>(a)</sup>&#9;</td>
    <TD STYLE="width: 3%; text-align: justify; text-indent: 0in">&nbsp;</td>
    <TD STYLE="width: 9%; text-align: center; text-indent: 0in">$126,315</td>
    <TD STYLE="width: 3%; text-align: center; text-indent: 0in">&nbsp;</td>
    <TD STYLE="width: 9%; text-align: center; text-indent: 0in">$115,325</td></tr>
</table>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(<FONT STYLE="vertical-align: baseline">a</FONT>)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Includes
                                         the annual audits and quarterly reviews of the Company&rsquo;s financial statements,
                                         and review of the Company&rsquo;s registration of Form S-8 for fiscal 2015.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">McGladrey provided
no other services to the Company in fiscal 2015 or fiscal 2014 that are not included above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a007_v1"></A>Audit Committee Pre-Approval</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Pursuant to its written
charter, the Audit Committee is responsible for pre-approving all audit and permitted non-audit services to be performed for the
Company by its independent registered public accounting firm or any other auditing or accounting firm. During the year, circumstances
may arise that will require the engagement of the independent registered public accounting firm for additional services not contemplated
in the original pre-approval. In those instances, we will obtain pre-approval of the Audit Committee before engaging the independent
registered public accounting firm.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">All audit services
and audit-related services incurred during fiscal 2015 and fiscal 2014 were pre-approved by our Audit Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a008_v1"></A>Required Vote and Board Recommendation</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board recommends
that you vote &ldquo;<B>FOR</B>&rdquo; the ratification of the appointment of McGladrey LLP as the Company&rsquo;s independent
registered public accounting firm. Approval of the proposal requires the affirmative vote of a majority of the voting power of
the shareholders present, whether in person or by proxy, and entitled to vote at the Annual Meeting, provided that a quorum is
present.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a153310a009_v1"></A>ADVISORY APPROVAL OF EXECUTIVE COMPENSATION<BR>
(Proposal 3)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Dodd-Frank Wall
Street Reform and Consumer Protection Act and Section 14A of the Exchange Act require that we provide our shareholders with the
opportunity to vote to approve, on a nonbinding, advisory basis, the compensation of our executive officers as disclosed in this
proxy statement in accordance with the compensation disclosure rules of the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We seek to closely
align the interests of our named executive officers with the interests of our shareholders. We designed our compensation program
to reward our named executive officers for their individual performance and contributions to our overall business objectives, and
for achieving and surpassing the financial goals set by our Personnel and Compensation Committee and our Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The vote on this resolution
is not intended to address any specific element of compensation. Instead, the vote relates to the overall compensation of our named
executive officers, as described in this proxy statement in accordance with the compensation disclosure rules of the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Accordingly, we ask
our shareholders to vote on the following resolution at the Annual Meeting:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in; text-align: justify">RESOLVED, that the Company&rsquo;s
shareholders approve, on a non-binding, advisory basis, the compensation of the named executive officers, as disclosed in this
proxy statement pursuant to the compensation disclosure rules of the Securities and Exchange Commission, including the summary
compensation table and the other related tables and disclosure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">While the Board and
especially the Personnel and Compensation Committee intend to carefully consider the results of the voting on this proposal when
making future decisions regarding executive compensation, the vote is not binding on the Company, the Personnel and Compensation
Committee or the Board and is advisory in nature. To the extent there is any significant vote against the compensation of our named
executive officers in this Proposal 3, the Personnel and Compensation Committee will evaluate what actions may be necessary to
address our shareholders&rsquo; concerns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a010_v1"></A>Required Vote and Board Recommendation</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board recommends
that you vote &ldquo;<B>FOR</B>&rdquo; the approval of the compensation of the named executive officers. Approval of the proposal
requires the affirmative vote of a majority of the voting power of the shareholders present, whether in person or by proxy, and
entitled to vote at the Annual Meeting, provided that a quorum is present. This vote is advisory and is not binding on the Company,
the Board or the Personnel and Compensation Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a153310a011_v1"></A>CORPORATE GOVERNANCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a012_v1"></A>Independence</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Board annually
reviews the materiality of any relationship that each of our directors has with our company, either directly or indirectly. Based
on that review, our Board has determined that, with the exception of Ms. Skarvan, our President and Chief Executive Officer, all
of our current directors are &ldquo;independent directors&rdquo; as defined under the applicable regulations of the SEC and the
NYSE MKT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In determining the
independence of our directors, our Board considered that the Company has made payments of approximately $101,000, $237,000, and
$321,000 during our 2015, 2014, and 2013 fiscal years, respectively, to RiverSide Electronics, Ltd. (&ldquo;RiverSide&rdquo;),
an entity which is solely owned by Mr. Craney, in exchange for electronic parts. The Board determined that the terms of its transactions
with RiverSide were consistent with what could be obtained in an arm&rsquo;s length transaction with an unrelated party and that
the transactions did not exceed 5% of RiverSide&rsquo;s consolidated gross annual revenues for the applicable fiscal years. The
Board also considered that Mr. Eckles is the chief executive officer and owns approximately 20% of the outstanding stock of Blue
Earth Valley Communications (&ldquo;Blue Earth&rdquo;), an entity from which the Company has purchased approximately $50,000, $34,000
and $25,000 of telecommunications services in each of fiscal year 2015, 2014 and 2013, respectively. The Board determined that
the terms of the Company&rsquo;s transactions with Blue Earth were consistent with what could be obtained in an arm&rsquo;s length
transaction with an unrelated party and that the transactions did not exceed 5% of Blue Earth&rsquo;s consolidated gross annual
revenues for the applicable fiscal years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a013_v1"></A>Code of Ethics</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board has approved
a Code of Ethics and Business Conduct (the &ldquo;Code of Ethics&rdquo;) that applies to all employees, directors, and officers,
including the Chief Executive Officer and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer).
The Code of Ethics is available in the &ldquo;Investor Relations&rdquo; section of our website at www.electromed.com. We intend
to disclose on our website, www.electromed.com, any amendment to or waiver from any provision of the Code of Ethics that applies
to our Chief Executive Officer or Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer), and that
relates to any element of the Code of Ethics identified in Item 406(b) of Regulation S-K. Such disclosure will be provided promptly
following the date of the amendment or waiver.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a014_v1"></A>Director Attendance at Annual Meetings</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Directors&rsquo; attendance
at annual meetings can provide shareholders with an opportunity to communicate directly with members of the Board about matters
concerning the Company. The Company encourages all directors to attend the Company&rsquo;s annual meetings, but it does not have
a formal attendance policy. All of the Company&rsquo;s current directors attended the Fiscal 2015 Annual Meeting of Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a015_v1"></A>Board Leadership Structure</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have separate individuals
serving as Chairman of the Board and as Chief Executive Officer because we believe independent directors and management have different
perspectives and roles in strategy development. The Chief Executive Officer is responsible for setting the strategic direction
of the Company and managing the day-to-day leadership and performance of the Company, while the Chairman provides guidance to the
Chief Executive Officer, sets the agenda for meetings of the Board and presides over meetings of the full Board. We believe this
structure promotes active participation of the independent directors and strengthens the role of the Board in fulfilling its oversight
responsibility and fiduciary duties to our shareholders while recognizing the day-to-day management direction of the Company by
the Chief Executive Officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a016_v1"></A>Risk Oversight</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">It is management&rsquo;s
responsibility to manage risk and bring to the Board&rsquo;s attention the most material risks to the Company. The Board has oversight
responsibility of the processes established to report and monitor systems for material risks applicable to the Company. The Audit
Committee provides oversight of management with respect to enterprise-wide risk management, which focuses primarily on risks relating
to the Company&rsquo;s ability to maintain appropriate levels of credit and insurance coverage, financial and accounting risks,
and legal and compliance risks, including oversight of internal controls over financial reporting. In addition, the Personnel and
Compensation Committee considers risks related to the attraction and retention of talent and risks relating to the design of compensation
programs and arrangements. The Nominating and Governance Committee considers risks and best practices relating to corporate governance
policies and procedures. The full Board considers strategic risks and opportunities and regularly receives detailed reports from
management and the committees, with respect to their areas of responsibility for risk oversight.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a017_v1"></A>Board and Committee Meetings</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">During the fiscal
2015, the Board held four formal meetings. In addition, directors frequently communicate with each other informally and, when appropriate,
take action by written consent of all directors, or in the case of an action that does not require shareholder approval, the number
of directors required to take the action at a meeting, as permitted by the Minnesota Business Corporation Act and the Company&rsquo;s
Articles of Incorporation, as amended. Each director attended at least 75% of the total number of Board meetings held during the
most recent completed fiscal year and the total number of meetings held by all committees on which the director served during the
same fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a018_v1"></A>Committee Membership</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board has three
standing committees: the Audit Committee, the Personnel and Compensation Committee, and the Nominating and Governance Committee.
The following table sets forth the current membership of each of the Company&rsquo;s standing committees:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
    <td rowspan="2" style="border-bottom: black 1px solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt"><B>Director</B></FONT></td>
    <td style="text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <td colspan="5" style="border-bottom: black 1px solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt"><B>Board
    Committee</B></FONT></td>
    <td style="text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <td rowspan="2" style="border-bottom: black 1px solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt"><B>Independent</B><BR>
    <B>Director</B></FONT></td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1px solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt"><B>Audit</B></FONT></td>
    <TD STYLE="text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1px solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt"><B>Nominating
    and</B><BR>
    <B>Governance</B></FONT></td>
    <td style="text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1px solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt"><B>Personnel
    and</B><BR>
    <B>Compensation</B></FONT></td>
    <td style="text-align: center; text-indent: 0in">&nbsp;</td></tr>
<TR STYLE="background-color: #d6f3e8">
    <td style="vertical-align: bottom; width: 34%"><font style="font: 10pt Times New Roman, Times, Serif">Stephen H. Craney&#9;</font></td>
    <td style="vertical-align: top; width: 1%; text-align: justify; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; width: 16%; text-align: center; text-indent: 0in">Member</td>
    <td style="vertical-align: top; width: 1%; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; width: 16%; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; width: 1%; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; width: 16%; text-align: center; text-indent: 0in">Chair</td>
    <td style="vertical-align: top; width: 1%; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; width: 14%; text-align: center; text-indent: 0in"><font style="font-family: Wingdings">&thorn;</font></td></tr>
<TR STYLE="background-color: White">
    <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">William V. Eckles&#9;</font></td>
    <td style="vertical-align: top; text-align: justify; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">Member</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">Chair</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in"><font style="font-family: Wingdings">&thorn;</font></td></tr>
<TR STYLE="background-color: #d6f3e8">
    <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Stan K. Erickson &#9;</font></td>
    <td style="vertical-align: top; text-align: justify; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">Chair</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">Member</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in"><font style="font-family: Wingdings">&thorn;</font></td></tr>
<TR STYLE="background-color: White">
    <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Lee A. Jones&#9;</font></td>
    <td style="vertical-align: top; text-align: justify; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">Member</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">Member</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in"><font style="font-family: Wingdings">&thorn;</font></td></tr>
<TR STYLE="background-color: #d6f3e8">
    <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Kathleen S. Skarvan&#9;</font></td>
    <td style="vertical-align: top; text-align: justify; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td></tr>
<TR STYLE="background-color: White">
    <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">George H. Winn&#9;</font></td>
    <td style="vertical-align: top; text-align: justify; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">Member</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in">&nbsp;</td>
    <td style="vertical-align: top; text-align: center; text-indent: 0in"><font style="font-family: Wingdings">&thorn;</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Board has evaluated
independence for the members of each committee in accordance with NYSE MKT rules and, with respect to the members of the Audit
Committee, Rule 10A-3 of the Exchange Act. The membership and responsibilities of each committee complies with the listing requirements
of the NYSE MKT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a019_v1"></A>Audit Committee</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Audit Committee
currently consists of Mr. Erickson (Chair), Mr. Craney, and Mr. Eckles. Under its charter, the Audit Committee must consist of
at least three independent directors and its composition must otherwise satisfy NYSE MKT and SEC requirements applicable to audit
committees. The principal functions of the Audit Committee are to evaluate and review the Company&rsquo;s financial reporting process
and systems of internal controls. The Audit Committee evaluates the independence of the Company&rsquo;s independent registered
public accounting firm, recommends selection of the Company&rsquo;s independent registered public accounting firm to the Board,
approves fees to be paid to our independent registered public accounting firm, and reviews the Company&rsquo;s financial statements
with management and the independent registered public accounting firm. The Audit Committee has recommended to the Board the appointment
of McGladrey LLP to serve as the Company&rsquo;s independent registered public accounting firm for the 2015 fiscal year. The Audit
Committee operates under a written charter approved by the Board, a copy of which is available in the &ldquo;Investor Relations&rdquo;
section of the Company&rsquo;s website at www.electromed.com. The Audit Committee held four meetings during the most recent completed
fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Board has affirmatively
determined that each of the members of the committee satisfy the additional independence requirements for audit committee members
pursuant to the NYSE MKT Company Guide and the rules and regulations promulgated by the SEC. The Board has further determined that
Stan K. Erickson qualifies as an &ldquo;audit committee financial expert&rdquo; as defined by Item 407(d)(5) of Regulation S-K
under the Securities Act of 1933, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Report of the Audit Committee </I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>The following report
of the Audit Committee shall not be deemed to be filed with the Securities and Exchange Commission (&ldquo;SEC&rdquo;) or incorporated
by reference in any previous or future documents filed by the Company with the SEC under the Securities Act of 1933 or the Securities
Exchange Act of 1934, except to the extent that the Company specifically incorporates the reference in any such document. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In accordance with
its written charter adopted by the Board, as amended, the Audit Committee assists the Board with fulfilling its oversight responsibility
regarding the quality and integrity of the accounting, auditing and financial reporting practices of the Company. A copy of the
Audit Committee charter, which has been adopted by the Board and further describes the role and responsibilities of the Audit Committee,
is available online in the &ldquo;Investor Relations&rdquo; section of our website at www.electromed.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In discharging its
duties, the Audit Committee:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: left">reviewed and discussed the audited financial statements
included in the Form 10-K for the fiscal year ended June 30, 2015 with management;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: left">discussed with the independent auditors the matters required
to be discussed by the applicable Public Company Accounting Oversight Board standards; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: left">received the written disclosures and the letter from the
independent accountant required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent
accountant&rsquo;s communications with the Audit Committee concerning independence, and discussed with the independent accountant
matters relating to their independence.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Based upon the review
and discussions referred to above, the Audit Committee recommended to the Board that the audited financial statements be included
in the Company&rsquo;s Annual Report on Form 10-K for the fiscal year ended June 30, 2015, for filing with the Securities and Exchange
Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in"><I>Audit Committee</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in">Stephen H. Craney<BR>
William V. Eckles<BR>
Stan K. Erickson (Chair)</P>

</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a020_v1"></A>Personnel and Compensation Committee</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The current members
of the Personnel and Compensation Committee are Mr. Craney (Chair), Ms. Jones and Dr. Winn. Our Board has affirmatively determined
that each of the members of the committee satisfy the additional independence requirements for compensation committee members pursuant
to the NYSE MKT Company Guide.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board has authorized
the Personnel and Compensation Committee to, among other duties, develop the Company&rsquo;s compensation strategy, review compensation
policies and plans for the Company&rsquo;s executive officers, and administer the Company&rsquo;s compensation plans. Neither the
Personnel and Compensation Committee nor the Board engages compensation consultants to assist in determining or recommending the
amount or form of compensation for executive officers or directors. The Chief Executive Officer may give the committee input in
regard to the compensation of the Chief Financial Officer, but the Chief Executive Officer is not present during voting or deliberations
relating to her own compensation. The committee operates under a written charter approved by the Board, a copy of which is available
in the &ldquo;Investor Relations&rdquo; section of our website at www.electromed.com. The Personnel and Compensation Committee
held three meetings during the most recent completed fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a021_v1"></A>Nominating and Governance Committee</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The current members
of the Nominating and Governance Committee are Mr. Eckles (Chair), Ms. Jones, and Mr. Erickson. Our Nominating and Governance Committee
is responsible for oversight of our corporate governance policies and procedures, our codes of conduct and other corporate governance
matters. In addition, our Nominating and Governance Committee makes recommendations to our Board regarding candidates for directorships
and the size and composition of our Board and its committees. The Nominating and Governance Committee acts pursuant to a written
charter approved by the Board, a copy of which is available in the &ldquo;Investor Relations&rdquo; section of our website at www.electromed.com.
The Nominating and Governance Committee held two meetings during the most recent completed fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Director Nominations</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Nominating and
Governance Committee is responsible for identifying and recommending director nominees for nomination by the full Board. Shareholders
may recommend a nominee to be considered by the Nominating and Governance Committee by submitting a written proposal to the Chairman
of the Board, at 500 Sixth Avenue Northwest, New Prague, Minnesota 56071. Any notice of as shareholder nomination must satisfy
the timing and content requirements of our bylaws and must be accompanied by a writing from the proposed nominee consenting to
being named as a nominee and to serve as a director if elected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">When selecting candidates
for recommendation to the Board, the Nominating and Governance Committee considers the attributes of the candidates and the needs
of the Board and reviews all candidates in the same manner, regardless of the source of the recommendation. In evaluating director
nominees, the Nominating and Governance Committee seeks to confirm that candidate meets certain minimum qualifications, including
being able to read and understand basic financial statements, being familiar with our business and industry, having high moral
character and mature judgment, and possessing the ability to work collegially with others. In addition, factors such as the following
are also considered:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">appropriate size and diversity of the Board;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">needs of the Board with respect to particular talent and
experience;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">knowledge, skills and experience of nominee;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">experience in domestic and international business matters;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">familiarity with legal and regulatory requirements;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">familiarity with accounting rules and practices; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the desire to balance the benefit of continuity with the
periodic injection of the fresh perspective provided by a new member.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Nominating and
Governance Committee does not have a formal diversity policy at this time. However, as summarized above, the Nominating and Governance
Committee seeks to nominate candidates with a diverse range of knowledge, experience, skills, expertise, and other qualities that
will contribute to the overall effectiveness of the Board. Moreover, potential nominees are not discriminated against on the basis
of sex, religion, national origin, sexual orientation, disability or other basis proscribed by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a153310a022_v1"></A>SECURITY HOLDER COMMUNICATIONS TO THE
BOARD OF DIRECTORS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Any shareholder wishing
to communicate with the Board should send the communication, in written form, to the Chief Executive Officer of the Company at
the Company&rsquo;s principal place of business at 500 Sixth Avenue Northwest, New Prague, Minnesota 56071. The Chief Executive
Officer will promptly send the communication to each member of the Board identified on the communication.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a153310a023_v1"></A>COMPLIANCE WITH SECTION 16(a) OF THE
EXCHANGE ACT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Section 16(a) of Exchange
Act requires the Company&rsquo;s executive officers and directors, and persons who own more than ten percent of the Company&rsquo;s
common stock, to file with the SEC initial reports of ownership and reports of changes in ownership of common stock and other equity
securities of the Company. Officers, directors and greater than ten percent shareholders (&ldquo;Insiders&rdquo;) are required
by SEC regulation to furnish the Company with copies of all Section 16(a) forms they file.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">To the Company&rsquo;s
knowledge, based solely on review of the copies of such reports furnished to the Company, or written representations from Insiders
that no reports were required, the Company believes that during fiscal 2015, all Form 3, Form 4 and Form 5 filing requirements
were met, except that Stephen H. Craney filed one late report on Form 4 relating to a purchase of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a153310a024_v1"></A>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The following table
sets forth certain information with respect to the beneficial ownership of our outstanding common stock as of September 22, 2015
by (i) each of our named executive officers; (ii) each of our directors; (iii) all of our executive officers, directors and director
nominees as a group; and (iv) each beneficial owner of 5% or more of our outstanding common stock. Ownership percentages are based
on 8,163,857 shares of common stock outstanding as of the close of business on September 22, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Beneficial ownership
is determined in accordance with the rules of the SEC. To our knowledge and subject to applicable community property laws, each
of the holders of stock listed below has sole voting and investment power as to the stock owned unless otherwise noted. The table
below includes the number of shares underlying options that are exercisable within 60 days from September 22, 2015. Except as otherwise
noted below, the address for each director or officer listed in the table is c/o Electromed, Inc., 500 Sixth Avenue Northwest,
New Prague, Minnesota 56071.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1px solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt; font-style: normal"><B>Name</B></FONT></td>
    <TD STYLE="text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: black 1px solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt; font-style: normal"><B>Amount
    and Nature of Beneficial&nbsp;Ownership</B></FONT></TD>
    <TD STYLE="text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: black 1px solid; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 8pt; font-style: normal"><B>Percentage
    of</B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-style: normal"><B>Outstanding&nbsp;Shares</B></FONT></FONT></TD></tr>
<TR STYLE="vertical-align: top; background-color: #d6f3e8">
    <TD STYLE="text-indent: 0in; width: 66%"><font style="font-weight: normal; font-style: normal">Executive Officers and Directors</font></td>
    <TD STYLE="text-indent: 0in; width: 3%">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in; width: 10%">&nbsp;</td>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; width: 3%">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in; width: 10%">&nbsp;</td>
    <TD STYLE="width: 4%">&nbsp;</TD></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: -0.15in; padding-left: 0.25in"><font style="font-weight: normal; font-style: normal">Kathleen S. Skarvan&#9;</font></td>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in"><FONT STYLE="font-weight: normal; font-style: normal">90,656</FONT></td>
    <TD><SUP>(a)</SUP></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">1.1</font></td>
    <TD>%</TD></tr>
<TR STYLE="vertical-align: top; background-color: #d6f3e8">
    <TD STYLE="text-indent: -0.15in; padding-left: 0.25in"><font style="font-weight: normal; font-style: normal">Jeremy T. Brock&#9;</font></td>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in"><FONT STYLE="font-weight: normal; font-style: normal">64,666</FONT></td>
    <TD><SUP>(b)</SUP></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">*</font></td>
    <TD>&nbsp;</TD></tr>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; text-indent: -0.15in; padding-left: 0.25in"><font style="font-weight: normal; font-style: normal">Stephen H. Craney&#9;</font></td>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">514,551</font></td>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">6.3</font></td>
    <TD>%</TD></tr>
<TR STYLE="background-color: #d6f3e8">
    <TD STYLE="vertical-align: bottom; text-indent: -0.15in; padding-left: 0.25in"><font style="font-weight: normal; font-style: normal">William V. Eckles&#9;</font></td>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">103,732</font></td>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">1.3</font></td>
    <TD>%</TD></tr>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; text-indent: -0.15in; padding-left: 0.25in"><font style="font-weight: normal; font-style: normal">Stan K. Erickson&#9;</font></td>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">3,921</font></td>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">*</font></td>
    <TD>&nbsp;</TD></tr>
<TR STYLE="background-color: #d6f3e8">
    <TD STYLE="vertical-align: bottom; text-indent: -0.15in; padding-left: 0.25in"><font style="font-weight: normal; font-style: normal">Lee A. Jones&#9;</font></td>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">3,921</font></td>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">*</font></td>
    <TD>&nbsp;</TD></tr>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; text-indent: -0.15in; padding-left: 0.25in"><font style="font-weight: normal; font-style: normal">George H. Winn&#9;</font></td>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-align: right; text-indent: 0in"><FONT STYLE="font-weight: normal; font-style: normal">596,629</FONT></td>
    <TD><SUP>(c)</SUP></TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">7.3</font></td>
    <TD>%</TD></tr>
<TR STYLE="background-color: #d6f3e8">
    <TD STYLE="vertical-align: bottom; text-indent: -0.15in">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-align: right; text-indent: 0in">&nbsp;</td>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-align: right; text-indent: 0in">&nbsp;</td>
    <TD>&nbsp;</TD></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><font style="font-weight: normal; font-style: normal">Executive officers and directors as a group (7&nbsp;persons)</font></td>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in"><FONT STYLE="font-weight: normal; font-style: normal">1,378,076</FONT></td>
    <TD><SUP>(d)</SUP></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">16.7</font></td>
    <TD>%</TD></tr>
<TR STYLE="vertical-align: top; background-color: #d6f3e8">
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in">&nbsp;</td>
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in">&nbsp;</td>
    <TD>&nbsp;</TD></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: -0.15in; padding-left: 0.25in"><font style="font-weight: normal; font-style: normal">GRT Capital Partners, L.L.C.&#9;</font><br>
<font style="font-weight: normal; font-style: normal">One Liberty Square, 11<sup>th</sup> Floor</font><br>
<font style="font-weight: normal; font-style: normal">Boston, Massachusetts 02109</font></td>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in"><FONT STYLE="font-weight: normal; font-style: normal">509,572</FONT></td>
    <TD><SUP>(e)</SUP></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">6.2</font></td>
    <TD>%</TD></tr>
<TR STYLE="vertical-align: top; background-color: #d6f3e8">
    <TD STYLE="text-indent: -0.15in; padding-left: 0.25in"><font style="font-weight: normal; font-style: normal">Craig N. Hansen&#9;</font><br>
<font style="font-weight: normal; font-style: normal">12920 Highway 55</font><br>
<font style="font-weight: normal; font-style: normal">Minneapolis, MN 55441</font></td>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in"><FONT STYLE="font-weight: normal; font-style: normal">473,180</FONT></td>
    <TD><SUP>(f)</SUP></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">5.8</font></td>
    <TD>%</TD></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: -0.15in; padding-left: 0.25in"><font style="font-weight: normal; font-style: normal">Thomas M. Hagedorn&#9;</font><br>
<font style="font-weight: normal; font-style: normal">5985 Columbia Pike #200</font><br>
<font style="font-weight: normal; font-style: normal">Falls Church, Virginia 22401</font></td>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in"><FONT STYLE="font-weight: normal; font-style: normal">874,250</FONT></td>
    <TD><SUP>(g)</SUP></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</td>
    <TD STYLE="text-align: right; text-indent: 0in"><font style="font-weight: normal; font-style: normal">10.7</font></td>
    <TD>%</TD></tr>
</table>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-indent: -13.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 8pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Less
                                         than 1%</FONT></TD></TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(<FONT STYLE="vertical-align: baseline">a</FONT>)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Includes
                                         options to purchase 46,667 shares.</FONT></TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(<FONT STYLE="vertical-align: baseline">b</FONT>)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Includes
                                         options to purchase 54,667 shares.</FONT></TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(<FONT STYLE="vertical-align: baseline">c</FONT>)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Includes
                                         446,303 shares owned by G&amp;J Winn Family LLLP, of which Dr. Winn and his spouse are
                                         general partners.</FONT></TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(<FONT STYLE="vertical-align: baseline">d</FONT>)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Includes
                                         options to purchase 101,334 shares.</FONT></TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(<FONT STYLE="vertical-align: baseline">e</FONT>)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Based
                                         on Schedule 13G filed with the SEC on February 17, 2015 and reflects beneficial ownership
                                         as of December 31, 2014. GRT Capital Partners, L.L.C. may be deemed to be the beneficial
                                         owner of these securities by virtue of its role as the investment manager of the investment
                                         funds or accounts that own such securities and disclaims beneficial ownership except
                                         to the extent of its pecuniary interest in the securities.</FONT></TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(<FONT STYLE="vertical-align: baseline">f</FONT>)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Based
                                         on Amendment No. 2 on Schedule 13G/A filed with the SEC on February 12, 2013 and reflects
                                         beneficial ownership as of December&nbsp;31, 2012. Includes 4,800 shares held by spouse.</FONT></TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(<FONT STYLE="vertical-align: baseline">g</FONT>)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Based
                                         on Schedule 13G filed with the SEC on February 10, 2011 and reflects beneficial ownership
                                         as of December 31, 2010.</FONT></TD>
</TR></TABLE>


<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a153310a025_v1"></A>EXECUTIVE COMPENSATION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The following discussion
describes the compensation awarded to our two executive officers (collectively, our &ldquo;named executive officers&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 70%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: top">
    <TD STYLE="width: 35%; border-bottom: black 1px solid"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Name</B></FONT></td>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="width: 11%; border-bottom: black 1px solid; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Age</B></FONT></td>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="width: 50%; border-bottom: black 1px solid; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Title</B></FONT></td></tr>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">Kathleen S. Skarvan&#9;</FONT></td>
    <TD><FONT STYLE="background-color: White">&nbsp;</FONT></td>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">59</FONT></td>
    <TD STYLE="text-indent: -7.4pt"><FONT STYLE="background-color: White">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">President and Chief Executive Officer</FONT></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><font style="font: 10pt Times New Roman, Times, Serif">Jeremy T. Brock&#9;</font></td>
    <TD>&nbsp;</td>
    <TD STYLE="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">36</font></td>
    <TD STYLE="text-indent: -7.4pt">&nbsp;</td>
    <TD><font style="font: 10pt Times New Roman, Times, Serif">Chief Financial Officer </font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><B><I>Kathleen S. Skarvan</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Ms. Skarvan joined
Electromed in December 2012 as Chief Executive Officer, became a director in November 2013 and was appointed to the additional
position of President in August 2015. Ms. Skarvan served as Vice President of Operations at OEM Fabricators from November 2011
until October 2012. Prior to her position with OEM Fabricators, Ms. Skarvan served in various roles at Hutchinson Technology Incorporated,
most recently as the President of the Disk Drive Components Division from April 2007 until March 2011. As President of the Disk
Drive Components Division, Ms. Skarvan managed a public company division with annual revenues in excess of $300 million. Ms. Skarvan
also served as a Senior Vice President of Hutchinson Technology Incorporated from December 2010 to March 2011, and as Vice President
of Sales &amp; Marketing of the Disk Drive Components Division from October 2003 until April 2007. Ms. Skarvan has a bachelor&rsquo;s
degree from St. Cloud State University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><B><I>Jeremy T. Brock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Mr. Brock joined Electromed
in August 2011 as controller and principal accounting officer and became the Company&rsquo;s Chief Financial Officer in October
2011. Prior to joining the Company, Mr. Brock spent five years with the CPA firm CliftonLarsonAllen LLP and focused on performing
and managing audit and tax engagements in the manufacturing, distribution and technology sectors. As a Certified Public Accountant,
Mr. Brock also has worked on strategic business planning, risk assessments, and the design and implementation of internal controls.
Mr. Brock brings additional management and leadership experience from serving in the United States Marine Corps from 1998 to 2002.
Mr. Brock has a bachelor&rsquo;s degree in accounting and finance from the University of Northern Iowa.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a026_v1"></A>Executive Compensation Components for Fiscal 2015</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We provide a compensation
package to our executive officers, including base salary, cash incentive compensation, certain perquisites and participation in
benefit arrangements that are generally available to all salaried employees, such as health and retirement plans. Historically,
we have also periodically awarded our executive officers with long-term equity incentive grants in the form of warrants or stock
options. Pursuant to their employment agreements, our executives are eligible to participate in any employee benefit plan that
provides opportunities to earn equity incentive compensation. Accordingly, our executives are eligible to participate in our equity
incentive plans and the Board may grant equity awards to the executives thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Base Salary</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">For fiscal 2015, our
Chief Executive Officer and Chief Financial Officer had base salaries of $216,993 and $155,000, respectively. Base salaries for
our executive officers are determined and paid on a fiscal-year basis and, for fiscal 2015, were established in each executive
officer&rsquo;s Amended and Restated Employment Agreement, both dated July 10, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In order to provide
its recommendations regarding base salaries, including the base salaries set forth in each executive officer&rsquo;s respective
employment agreement, the Personnel and Compensation Committee reviews individual performance and our operating results and considers
compensation data for medical device manufacturing companies located in the Midwest. The Personnel and Compensation Committee also
considers the Chief Executive Officer&rsquo;s recommendations as to compensation for the Company&rsquo;s other executive officer.
The Personnel and Compensation Committee uses a subjective process to set base salaries and does not specifically weight any factors.
Based upon the information reviewed by the Personnel and Compensation Committee, the Committee makes a recommendation with respect
to compensation for the Company&rsquo;s executive officers and the Board sets the compensation for each of the executive officers
based on the information and recommendation provided by the Personnel and Compensation Committee. The Chief Executive Officer is
not present during the Personnel and Compensation Committee&rsquo;s deliberations or voting on her compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Cash Incentive Compensation </I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Chief Executive
Officer and Chief Financial Officer were each eligible to earn cash incentive compensation for fiscal 2015 pursuant to the Fiscal
2015 Officer Bonus Plan established by the Personnel and Compensation Committee. So long as the minimum performance threshold was
exceeded, our Chief Executive Officer was eligible to receive cash incentive compensation in an amount equal to between 10% and
60% of her base salary depending upon actual performance against established goals and milestones related to financial and operational
performance. After evaluation of actual performance against the established goals, Ms. Skarvan received a cash incentive compensation
payment award of $97,647 for fiscal 2015 performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">So long as the minimum
performance threshold was exceeded, our Chief Financial Officer was eligible to receive cash incentive compensation in an amount
equal to between 7.5% and 45% of his base salary depending upon actual performance against established goals and milestones related
to financial and operational performance. After evaluation of actual performance against the established goals, Mr. Brock received
a cash incentive compensation payment award of $52,313 for fiscal 2015 performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Equity Incentive Compensation </I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our Board and its
Personnel and Compensation Committee believe that stock-based compensation promotes the creation of long-term shareholder value
and aligns the interests of our management with the interests of our shareholders by ensuring that a portion of their total compensation
is at risk and changes in value with the value of our securities. As employees of our company, each of our named executive officers
was previously eligible to receive equity compensation pursuant to our 2012 Stock Incentive Plan (the &ldquo;2012 Plan&rdquo;)
and, after its ratification by our shareholders in November 2014, are eligible to receive equity compensation pursuant to our 2014
Equity Incentive Plan (the &ldquo;2014 Plan&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">During fiscal 2015,
we granted options to purchase our common stock to our Chief Executive Officer and Chief Financial Officer. In accordance with
the terms of her employment agreement, we awarded Ms. Skarvan options to purchase 50,000 shares of our common stock pursuant to
the 2012 Plan on July 10<SUP>th</SUP> 2014. In accordance with the terms of his employment agreement, we awarded Mr. Brock options
to purchase 30,000 shares of the Company&rsquo;s common stock pursuant to the 2012 Plan on July 10<SUP>th</SUP>, 2014. Each of
the foregoing options have an exercise price of $1.40 per share, expire after 10 years, and are scheduled to vest in substantially
equal amounts on the last day of each of the Company&rsquo;s fiscal years ending June 30, 2015, 2016 and 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Perquisites and Other Benefits</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We believe that providing
perquisites to our executive officers is beneficial because it improves our ability to retain qualified leaders and is consistent
with the practice of similarly-sized companies in our industry. Our executive officers are eligible to participate in our group
health, disability and life insurance plans and receive matching contributions to a 401(k) plan, which are benefits that are generally
available to all of our full time employees. The goal of these programs is to promote health and welfare benefits. In addition,
the employment agreements executed by our Chief Executive Officer and our Chief Financial Officer provide for monthly automobile
allowances on behalf of such officers, and our employment agreement with our Chief Executive Officer provides for a monthly housing
allowance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a027_v1"></A>Compensation Actions for Fiscal 2016</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In July 2015, the
base salaries of our President and Chief Executive Officer and our Chief Financial Officer were increased for the fiscal year ending
June 30, 2016 (&ldquo;fiscal 2016&rdquo;) to $237,600 and $170,600, respectively. The composition of the equity compensation to
our executive officers was also modified such that one-third is now represented by restricted stock awards and the remaining two-thirds
remains represented by options to purchase shares of the Company&rsquo;s common stock. All of these equity awards are scheduled
to vest in three substantially equal increments at the end of each of the following three fiscal years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In August 2015, the
Personnel and Compensation Committee established the Fiscal Year 2016 Officer Bonus Plan (the &ldquo;Officer Bonus Plan&rdquo;)
for officers of our company, including the named executive officers. The Officer Bonus Plan is effective for fiscal 2016 and provides
an opportunity for each participant to earn an annual cash bonus, 50% of which will be based on the achievement of target earnings
before taxes and 50% of which will be based on two strategic initiatives supporting long-term growth and profitability. If minimum
earnings before taxes are achieved, then Ms. Skarvan and Mr. Brock would be eligible to receive a bonus equal to 12.50% and 7.50%,
respectively, of their annual base salary. If target earnings before taxes are achieved, then Ms. Skarvan and Mr. Brock would be
eligible to receive a bonus equal to 25.00% and 15.00%, respectively, of their annual base salary. Thirty percent of any earnings
before taxes exceeding the target will be allocated to a bonus pool for all bonus-eligible employees and allocated among the bonus-eligible
employees pro rata based on his or her targeted bonus payout. Depending on achievement of the strategic initiatives, each of the
named executive officers would be eligible to receive an additional bonus amount equal to between 6.25% and 37.50% of annual base
salary with respect to Ms. Skarvan and between 3.75% and 22.50% of annual base salary with respect to Mr. Brock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a028_v1"></A>Employment Agreements</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Chief Executive Officer</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Effective July 1,
2014, we entered into an Amended and Restated Employment Agreement with Ms. Skarvan (the &ldquo;Skarvan Employment Agreement&rdquo;).
The Skarvan Employment Agreement amends and restates the prior Employment Agreement between the Company and Ms. Skarvan, effective
December 1, 2012, as amended July 1, 2013. The Skarvan Employment Agreement provides for a renewed term of employment, commencing
July 1, 2014 and continuing through June 30, 2016, automatically renewing for successive one-year periods, unless terminated earlier
in accordance with its terms. The Skarvan Employment Agreement established an annualized base salary of $216,993 for Ms. Skarvan,
which is subject to annual review and increase by the Board. Such increases in the base salary are to be negotiated in good faith
and shall not be less than 0.0333 of her then-current base salary upon completion of one year of service, subject to approval by
the Board following review of the Company&rsquo;s progress toward meeting performance goals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">For fiscal 2015 and
fiscal 2016, Ms. Skarvan is entitled to be eligible to receive a bonus in a maximum aggregate amount of 40% of her base salary
if she achieves the goals and milestones set forth in the applicable bonus plan implemented for each fiscal year. Notwithstanding
this provision, the Board and its Personnel and Compensation Committee used 40% as the target bonus amount for Ms. Skarvan&rsquo;s
total bonus eligibility under the Fiscal 2015 Officer Bonus Plan and have established 50% as the target bonus amount for her total
bonus eligibility under the Fiscal 2016 Officer Bonus Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Skarvan Employment
Agreement may be terminated at any time by either party. If the Skarvan Employment Agreement is terminated by the Company without
cause or by Ms. Skarvan for good reason (as both are defined in the Employment Agreement), the Company may be required to pay severance
to Ms. Skarvan in a lump sum equal to one year of her then-current base salary. If the Skarvan Employment Agreement is terminated
by Ms. Skarvan within six months following a change in control (as defined in the Skarvan Employment Agreement), the Company may
be required to pay severance to Ms. Skarvan in a lump sum equal to one year of her then-current base salary. Any severance paid
to Ms. Skarvan will be paid in exchange for Ms. Skarvan&rsquo;s release of claims against the Company and her compliance with the
separate Non-Competition, Non-Solicitation, and Confidentiality Agreement between Ms. Skarvan and the Company, dated December 1,
2012, which provides that Ms. Skarvan will not, during the term
of her employment and for the 12 months following her termination with the Company, (i) compete with the Company or (ii) solicit
any customers, employees, or business contacts of the Company.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Chief Financial Officer </I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Effective July 1,
2014, we entered into an Amended and Restated Employment Agreement with Mr. Brock (the &ldquo;Brock Employment Agreement&rdquo;).
The Brock Employment Agreement amends and restates the prior Employment Agreement between the Company and Mr. Brock, effective
December 1, 2012, as amended July 1, 2013. The Brock Employment Agreement provides for a renewed term of employment, commencing
July 1, 2014 and continuing through June 30, 2016, automatically renewing for successive one-year periods, unless terminated earlier
in accordance with its terms. The Brock Employment Agreement established an annualized base salary of $155,000 for Mr. Brock, which
is subject to annual review and increase by the Board. Such increases in the base salary are to be negotiated in good faith and
shall not be less than 0.0333 of his then-current base salary upon completion of one year of service, subject to approval by the
Board following review of the Company&rsquo;s progress toward meeting performance goals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">For fiscal 2015 and
fiscal 2016, Mr. Brock is entitled to be eligible to receive a bonus in a maximum aggregate amount of 30% of his base salary if
he achieves the goals and milestones set forth in the applicable bonus plan implemented for each fiscal year. Notwithstanding this
provision, the Board and its Personnel and Compensation Committee have used 30% as the target bonus amount for Mr. Brock&rsquo;s
total bonus eligibility under the Fiscal 2015 and Fiscal 2016 Officer Bonus Plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Brock Employment
Agreement may be terminated at any time by either party. If the Brock Employment Agreement is terminated by the Company without
cause or by Mr. Brock for good reason (as both are defined in the Employment Agreement), the Company may be required to pay severance
to Mr. Brock in a lump sum equal to one year of his then-current base salary. If the Brock Employment Agreement is terminated by
Mr. Brock within six months following a change in control (as defined in the Brock Employment Agreement), the Company may be required
to pay severance to Mr. Brock in a lump sum equal to one year of his then-current base salary. Any severance paid to Mr. Brock
will be paid in exchange for Mr. Brock&rsquo;s release of claims against the Company and his compliance with the separate Non-Competition,
Non-Solicitation, and Confidentiality Agreement between Mr. Brock and the Company, dated October 18, 2011, which provides that
Mr. Brock will not, during the term of his employment and for the 12 months following his termination with the Company, (i) compete
with the Company or (ii) solicit any customers, employees, or business contacts of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>


<P STYLE="margin: 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a029_v1"></A>Summary Compensation Table for Fiscal 2015</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The following table
provides information regarding the compensation earned during fiscal 2015 and fiscal 2014 by our named executive officers:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; width: 30%; border-bottom: Black 1px solid; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Name
    and <BR>
principal position</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 10%; border-bottom: Black 1px solid; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Fiscal
    <BR>
Year</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 10%; border-bottom: Black 1px solid; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Salary</B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>($)<SUP>(a)</SUP></B></FONT></FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 11%; border-bottom: Black 1px solid; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Option
    <BR>
awards</B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>($)<SUP>(b)</SUP></B></FONT></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 12%; border-bottom: Black 1px solid; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Non-equity
    </B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>incentive plan </B></FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>compensation </B></FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>($)<SUP>(c)</SUP></B></FONT></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 11%; border-bottom: Black 1px solid; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>All
    other </B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>compensation</B></FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>($)</B></FONT></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 10%; border-bottom: Black 1px solid; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Total</B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>($)</B></FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #D6F3E8">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Kathleen S. Skarvan</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2015</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">216,993</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">47,468</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">97,647</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">16,410<SUP>(d)</SUP></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">378,518</FONT></TD></TR>
<TR STYLE="vertical-align: top;background-color: White">
<TD STYLE="padding-left: 8.65pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>President and Chief Executive Officer</I></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2014</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">210,000</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">13,185</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">16,188<SUP>(e)</SUP></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">239,373</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #D6F3E8">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Jeremy T. Brock</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2015</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">155,000</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">28,481</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">52,313</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">11,193<SUP>(f)</SUP></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">246,987</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 8.65pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>Chief Financial Officer </I></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2014</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">150,000</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">8,790</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10,992<SUP>(g)</SUP></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">169,782</FONT></TD></TR>
</TABLE>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1px solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(a)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Amounts
                                         shown are not reduced to reflect the named executive officers&rsquo; elections, if any,
                                         to contribute portions of their salaries to 401(k) plans.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify; text-indent: -13.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(b)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">The values of
                                         option awards in this table represent the fair value of such awards granted during the
                                         fiscal year, as computed in accordance with FASB ASC 718 (formerly FAS 123(R)). The assumptions
                                         used to determine the valuation of the awards are discussed in Note 7 to our consolidated
                                         financial statements, included in the Company&rsquo;s Annual Report on Form 10-K for
                                         the 2015 fiscal year, filed with the SEC on September 15, 2015.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify; text-indent: -13.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(c)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Represents payments
                                         made under the Fiscal 2015 Officer Bonus Plan. See the discussion under &ldquo;Executive
                                         Compensation Components for Fiscal 2015 &mdash; Cash Incentive Compensation&rdquo; above.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify; text-indent: -13.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(d)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Includes a Company match of $6,810 to Ms.
                                         Skarvan&rsquo;s 401(k) plan.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify; text-indent: -13.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(e)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Includes a Company match of $6,588 to Ms.
                                         Skarvan&rsquo;s 401(k) plan.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify; text-indent: -13.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(f)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Includes a Company match of $6,393 to Mr.
                                         Brock&rsquo;s 401(k) plan.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify; text-indent: -13.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(g)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Includes a Company
                                         match of $6,192 to Mr. Brock&rsquo;s 401(k) plan.</FONT></TD>
</TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="a153310a030_v1"></A>Outstanding Equity Awards at June 30, 2014</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The following table
sets forth certain information regarding equity awards granted to our named executive officers outstanding as of June 30, 2015:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="14" STYLE="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Option
    Awards</B></FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: Black 1px solid; font-family: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt"><B>Name</B></FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Number
    of securities </B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>underlying unexercised</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>options</B></FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(# Exercisable)</B></FONT></FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Number
    of securities </B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>underlying unexercised </B></FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>options</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(#
    Unexercisable)</B></FONT></FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Option
    exercise price</B></FONT><FONT STYLE="font-size: 8pt"><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>($)</B></FONT></FONT></TD><TD STYLE="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Option
    expiration date</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(214,243,232)">
    <TD STYLE="width: 35%; font-family: Times New Roman, Times, Serif; text-align: left">Kathleen S. Skarvan</TD><TD STYLE="width: 2%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; font-family: Times New Roman, Times, Serif; text-align: right">20,000</TD><TD STYLE="width: 5%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font-family: Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="width: 6%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 13%; font-family: Times New Roman, Times, Serif; text-align: center">1.75</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 13%; font-family: Times New Roman, Times, Serif; text-align: center">12/02/2022</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">10,000</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">5,000</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left"><SUP>(a)</SUP></TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center">1.31</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center">06/30/2023</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(214,243,232)">
    <TD>&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">16,667</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">33,333</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left"><SUP>(b)</SUP></TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center">1.40</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center">06/30/2024</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(214,243,232)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">Jeremy T. Brock</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">18,000</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center">2.53</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center">05/29/2022</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">20,000</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center">1.59</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center">11/14/2022</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(214,243,232)">
    <TD>&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">6,666</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">3,334</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left"><SUP>(c)</SUP></TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center">1.31</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center">06/30/2023</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">10,000</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">20,000</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left"><SUP>(d)</SUP></TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center">1.40</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center">06/30/2024</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(a)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Scheduled to vest with respect to 5,000 shares
                                         on June 30, 2016.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-indent: -13.5pt"></P>

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<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(b)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Scheduled to vest with respect to 16,667
                                         shares on June 30, 2016 and 16,666 shares on June 30, 2017.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-indent: -13.5pt"></P>

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<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(c)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Scheduled to vest with respect to 3,334 shares
                                         on June 30, 2016.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-indent: -13.5pt"></P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(d)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Scheduled to
                                         vest with respect to 10,000 shares on each of June 30, 2016 and 2017.</FONT></TD>
</TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

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    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a153310a031_v1"></A>DIRECTOR COMPENSATION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In fiscal 2015, each
non-employee director was paid $1,000 for each Board meeting the director attended and the members of the Audit, Personnel and
Compensation, and Nominating and Governance Committees were paid a $1,000 retainer for service in the first fiscal quarter and
a $500 retainer for the second, third and fourth fiscal quarters. Compensation for Board and committee members is expected to be
re-evaluated in connection with a re-determination of committee composition following the Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">During fiscal 2015,
the Board, upon recommendation of its Personnel and Compensation Committee, determined that each non-employee director will receive
an annual grant of restricted stock as a component of his or her compensation for service as a director of the Company. Accordingly,
each non-employee director received a grant of 3,921 shares of restricted stock pursuant to the 2014 Plan on December 5, 2014.
Future restricted stock awards are expected to be granted to non-employee directors on or about the date of the applicable year&rsquo;s
annual meeting of shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The following table
provides information regarding compensation paid to and earned by non-employee directors during fiscal 2015:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1px solid"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Non-Employee Director</B></FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1px solid"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Stock
    Awards</B></FONT><FONT STYLE="font-size: 8pt"><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>($)<SUP>(a)</SUP></B></FONT></FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1px solid"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Fees
    Earned or<BR>
 Paid in Cash</B></FONT><FONT STYLE="font-size: 8pt"><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>($)</B></FONT></FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1px solid"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Total</B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>($)</B></FONT></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #D6F3E8">
    <TD STYLE="width: 55%; text-align: left">Stephen H. Craney&#9;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">9,999</TD><TD STYLE="width: 5%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">9,000</TD><TD STYLE="width: 5%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">18,999</TD><TD STYLE="width: 5%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">William V. Eckles&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,999</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,999</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #D6F3E8">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Stan K. Erickson <SUP>(b)</SUP>&#9;</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,999</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,499</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Darrel L. Kloeckner <SUP>(c)</SUP>&#9;</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #D6F3E8">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Lee A. Jones <SUP>(d)</SUP>&#9;</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,999</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,999</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">George H. Winn, DDS&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,999</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,499</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(a)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">The
                                         amounts shown in this column represent the grant-date fair value of restricted stock
                                         awards computed in accordance with FASB ASC Topic 718. See Note 7, Share-Based Payments,
                                         to our audited financial statements included in our Annual Report on Form 10-K for fiscal
                                         2015 for a description of our accounting for these awards and the assumptions used in
                                         valuing the awards. All of these shares were eligible to receive dividends paid on our
                                         common stock while restricted and vested six months after the date of grant.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify; text-indent: -13.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(b)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Mr. Erickson became a director on November
                                         21, 2014.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify; text-indent: -13.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(c)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Mr. Kloeckner ceased service as a director
                                         on November 21, 2014.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify; text-indent: -13.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(d)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Ms. Jones became
                                         a director on August 26, 2014.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify; text-indent: -13.5pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a153310a032_v1"></A>EQUITY COMPENSATION PLAN INFORMATION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The following table
provides information concerning equity compensation arrangements as of June 30, 2015:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 1px solid; padding-left: 8.65pt; text-indent: -8.65pt"><FONT STYLE="font-size: 8pt">Plan Category</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1px solid"><FONT STYLE="font-size: 8pt">Number
    of securities to be <BR>
    issued upon exercise of <BR>
    outstanding options, <BR>
    warrants and rights</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; border-bottom: Black 1px solid"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Weighted-average</B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>exercise price of outstanding </B></FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>options, warrants and rights</B></FONT></FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1px solid"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Number
    of securities </B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>remaining available for </B></FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>future issuance under equity </B></FONT><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>compensation plans</B></FONT></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #D6F3E8">
    <TD STYLE="width: 31%; text-align: left; text-indent: -8.65pt; padding-left: 8.65pt">Equity compensation plans approved by security holders</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 13%; text-align: right">163,000</TD><TD STYLE="width: 7%; text-align: left"><SUP>(a)</SUP></TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 21%; text-align: center">$1.58 per share</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 13%; text-align: right">630,395</TD><TD STYLE="width: 7%; text-align: left"><SUP>(b)</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -8.65pt; padding-left: 8.65pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Equity compensation plans not approved by security holders<SUP>(c)</SUP></FONT></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1px solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1px solid; text-align: right">331,900</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-bottom: Black 1px solid">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt">$3.03 per share</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">N/A</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #D6F3E8">
    <TD STYLE="text-indent: -8.65pt; padding-left: 8.65pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Total</B></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">494,900</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">$2.55 per share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">N/A</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify; text-indent: -13.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(a)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Consists of shares underlying equity awards
                                         issued pursuant to the 2012 and 2014 Plans.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-indent: -13.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: left">(<FONT STYLE="font-size: 8pt">b)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Consists of shares available for future awards
                                         under the 2014 Plan. Upon shareholder approval of the 2014 Plans the Board determined
                                         no further awards will be issued under the 2012 Plan.</FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-indent: -13.5pt"></P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 8pt">(c)</FONT></TD><TD><FONT STYLE="font-size: 8pt">Consists of shares
                                         underlying equity awards and warrants issued prior to our initial public offering.</FONT></TD>
</TR></TABLE>



<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a153310a033_v1"></A>CERTAIN TRANSACTIONS AND BUSINESS RELATIONSHIPS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Pursuant to its charter,
our Audit Committee is responsible for reviewing and approving in advance any related party transaction, which consists of any
transaction or series of transactions that occur during a fiscal year for which:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: left">the amounts involved exceeded the lesser of $120,000 or one percent of the average of our total assets
at the end of the applicable fiscal year; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: left">a director, executive officer, beneficial owner of more than 5% of any class of our voting securities
or any member of their immediate family had or will have a direct or indirect material interest.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In determining whether
to approve or ratify a related party transaction, the Audit Committee considers all of the relevant facts and circumstances available
to it, including, among any other factors it deems appropriate: (i) the benefits to the Company of the transaction; (ii) the nature
of the related party&rsquo;s interest in the transaction; (iii) whether the transaction would impair the judgment of a director
or executive officer to act in the best interests of the Company and our shareholders; (iv) the potential impact of the transaction
on a director&rsquo;s independence; and (v) whether the transaction is on terms no less favorable than terms generally available
to an unrelated third party under the same or similar circumstances. If a member of the Audit Committee is a related party with
respect to a transaction under review, he or she abstains from voting on the approval of the transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Company purchases
electronic parts from RiverSide Electronics, Ltd. (&ldquo;RiverSide&rdquo;), an entity which is solely owned by Stephen H. Craney,
a director. During fiscal 2014 the Company made payments to RiverSide of approximately $237,000. During fiscal 2015, the amount
of such payments was less than $120,000. The Audit Committee has determined that the terms of its transactions with RiverSide are
consistent with what could be obtained in an arm&rsquo;s length transaction with an unrelated party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Since the beginning
of fiscal 2014, there have been no other related party transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a153310a034_v1"></A>OTHER MATTERS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Board knows of
no other matters which may be brought before the Annual Meeting. If any other matters are presented at the meeting on which a vote
may properly be taken, the persons named as proxy holders in the enclosed proxy card will vote thereon in accordance with their
best judgment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a153310a035_v1"></A>ADDITIONAL INFORMATION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Our annual report
on Form 10-K for fiscal 2015, as filed with the SEC, is available on the SEC&rsquo;s Internet site, www.sec.gov, and our corporate
website, www.electromed.com, under &ldquo;Investor Relations.&rdquo; A copy of the Annual Report will be sent to any shareholder
without charge upon written request addressed to the attention of our Chief Executive Officer at 500 Sixth Avenue Northwest, New
Prague, Minnesota 56071. Additional copies of the annual report on Form 10-K, this proxy statement and the accompanying form of
proxy may be obtained from our Chief Executive Officer, at the address above. Copies of exhibits to the annual report on Form 10-K
may be obtained upon payment to us of the reasonable expense incurred in providing such exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>






<BR>

<div style="position:relative; float:left; width:45%">
<BR><BR><BR>
<DIV style="margin-left:10%"><FONT STYLE="font: x-small ARIAL"><B><I>ELECTROMED, INC. </I></B></FONT><BR><FONT STYLE="font: x-small ARIAL"><B><I>500
SIXTH AVENUE NW </I></B></FONT><BR><FONT STYLE="font: x-small ARIAL"><B><I>NEW PRAGUE, MN 56071</I></B></FONT></DIV>
</div>

<div style="position:relative; float:right; width:42%; margin-right:4%">

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt"><B>VOTE BY INTERNET - <U>www.proxyvote.com</U></B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">Use the Internet
to transmit your voting instructions and for electronic delivery of information up until 11:59 p.m. Eastern Time the day before
the cut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain
your records and to create an electronic voting instruction form.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt"><B>ELECTRONIC DELIVERY OF FUTURE
PROXY MATERIALS</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">If you would
like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements,
proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the
instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials
electronically in future years.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt"><B>VOTE BY PHONE - 1-800-690-6903</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">Use any touch-tone
telephone to transmit your voting instructions up until 11:59 p.m. Eastern Time the day before the cut-off date or meeting date.
Have your proxy card in hand when you call and then follow the instructions.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt"><B>VOTE BY MAIL</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">Mark, sign
and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge,
51 Mercedes Way, Edgewood, NY 11717.</FONT></P>
</div>

<BR clear=all><BR><BR><BR><BR><BR><BR><BR><BR><BR>

<div><FONT SIZE=1 FACE=ARIAL >TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:</FONT></div>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
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<P><FONT SIZE=1 FACE=ARIAL >&nbsp;</FONT></P>
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<P><FONT SIZE=1 FACE=ARIAL >M96681-P69794</FONT></P>
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<P align=right><FONT SIZE=1 FACE=ARIAL >KEEP THIS PORTION FOR YOUR RECORDS&nbsp;</FONT></P>
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<P align=right><FONT SIZE=1 FACE=ARIAL >DETACH AND RETURN THIS PORTION ONLY&nbsp;</FONT></P>
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<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL   ><B>THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.</B></FONT></P>
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<P><FONT SIZE=1 FACE=ARIAL ><B>ELECTROMED, INC.</B></FONT></P>
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<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL  ><B>For</B></FONT></P>
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<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL  ><B>Withhold</B></FONT></P>
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<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL  ><B>For All</B></FONT></P>
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<P align=justify><FONT SIZE=1 FACE=ARIAL >To withhold authority to vote for any individual nominee(s), mark &#147;For All Except&#148; and write the number(s) of the
nominee(s) on the line below.</FONT></P>
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<P align=justify><FONT  SIZE="1" FACE=ARIAL><B>The Board of Directors recommends you vote FOR the following:</B> </FONT> </P>
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<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL  ><B>All</B></FONT></P>
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<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL  ><B>All</B></FONT></P>
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<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL  ><B>Except</B></FONT></P>
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<P><FONT SIZE=1 FACE=ARIAL>1.</FONT></P>
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<TD VALIGN=TOP COLSPAN=3>
<P><FONT SIZE=1 FACE=ARIAL>Election of Directors</FONT></P>
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<P ALIGN=CENTER><FONT SIZE=2  FACE=WINGDINGS>o</FONT></P>
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<P ALIGN=CENTER><FONT SIZE=2  FACE=WINGDINGS>o</FONT></P>
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<P ALIGN=CENTER><FONT SIZE=2  FACE=WINGDINGS>o</FONT></P>
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<P><FONT SIZE=1 FACE=ARIAL >&nbsp;</FONT></P>
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<P ALIGN="JUSTIFY"><FONT SIZE=1 FACE=ARIAL><B>Nominees:</B> </FONT></P>
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<TD VALIGN=TOP COLSPAN=2>
<P><FONT SIZE=1 FACE=ARIAL >01)&nbsp;&nbsp;&nbsp;Stephen H. Craney</FONT></P>
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<TD VALIGN="TOP" COLSPAN="3"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">04)&nbsp;&nbsp;&nbsp;Lee A. Jones</FONT></TD>
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<TD VALIGN=TOP COLSPAN=2>
<P><FONT SIZE=1 FACE=ARIAL >02)&nbsp;&nbsp;&nbsp;William V. Eckles</FONT></P>
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<TD VALIGN="TOP" COLSPAN="11"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">05)&nbsp;&nbsp;&nbsp;Kathleen S. Skarvan</FONT></TD>
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<TD VALIGN=TOP COLSPAN=2>
<P><FONT SIZE=1 FACE=ARIAL >03)&nbsp;&nbsp;&nbsp;Stan K. Erickson</FONT></P>
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<TD VALIGN="TOP" COLSPAN="3"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">06)&nbsp;&nbsp;&nbsp;George H. Winn</FONT></TD>
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<TD VALIGN=TOP COLSPAN=8>
<P><FONT SIZE=1 FACE=ARIAL><B>The Board of Directors recommends you vote FOR proposals 2 and 3.</B> </FONT></P>
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<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL  ><B>For</B></FONT></P>
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<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL  ><B>Against</B></FONT></P>
</TD>
<TD VALIGN=TOP colspan=2>
<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL  ><B>Abstain</B></FONT></P>
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<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL >2.</FONT></P>
</TD>

<TD COLSPAN="9" VALIGN=TOP>
<P ALIGN="JUSTIFY"><FONT SIZE=1 FACE=ARIAL >To ratify appointment of McGladrey LLP as our independent registered public accounting firm.</FONT></P>
</TD>

<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P ALIGN=CENTER><FONT SIZE=2  FACE=WINGDINGS>o</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P ALIGN=CENTER><FONT SIZE=2  FACE=WINGDINGS>o</FONT></P>
</TD>
<TD VALIGN=TOP colspan=2>
<P ALIGN=CENTER><FONT SIZE=2  FACE=WINGDINGS>o</FONT></P>
</TD>

</TR>
<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="6" VALIGN=TOP>
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: bottom">
<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: bottom">
<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: bottom">
<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL >3.</FONT></P>
</TD>

<TD COLSPAN="9" VALIGN=TOP>
<P ALIGN="JUSTIFY"><FONT SIZE=1 FACE=ARIAL >To approve on a non-binding and advisory basis, our executive compensation.</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P ALIGN=CENTER><FONT SIZE=2  FACE=WINGDINGS>o</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P ALIGN=CENTER><FONT SIZE=2  FACE=WINGDINGS>o</FONT></P>
</TD>
<TD VALIGN=TOP colspan=2>
<P ALIGN=CENTER><FONT SIZE=2  FACE=WINGDINGS>o</FONT></P>
</TD>

</TR>
<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
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</TD>
<TD COLSPAN="8" VALIGN=TOP>
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: bottom">
<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: bottom">
<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: bottom">
<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD VALIGN="TOP" COLSPAN="10"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>NOTE:</B> Such other business as may properly
come before the meeting or any adjournment thereof.</FONT></TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD STYLE="vertical-align: top">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD VALIGN=TOP colspan=2>
<P ALIGN=CENTER>&nbsp;</P>
</TD>

</TR>
<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="8" VALIGN=TOP>
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
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</TD>
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</TD>
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<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL >&nbsp;</FONT></P>
</TD>

<TD COLSPAN="9" VALIGN=TOP>
<P ALIGN="JUSTIFY"><FONT SIZE=1 FACE=ARIAL >&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD STYLE="vertical-align: top">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD VALIGN=TOP colspan=2>
<P ALIGN=CENTER>&nbsp;</P>
</TD>

</TR>
<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
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</TD>
<TD COLSPAN="8" VALIGN=TOP>
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</TD>
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</TD>
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</TD>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL >&nbsp;</FONT></P>
</TD>

<TD COLSPAN="9" VALIGN=TOP>
<P ALIGN="JUSTIFY"><FONT SIZE=1 FACE=ARIAL >&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD STYLE="vertical-align: top">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD VALIGN=TOP colspan=2>
<P ALIGN=CENTER>&nbsp;</P>
</TD>

</TR>
<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="8" VALIGN=TOP>
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: bottom">
<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: bottom">
<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
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<P ALIGN=CENTER><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL >&nbsp;</FONT></P>
</TD>

<TD COLSPAN="9" VALIGN=TOP>
<P ALIGN="JUSTIFY"><FONT SIZE=1 FACE=ARIAL >&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: bottom">
<P ALIGN=CENTER><FONT SIZE=2 >&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: bottom">
<P ALIGN=CENTER><FONT SIZE=2 >&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM colspan=2>
<P ALIGN=CENTER><FONT SIZE=2 >&nbsp;</FONT></P>
</TD>

</TR>


<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
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</TD>
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<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="10" VALIGN=TOP>
<P ALIGN="JUSTIFY"><FONT SIZE=1 FACE=ARIAL >&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="7" VALIGN=TOP>
<P ALIGN="JUSTIFY"><FONT SIZE=1 FACE=ARIAL >&nbsp;</FONT></P>
</TD>

<TD STYLE="vertical-align: top">
<P ALIGN=CENTER><FONT SIZE=2>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
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</TD>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
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<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="8" VALIGN=TOP>
<P ALIGN="JUSTIFY"><FONT SIZE=1 FACE=ARIAL>Please
sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give
full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign
in full corporate or partnership name by authorized officer.</FONT></P>
</TD>

<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
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</TD>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
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<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
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</TD>
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<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top; border-top: black 1px solid; border-bottom: black 1px solid; border-left: black 1px solid">
<P><FONT SIZE=1 FACE=ARIAL><BR><BR></FONT></P>
</TD>
<TD STYLE="vertical-align: top; border-top: black 1px solid; border-bottom: black 1px solid">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top; border-top: black 1px solid; border-bottom: black 1px solid">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top; border-top: black 1px solid; border-bottom: black 1px solid">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP  COLSPAN="2" style="border:solid black 1px">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>

<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top; border-top: black 1px solid; border-bottom: black 1px solid; border-left: black 1px solid">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP colspan=2 style="border:solid black 1px">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>

<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=1 FACE=ARIAL >Signature [PLEASE SIGN WITHIN
 BOX]</FONT></P>
</TD>

<TD VALIGN=TOP COLSPAN="2">
<P><FONT SIZE=1 FACE=ARIAL >Date</FONT></P>
</TD>


<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL >Signature (Joint Owners) </FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1 FACE=ARIAL >Date</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
<TD STYLE="vertical-align: top">
<P><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

</div>

<P STYLE="text-align: center"><FONT STYLE="font: x-small ARIAL"></FONT></P>

<!-- Field: Page; Sequence: 1; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gray 3pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page --><P style="margin: 3pt 0pt; font-size:10pt"><A HREF="#toc">Table of Contents</A></P>

<P STYLE="text-align: center"><FONT STYLE="font: x-small ARIAL">&nbsp;<BR>
<BR>
<BR>
<BR>
</FONT></P>



<P ALIGN=CENTER><B><FONT SIZE=2 FACE=ARIAL>Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:</FONT></B><FONT SIZE=2 FACE=ARIAL><BR>The Annual Report on Form 10-K, Notice and Proxy Statement, and Shareholder Letter are available <BR>
at www.proxyvote.com.</FONT></P>
<BR><BR><BR><BR><BR><BR><BR><BR><BR>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR STYLE="FONT-SIZE:1PX">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR STYLE="FONT-SIZE:1 PX">
<TD VALIGN=TOP STYLE="BORDER-BOTTOM:DASHED BLACK 2PX">&nbsp;

</TD>
</TR>
<TR>
<TD STYLE="vertical-align: top; padding-top: 6pt">
<P ALIGN=RIGHT><FONT SIZE=1 FACE=ARIAL>M96682-P69794</FONT></P>
</TD>
</TR>
<TR STYLE="FONT-SIZE:6PX">
<TD VALIGN=TOP>
&nbsp;
</TD>
</TR>

</TABLE>


<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" STYLE="BORDER:SOLID BLACK 2PX">
<TR STYLE="FONT-SIZE:1PX">
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="94%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3 FACE=ARIAL><B>ELECTROMED, INC.
<BR>
Annual Meeting of Shareholders
<BR>
November 13, 2015 10:00 AM
<BR>
This proxy is solicited by the Board of Directors</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT SIZE=2 FACE=ARIAL>The shareholder(s) hereby appoint(s) Stephen H. Craney and Kathleen S. Skarvan, or either of them, as proxies,
each with the power to appoint his/her substitute, and hereby authorize(s) them to represent and to vote, as
designated on the reverse side of this ballot, all of the shares of Common Stock of ELECTROMED, INC. that
the shareholder(s) is/are entitled to vote at the Annual Meeting of Shareholders to be held at 10:00 AM, CST
on November 13, 2015 at 628 Sixth Street North West, New Prague, MN 56071, and any adjournment or
postponement thereof. </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT SIZE=2 FACE=ARIAL><B>This proxy, when properly executed, will be voted in the manner directed herein. If no such direction
is made, this proxy will be voted in accordance with the Board of Directors&rsquo; recommendations.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD STYLE="vertical-align: top">&nbsp;</TD>
<TD STYLE="vertical-align: top">&nbsp;</TD>
<TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
<TD STYLE="vertical-align: top">&nbsp;</TD>
<TD STYLE="vertical-align: top">&nbsp;</TD>
<TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
<TD STYLE="vertical-align: top">&nbsp;</TD>
<TD STYLE="vertical-align: top">&nbsp;</TD>
<TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
<TD STYLE="vertical-align: top">&nbsp;</TD>
<TD STYLE="vertical-align: top">&nbsp;</TD>
<TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
<TD COLSPAN=2 VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2 FACE=ARIAL><B>Continued and to be signed on reverse side</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN=2 VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P STYLE="text-align: center"></P>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
