|   | (a) | this      Agreement executed by the Investor;and |
|--------|-----|--------------------------------------------------|

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| (b)   | the      purchase price for the Units by wire transfer to the following      account: |
|-----------------|---------------------------------------------------------------------------------------|

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|   | (a) | The      Investor has received and reviewed the following (the “PHT      Documents”): |
|--------|-----|---------------------------------------------------------------------------------------------------|

| 1.   | Letter      dated May 19, 2008, describing terms of the Offering and certain risk      factors; |
|----------------|-------------------------------------------------------------------------------------------------|

| 2.   | This      Agreement and the form of Note and Warrants attached hereto;      and |
|----------------|---------------------------------------------------------------------------------|

| 3.   | PHT’s      Form 10-KSB for the year ended December 31,  2007. |
|----------------|---------------------------------------------------------------------|

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|   | (b) | The      Investor or Investor's designated representatives have concluded a      satisfactory due diligence investigation of PHT and have had an      opportunity to review the PHT Documents and to have all of their questions      related thereto satisfactorilyanswered. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The      Investor acknowledges that the Notes and Warrants included in the Units      (and Warrant Shares) are speculative and involve a high degree of risk and      the Investor represents that it is able to sustain the loss of the entire      amount of its investment. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The      Investor (or its members and/or officers) has previously invested in      unregistered securities and has sufficient financial and investing      expertise to evaluate and understand the risks of the Notes and Warrants      included in the Units (and WarrantShares). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | The      Investor has received from PHT, and is relying on, no representations or      projections with respect to PHT's business and prospects except as set      forth in this Agreement and the PHTDocuments. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | The      Investor is an "accredited investor" within the meaning of Regulation D      under the Securities Act. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (g) | The      Investor is acquiring the Units (and Warrant Shares) for investment      purposes only without intent to distribute the same, and acknowledges that      the Units (and Warrant Shares) have not been registered under the      Securities Act and applicable state or other securities laws, and      accordingly, constitute "restricted securities" for purposes of the      Securities Act and such state or other securities  laws. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h | The Investor acknowledges that it will not be      able to transfer the Units (and Warrant Shares) except upon compliance      with the registration requirements of the Securities Act and applicable      state or other securities laws or exemptions  therefrom. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | RELEASE      OF DAWSON JAMES SECURITIES LIABILITY.  In order to induce Dawson      James Securities to make the introduction of the Investor to PHT and in      view of the investment by the Investor, the Investor does hereby      IRREVOCABLY AND UNCONDITIONALLY RELEASE, REMISE AND FOREVER DISCHARGE      Dawson James Securities and its affiliates and each and any of their      respective shareholders, officers, directors, “controlling persons”,      employees, registered representatives, independent contractors, heirs,      executors, administrators, successors in interest and assigns from and      against any and all agreements, promises, liabilities, claims and demands      of any kind whatsoever, in law or equity, whether known or unknown,      suspected or unsuspected, fixed or contingent, apparent or concealed      (collectively a “Claim”), which the Investor, the Investor’s heirs,      executors, administrators, successors or assigns ever had, now have or      hereafter can, shall, or may have, for, upon, or by reason of any matter,      cause or thing whatsoever existing, arising or occurring, directly or      indirectly, out of the Offering or the Investor’s    investment. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (j) | The      certificates and/or instruments evidencing the Notes and Warrants included      in the Units (and Warrant Shares) will contain the following      legend: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | All      of the written information pertaining to the Investor which the Investor      has heretofore furnished to PHT, and all information pertaining to the      Investor which is set forth in this Agreement and the Investor      Questionnaire attached hereto, is correct and complete as of the date      hereof and, if there should be any material change in such information      prior to PHT's acceptance of this Agreement, the Investor shall promptly      furnish such revised or corrected information to PHT. Investor otherwise      meets any special suitability standards applicable to the Investor's state      of residence. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | The      Investor acknowledges that it has received a subscription package, a copy      of which is attached hereto, containing information describing the      Offering, setting forth the Risk Factors the Investor must consider prior      to making an investment decision, use of proceeds and other matters      relevant to the Offering. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (i) | Prepare      and promptly file with the SEC a registration statement with respect to      such securities and use its best efforts to cause such registration      statement to become effective within 60 days of filing and remain      effective; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Prepare      and file with the SEC such amendments to such registration statement and      supplements to the prospectus contained therein as may be necessary to      keep such registration statementeffective; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Furnish      to the Investor and to the underwriters of the securities being registered      such reasonable number of copies of the registration statement,      preliminary prospectus, final prospectus and such other documents as such      Investor and underwriters may reasonably request in order to facilitate      the public offering of suchsecurities; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (iv) | Use      its best efforts to register or qualify the securities covered by such      registration statement under such state securities or blue sky laws of      such jurisdictions as the Investor may reasonably request within twenty      (20) days following the original filing of such registration statement,      except that PHT shall not for any purpose be required to execute a general      consent to service of process or to qualify to do business as a foreign      corporation in any jurisdiction wherein it is not so      qualified; |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | Notify      the Investor, promptly after it shall receive notice thereof, of the time      when such registration statement has become effective or a supplement to      any prospectus forming a part of such registration statement has been      filed; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | Notify      the Investor promptly of any request by the SEC for the amending or      supplementing of such registration statement or prospectus or for      additional information; and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | Prepare      and promptly file with the SEC and promptly notify the Investor of the      filing of such amendment or supplement to such registration statement or      prospectus as may be necessary to correct any statements or omissions if,      at the time when a prospectus relating to such securities is required to      be delivered under the Securities Act, any event shall have occurred as      the result of which any such prospectus or any other prospectus as then in      effect would include an untrue statement of a material fact or omit to      state any material fact necessary to make the statements therein, in light      of the circumstances in which they were made, not      misleading.  Notwithstanding any provision herein to the      contrary, PHT shall not be required to amend, supplement, or update a      prospectus contained in any registration statement if to do so would      result in an unduly burdensome expense toPHT. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |  (i) | Against      any and all loss, claim, damage and expense whatsoever arising out of or      based upon (including, but not limited to, any and all expense whatsoever      reasonably incurred in investigating, preparing or defending any      litigation, commenced or threatened, or any claim whatsoever based upon)      any untrue or alleged untrue statement of a material fact contained in any      preliminary prospectus (if used prior to the effective date of the      registration statement), the registration statement or the prospectus (as      from time to time amended and supplemented), or in any application or      other document executed by PHT or based upon written information furnished      by PHT filed in any jurisdiction in order to qualify PHT's securities      under the securities laws thereof, or the omission or alleged omission      therefrom of a material fact required to be stated therein or necessary to      make the statements therein not misleading, or any other violation of      applicable federal or state statutory or regulatory requirements or      limitations relating to action or inaction by PHT in the course of      preparing, filing, or implementing such registered offering; provided,      however, that the indemnity agreement contained in this section shall not      apply to any loss, claim, damage, liability or action arising out of or      based upon any untrue or alleged untrue statement or omission made in      reliance upon and in conformity with any information furnished in writing      to PHT by or on behalf of the Investor expressly for use in connection      therewith or arising out of any action or inaction of the      Investor; |
|--------|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Subject      to the proviso contained in Subsection (i) above, against any and all      loss, liability, claim, damage and expense whatsoever to the extent of the      aggregate amount paid in settlement of any litigation, commenced or      threatened, or of any claim whatsoever based upon any untrue statement or      omission (including, but not limited to, any and all expense whatsoever      reasonably incurred in investigating, preparing or defending against any      such litigation or claim) if such settlement is effected with the written      consent of PHT; and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  (iii) | In      no case shall PHT be liable under this indemnity agreement with respect to      any claim made against any Investor Indemnified Party unless PHT shall be      notified, by letter or by facsimile confirmed by letter, of any action      commenced against such Investor Indemnified Party, promptly after such      person shall have been served with the summons or other legal process      giving information as to the nature and basis of the claim.  The      failure to so notify PHT, if prejudicial in any material respect to PHT's      ability to defend such claim, shall relieve PHT from its liability to the      indemnified person under this Section 5.5, but only to the extent that PHT      was prejudiced.  The failure to so notify PHT shall not relieve      PHT from any liability which it may have otherwise than on account of this      indemnity agreement.  PHT shall be entitled to participate at      its own expense in the defense of any suit brought to enforce any such      claim, but if PHT elects to assume the defense, such defense shall be      conducted by counsel chosen by it, provided such counsel is reasonably      satisfactory to the Investor Indemnified Party in any suit so      brought.  In the event PHT elects to assume the defense of any      such suit and retain such counsel, the Investor Indemnified Party in the      suit shall, after the date they are notified of such election, bear the      fees and expenses of any counsel thereafter retained by them, as well as      any other expenses thereafter incurred by them in connection with the      defense thereof; provided, however, that if the Investor Indemnified Party      reasonably believes that there may be available to it any defense or      counterclaim different than those available to PHT or that representation      of the Investor Indemnified Party by counsel for PHT presents a conflict      of interest for such counsel, then the Investor Indemnified Party shall be      entitled to defend such suit with counsel of its own choosing and PHT      shall bear the fees, expenses and other costs of such separate      counsel. |
|--------|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (a) | The      Investor agrees to keep confidential any and all non-public information      delivered or made available to the Investor by PHT except for disclosures,      as necessary, made by the Investor to the Investor's officers, directors,      employees, agents, counsel and accountants each of whom shall be notified      by the Investor of this confidentiality covenant and for whom the Investor      shall be liable in the event of any breach of this covenant by any such      individual or individuals; provided, however, that nothing herein shall      prevent the Investor from disclosing such information (i) upon the order      of any court or administrative agency, (ii) upon the request or demand of      any regulatory agency or authority having jurisdiction over the Investor,      (iii) which has been publicly disclosed or (iv) to any of its members      provided that any such members agree in writing (with a copy provided to      PHT) to be bound by confidentiality provisions in form and substance      substantially as are contained herein.  In the event of a      mandatory disclosure as described in clause (i) and/or (ii) of the      preceding sentence, the Investor shall promptly notify PHT in writing of      any applicable order, request or demand for such information, cooperate      with PHT if and to the extent that PHT elects to seek an appropriate      protective order or other relief from such order, request, or demand, and      disclose only the minimal amount of information ultimately required to be      disclosed.  No Investor shall use for its own benefit, nor      permit any other person to use for such person's benefit, any of PHT's      non-public information including, without limitation, in connection with      the purchase and/or sale of PHT'ssecurities. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | PHT      shall in no event disclose non-public information to the Investor,      advisors to or representatives of the Investor unless prior to disclosure      of such information PHT marks such information as "Non-Public Information      - Confidential" and provides the Investor, such advisors and      representatives with the opportunity to accept or refuse to accept such      non-public information for review.  PHT may, as a condition to      disclosing any non-public information hereunder, require the Investor's      advisors and representatives to enter into a confidentiality agreement in      form reasonably satisfactory to PHT and the  Investor. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Nothing      herein shall require PHT to disclose non-public information to the      Investor or its advisors or representatives, and PHT represents that it      does not disseminate non-public information to any Investors who purchase      stock in PHT in a public offering, to money managers or to securities      analysts. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                 | PERFORMANCE      HEALTH TECHNOLOGIES, INC. |        |
|--------------------------------------|--------------------------------------------|-------------|
|                                 |                                       |        |   |
| Date      ______________________2008 | By:                                        | /s/    |   |
|                                 |                                       | Name   |   |
|                                 |                                       | Title  |   |
|                                 |                                       |        |   |

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|                 1. |  Name      of Investor(s)1   _________________________________________                                                 |
|----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|            2. | Indicate      type of ownership subscribed for: |
|----------------------------------------------------------------------|-------------------------------------------------|

|                 3.  | Social      Security      Number(s)                                                       |
|----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Date(s)      of      Birth                                                                                                                                 |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Employment      Position(s) |
|----------------|-----------------------------|

| 6.   | State(s)      from which driver’s license(s)issued |
|----------------|----------------------------------------------------------|

| 7.   | State(s)      in which registered to vote |
|----------------|-------------------------------------------|

| 8.   | Each      Investor must initial at least one of the following      statements: |
|----------------|--------------------------------------------------------------------------------|

|   | ____ | (a) | Investor      certifies that he/she is a director or executive officer of      PHT. |
|--------|------|-----|-------------------------------------------------------------------------------------|

|   | ____ | (b) | Investor      certifies that he/she is a natural person whose individual net worth, or      joint net worth with his/her spouse, at the time of his/her investment in      PHT exceeds $1,000,000 (inclusive of the value of his/her home, home      furnishings and automobiles). |
|--------|------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ____ | (c) | Investor      certifies that he/she is a natural person who has an individual      income2 in excess of $200,000 in each      of the two most recent years or joint income with his/her spouse in excess      of $300,000 in each of those years, and has a reasonable expectation of      reaching the same income level in the current  year. |
|--------|------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

  

| 1 | If      there is more than one Investor other than husband and wife, a separate      Investor Questionnaire must be completed for each such Investor and      attached to this Investor Questionnaire.  If Investors are      husband and wife, please include both names, be certain to complete item 2      and include both social security numbers (indicating to which individual      each social security number belongs) in item3. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 
| 2 | In      determining income, a Investor should add to his or her adjusted gross      income any amounts attributable to tax-exempt income received, losses      claimed as a limited partner in any limited partnership, deductions      claimed for depletion, contributions to IRA or Keogh retirement plans,      alimony payments and any amount by which income from long-term capital      gains has been reduced in arriving at adjusted gross    income. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 1.  | Name      of      Investor                                                                                                                                 |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.  | Indicate      type of entity: |
|----------|-------------------------------|

| 3.  | Date      of formation or      incorporation:                                                                            |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.  | State      of formation or      incorporation:                                                                            |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Indicate      whether Investor was organized for the specific purpose of acquiring      securities of PHT. | Yes      ____    No ____ |
|----|------------------------------------------------------------------------------------------------------------|----------------------------------------------|

| 6. | Indicate      the individual(s) authorized to execute documents on behalf of the Entity      Investor in connection with thisinvestment: |
|----|------------------------------------------------------------------------------------------------------------------------------------------|

| Name: |   |   |
|-------|--------|--------|

| Title: |   |   |
|--------|--------|--------|

| 7. | Taxpayer      Identification Number: |   |   |
|----|--------------------------------------|--------|--------|

| 8. | Each      Investor must initial at least one of the following      statements: |
|----|--------------------------------------------------------------------------------|

|   |  ____      (a) | Investor      certifies that it is a bank as defined in Section 3(a)(2) of the      Securities Act, or any savings and loan association or other institution      as defined in Section 3(a)(5)(A) of the Act, whether acting in its      individual or fiduciary capacity. |
|--------|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  ____      (b) | Investor      certifies that it is an insurance company as defined in Section 2(13) of      the Act. |
|--------|---------------------|------------------------------------------------------------------------------------------------------|

|   |  ____      (c) | Investor      certifies that it is a broker/dealer registered pursuant to the Securities      Exchange Act of 1934, as amended. |
|--------|---------------------|---------------------------------------------------------------------------------------------------------------------------------|

|   |  ____      (d) | Investor      certifies that it is an investment company registered under the Investment      Company Act of 1940, as amended, or business development company as      defined in Section 2(a)(48) of suchAct. |
|--------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |  ____      (e) | Investor      certifies that it is a Small Business Investment Company licensed by the      U.S. Small Business Administration under Section 301(c) or (d) of the      Small Business Investment Act of1958. |
|--------|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  ____      (f) | Investor      certifies that it is an employee benefit plan within the meaning of Title      I of the Employee Retirement Income Security Act of 1974, as amended      (“ERISA”), and either (i) the investment decision is made by a plan      fiduciary, as defined in Section 3(21) of ERISA, which is either a bank,      savings and loan association, insurance company or registered investment      adviser, (ii) the employee benefit plan has total assets in excess of      $5,000,000, or (iii) if a self-directed plan, investment decisions are      made solely by persons that are “accredited investors” as defined in Rule      501(a) of Regulation D promulgated under the  Act. |
|--------|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  ____      (g) | Investor      certifies that it is a private business development company as defined in      Section 202(a)(22) of the Investment Advisers Act of 1940, as      amended. |
|--------|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  ____      (h) | Investor      certifies that it is a corporation, partnership, a Massachusetts or      similar business trust or other trust (if the trust’s purchase of      securities is directed by a sophisticated person as described in Rule      506(b)(2)(ii) of Regulation D under the Act) or other organization      described in Section 501(c)(3) of the Internal Revenue Code of 1986, as      amended, not formed for the specific purpose of acquiring PHT’s      securities, with total assets in excess of  $5,000,000. |
|--------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  ____      (i) | Investor      certifies that it is an entity in which all of the equity owners are      “accredited investors” as defined in Rule 501(a) of Regulation D      promulgated under the Act. |
|--------|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  ____      (j) | None      of the statements in clauses (a) through (i) are applicable to the Entity      Investor and the Entity Investor is otherwise not an “accredited investor”      as defined in Rule 501(a) of Regulation D promulgated under the      Act. |
|--------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | Investor      agrees to provide, upon request by PHT, the following      information: |
|----|---------------------------------------------------------------------------------------|

|   |  (A) | Corporations      will provide the articles of incorporation, by-laws and corporate      resolution authorizing the purchase of Units and authorizing the person(s)      signing this Investor Questionnaire.  All the documents must be      certified by the Secretary or Assistant Secretary of the corporation as      being true and correct copies thereof and in full force and      effect. |
|--------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (B) | Partnerships      and limited liability companies will provide a copy of the partnership      agreement, articles of organization, and/or operating agreement showing      the date of formation and giving evidence of the authority of the      person(s) signing this InvestorQuestionnaire. |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (C) | Trusts      will provide a copy of the trust agreement showing the date of formation      and giving evidence of the authority of the person(s) signing this      Investor Questionnaire. |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| _______ | a) | The      representations and the answers to the questions in this Investor      Questionnaire are complete and correct and may be relied upon by PHT and      its counsel.                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| _______ | b) | Investor      has full power and authority to subscribe for and purchase the      Units.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| _______ | c) | The      Investor Questionnaire has been duly and validly authorized, executed, and      delivered by Investor and constitutes the valid, binding, and enforceable      agreement of Investor.                                                                                                                                                                                                                                                                                                                                                                                                            |
| _______ | d) | Investor      has reviewed the PHT Documents and has received all information Investor      has deemed relevant and has had all of Investor’s questions answered with      respect to the purchase of the Units and PHT and has made such independent      investigation into PHT as Investor has deemed necessary.                                                                                                                                                                                                                                                                                 |
| _______ | e) | The      purchase of the Units is made solely for the account of Investor with a      view to and for investment and not with a view to or for distribution,      assignment, participation, or resale.  Investor has no contract,      undertaking, agreement, or arrangement with any person to sell, transfer,      or pledge the Units, or any interest therein.  There are      substantial restrictions on the transferability of the      Units.  Investor is prepared to bear the economic risk involved      in the purchase of the Units for an indefinite term.  |
| _______ | f) | Investor      acknowledges there is a substantial economic risk with respect to      Investor’s investment in the Units and that Investor has such knowledge      and experience in financial and business matters that Investor is able to      evaluate the risks and merits of the investment in the Units and is making      an informed decision to purchase the Units.                                                                                                                                                                                                                        |

----

| _______ | g) | Investor      did not learn about the offer to purchase the Units through any      advertisement, article, notice, or other communication published in any      newspaper, magazine, or similar media or broadcast over television, radio,      or the internet or at any seminar or meeting to which Investor was invited      by a general solicitation or advertising.                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| _______ | h) | Investor      hereby agrees to indemnify PHT and its affiliates and each and any of      their respective officers, directors, shareholders, “controlling persons”,      agents, and employees and to hold each of such entities and persons      harmless from and against any and all liabilities, loss, damages, costs,      or expenses (including reasonable attorneys’ fees) to which they, or any      of them, may be put or which they, or any of them, may incur by reason of      any breach of the representations and warranties made by Investor in the      Subscription Agreement or this Investor Questionnaire.                                                                                                                          |
| _______ | i) | Investor      will notify PHT immediately of any material change in any representation      made above or any statement made herein that occurs prior to the closing      of the sale of the Units.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| _______ | j) | Investor      will provide such further information as may be requested by PHT or its      counsel to verify the information contained herein.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| _______ | k) | In      evaluating the suitability of Investor’s decision to purchase the Units,      Investor has relied solely upon the information provided in the PHT      Documents and the exhibits and schedules attached hereto and Investor’s      own independent investigation of PHT, and acknowledges that no      representations (oral or written) have been made to the Investor with      respect thereto.                                                                                                                                                                                                                                                                                                                                                      |
| _______ | l) | In      making a decision to invest in the Offering, the Investor must rely on its      own examination of PHT and the terms of the Offering, including the merits      and risks involved.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| _______ | m) | The      Offering has not been recommended or approved by any federal, state or      other securities commission or regulatory authority.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| _______ | n) | The      Investor should consult its own competent counsel, including, without      limitation, legal counsel, accountant, or business advisor as to legal,      tax, financial, and related matters concerning a purchase of the      Units.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| _______ | o) | The      Investor acknowledges that there is no public market for PHT’s common      stock and no assumption should be made that one will ever exist; the      common stock underlying the warrants are and will be “restricted      securities”; as restricted securities, they may be sold only upon      registration under the Securities Act and applicable state or other      securities laws, or upon reliance on an exemption from such registration      requirements.  Investors should consider purchasing the Units      only as a long-term investment.  Investors may not be able to      promptly liquidate at a reasonable price, or for any price, in the event      of a personal financial emergency or otherwise.  |

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| _______      | p) | The      Investor acknowledges that:  In the future, PHT’s financial      needs may be such that it is forced to offer for sale its securities on      terms more favorable than the terms offered to investors in this      Offering.  If such an event were to occur, investors purchasing      Units in this Offering would have the right to participate in such future      offering on the terms and conditions of such future      offering.  The ownership interest percentages of Investors who      do not wish to participate in such future offering will be diluted to the      extent of the securities sold by us in the future offering.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| _______      | q) | The      Investor acknowledges that:  If the Investor purchases in this      Offering, the Investor will pay a price that was not established in a      competitive market but which has been determined by PHT’s management,      based, in part, on the price paid by our prior investors, our prospects in      our industry, an assessment of our financial condition and other factors      deemed relevant by our Board of Directors.  The price, however,      is not based on our historical earnings, the book value of PHT, or any      other objective criteria.  The offering price should not be      deemed an indication of our value.  An Investor should consider      in making an investment in our securities that we have insufficient assets      to meet our obligations and we have a working capitaldeficit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|  ______ | r) | WAIVER      OF DAWSON JAMES SECURITIES LIABILITY.  In order to induce Dawson      James Securities to make the introduction of the Investor to PHT and in      view of the investment by the Investor, the Investor does hereby      IRREVOCABLY AND UNCONDITIONALLY RELEASE, REMISE AND FOREVER DISCHARGE      Dawson James Securities and its affiliates and each and any of their      respective shareholders, officers, directors, “controlling persons”,      employees, registered representatives, independent contractors, heirs,      executors, administrators, successors in interest and assigns from and      against any and all agreements, promises, liabilities, claims and demands      of any kind whatsoever, in law or equity, whether known or unknown,      suspected or unsuspected, fixed or contingent, apparent or concealed      (collectively a “Claim”), which the Investor, the Investor’s heirs,      executors, administrators, successors or assigns ever had, now have or      hereafter can, shall, or may have, for, upon, or by reason of any matter,      cause or thing whatsoever existing, arising or occurring, directly or      indirectly, out of the Investor’s investment.                                                                                                     |
| _______      | s) | The      Investor acknowledges that the Units are being sold on a “best efforts”      basis and no assurance can be given that all of the Units being offered      will be sold.  PHT is continuing to seek other financing      initiatives to meet its working capital needs.  PHT’s operating      plan seeks to minimize its capital requirements, but further      commercialization of its products will require additional capital. PHT      expects that product development and operating and production expenses      will increase significantly as it continues to develop, produce and sell      products. The Investor further acknowledges that no assurance can be given      that PHT will be successful in completing this Offering or any other      financings at the minimum level necessary to fund its capital      requirements, current operations or at all. If PHT is unsuccessful in      completing these financings at such minimum level, PHT will not be able to      fund its capital requirements or current expenses. If PHT is unsuccessful      in completing these financings at or near the maximum level or an      additional financing, PHT will not be able to pursue its business      strategy.  Additional financing may not be available on terms      favorable to PHT or at all. |

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