Document:

EXHIBIT 10.31

                      PERFORMANCE HEALTH TECHNOLOGIES, INC.
                            PLACEMENT AGENT AGREEMENT

                                                   Dated as of: January 23, 2006

Newbridge Securities Corporation
1451 Cypress Creek Road, Suite 204
Fort Lauderdale, Florida 33309

Ladies and Gentlemen:

         The undersigned, Performance Health Technologies, Inc., a Delaware
corporation (the "COMPANY"), hereby agrees with Newbridge Securities Corporation
(the "PLACEMENT AGENT"), and Cornell Capital Partners, LP (the "Investor") as
follows:

         1. OFFERING. The Company hereby engages the Placement Agent to act as
its exclusive placement agent in connection with the Standby Equity Distribution
Agreement dated the date hereof between the Company and the Investor (the
"STANDBY EQUITY DISTRIBUTION AGREEMENT"), pursuant to which the Company shall
issue and sell to the Investor, from time to time, and the Investor shall
purchase from the Company (the "OFFERING") up to Ten Million Dollars
($10,000,000) (the "COMMITMENT AMOUNT") of the Company's common stock, par value
$0.001 per share (the "COMMON STOCK"), at price per share equal to the Purchase
Price, as that term is defined in the Standby Equity Distribution Agreement. The
Placement Agent services shall consist of reviewing the terms of the Standby
Equity Distribution Agreement and advising the Company with respect to those
terms.

         All capitalized terms used herein and not otherwise defined herein
shall have the same meaning ascribed to them as in the Standby Equity
Distribution Agreement. The Investor will be granted certain registration rights
with respect to the Common Stock as more fully set forth in the Registration
Rights Agreement between the Company and the Investor dated the date hereof (the
"REGISTRATION RIGHTS AGREEMENT"). The documents to be executed and delivered in
connection with the Offering, including, but not limited, to this Agreement, the
Standby Equity Distribution Agreement, and the Registration Rights Agreement are
referred to sometimes hereinafter collectively as the "OFFERING MATERIALS." The
Company's Common Stock purchased by the Investor under the Standby Equity
Distribution Agreement is sometimes referred to hereinafter as the "SECURITIES."
The Placement Agent shall not be obligated to sell any Securities.

         2. COMPENSATION.

         A. Upon the execution of this Agreement, the Company shall issue to the
Placement Agent or its designee 40,000 shares of the Company's Common Stock
having a value equal to Ten Thousand Dollars ($10,000) (the "PLACEMENT AGENT'S
SHARES"). The Placement Agent shall be entitled to "piggy-back" registration
rights with respect to the Placement Agent's Shares, which shall be triggered
upon registration of any shares of Common Stock by the Company pursuant to the
Registration Rights Agreement dated the date hereof.

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         3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLACEMENT AGENT.

         A. The Placement Agent represents, warrants and covenants as follows:

         (i) The Placement Agent has the necessary power to enter into this
Agreement and to consummate the transactions contemplated hereby.

         (ii) The execution and delivery by the Placement Agent of this
Agreement and the consummation of the transactions contemplated herein will not
result in any violation of, or be in conflict with, or constitute a default
under, any agreement or instrument to which the Placement Agent is a party or by
which the Placement Agent or its properties are bound, or any judgment, decree,
order or, to the Placement Agent's knowledge, any statute, rule or regulation
applicable to the Placement Agent. This Agreement when executed and delivered by
the Placement Agent, will constitute the legal, valid and binding obligations of
the Placement Agent, enforceable in accordance with their respective terms,
except to the extent that (a) the enforceability hereof or thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
from time to time in effect and affecting the rights of creditors generally, (b)
the enforceability hereof or thereof is subject to general principles of equity,
or (c) the indemnification provisions hereof or thereof may be held to be in
violation of public policy.

         (iii) Upon receipt and execution of this Agreement, the Placement Agent
will promptly forward copies of this Agreement to the Company or its counsel and
the Investor or its counsel.

         (iv) The Placement Agent will not intentionally take any action that it
reasonably believes would cause the Offering to violate the provisions of the
Securities Act of 1933, as amended (the "1933 ACT"), the Securities Exchange Act
of 1934 (the "1934 ACT"), the respective rules and regulations promulgated
thereunder (the "RULES AND REGULATIONS") or applicable "Blue Sky" laws of any
state or jurisdiction.

         (v) The Placement Agent is a member of the National Association of
Securities Dealers, Inc., and is a broker-dealer registered as such under the
1934 Act and under the securities laws of the states in which the Securities
will be offered or sold by the Placement Agent unless an exemption for such
state registration is available to the Placement Agent. The Placement Agent is
in material compliance with the rules and regulations applicable to the
Placement Agent generally and applicable to the Placement Agent's participation
in the Offering.

         4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         A. The Company represents and warrants as follows:

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         (i) The execution, delivery and performance of each of this Agreement,
the Standby Equity Distribution Agreement, and the Registration Rights Agreement
has been or will be duly and validly authorized by the Company and is, or with
respect to this Agreement, the Standby Equity Distribution Agreement, and the
Registration Rights Agreement will be, a valid and binding agreement of the
Company, enforceable in accordance with its respective terms, except to the
extent that (a) the enforceability hereof or thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws from time to
time in effect and affecting the rights of creditors generally, (b) the
enforceability hereof or thereof is subject to general principles of equity or
(c) the indemnification provisions hereof or thereof may be held to be in
violation of public policy. The Securities to be issued pursuant to the
transactions contemplated by this Agreement and the Standby Equity Distribution
Agreement have been duly authorized and, when issued and paid for in accordance
with this Agreement and the Standby Equity Distribution Agreement will be valid
and binding obligations of the Company, enforceable in accordance with their
respective terms, except to the extent that (1) the enforceability thereof may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
from time to time in effect and affecting the rights of creditors generally, and
(2) the enforceability thereof is subject to general principles of equity. All
corporate action required to be taken for the authorization, issuance and sale
of the Securities has been duly and validly taken by the Company.

         (ii) The Company has a duly authorized, issued and outstanding
capitalization as set forth herein and in the Standby Equity Distribution
Agreement. The Company is not a party to or bound by any instrument, agreement
or other arrangement providing for it to issue any capital stock, rights,
warrants, options or other securities, except for this Agreement, the agreements
described herein and as described in the Standby Equity Distribution Agreement
and the agreements described therein. All issued and outstanding securities of
the Company, have been duly authorized and validly issued and are fully paid and
non-assessable; the holders thereof have no rights of rescission or preemptive
rights with respect thereto and are not subject to personal liability solely by
reason of being security holders; and none of such securities were issued in
violation of the preemptive rights of any holders of any security of the
Company.

         (iii) The Common Stock to be issued in accordance with this Agreement
and the Standby Equity Distribution Agreement have been duly authorized and,
when issued and paid for in accordance with this Agreement, the Standby Equity
Distribution Agreement and the certificates/instruments representing such Common
Stock will be validly issued, fully-paid and non-assessable; the holders thereof
will not be subject to personal liability solely by reason of being such
holders; such Securities are not and will not be subject to the preemptive
rights of any holder of any security of the Company.

         (iv) The Company has good and marketable title to, or valid and
enforceable leasehold estates in, all items of real and personal property
necessary to conduct its business (including, without limitation, any real or
personal property stated in the Offering Materials to be owned or leased by the
Company), free and clear of all liens, encumbrances, claims, security interests
and defects of any material nature whatsoever, other than those set forth in the
Offering Materials and liens for taxes not yet due and payable.

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         (v) There is no litigation or governmental proceeding pending or, to
the best of the Company's knowledge, threatened against, or involving the
properties or business of the Company, except as set forth in the Offering
Materials.

         (vi) The Company is duly organized and validly exists as a corporation
in good standing under the laws of the State of Delaware. Except as set forth in
the Offering Materials, the Company does not own or control, directly or
indirectly, an interest in any other corporation, partnership, trust, joint
venture or other business entity. The Company is duly qualified or licensed and
in good standing as a foreign corporation in each jurisdiction in which the
character of its operations requires such qualification or licensing and where
failure to so qualify would have a material adverse effect on the Company. The
Company has all requisite corporate power and authority, and all material and
necessary authorizations, approvals, orders, licenses, certificates and permits
of and from all governmental regulatory officials and bodies (domestic and
foreign) to conduct its businesses (and proposed business) as described in the
Offering Materials. Any disclosures in the Offering Materials concerning the
effects of foreign, federal, state and local regulation on the Company's
businesses as currently conducted and as contemplated are correct in all
material respects and do not omit to state a material fact. The Company has all
corporate power and authority to enter into this Agreement, the Standby Equity
Distribution Agreement, the Registration Rights Agreement, and to carry out the
provisions and conditions hereof and thereof, and all consents, authorizations,
approvals and orders required in connection herewith and therewith have been
obtained. No consent, authorization or order of, and no filing with, any court,
government agency or other body is required by the Company for the issuance of
the Securities or execution and delivery of the Offering Materials except for
applicable federal and state securities laws. The Company, since its inception,
has not incurred any liability arising under or as a result of the application
of any of the provisions of the 1933 Act, the 1934 Act or the Rules and
Regulations.

         (vii) There has been no material adverse change in the condition or
prospects of the Company, financial or otherwise, from the latest dates as of
which such condition or prospects, respectively, are set forth in the Offering
Materials, and the outstanding debt, the property and the business of the
Company conform in all material respects to the descriptions thereof contained
in the Offering Materials.

         (viii) Except as set forth in the Offering Materials, the Company is
not in breach of, or in default under, any term or provision of any material
indenture, mortgage, deed of trust, lease, note, loan or any other material
agreement or instrument evidencing an obligation for borrowed money, or any
other material agreement or instrument to which it is a party or by which it or
any of its properties may be bound or affected. The Company is not in violation
of any provision of its charter or by-laws or in violation of any franchise,
license, permit, judgment, decree or order, or in violation of any material
statute, rule or regulation. Neither the execution and delivery of the Offering
Materials nor the issuance and sale or delivery of the Securities, nor the
consummation of any of the transactions contemplated in the Offering Materials
nor the compliance by the Company with the terms and provisions hereof or
thereof, has conflicted with or will conflict with, or has resulted in or will
result in a breach of, any of the terms and provisions of, or has constituted or
will constitute a default under, or has resulted in or will result in the
creation or imposition of any lien, charge or encumbrance upon any property or
assets of the Company or pursuant to the terms of any indenture, mortgage, deed

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of trust, note, loan or any other agreement or instrument evidencing an
obligation for borrowed money, or any other agreement or instrument to which the
Company may be bound or to which any of the property or assets of the Company is
subject except (a) where such default, lien, charge or encumbrance would not
have a material adverse effect on the Company and (b) as described in the
Offering Materials; nor will such action result in any violation of the
provisions of the charter or the by-laws of the Company or, assuming the due
performance by the Placement Agent of its obligations hereunder, any material
statute or any material order, rule or regulation applicable to the Company of
any court or of any foreign, federal, state or other regulatory authority or
other government body having jurisdiction over the Company.

         (ix) Subsequent to the dates as of which information is given in the
Offering Materials, and except as may otherwise be indicated or contemplated
herein or therein the Company has not (a) issued any securities or incurred any
liability or obligation, direct or contingent, for borrowed money, or (b)
entered into any transaction other than in the ordinary course of business, or
(c) declared or paid any dividend or made any other distribution on or in
respect of its capital stock. Except as described in the Offering Materials, the
Company has no outstanding obligations to any officer or director of the Company
other than normal payable in connection with services provided recently.

         (x) There are no claims for services in the nature of a finder's or
origination fee with respect to the sale of the Common Stock or any other
arrangements, agreements or understandings that may affect the Placement Agent's
compensation, as determined by the National Association of Securities Dealers,
Inc.

         (xi) The Company owns or possesses, free and clear of all liens or
encumbrances and rights thereto or therein by third parties, the requisite
licenses or other rights to use all trademarks, service marks, copyrights,
service names, trade names, patents, patent applications and licenses necessary
to conduct its business (including, without limitation, any such licenses or
rights described in the Offering Materials as being owned or possessed by the
Company) and, except as set forth in the Offering Materials, there is no claim
or action by any person pertaining to, or proceeding, pending or threatened,
which challenges the exclusive rights of the Company with respect to any
trademarks, service marks, copyrights, service names, trade names, patents,
patent applications and licenses used in the conduct of the Company's businesses
(including, without limitation, any such licenses or rights described in the
Offering Materials as being owned or possessed by the Company) except any claim
or action that would not have a material adverse effect on the Company; the
Company's current products, services or processes do not infringe or will not
infringe on the patents currently held by any third party.

         (xii) Subject to the performance by the Placement Agent of its
obligations hereunder the offer and sale of the Securities complies, and will
continue to comply, in all material respects with the requirements of Rule 506
of Regulation D promulgated by the SEC pursuant to the 1933 Act and any other
applicable federal and state laws, rules, regulations and executive orders.
Neither the Offering Materials nor any amendment or supplement thereto nor any
documents prepared by the Company in connection with the Offering will contain
any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading. All
statements of material facts in the Offering Materials are true and correct as
of the date of the Offering Materials.

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         (xiii) All material taxes which are due and payable from the Company
have been paid in full or adequate provision has been made for such taxes on the
books of the Company, except for those taxes disputed in good faith by the
Company

         (xiv) None of the Company nor any of its officers, directors, employees
or agents, nor any other person acting on behalf of the Company, has, directly
or indirectly, given or agreed to give any money, gift or similar benefit (other
than legal price concessions to customers in the ordinary course of business) to
any customer, supplier, employee or agent of a customer or supplier, or official
or employee of any governmental agency or instrumentality of any government
(domestic or foreign) or any political party or candidate for office (domestic
or foreign) or other person who is or may be in a position to help or hinder the
business of the Company (or assist it in connection with any actual or proposed
transaction) which (A) might subject the Company to any damage or penalty in any
civil, criminal or governmental litigation or proceeding, or (B) if not given in
the past, might have had a materially adverse effect on the assets, business or
operations of the Company as reflected in any of the financial statements
contained in the Offering Materials, or (C) if not continued in the future,
might adversely affect the assets, business, operations or prospects of the
Company in the future.

         5. CERTAIN COVENANTS AND AGREEMENTS OF THE COMPANY.

         The Company covenants and agrees at its expense and without any expense
to the Placement Agent as follows:

         A. To advise the Placement Agent of any material adverse change in the
Company's financial condition, prospects or business or of any development
materially affecting the Company or rendering untrue or misleading any material
statement in the Offering Materials occurring at any time as soon as the Company
is either informed or becomes aware thereof.

         B. To use its commercially reasonable efforts to cause the Common Stock
issuable in connection with the Standby Equity Distribution Agreement to be
qualified or registered for sale on terms consistent with those stated in the
Registration Rights Agreement and under the securities laws of such
jurisdictions as the Placement Agent shall reasonably request. Qualification,
registration and exemption charges and fees shall be at the sole cost and
expense of the Company.

         C. Upon written request, to provide and continue to provide the
Placement Agent copies of all quarterly financial statements and audited annual
financial statements prepared by or on behalf of the Company, other reports
prepared by or on behalf of the Company for public disclosure and all documents
delivered to the Company's stockholders.

         D. To comply with the terms of the Offering Materials.

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         E. To ensure that any transactions between or among the Company, or any
of its officers, directors and affiliates be on terms and conditions that are no
less favorable to the Company, than the terms and conditions that would be
available in an "arm's length" transaction with an independent third party.

         F. Upon the effectiveness of a registration statement covering the
Securities, the Company shall promptly provide the Placement Agent shall an
opinion of Counsel to the Company, which opinion shall be in form and substance
reasonably satisfactory to and the Placement Agent.

         G. At or prior to the Closing, the Company shall have been furnished
such documents, certificates and opinions as it may reasonably require for the
purpose of enabling the Placement Agent to review or pass upon the matters
referred to in this Agreement and the Offering Materials, or in order to
evidence the accuracy, completeness or satisfaction of any of the
representations, warranties or conditions herein contained.

         6. INDEMNIFICATION AND LIMITATION OF LIABILITY.

         A. The Company hereby agrees that it will indemnify and hold the
Placement Agent and each officer, director, shareholder, employee or
representative of the Placement Agent and each person controlling, controlled by
or under common control with the Placement Agent within the meaning of Section
15 of the 1933 Act or Section 20 of the 1934 Act or the SEC's Rules and
Regulations promulgated thereunder (the "RULES AND REGULATIONS"), harmless from
and against any and all loss, claim, damage, liability, cost or expense
whatsoever (including, but not limited to, any and all reasonable legal fees and
other expenses and disbursements incurred in connection with investigating,
preparing to defend or defending any action, suit or proceeding, including any
inquiry or investigation, commenced or threatened, or any claim whatsoever or in
appearing or preparing for appearance as a witness in any action, suit or
proceeding, including any inquiry, investigation or pretrial proceeding such as
a deposition) to which the Placement Agent or such indemnified person of the
Placement Agent may become subject under the 1933 Act, the 1934 Act, the Rules
and Regulations, or any other federal or state law or regulation, common law or
otherwise, arising out of or based upon (i) any untrue statement or alleged
untrue statement of a material fact contained in (a) Section 4 of this
Agreement, (b) the Offering Materials (except those written statements relating
to the Placement Agent given by the Placement Agent for inclusion therein), (c)
any application or other document or written communication executed by the
Company or based upon written information furnished by the Company filed in any
jurisdiction in order to qualify the Common Stock under the securities laws
thereof, or any state securities commission or agency; (ii) the omission or
alleged omission from documents described in clauses (a), (b) or (c) above of a
material fact required to be stated therein or necessary to make the statements
therein not misleading; or (iii) the breach of any representation, warranty,
covenant or agreement made by the Company in this Agreement. The Company further
agrees that upon demand by an indemnified person, at any time or from time to
time, it will promptly reimburse such indemnified person for any loss, claim,
damage, liability, cost or expense actually and reasonably paid by the
indemnified person as to which the Company has indemnified such person pursuant
hereto. Notwithstanding the foregoing provisions of this Paragraph 7(A), any
such payment or reimbursement by the Company of fees, expenses or disbursements
incurred by an indemnified person in any proceeding in which a final judgment by
a court of competent jurisdiction (after all appeals or the expiration of time
to appeal) is entered against the Placement Agent or such indemnified person
based upon specific finding of fact that the Placement Agent or such indemnified
person's gross negligence or willful misfeasance will be promptly repaid to the
Company.

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         B. The Placement Agent hereby agrees that it will indemnify and hold
the Company and each officer, director, shareholder, employee or representative
of the Company, and each person controlling, controlled by or under common
control with the Company within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act or the Rules and Regulations, harmless from and
against any and all loss, claim, damage, liability, cost or expense whatsoever
(including, but not limited to, any and all reasonable legal fees and other
expenses and disbursements incurred in connection with investigating, preparing
to defend or defending any action, suit or proceeding, including any inquiry or
investigation, commenced or threatened, or any claim whatsoever or in appearing
or preparing for appearance as a witness in any action, suit or proceeding,
including any inquiry, investigation or pretrial proceeding such as a
deposition) to which the Company or such indemnified person of the Company may
become subject under the 1933 Act, the 1934 Act, the Rules and Regulations, or
any other federal or state law or regulation, common law or otherwise, arising
out of or based upon (i) the material breach of any representation, warranty,
covenant or agreement made by the Placement Agent in this Agreement, or (ii) any
false or misleading information provided to the Company in writing by one of the
Placement Agent's indemnified persons specifically for inclusion in the Offering
Materials.

         C. Promptly after receipt by an indemnified party of notice of
commencement of any action covered by Section 7(A) or (B), the party to be
indemnified shall, within five (5) business days, notify the indemnifying party
of the commencement thereof; the omission by one (1) indemnified party to so
notify the indemnifying party shall not relieve the indemnifying party of its
obligation to indemnify any other indemnified party that has given such notice
and shall not relieve the indemnifying party of any liability outside of this
indemnification if not materially prejudiced thereby. In the event that any
action is brought against the indemnified party, the indemnifying party will be
entitled to participate therein and, to the extent it may desire, to assume and
control the defense thereof with counsel chosen by it which is reasonably
acceptable to the indemnified party. After notice from the indemnifying party to
such indemnified party of its election to so assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under such
Section 7(A) or (B), for any legal or other expenses subsequently incurred by
such indemnified party in connection with the defense thereof, but the
indemnified party may, at its own expense, participate in such defense by
counsel chosen by it, without, however, impairing the indemnifying party's
control of the defense. Subject to the proviso of this sentence and
notwithstanding any other statement to the contrary contained herein, the
indemnified party or parties shall have the right to choose its or their own
counsel and control the defense of any action, all at the expense of the
indemnifying party if (i) the employment of such counsel shall have been
authorized in writing by the indemnifying party in connection with the defense
of such action at the expense of the indemnifying party, or (ii) the
indemnifying party shall not have employed counsel reasonably satisfactory to
such indemnified party to have charge of the defense of such action within a
reasonable time after notice of commencement of the action, or (iii) such
indemnified party or parties shall have reasonably concluded that there may be
defenses available to it or them which are different from or additional to those
available to one or all of the indemnifying parties (in which case the
indemnifying parties shall not have the right to direct the defense of such
action on behalf of the indemnified party or parties), in any of which events
such fees and expenses of one additional counsel shall be borne by the

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indemnifying party; provided, however, that the indemnifying party shall not, in
connection with any one action or separate but substantially similar or related
actions in the same jurisdiction arising out of the same general allegations or
circumstance, be liable for the reasonable fees and expenses of more than one
separate firm of attorneys at any time for all such indemnified parties. No
settlement of any action or proceeding against an indemnified party shall be
made without the consent of the indemnifying party.

         D. In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in Section 7(A) or 7(B)
is due in accordance with its terms but is for any reason held by a court to be
unavailable on grounds of policy or otherwise, the Company and the Placement
Agent shall contribute to the aggregate losses, claims, damages and liabilities
(including legal or other expenses reasonably incurred in connection with the
investigation or defense of same) which the other may incur in such proportion
so that the Placement Agent shall be responsible for such percent of the
aggregate of such losses, claims, damages and liabilities as shall equal the
percentage of the gross proceeds paid to the Placement Agent and the Company
shall be responsible for the balance; provided, however, that no person guilty
of fraudulent misrepresentation within the meaning of Section 11(f) of the 1933
Act shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 7(D), any person
controlling, controlled by or under common control with the Placement Agent, or
any partner, director, officer, employee, representative or any agent of any
thereof, shall have the same rights to contribution as the Placement Agent and
each person controlling, controlled by or under common control with the Company
within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act
and each officer of the Company and each director of the Company shall have the
same rights to contribution as the Company. Any party entitled to contribution
will, promptly after receipt of notice of commencement of any action, suit or
proceeding against such party in respect of which a claim for contribution may
be made against the other party under this Section 7(D), notify such party from
whom contribution may be sought, but the omission to so notify such party shall
not relieve the party from whom contribution may be sought from any obligation
they may have hereunder or otherwise if the party from whom contribution may be
sought is not materially prejudiced thereby.

         E. The indemnity and contribution agreements contained in this Section
7 shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of any indemnified person or any termination
of this Agreement.

         F. The Company hereby waives, to the fullest extent permitted by law,
any right to or claim of any punitive, exemplary, incidental, indirect, special,
consequential or other damages (including, without limitation, loss of profits)
against the Placement Agent and each officer, director, shareholder, employee or
representative of the placement agent and each person controlling, controlled by
or under common control with the Placement Agent within the meaning of Section
15 of the 1933 Act or Section 20 of the 1934 Act or the Rules and Regulations
arising out of any cause whatsoever (whether such cause be based in contract,
negligence, strict liability, other tort or otherwise). Notwithstanding anything
to the contrary contained herein, the aggregate liability of the Placement Agent
and each officer, director, shareholder, employee or representative of the
Placement Agent and each person controlling, controlled by or under common
control with the Placement Agent within the meaning of Section 15 of the 1933

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Act or Section 20 of the 1934 Act or the Rules and Regulations shall not exceed
the compensation received by the Placement Agent pursuant to Section 2 hereof.
This limitation of liability shall apply regardless of the cause of action,
whether contract, tort (including, without limitation, negligence) or breach of
statute or any other legal or equitable obligation.

         7. PAYMENT OF EXPENSES.

         The Company hereby agrees to bear all of the expenses in connection
with the Offering, including, but not limited to the following: filing fees,
printing and duplicating costs, advertisements, postage and mailing expenses
with respect to the transmission of Offering Materials, registrar and transfer
agent fees, escrow agent fees and expenses, fees of the Company's counsel and
accountants, issue and transfer taxes, if any.

         8. TERMINATION.

         This Agreement shall be co-terminus with, and terminate upon the same
terms and conditions as those set forth in the Standby Equity Distribution
Agreement.

         9. MISCELLANEOUS.

         A. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, but all which shall be deemed to be
one and the same instrument.

         B. Any notice required or permitted to be given hereunder shall be
given in writing and shall be deemed effective when deposited in the United
States mail, postage prepaid, or when received if personally delivered or faxed
(upon confirmation of receipt received by the sending party), addressed as
follows to such other address of which written notice is given to the others):

If to Placement Agent, to:   Newbridge Securities Corporation
                             1451 Cypress Creek Road, Suite 204
                             Fort Lauderdale, Florida 33309
                             Attention:        Doug Aguililla
                             Telephone:        (954) 334-3450
                             Facsimile:        (954) 229-9937

If to the Company, to:       Performance Health Technologies, Inc.
                             6654 Gunpark Drive, 2nd Floor
                             Boulder, CO 80301
                             Attention:        Marc Silverman, President and CEO
                             Telephone:        (303) 527-0600
                             Facsimile:        (303) 527-1661

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With a copy to:              Gallagher, Briody & Butler
                             155 Village Boulevard, Suite 201
                             Princeton, New Jersey 08540
                             Attention:        Thomas P. Gallagher, Esq.
                             Telephone:        (609) 452-6000
                             Fax:              (609) 452-0090

         C. This Agreement shall be governed by and construed in all respects
under the laws of the State of New Jersey, without reference to its conflict of
laws rules or principles. Any suit, action, proceeding or litigation arising out
of or relating to this Agreement shall be brought and prosecuted in such federal
or state court or courts located within the State of Florida as provided by law.
The parties hereby irrevocably and unconditionally consent to the jurisdiction
of each such court or courts located within the State of Florida and to service
of process by registered or certified mail, return receipt requested, or by any
other manner provided by applicable law, and hereby irrevocably and
unconditionally waive any right to claim that any suit, action, proceeding or
litigation so commenced has been commenced in an inconvenient forum.

         D. This Agreement and the other agreements referenced herein contain
the entire understanding between the parties hereto and may not be modified or
amended except by a writing duly signed by the party against whom enforcement of
the modification or amendment is sought.

         E. If any provision of this Agreement shall be held to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provision of this Agreement.

                   [REMAINDER OF PAGE INTENTIALLY LEFT BLANK]

                                      -11-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Placement
Agent Agreement as of the date first written above.

                                  PERFORMANCE HEALTH TECHNOLOGIES, INC.

                                  By:      /S/ MARC SILVERMAN
                                           ------------------
                                  Name:    Marc Silverman
                                  Title:   President and Chief Executive Officer

                                  NEWBRIDGE SECURITIES CORPORATION

                                  By:      /S/ GUY S. AMICE
                                           ----------------
                                  Name:    Guy S. Amico
                                  Title:   President

                                  CORNELL CAPITAL PARTNERS, LP

                                  BY:      YORKVILLE ADVISORS, LLC
                                  ITS:     GENERAL PARTNER

                                  By:       /S/ MARK A. ANGELO
                                           --------------------
                                  Name:    Mark A. Angelo
                                  Title:   Portfolio Manager

                                      -12-EXHIBIT 10.32

                              CONSULTING AGREEMENT
                               (Marc R. Silverman)

         This Consulting Agreement (this "Agreement") is entered into effective
as of March 1, 2006 (the "Effective Date"), by and between Performance Health
Technologies, Inc., a Delaware corporation ("Company"), and Marc R. Silverman
("CONSULTANT").

         WHEREAS, Company is engaged in the business of designing, developing,
manufacturing, and marketing health care rehabilitation products;

         WHEREAS, Company has heretofore engaged Consultant as an employee
pursuant to the terms of that certain Employment Agreement effective January 1,
2005, between Consultant and Employee (the "Employment Agreement"), and pursuant
to the Employment Agreement Company is authorized to tender this Consulting
Agreement and upon such tender the Employment Agreement is terminated subject to
certain continuing obligations as provided therein; and

         WHEREAS, Company desires to retain the services of Consultant in a
consulting capacity appropriate to his knowledge and experience as provided in
this Agreement and Consultant desires to provide his services in a consulting
capacity as provided in this Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein, the parties agree as follows:

         1. SERVICES. Company agrees to engage Consultant and Consultant agrees
to accept engagement by Company to perform consulting services and duties (the
"Services and Duties") commensurate to Consultant's compensation under this
Agreement and otherwise as the Board of Directors of Company from time to time
requires and requests as necessary and useful to Company. The Services will
generally be in the technology and product innovation and design areas but
otherwise as Consultant and Company mutually agree.

         2. TERM. The term of this Agreement shall commence on the Effective
Date and shall continue until the earlier of (i) two years after the Effective
Date, or (ii) termination in accordance with Section 6. The
term of this Agreement is referred to herein as the "Consulting TERM."

         3.       RELATIONSHIP.

                  (a) INDEPENDENT CONTRACTOR. Consultant shall be and at all
times remain an independent contractor for Company, with control over the
accomplishment of the Services. Consultant will, at all times, conduct his
business in his own name and as an independent contractor and not as an
employee, partner, or joint venturer of or with Company. Consultant shall have
no authority to bind Company in any way. Consultant will not at any time make
any representation, either orally or in writing, that he is an employee,
partner, or joint venturer of or with Company or that he has authority to bind
Company. Consultant understands that he has no proprietary rights to the name
"Performance Health Technologies" or the names of any of its products, nor to
any combination of such names.

                                      -1-
<PAGE>

                  (b) BENEFITS; TAXES. Consultant shall not be an employee or
agent of Company; shall not be entitled to participate in or receive benefits
under any Company programs maintained for Company's employees (including,
without limitation, life, medical, and disability benefits, pension, profit
sharing, or other retirement plans or other fringe benefits); and shall not be
entitled to any direct or indirect compensation or remuneration of any kind from
Company. Consultant assumes full responsibility for the payment of all income
taxes, social security, and other payroll taxes for his compensation under this
Agreement.

         4. SCHEDULE; MANNER AND MEANS. Unless otherwise agreed in writing
executed by Consultant and Company, for the first six months of the Consulting
Term, Consultant will devote 100% of his time, attention, energies and business
efforts as are reasonably necessary to perform the Services; during the next six
months of the Consulting Term, Consultant will devote 75% of his time,
attention, energies and business efforts as are reasonably necessary to perform
the Services; and during the final 12 months of the Consulting Term, Consultant
will devote 50% of his time, attention, energies and business efforts as are
reasonably necessary to perform the Services. Consultant's obligation under this
Agreement is to complete the Services. Consultant has no obligation to work any
particular hours or days or any particular number of hours or days and Company
agrees that it will have no right to control or direct the details, manner, or
means by which Consultant accomplishes the results of the Services.

         5. COMPENSATION. In full compensation ("Compensation") for the services
under this Agreement, Consultant will be paid 50% of his Base Salary for the
first six months of the Consulting Term, 37.5% of his Base Salary for the next
six months of the Consulting Term, and 50% of his Base Salary during the final
12 months of the Consulting Term. As used in this Agreement, "Base Salary" shall
mean the annual Base Salary as provided in the Employment Agreement immediately
prior to the date of the Conversion Option. For purposes of illustration, if
immediately prior to the date of the Conversion Option the Base Salary is
$162,000, Consultant would be paid $81,000 for first six months of the
Consulting Term, $60,750 during the next six months of the Consulting Term, and
$81,000 during the final 12 months of the Consulting Term, for an aggregate
compensation of $222,750 over the Consulting Term. The Compensation shall be
paid monthly in arrears.

         6.       TERMINATION OF AGREEMENT.

                  (a) FOR DUE CAUSE. Nothing herein shall prevent Company from
terminating Consultant, without prior notice, for Due Cause, in which event
Consultant shall be entitled to receive his Compensation until the date of
termination and thereafter Compensation shall cease. The term "Due Cause" shall
mean:

                           (i) Consultant has committed a material breach of
                  this Agreement, a misappropriation of funds, or other willful
                  serious act against Company or any of its Affiliates (as
                  hereinafter defined) intending to enrich himself at the
                  expense of Company or any of its Affiliates or has been
                  convicted of a felony,

                                      -2-
<PAGE>

                           (ii) Consultant has engaged in conduct that has
                  caused demonstrable and serious injury, monetary or otherwise,
                  to Company or any of its Affiliates as evidenced by a binding
                  and final judgment, order, or decree of a court or
                  administrative agency of competent jurisdiction in effect
                  after exhaustion of all rights of appeal of the action, suit,
                  or proceeding, whether civil, criminal, administrative, or
                  investigative,

                           (iii) Consultant, in performing the Services, has
                  been guilty of willful gross neglect or willful gross
                  misconduct, resulting in either case in material harm to
                  Company or any of its Affiliates, or

                           (iv) Consultant has refused to perform the Services
                  or any other obligation under this Agreement, and after
                  receiving notice to such effect from the Board of Directors
                  Consultant fails to cure the existing problem within 30 days.

For purposes of this Agreement, "Affiliate" shall mean any individual or any
corporation, partnership, association, limited liability company, or other
entity that directly or indirectly through one or more intermediary's controls,
or is controlled by, or is under common control with Company.

                  (b) UPON DEATH. In the event of the death of Consultant, this
Agreement shall terminate on the date of death and the estate of Consultant
shall be entitled to receive the Compensation to the date of death and
thereafter Compensation shall cease.

                  (c) UPON DISABILITY. In the event Consultant suffers a
"Disability" (as hereinafter defined), this Agreement shall terminate on "the
date on which the Disability occurs" (as hereinafter defined) and Consultant
shall be entitled to Compensation until the date on which the Disability occurs
and thereafter Compensation shall cease. For purposes of this Agreement,
"Disability" shall mean the inability or incapacity of Consultant for three
months to perform the Services under this Agreement and "the date on which the
Disability occurs" shall mean the first day following such three-month period.
Such inability or incapacity shall be documented to the reasonable satisfaction
of the Board of Directors by appropriate correspondence from registered
physicians reasonably satisfactory to the Board of Directors.

                  (d) VOLUNTARY TERMINATION. Consultant may voluntarily
terminate his engagement under this Agreement at any time by providing at least
ninety (90) days' prior written notice to Company. In such event, Consultant
shall be entitled to Compensation until the date of termination and thereafter
Compensation shall cease.

                  (e) WITHOUT DUE CAUSE. Anything in this Agreement to the
contrary notwithstanding, this Agreement and Consultant's engagement hereunder
may be terminated by Company without Due Cause by providing Consultant with
written notice of such termination. In such event, Consultant shall be entitled
to receive Compensation until the date of termination and thereafter until the
end of the Consulting Term in effect immediately before the termination under
this Section 6(e).

                                      -3-
<PAGE>

         7. ACKNOWLEDGEMENTS BY CONSULTANT. Consultant acknowledges that: (a)
the Services to be performed by him under this Agreement are of a special,
unique, and intellectual character; (b) Company's business is national in scope
and its services are marketed throughout the United States; and (c) Company
competes with other businesses that are or could be located in any part of the
United States. Consultant further acknowledges and agrees the terms of Sections
8, 9, and 10 are fair and reasonable and shall survive and continue according to
their terms notwithstanding the expiration, termination, or cancellation of this
Agreement.

         8.       NON-COMPETE AND NON-SOLICITATION COVENANTS OF CONSULTANT.

                  (a) COVENANTS. During the Consulting Term and during the
Post-Consulting Period (defined below), Consultant covenants that he will not,
directly or indirectly:

                           (i) engage or invest in, own, manage, operate,
                  finance, control, or participate in the ownership, management,
                  operation, financing, or control of, be employed by,
                  associated with, or in any manner connected with, lend
                  Consultant's name or any similar name to, lend Consultant's
                  credit to, or render services or advice to, any business whose
                  products, services, or activities compete in whole or in part
                  with the products, services, or activities of Company anywhere
                  within the Applicable Geographic Area (as hereinafter
                  defined); provided, however, that Consultant may purchase or
                  otherwise acquire less than five percent of any class of
                  securities of any enterprise (but without otherwise
                  participating in the activities of such enterprise) if such
                  securities are listed on any national or regional securities
                  exchange or have been registered under Section 12(g) of the
                  Securities Exchange Act of 1934;

                           (ii) whether for Consultant's own account or for the
                  account of any other person, solicit business of the same or
                  similar type being carried on by Company, from any person
                  known by Consultant to be a customer of Company, whether or
                  not Consultant had personal contact with such person during
                  and by reason of Consultant's employment or engagement with
                  Company; or

                           (iii) whether for Consultant's own account or the
                  account of any other person, (A) solicit, employ, or otherwise
                  engage as an employee, independent contractor, or otherwise,
                  any person who is an employee of Company at any time during
                  the Consulting Term or in any manner induce or attempt to
                  induce any employee of Company to terminate his or her
                  employment with Company; or (B) interfere with Company's
                  relationship with any person, including any person who at any
                  time during the Consulting Term was an employee, contractor,
                  supplier, or customer of Company.

                                      -4-
<PAGE>

                  (b) POST-CONSULTING PERIOD. For purposes of this Section 8,
the term "Post-Consulting Period" means the period that ends one year after the
last to occur of (i) the end of the Employment Term under the Employment
Agreement; (ii) the end of the Consulting Term, or (iii) the final payment of
any compensation due under either this Agreement or the Employment Agreement.

                  (c) APPLICABLE GEOGRAPHIC AREA. For purposes of this Section
8, the term "Applicable Geographic Area" means the United States.

                  (d) REFORMATION. If any covenant in this Section 8 is held to
be unreasonable, arbitrary, or against public policy, such covenant will be
considered to be divisible with respect to scope, time, and geographic area, and
such lesser scope, time, or geographic area, or all of them, as a court of
competent jurisdiction may determine to be reasonable, not arbitrary, and not
against public policy, will be effective, binding, and enforceable against
Consultant.

                  (e) FUTURE EMPLOYMENT. Consultant will, while the covenant
under this Section 8 is in effect, give notice to Company, within ten days after
accepting any other employment or engagement (as an employee, consultant,
independent contractor, or otherwise), of the identity of Consultant's employer.
Company may notify such employer that Consultant is bound by this Agreement and,
at Company's election, furnish such employer with a copy of this Agreement or
relevant portions thereof.

         9. PROPERTY RIGHTS. Consultant agrees promptly to disclose to Company
any and all ideas, concepts, discoveries, inventions, developments, original
works of authorship, software programs, software and systems documentation,
trade secrets, technical data, and know-how that are conceived, devised,
invented, developed, or reduced to practice or tangible medium by Consultant,
under Consultant's direction, or jointly with others during any period that
Consultant is employed or engaged by Company (whether or not during normal
working hours or on the premises of Company) which relate, directly or
indirectly, to the business of Company and arise out of Consultant's engagement
by Company (hereinafter "Property and Rights"). Consultant hereby assigns (and
agrees to assign in the future) to Company all of his right, title, and interest
to the Property and Rights and any and all related patent rights, copyrights,
and applications and registrations therefor. During and after his engagement,
Consultant shall cooperate with Company, at Company's expense, in obtaining
proprietary protection for the Property and Rights and Consultant shall execute
all documents which Company shall reasonably request in order to perfect
Company's rights in the Property and Rights. Consultant hereby appoints Company
his attorney to execute and deliver any such documents on his behalf in the
event Consultant should fail or refuse to do so within a reasonable period
following Company's request, such appointment to be deemed coupled with an
interest. Consultant understands that, to the extent this Agreement shall be
construed in accordance with the laws of any state which limits the
assignability to Company of certain employee or consulting inventions, this
Agreement shall be interpreted not to apply to any such invention which a court
rules or Company agrees is subject to such state limitation.

                                      -5-
<PAGE>

                  10. CONFIDENTIALITY. Consultant understands that Company
continually obtains and develops valuable proprietary and confidential
information concerning its business, business relationships, and financial
affairs (the "Confidential Information") which may become known to Consultant in
connection with his engagement under this Agreement. Consultant acknowledges
that all Confidential Information, whether or not in writing and whether or not
labeled or identified as confidential or proprietary, is and shall remain the
exclusive property of Company or the third party providing such information to
Company. By way of illustration, but not limitation, Confidential Information
may include Property and Rights, trade secrets, technical information, know-how,
research and development activities of Company, product and marketing plans,
customer and supplier information, and information disclosed to Company or
Consultant by third parties of a proprietary or confidential nature or under an
obligation of confidence. Confidential Information is contained in various
media, including without limitation, patent applications, documentation,
manuals, plans, drawings, designs, technical specifications, laboratory
notebooks, supplier and customer lists, internal financial data, and other
documents and records of Company. Consultant agrees that Consultant shall not,
during the Consulting Term and thereafter, publish, disclose, or otherwise make
available to any third party, other than employees of Company with a need to
know, any Confidential Information except as expressly authorized in writing by
Company. Consultant agrees that Consultant shall use such Confidential
Information only in the performance of his duties for Company and in accordance
with any Company policies with respect to the protection of Confidential
Information. Consultant agrees not to use such Confidential Information for his
own benefit or for the benefit of any other person or business entity.
Consultant agrees to exercise all reasonable precautions to protect the
integrity and confidentiality of Confidential Information in his possession and
not to remove any materials containing Confidential Information from Company's
premises except to the extent necessary to his engagement. Upon the termination
of his engagement, or at any time upon Company's request, Consultant shall
return immediately to Company any and all materials containing any Confidential
Information then in his possession or under his control. Confidential
Information shall not include information which (a) is or becomes generally
known within Company's industry through no fault of Consultant; (b) is lawfully
and in good faith made available to Consultant by a third party who did not
derive it from Company and who imposes no obligation of confidence on
Consultant; or (c) is required to be disclosed by a governmental authority or by
order of a court of competent jurisdiction, provided that such disclosure is
subject to all applicable governmental or judicial protection available for like
material and reasonable advance notice is given to Company.

         11. INJUNCTIVE RELIEF AND ADDITIONAL REMEDY. Consultant acknowledges
that the injury that would be suffered by Company as a result of a breach of the
provisions of this Agreement (including any provisions of Sections 8, 9, and 10)
would be irreparable and that an award of monetary damages to Company for such a
breach would be an inadequate remedy. Consequently, Company will have the right,
in addition to any other rights it may have, to obtain injunctive relief to
restrain any breach or threatened breach or otherwise to specifically enforce
any provision of this Agreement. and Company will not be obligated to post bond
or other security in seeking such relief. Without limiting Company's rights
under this Section 11 or any other remedies of Company and notwithstanding any
other provisions of this Agreement, if Consultant breaches any of the provisions
of Sections 8, 9, or 10, Company will have the right to cease making any
payments otherwise due to Consultant under this Agreement.

                                      -6-
<PAGE>

         12.      OTHER OBLIGATIONS OF CONSULTANT.

                  (a) PROTECTION OF COMPANY. Consultant shall not commit any
act, or in any way assist others to commit any act, that would injure Company or
its Affiliates.

                  (b) PERIODIC REPORTS. From time to time, and as often as
requested by Company, Consultant shall prepare and deliver to Company statements
and schedules identifying and describing the Services and such other reports in
connection with the Services as Company may reasonably request, all in form and
substance satisfactory to Company.

                  (c) COMPLIANCE. Consultant shall comply with all applicable
laws, rules, and regulations in respect of the conduct of his business.

                           13.      MISCELLANEOUS.

                  (a) NOTICES. All notices, requests, demands and other
communications given under or by reason of this Agreement shall be in writing
and shall be deemed given when delivered in person or when mailed, by certified
mail (return receipt requested), postage prepaid, addressed as follows (notice
to Company will only be deemed given when both the original notice to the Vice
President Finance/Human Resources and the copy have been delivered):

TO COMPANY:                                          TO EXECUTIVE:
Performance Health Technologies, Inc.                Marc R. Silverman
Attn:  Vice President Finance/Human Resources        ____________________
Second Floor                                         ____________________
6654 Gunpark Drive                                   Boulder, Co ______
Boulder, CO 80301

WITH A COPY TO:                                      WITH A COPY TO:
William F. Riggs
Doerner, Saunders, Daniel & Anderson, L.L.P.
320 South Boston, Suite 500
Tulsa, OK 74102

                  (b) GOVERNING LAW. The execution, validity, interpretation,
and performance of this Agreement shall be governed by and construed in
accordance with the laws of the State of Colorado.

                  (c) HEADINGS. The headings of this Agreement are not part of
the provisions hereof and shall have no force or effect.

                  (d) ENTIRE AGREEMENT AND AMENDMENTS. This Agreement contains
the entire agreement of Consultant and Company relating to the matters contained
herein and supersedes all prior agreements and understandings, oral or written,
between Consultant and Company with respect to the subject matter hereof.
Without limiting the foregoing sentence, this Agreement supersedes the
Employment Agreement. This Agreement may be changed only by an agreement in
writing signed by the party against whom enforcement of any waiver, change,
modification, extension or discharge is sought.

                                      -7-
<PAGE>

                  (e) SEVERABILITY. If any provision of this Agreement is
rendered or declared illegal or unenforceable by reason of any existing or
subsequently enacted legislation or by the decision of any court of competent
jurisdiction, Consultant and Company shall either meet and negotiate substitute
provisions or promptly request the court to substitute provisions for those
rendered or declared illegal or unenforceable to preserve the original intent of
this Agreement to the extent legally possible, but all other provisions of this
Agreement shall remain in full force and effect.

                  (f) EFFECT AND ASSIGNMENT OF AGREEMENT. This Agreement shall
be binding upon Consultant and his heirs, executors, administrators, legal
representatives, and assigns and upon Company and its respective successors and
assigns. No assignment of this Agreement or of any of the rights or obligations
hereunder by any party hereto shall be valid without the written consent of the
other party. Provided, however, Company may assign this Agreement without the
consent of Consultant as part of the sale, lease, license, or similar
transaction of, or involving, all or substantially all of Company's assets,
products, or technology.

         IN WITNESS WHEREOF, Consultant and Company have executed this Agreement
on the date first above written.

"Company"                                                     "Consultant"
Performance Health Technologies, Inc.

By:  /S/ ROGER G. HARRISON                           /S/ MARK R. SILVERMAN
     ---------------------                           ---------------------
Title:  Board Chairman                                Mark R. Silverman

                                      -8-

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