Document:

WWW.EXFILE.COM, INC. -- PERFORMANCE HEALTH TECHNOLOGIES, INC. -- EXHIBIT 10.90 TO FORM 10-QSB

    EXHIBIT
      10.90

    

    Robert
      Prunetti, President & CEO

    Performance
      Health Technologies, Inc.

    427
      River
      View Plaza

    Trenton,
      NJ 08611

    

    June
      21,
      2007

    

    

    Dawson
      James Securities, Inc.

    925
      South
      Federal Highway

    6th
      Floor

    Boca
      Raton, FL 33432

    

    Re:  Selling
      Agreement (the “Agreement”)

    

    Dear
      Mr.
      Keyser:

    

    PERFORMANCE
      HEALTH TECHNOLOGIES, INC., a Delaware corporation (the “Seller”), proposes to
      offer and sell (the “Offering”), to selected investors, upon the terms set forth
      herein and in the Subscription Agreement and the Confidential Private Placement
      Memorandum (which collectively, together with the attachments and exhibits
      thereto, is referred to as the “Offering Document”), a copy of which has been
      delivered to you, up to $600,000 worth of units (the “Units”) consisting of
      convertible notes (“Convertible Notes”) and warrants (“Warrants”). Dawson James
      Securities, Inc. (the “Selling Agent”) agrees to offer and sell the Offered
      Securities on a non-exclusive “best efforts” basis during the offering period
      described in the Offering Document (the “Offering Period”). Capitalized terms
      used and not otherwise defined herein shall have the respective meanings set
      forth in the Offering Document.  It is intended that the offer, offer
      for sale and sale of the Offered Securities will be made only to “accredited
      investors” (as such term is defined in Rule 501(a) of Regulation D of the
      Securities Act of 1933, as amended (the “1933 Act”) and will be exempt from the
      federal registration requirements of the 1933 Act, pursuant to Regulation D
      promulgated under Section 3(b) and/or Section 4(2), respectively, of the 1933
      Act and will qualify for an exemption from registration, if necessary, under
      the
      applicable state securities laws and regulations.

    

    The
      Seller hereby confirms its agreement with Selling Agent as follows:

    

    1.           Offer
      and Sale of Offered Securities by Selling Agent; Compensation;
      Closing.

    

    1.1           On
      the basis of Selling Agent’s representations, covenants and warranties, the
      Seller appoints Selling Agent as the non-exclusive agent of the Seller for
      the
      period commencing on the date of the completion of the Offering Document and
      ending on September 30, 2007; unless extended by the Seller and Selling Agent
      by
      their mutual agreement for a period not to exceed an additional thirty (30)
      days
      (“Offering Termination Date”), to use Selling Agent’s best efforts to offer and
      sell, on the terms and conditions set forth in this Agreement (and 

     

    
      
        
        

      

      
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    the
      Term
      Sheet attached hereto as Exhibit A) and in the Offering Document, subject
      only to Selling Agent’s right to engage participating broker-dealers pursuant to
      Section 2 hereof.  The Selling Agent hereby accepts such appointment
      and agrees pursuant to the terms and conditions set forth herein and in the
      Offering Document to use its best efforts to offer and sell the Offered
      Securities as agent for the Seller during the period specified above, and to
      attempt to find suitable accredited purchasers for the Offered Securities
      acceptable to the Seller.

    

    1.2           Prior
      to and subject to the closing, subscription proceeds from the sale of the
      Offered Securities will be deposited in an escrow account with an escrow agent
      to be mutually agreeable to Seller and the Selling Agent (the “Escrow
      Agent”).  The Seller will be responsible for setting up the Escrow
      Account, pursuant to an escrow agreement among the Seller, the Selling Agent
      and
      the Escrow Agent, which escrow agreement will be approved by the Selling
      Agent.  Subscribers will be instructed to make their checks payable to
      the Escrow Agent for the benefit of PERFORMANCE HEALTH TECHNOLOGIES, INC.,
      or
      shall cause the wire transfer of immediately available funds in favor of the
      Escrow Agent for PERFORMANCE HEALTH TECHNOLOGIES, INC., in accordance with
      instructions provided by the Selling Agent.  At the end of the
      Offering Period (as the same may be extended by the mutual agreement of the
      Selling Agent and the Seller), a closing (the “ Closing”) will occur as soon as
      possible after subscriptions have been accepted by the Seller and all other
      conditions precedent to closing have occurred to the sole satisfaction of the
      Selling Agent.

    

    1.3           For
      purposes hereof, the Offered Securities shall not be deemed to have been sold
      unless (x) subscription agreements, completed and fully executed by subscribers
      who are accredited investors have been received covering the Offered Securities
      and (y) all checks, drafts and wire transfers submitted by such subscribers
      in
      payment of the purchase price of such Offered Securitas have been received
      by
      the Escrow Agent and have cleared so that there are “good funds” in the Escrow
      Account at least equal to the aggregate purchase price of the Offered
      Securities.

    

    1.4           As
      compensation for the Selling Agent’s services hereunder, the Seller shall pay to
      Selling Agent in cash a selling commission (“Commission”) upon the Closing, in
      an amount equal to Twelve percent (12%) of the aggregate offering price of
      the
      Offered Securities sold by the Selling Agent or its authorized agent at such
      Closing.  At the Closing of the Offering, the Seller shall pay the
      Selling Agent its Commission relating to the sale of the Offered Securities
      that
      are subject of the Closing provided that the Seller or counsel for the Seller
      has received all documents, including but not limited to, an executed
      Subscription Agreement for each investor (“Subscription Documents”) previously
      furnished to Selling Agent which the Selling Agent is required to deliver to
      the
      Seller or counsel for the Seller prior to Closing.  All or any portion
      of such Commission may be re-allowed to Participating Broker-Dealers (as
      hereinafter defined).  No Offered Securities shall be considered to
      have been sold by Selling Agent or any Participating Broker-Dealer selected
      by
      Selling Agent unless the purchaser is acceptable to the Seller, and no
      compensation will be payable with respect to any agreement for the purchase
      of
      Offered Securities if the Subscription Agreement therefor is not actually
      accepted by the Seller.  Anything in this Agreement to the contrary
      notwithstanding, the Seller shall not be required to pay a Commission to Selling
      Agent and Selling Agent shall not be entitled to a Commission, pursuant to
      this
      Section 1.4 or any other provision, if to do so would 

     

    
      
        
        

      

      
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    cause
      the
      Seller to violate federal or state securities laws, regulations or rules or
      any
      other law applicable to the Offering.

    

    1.5           The
      Seller will pay all of its costs relating to the Offering contemplated hereby,
      including, without limitation, audit expenses, issuance costs and taxes, counsel
      fees for the preparation of the Offering Documents, filing fees and
      disbursements of counsel relating to the qualification of the Offered Securities
      under federal securities laws, and legal fees and expenses of counsel in
      connection with qualifying the Offered Securities under the state blue sky
      laws.  To the extent required by law, the Seller shall qualify the
      Offered Securities for offer and sale in those jurisdictions designated by
      the
      Selling Agent and reasonably acceptable to the Seller.  The Seller’s
      counsel shall be responsible for state blue sky securities laws compliance
      by
      the Seller.

    

    1.6           The
      Seller shall pay the Selling Agent at each Closing a non-accountable expense
      allowance (the “Expense Allowance”) of 5.0% of the aggregate dollar value of the
      Offered Securities sold at such Closing.

    

    1.7           Once
      the Offered Securities are sold, or the Offering Period terminates, the agency
      between the Seller and the Selling Agent shall terminate.  The Selling
      Agent, on the basis of the representations and warranties herein contained,
      but
      subject to the terms and conditions herein set forth, accepts such appointment
      as the limited agent of the Seller and agrees to use its best efforts to find
      purchasers for the Offered Securities.

    

    1.8           Upon
      each Closing of a sale of the Offered Securities, the Agent shall receive
      warrants (“Agent Warrants”) to purchase that number of shares of common stock of
      the Company that is equal to 10% of the number of shares of common stock of
      the
      Company issuable upon conversion of all of the Convertible Notes sold on the
      Closing date calculated assuming all Convertible Notes sold on such Closing
      date
      are converted into shares of common stock of the Company as of the Closing
      date
      at a purchase price equal to the Conversion Price (as defined in the Term Sheet
      attached as Exhibit A hereto) calculated as of such Closing date (the “Warrant
      Price”).   The Agent Warrants shall be exercisable at any time
      during the five years from the date of Closing at a price equal to the Warrant
      Price, shall contain cash-less exercise provisions and shall have the same
      piggy-back registration rights as the investors in the Offering.

    

    1.9           The
      Closing shall be held at the offices of the Selling Agent, 925 S. Federal
      Highway, 6th
      Floor, Boca Raton, FL 33432, or in an alternative location and at such time
      and
      date as Selling Agent and the Seller may mutually agree.

    

    1.10          The
      holders of the Offered Securities will be provided with Piggy-back registration
      rights with respect to the shares of common stock underlying the Warrants and
      the common stock.

    

    2.           Participating
      Broker-Dealers.  The Seller hereby authorizes Selling Agent to
      engage other qualified broker-dealers (the “Participating Broker-Dealers”) to
      assist the Selling Agent in the placement of the Offered Securities; provided
      that during all times that each such Participating Broker-Dealer shall offer
      and
      sell the Offered Securities, each such Participating 

     

    
      
        
        

      

      
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    Broker-Dealer
      shall be registered as a broker-dealer under the Securities Exchange Act of
      1934
      (the “1934 Act”), shall be a member in good standing of the National Association
      of Securities Dealers, Inc. (“NASD”), and shall be authorized to offer and sell
      the Offered Securities under the laws of the jurisdictions in which the Offered
      Securities will be offered and sold by such Participating
      Broker-Dealer.  All Participating Broker-Dealers will be required to
      execute a Participating Broker-Dealer Agreement, the form of which is subject
      to
      the reasonable approval of the Seller, with Selling Agent containing
      substantially the same terms and conditions as this Agreement, including,
      without limitation, the representations and warranties contained in Section
      3.2
      below and provisions for indemnification of the Seller to the same extent as
      your indemnification provided in Section 7 below.  Any commissions,
      fees, or expenses payable to such Participating Broker-Dealers will be paid
      by
      the Selling Agent and not by the Seller.

    

    3.           Representations,
      Warranties and Covenants.

    

    3.1           The
      Seller represents, warrants and covenants to Selling Agent that, except as
      set
      forth in Schedule 3.1 hereof or in the Offering Document:

    

    (a)           The
      Seller and each subsidiary is a corporation duly formed and validly existing
      and
      in good standing under the laws of the jurisdiction of its incorporation as
      in
      effect on the date of this Agreement, with adequate power and authority to
      enter
      into and perform this Agreement and to own its property and to conduct its
      business as described in the Offering Document and in Seller’s reports required
      to be filed by it with the SEC pursuant to the 1933 Act, the 1934 Act or
      otherwise (“SEC Reports”) ; and the Seller and each subsidiary is duly qualified
      as a foreign corporation to transact business and is in good standing in each
      jurisdiction in which it owns or leases substantial properties or in which
      the
      conduct of its business requires such qualification except for such
      jurisdictions in which the failure to qualify in the aggregate would not have
      material and adverse effect on the earnings, affairs or business prospects
      of
      the Seller or any such subsidiary (a “Material Adverse Effect”) and in which
      jurisdictions such failure may be cured without such Material Adverse Effects;
      the execution and delivery of this Agreement by the Seller has been duly and
      validly authorized and will not result in a breach of its Certificate of
      Incorporation or By-laws; and when executed and delivered by both parties
      hereto, this Agreement will be a valid and binding obligation of the Seller,
      assuming the due execution by the Selling Agent, enforceable in accordance
      with
      its terms (except to the extent that enforceability of the indemnification
      provisions may be limited under applicable securities laws and except as
      enforcement may be limited by bankruptcy, moratorium or other laws affecting
      creditors’ rights or general principles of equity); and the execution and
      delivery of this Agreement, the consummation of the transactions herein
      contemplated and compliance with the terms of this Agreement by the Seller
      do
      not and will not conflict with or result in a breach of any of the terms or
      provisions of, or constitute a default under, any agreement or any applicable
      law, rule, regulation, judgment, order or decree of any government, government
      instrumentality or court, domestic or foreign, having jurisdiction over the
      Seller, to which the Seller is a party or by which it is bound;

    

    (b)           The
      Offering Document and the SEC Reports do not contain and will not contain,
      at
      any time between the date hereof and to and including the date of each Closing,
      any untrue statement of a material fact and does not omit nor during such period
      will 

     

    
      
        
        

      

      
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    omit
      to
      state a 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;

    

    (c)           Except
      as is otherwise disclosed in the Offering Document or the SEC Reports, there
      is
      no litigation or governmental proceeding pending or, to the best of its
      knowledge, threatened against or involving the property or business of the
      Seller or any subsidiary of the Seller that would result in a Material Adverse
      Effect;

    

    (d)           Except
      as is otherwise disclosed in the Offering Document or the SEC Reports, no
      material defaults exist in the due performance and observance of any material
      obligation, term, covenant or condition of any agreement or instrument to which
      the Seller or any subsidiary is a party or by which they are bound that would
      result in a Material Adverse Effect;

    

    (e)           The
      offer, offer for sale, and sale of the Offered Securities have not been and
      will
      not be registered with the Securities and Exchange Commission (the “SEC”) except
      as contemplated in the Offering Document.  The Company’s actions with
      respect to the offer, offer for sale and sale of the Offered Securities will
      be
      pursuant to the exemptions from the registration requirements of Section 5
      of
      the 1933 Act provided by Section 4(2) thereof and/or by Regulation D
      thereunder;

    

    (f)           
      To the best of its knowledge and belief, assuming the offer, offer for sale
      and
      sale of the Offered Securities is made in compliance with the terms of the
      Offering Document, the applicable filings with the SEC and any applicable Blue
      Sky laws, and subject to the performance of the Selling Agent’s obligations
      hereunder, the Seller will have complied in all material respects with the
      1933
      Act and with all state securities laws and regulations applicable to it in
      connection with the offer, offer for sale, and sale of the Offered
      Securities.  The Seller has not taken and will not take any action in
      conflict with the 1933 Act or applicable state or foreign securities or Blue
      Sky
      laws, or which would make the exemption, qualification or registration pursuant
      to applicable federal or state securities or Blue Sky laws unavailable with
      respect to the offer, offer for sale and sale of the Offered
      Securities.  The Seller and its officers, directors or partners are
      not subject to any disqualification, including but not limited to any judgment,
      decree, order or decision issued by the SEC, any state or foreign securities
      regulatory authority, any court of competent jurisdiction or the United States
      Postal Service.  In offering the Offered Securities, the Seller will
      comply with all applicable federal, state or foreign securities laws, including
      the rules covering exemptions from registration;

    

    (g)           Subject
      to the performance of the Selling Agent’s obligations hereunder, the Offered
      Securities, upon the payment therefor and issuance thereof, will conform to
      all
      statements and descriptions in relation thereto contained in the Offering
      Document and will have the rights set forth in the Seller’s Certificate of
      Incorporation;

    

    (h)           To
      the best of the Seller’s knowledge, the Seller has neither been engaged in, nor
      been the subject of, any of the actions or proceedings specified in subsection
      (a) of Rule 262 promulgated under Section 3(b) of the 1933 Act, or any
      substantially similar provisions under the securities laws of any state in
      which
      the Offered Securities are to be sold, 

     

    
      
        
        

      

      
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    such
      that
      no exemption from registration would be available for the offering of the
      Offered Securities by the Seller under applicable federal or state securities
      laws;

    

    (i)           
      Since the respective dates as of which information is given in the SEC Reports,
      (i) there has been no material adverse change in the condition, business,
      property, capital commitments, working capital and liabilities or prospects
      of
      the Seller or any subsidiary, financial or otherwise; (ii) the property and
      business of the Seller materially conform to the descriptions thereof contained
      in the SEC Reports; (iii) there have been no material liabilities or obligations
      incurred or material transactions entered into by the Seller or any subsidiary
      other than those in the ordinary course of business; (iv) there have been no
      dividends or distributions of any kind declared, paid or made by the Seller
      on
      its capital stock; (v) there has not been any change in the capital stock,
      or
      any material increase in the current or long-term debt except as disclosed
      in
      the SEC Reports, or any issuance of options, warrants, convertible securities
      or
      other rights to purchase the capital stock of the Seller or any subsidiary;
      and
      (vi) there have been no transactions between the Seller, shareholders owning
      five percent (5%) or more of its issued and outstanding capital stock, the
      Seller’s officers and/or directors, nor have there been any corporate
      opportunities taken or assumed by controlling shareholders, officers or
      directors, that are not fully disclosed in the SEC Reports.

    

    (j)           
      The Seller will notify the Selling Agent immediately and confirm the notice
      in
      writing (i) of the issuance by the SEC or by any state attorney general or
      securities administrator of any order enjoining the sale of the Offered
      Securities or suspending the effectiveness of any qualification of the Offered
      Securities for sale or (ii) of the initiation of any proceedings for that
      purpose.  The Seller will make every reasonable effort to prevent the
      issuance of any such order and, if any such order shall at any time be issued,
      to obtain the lifting thereof at the earliest possible moment;

    

    (k)           The
      audited and unaudited combined financial statements of the Seller (including
      the
      related notes) included in the SEC Reports present fairly the financial position
      of the Seller and its subsidiaries at the dates indicated; said financial
      statements have been prepared in conformity with United States generally
      accepted accounting principles applied on a consistent basis, except as
      expressly qualified therein, and are in conformity with Regulation S-X
      promulgated under the Act;

    

    (l)           
      Except as set forth in the SEC Reports, the Seller does not have any
      subsidiaries and does not own any interest in any other corporation,
      partnership, joint venture or other entity;

    

    (m)           As
      of the date of this Agreement, the Seller and its subsidiaries have not agreed,
      or agreed in principle, to any merger or acquisition, or combination with,
      of
      any other corporation, partnership, person, party, entity or trust or the sale
      of its business or assets to any other corporation, partnership, person, party,
      entity or trust;

    

    (n)           The
      Seller and its subsidiaries have not, directly or indirectly, at any time during
      their existence (i) made any unlawful contribution to any candidate for
      political office, or failed to disclose fully any contribution in violation
      of
      law, or (ii) made any payment to 

     

    
      
        
        

      

      
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    any
      federal, state or foreign governmental officer or official, or other person
      charged with similar public or quasi-public duties, other than payments required
      or permitted by the laws of the United States or any jurisdiction
      thereof;

    

    (o)           To
      the best of Seller’s knowledge, the Seller and its subsidiaries have filed all
      necessary federal, state, local, foreign and other tax returns required to
      be
      filed by them and have paid all taxes shown as due thereon; the Seller and
      its
      subsidiaries have not been notified, either orally or in writing, that any
      state, local, federal or foreign taxing authority is conducting or intends
      to
      conduct an audit of any tax return or report filed by the Seller and its
      subsidiaries or concerning their business or properties; and the Seller has
      no
      knowledge of any tax deficiency which has been asserted or threatened against
      the Seller and any subsidiary which would materially and adversely affect the
      business, properties, financial condition, results of operations, liabilities
      or
      working capital of the Seller;

    

    (p)           The
      Seller and its subsidiaries make and keep accurate books and records and
      maintain internal accounting controls which provide reasonable assurance that
      (i) transactions are executed in accordance with management’s authorization,
      (ii) transactions are recorded as necessary to permit preparation of its
      financial statements and to maintain accountability for its assets, (iii) access
      to their assets is permitted only in accordance with management’s authorization,
      and (iv) the reported assets are compared with existing assets at reasonable
      intervals;

    

    (q)           There
      are no pre-emptive rights applicable to any of the Seller’s outstanding
      securities, or granted by the Seller to any person or party;

    

    (r)           The
      capitalization of the Seller is as described in the SEC Reports and the Seller
      has outstanding no more than 48,476,352 shares of its common stock as of the
      date hereof; all presently outstanding shares of the Seller’s common stock are
      duly and validly authorized and issued, fully paid and non-assessable and
      contain no preemptive rights; the Seller has not contracted for the issuance
      of
      any additional equity securities other than as set forth herein or as
      contemplated or described in the Offering Document and no shares of any other
      classes of equity securities are issued and outstanding except as follows:
      outstanding options to purchase 11,755,433 shares of common stock and
      outstanding warrants to purchase 28,161,563 shares of common stock;

    

    (s)           The
      Seller agrees that, for a period of Twelve months (12) months from the date
      hereof, it shall not solicit any offer to buy from or offer to sell to any
      person introduced to the Seller by the Selling Agent in connection with the
      Offering, any securities of the Seller or provide the name of any such person
      to
      any other securities broker or dealer or selling agent.  For purposes
      of this subsection, a person shall be considered to have been “introduced to the
      Seller” by the Selling Agent only so long as Seller delivers an investment
      presentation to such person as part of the “road show” for the Offering as
      arranged by the Selling Agent, each of whose name(s) shall be thereafter listed
      and set forth on a schedule to this Agreement, which shall be updated from
      time
      to time. In the event that the Seller or any of its
      affiliates, directly or indirectly, solicits, offers to buy from or offers
      to
      sell to any such person any such securities, or provides the name of any such
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    dealer
      or
      selling agent, and such person purchases such securities or purchases securities
      of the Seller  from any other securities broker or dealer or selling
      agent, the Seller shall pay to the Selling Agent an amount equal to ten percent
      (10.0%) of the aggregate purchase price of the securities so purchased by such
      person.

    

    (t)           The
      Seller is currently in compliance with (i) all applicable, material provisions
      of the Sarbanes-Oxley Act of 2002, and the rules and regulations promulgated
      thereunder, and (ii) all listing standards and rules promulgated by the NASD,
      except to the extent that non-compliance with such requirements in subsections
      (i) or (ii) would not result in a Material Adverse Effect.

    

    (u)           All
      shares of common stock to be issued pursuant to this offer (including shares
      of
      common stock underlying the Warrants) shall be delivered to the investors or
      the
      Selling Agent, as may be applicable, in the form of a physical certificate
      and
      not electronically.

    

    3.2           The
      Selling Agent represents and warrants to the Seller as follows:

    

    (a)           The
      Selling Agent is, has been and will be at all times during the Offering Period,
      a Delaware corporation duly organized and validly existing under the laws of
      the
      state of its incorporation, with all requisite power and authority to enter
      into
      and perform this Agreement; the execution and delivery of this Agreement by
      the
      Selling Agent has been duly and validly authorized; and when executed and
      delivered by the Seller, this Agreement will be a valid and binding obligation
      of the Selling Agent enforceable in accordance with its terms subject
      to:  (i) due authorization, execution and delivery hereof by the
      Seller; (ii) the enforcement of remedies under applicable bankruptcy, insolvency
      and other laws affecting creditors’ rights generally and moratorium laws from
      time to time in effect; (iii) general equitable principles which may limit
      the
      right to obtain the remedy of specific performance; and (iv) the public policy
      limitation on indemnification under the federal securities laws;

    

    (b)           
      The Selling Agent shall not offer or sell the Offered Securities in any state
      or
      states without the approval of the Seller and completion by the Seller of all,
      or any, Blue Sky filings for such states and shall not offer or sell the Offered
      Securities in any state or states in which it is not qualified or registered
      as
      a broker-dealer or authorized to engage in the brokerage business;
      and

    

    (c)           
      The Selling Agent is (i) a broker-dealer registered with the SEC pursuant to
      the
      1934 Act, and no proceeding has been initiated to revoke such registration;
      (ii)
      a member in good standing of the NASD; and (iii) a broker-dealer registered
      with
      the securities authorities of each jurisdiction in which it is required to
      be
      registered in connection with the offers or sales of the Offered Securities,
      and
      all such offers or sales will be made only by individuals licensed as required
      by all applicable federal and state securities laws.  The Selling
      Agent agrees to maintain each of the foregoing memberships and registrations
      in
      good standing throughout the Offering Period.

     

     

    
      
        
        

      

      
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    4.            Sale
      and Delivery of Offered Securities.

    

    4.1           No
      sale of Offered Securities shall take place or be regarded as effective unless
      and until accepted by the Seller, such acceptance to occur at Closing, and
      the
      Seller reserves the right in its sole and absolute discretion to refuse to
      sell
      Offered Securities to any or all persons at any time.  Selling Agent
      shall send to the Seller and to the Escrow Agent designated in Section 1.2,
      with
      copies to counsel for the Seller, all acceptable executed Subscription
      Documents, promptly upon receipt of the same, subject to any reasonable delay
      occasioned by further inquiry as to a prospective purchaser’s qualification or
      requests by the Seller or Selling Agent for further information from a
      prospective purchaser.  The Seller shall notify Selling Agent as to
      whom to send the originals of such executed Subscription Documents and to whom
      to send copies.  Selling Agent shall promptly send each such
      prospective purchaser’s payment for his Offered Securities to the Escrow
      Agent.  Subject to review by counsel for the Seller, the Seller shall
      notify Selling Agent whether such prospective purchaser will be accepted by
      the
      Seller at Closing within ten (10) business days after receipt of the executed
      subscription documents for each prospective purchaser of Offered Securities,
      but
      in no event later than the earlier of (i) the date the parties have agreed
      to
      for Closing or (ii) the Offering Termination Date.  For every
      prospective purchaser of Offered Securities whose subscription is rejected,
      the
      Seller will promptly return all of such prospective purchaser’s executed
      Subscription Documents to Selling Agent for return to the prospective purchaser,
      and will notify the Escrow Agent to return the funds received to such
      prospective purchaser without interest and without deduction.

    

    5.           Conditions
      to the Obligations of the Seller.

    

    The
      obligations of the Seller hereunder are subject to the accuracy of Selling
      Agent’s representations and warranties, to the observance and performance by
      Selling Agent of its obligations hereunder, and to the following further
      conditions (any of which may be waived in writing in whole or in part by the
      Seller):

    

    (a)           Selling
      Agent shall not have taken or failed to take any action at any time at or prior
      to Closing, which, in the opinion of the Seller or counsel for Seller, conflicts
      or would conflict with, or otherwise make unavailable, the exemption from
      registration requirements for the offer and sale of the Offered Securities
      under
      applicable securities laws and regulations.

    

    (b)           If
      any of the conditions specified in this Section 5 shall not have been fulfilled
      when and as required by this Agreement to be fulfilled, all the obligations
      of
      the Seller under this Agreement may be terminated in writing at any time at
      or
      prior to Closing, and any such termination shall be without liability to the
      parties, and further provided that the obligations under Section 7 and Section
      9.1 shall nevertheless survive and continue thereafter.

    

    6.           Conditions
      of the Obligations of the Selling Agent.

    

    The
      obligations of the Selling Agent to act as agent hereunder, to find purchasers
      for the Offered Securities, and to attend and to deliver documents at Closing
      shall be subject to the following conditions:

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (a)           Between
      the date hereof and Closing, the Seller and its subsidiaries shall not have
      sustained any loss on account of fire, explosion, flood, accident, calamity
      or
      other cause, of such character as results in a Material Adverse Effect on the
      Seller and its subsidiaries, whether or not such loss is covered by
      insurance.

    

    (b)           Between
      the date hereof and Closing, there shall be no material litigation instituted
      or
      threatened against the Seller or any subsidiary (other than as set forth in
      the
      Offering Document) and there shall be no material proceeding instituted or
      threatened before or by any federal or state commission, regulatory body or
      administrative agency or other governmental body, domestic or foreign, wherein
      an unfavorable ruling, decision or finding would materially adversely affect
      the
      business, franchises, licenses, permits, operations or financial condition
      or
      income of the Seller.

    

    (c)           Except
      as contemplated herein or as set forth in the Offering Document, during the
      period subsequent to the date hereof, and prior to Closing, the Seller and
      each
      subsidiary:  (i) shall have conducted its business in the usual and
      ordinary manner as the same was being conducted on the date hereof, and (ii)
      except in the ordinary course of its business, the Seller and each subsidiary
      shall not have incurred any liabilities or obligations (direct or contingent),
      or disposed of any assets, or entered into any material transaction or suffered
      or experienced any substantially adverse change in its condition, financial
      or
      otherwise, or in its working capital position.  At Closing, the
      capitalization of the Seller shall be substantially the same as set forth in
      the
      Offering Document.

    

    (d)           The
      authorization for the issuance and delivery of the Offered Securities and the
      Offering Document and related materials, and for the execution and delivery
      of
      this Agreement, and all other legal matters incident thereto, shall be
      reasonably satisfactory in all respects to counsel for Selling
      Agent.

    

    (e)           The
      Seller shall have furnished to the Selling Agent the opinion, dated the Closing
      Date, of its counsel, which opinion shall be reasonably acceptable to the
      Selling Agent and its counsel

    

    (f)           
      The representations and warranties of the Seller made in this Agreement or
      in
      any document or certificate delivered to the Selling Agent pursuant hereto
      shall
      be true and correct on and as of the Closing with the same force and effect
      as
      though such representations and warranties have been made on and as of the
      Closing, and the Selling Agent shall have received a certificate, dated the
      Closing Date, to such effect executed by the Chairman of the Board or President
      of the Seller.

    

    (g)           The
      Seller shall have performed and complied in all material respects with all
      covenants, terms and agreements to be performed and complied with by the Seller
      on or before the Closing.

    

    (h)           The
      Seller shall have provided such certificates as the Selling Agent shall
      reasonably request.

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (i)           
      The Seller and its President shall provide certificates to the Selling Agent
      certifying that the proceeds of the Offering will be used in accordance with
      the
      uses designated in “Use of Proceeds” in the Offering Document.

    

    7.           Indemnification.

    

    7.1           The
      Seller agrees to indemnify and hold harmless Selling Agent and each person,
      if
      any, who controls Selling Agent within the meaning of the 1933 Act or the 1934
      Act (together, the “Acts”), the Selling Agent’s affiliated entities, partners,
      employees, legal counsel and agents (the “SA Indemnified Parties”) against any
      losses, claims, damages, obligations, penalties, judgments, awards, liabilities,
      costs, expenses and disbursements (and any and all actions, suits, proceedings
      and investigations in respect thereof and any and all legal and other costs,
      expenses and disbursements in giving testimony or furnishing documents in
      response to a subpoena or otherwise), joint or several, to which Selling Agent
      or such person may be subject, under the Acts or otherwise, including, without
      limitation, the costs, expenses and disbursements, as and when incurred, of
      investigating, preparing or defending any such action, suit, proceeding or
      investigation (whether or not in connection with litigation in which the Selling
      Agent is a party), directly or indirectly, caused by, relating to, based upon,
      arising out of, or in connection with (i) the violation or breach of any
      representation, warranty or covenant or agreement of the Seller set forth in
      this Agreement or in any instrument, document, agreement or certificate
      delivered by the Seller in connection herewith; (ii) any untrue statement or
      omission or any alleged untrue statement or omission in the Offering Document
      or
      selling material, excluding information contained in or omitted from the
      Offering Document or selling material in reliance upon, and in conformity with,
      information furnished to the Seller by Selling Agent or any Participating
      Broker-Dealer specifically for use in preparation of the Offering Document
      or
      selling material, as the case may be; (iii) any information provided by or
      on
      behalf of Seller in order to qualify or exempt the Offered Securities for sale
      in any jurisdiction; or (iv) the failure of the Seller to comply with the
      provisions of the Acts and the regulations thereunder, including Regulation
      D;
      and will reimburse the SA Indemnified Parties for any legal or other expenses
      reasonably incurred by the SA Indemnified Parties in connection with
      investigation of or defending against any such loss, claim, expense, damage,
      liability, (or actions in respect thereof); provided, however, that the Seller
      shall not be required to indemnify the SA Indemnified Parties for any payment
      made to any claimant in settlement of any suit or claim unless such payment
      is
      agreed to by the Seller (which agreement shall not be unreasonably withheld)
      or
      by a court having jurisdiction of the controversy.  This indemnity
      agreement shall remain in full force and effect notwithstanding any
      investigation made by Selling Agent or on Selling Agent’s behalf, shall survive
      consummation of the sale of the Offered Securities hereunder and shall be in
      addition to any liability which the Seller may otherwise have.

    

    7.2           Selling
      Agent agrees to indemnify and hold harmless the Seller and each person, if
      any,
      who controls the Seller within the meaning of the Acts, Seller’s affiliated
      entities, partners, employees, legal counsel and agents (the “Seller Indemnified
      Parties”) against any losses, claims, damages, obligations, penalties,
      judgments, awards, liabilities, costs, expenses and disbursements (and any
      and
      all actions, suits, proceedings and investigations in respect thereof and any
      and all legal and other costs, expenses and disbursements in giving testimony
      or

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    furnishing
      documents in response to a subpoena or otherwise), joint or several (including,
      without limitation, the costs, expenses and disbursements, as and when incurred,
      of investigating, preparing or defending any such action, suit, proceeding
      or
      investigation (whether or not in connection with litigation in which the Seller
      is a party)),  to which the Seller or any such person may be subject,
      under the Acts or otherwise, insofar as such losses, claims, expenses, damages
      or liabilities (or actions in respect thereof) which (i) arise out of or are
      based upon any untrue statement or omission or any alleged untrue statement
      or
      omission in the Offering Document contained in or omitted from the Offering
      Document in reliance upon, and in conformity with, information furnished to
      the
      Seller by Selling Agent or any Participating Broker-Dealer or either of them
      specifically for use in preparation of the Offering Document or selling
      material, as the case may be or (ii) are directly or indirectly, caused by,
      relating to, based upon, arising out of, or in connection with the violation
      or
      breach of any representation, warranty or covenant or agreement of the Selling
      Agent set forth in this Agreement or in any instrument, document, agreement
      or
      certificate delivered by the Selling Agent in connection herewith) ; and will
      reimburse the Seller Indemnified Parties for any legal or other expenses
      reasonably incurred by them in connection with investigating or defending
      against any such loss, claim, expense, damage, liability, (or actions in respect
      thereof); provided, however, that Selling Agent shall not be required to
      indemnify the Seller Indemnified Parties for any payment made to any claimant
      in
      settlement of any suit or claim unless such payment is approved by a court
      having jurisdiction over the controversy or Selling Agent agrees to such
      settlement (which agreement shall not be unreasonably withheld); and provided
      further that Selling Agent shall not be liable under this Section 7.2 for any
      losses, claims, expenses, damages or liabilities arising out of any act or
      failure to act on the part of any other person except Selling Agent, its
      partners, employees and agents (including registered representatives) or any
      Participating Broker-Dealer.  This indemnity agreement shall remain in
      full force and effect notwithstanding any investigation made by or on behalf
      of
      the Seller and shall survive consummation of the sale of the Offered Securities
      hereunder and the termination of this Agreement, and shall be in addition to
      any
      liability which Selling Agent may otherwise have.  Notwithstanding the
      foregoing, in no event shall the amount that the Selling Agent is required
      to
      indemnify the Seller Indemnified Parties, exceed in the aggregate the
      compensation received by the Selling Agent hereunder, except in the case of
      fraud on the part of the Selling Agent.

    

    7.3           The
      indemnified party shall notify the indemnifying party in writing promptly after
      the summons or other first legal process giving information of the nature of
      any
      and all claims which have been served upon the indemnified party.  In
      case any action is brought against any indemnified party upon any such claim,
      the indemnifying party shall be entitled to participate at its own expense
      in
      the defense, or if it so elects, in accordance with arrangements satisfactory
      to
      any other indemnifying party or parties similarly notified, to assume the
      defense thereof, with counsel who shall be satisfactory to such indemnified
      party and other indemnified parties who are defendants in such action; and
      after
      notice from the indemnifying party to such indemnified party of its election
      so
      to assume the defense thereof and the retaining of such counsel by the
      indemnifying party, the indemnifying party shall not be liable to such
      indemnified party under this Section 7 for any legal or other expenses
      subsequently incurred by such indemnified party in connection with the defense
      thereof, other than the reasonable costs of investigation, unless the
      indemnified party shall have reasonably concluded that there are or may be
      defenses available to it which are different from or in addition to those
      available to the 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    indemnifying
      party (in which case the indemnifying party shall not have the right to direct
      the defense of such action on behalf of the indemnified party), in any of which
      circumstances such expenses shall be borne by the indemnifying
      party.

    

    8.           Termination
      of Agreement.

    

    8.1           This
      Agreement shall terminate:

    

    (a)           If
      at any time after commencement of the Offering, any material condition of
      Seller’s obligations hereunder shall not have been met or shall cease to be met
      and Selling Agent shall have given to the Seller notice of Selling Agent’s
      desire to terminate this Agreement on account of the nonfulfillment of such
      condition; or

    

    (b)           
      At such time as all of the Offered Securities shall have been sold and the
      subscriptions therefor have been accepted or the Offering Termination Date
      has
      been reached, whichever shall first occur.

    

    Notwithstanding
      the termination of this Agreement in accordance with the foregoing provisions
      of
      this Section 8, the respective indemnities, covenants, agreements,
      representations, warranties and other statements of the Seller and Selling
      Agent
      set forth in or made pursuant to this Agreement will remain operative and in
      full force and effect.

    

    8.2           If
      this Agreement is terminated pursuant to Section 8.1(a) above, the Selling
      Agent
      shall have no liability to the Seller, and if this Agreement is terminated
      pursuant to Section 8.1(b) above, the Seller shall have no liability to the
      Selling Agent.

    

    9.           Miscellaneous.

    

    9.1           
      Except as otherwise specifically provided in this Agreement or as may be
      otherwise agreed between the parties hereto, Selling Agent, on the one hand,
      and
      the Seller, on the other, shall each pay their respective expenses incident
      to
      this Agreement and the transactions contemplated hereby (including, without
      limitation, the fees and disbursements of their respective counsel), and no
      party to the Agreement shall have any liability for such expenses incurred
      by
      any other party.

    

    9.2           It
      is understood and agreed that Selling Agent’s relationship to the Seller is that
      of an independent contractor and that nothing herein shall be construed to
      create a relationship of partners, affiliates, joint venturers or employer
      and
      employee between Selling Agent or either of them and the Seller.

    

    9.3           No
      rights or interests arising hereunder may be assigned except with the prior
      written consent of both the Seller and the Selling Agent.  Subject to
      this limitation, this Agreement shall inure to the benefit and be binding upon
      Selling Agent and the Seller and their respective successors and
      assigns.  This Agreement is intended to be and is for the sole and
      exclusive benefit of the parties hereto, and their respective successors and
      assigns and for the benefit of no other person.  Except as provided in
      this Agreement, nothing expressed or 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    mentioned
      in this Agreement is intended or shall be construed to give any person, other
      than the parties to it and their respective successors and assigns, any legal
      or
      equitable right, remedy or claim under or with respect to this Agreement or
      any
      of its provisions.  No purchaser of Offered Securities shall be
      construed as a successor or assign merely by reason of such
      purchase.

    

    9.4           If
      any portion of this Agreement shall be held invalid or inoperative, then so
      far
      as is reasonable and possible:

    

    (a)           
      the remainder of this Agreement shall be considered valid and operative;
      and

    

    (b)           to
      the extent possible under applicable law, effect shall be given to the intent
      manifest by the portion held invalid or inoperative.

    

    9.5           This
      Agreement may be executed in a number of identical counterparts and by
      facsimile, each of which shall be deemed to be an original, but all of which
      constitute, collectively, one and the same Agreement; but, in making proof
      of
      this Agreement, it shall not be necessary to produce or account for more than
      one counterpart.

    

    9.6           
      This Agreement may not be modified or amended except by written agreement
      executed by each of the parties to this Agreement.

    

    9.7           Whenever
      the context so requires, the masculine shall include the feminine and neuter,
      and the singular shall include the plural, and conversely.  The words
“shall” and “will” and “agrees” are mandatory, “may” is permissive.

    

    9.8           
      The parties to this Agreement covenant and agree that they will execute any
      other and further instruments and documents which reasonably are or may become
      necessary or convenient to effectuate and carry out this Agreement.

    

    9.9           This
      Agreement (and the other documents and agreements referenced herein) contains
      the entire understanding between the parties and supersedes prior understandings
      or written or oral agreements between the parties with respect to the subject
      matter of this Agreement.

    

    9.10           
      This Agreement shall be construed and governed by the laws of the State of
      Florida.  Each party hereby consents to any and all actions or
      controversies arising from this agreement shall be have venue in the exclusive
      jurisdiction of the state and federal courts located in Palm Beach County,
      Florida. Any terms and conditions of this Agreement which are inconsistent
      with
      the terms and conditions of the Offering Document, shall be modified to conform
      to the terms and conditions set forth in the Offering Document.

    

    9.11           All
      notices or communications, except as otherwise specifically provided, shall
      be
      in writing, and, if sent to any party, shall be mailed, delivered or telegraphed
      and confirmed to that party at the address set forth below:

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    
      	
              If
                to the Seller:

            	
              PERFORMANCE
                HEALTH  TECHNOLOGIES,
                INC.

            

    

    427
      River
      View Plaza

    Trenton,
      NJ 08611

    Attn:
      Robert Prunetti, President & CEO

    

    With
      a
      copy contemporaneously

    by
      like
      means:

    

    

    
      	
              If
                to Selling Agent, to:

            	
              Dawson
                James Securities,

            

    

    925
      S. Federal Highway

    6th
      Floor

    Boca
      Raton, FL 33432

    Attention:  David
      Weinstein

    

    With
      a
      copy contemporaneously

    by
      like
      means:

    

    

    9.12           All
      of the terms of this Agreement, including all representations, warranties,
      covenants and agreements of Selling Agent and the Seller, shall survive
      completion of the Offering for three years.

    

    9.13           Section
      titles or captions contained in this Agreement are inserted only as a matter
      of
      convenience and for reference.  Those titles in no way define, limit,
      extend or describe the scope of this Agreement, or the intent of any provision
      of this Agreement.

    

    10.           Right
      of First Refusal.  The Seller will grant to the Selling Agent a
      right of first refusal for a period of twenty-four (24) months from the Closing
      Date of the Offered Securities being offered in this transaction to be engaged
      as placement agent for any public or private sale of securities of the Seller
      to
      be made by the Seller or any of its affiliates or subsidiaries.

    

    If
      the
      foregoing correctly sets forth the understanding between us, please indicate
      acceptance by signing in the space provided below for that purpose and return
      to
      us a counterpart hereof so signed, whereupon this letter and Selling Agent’s
      acceptance shall constitute a binding agreement between us.

    

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

       

      
        	 	
                Very
                  truly yours,

                

                PERFORMANCE
                  HEALTH

                TECHNOLOGIES,
                  INC.

                

                

                By:____________________________

                     (Authorized
                  Officer) 

              

      

    

     

    The
      foregoing Selling Agreement for PERFORMANCE HEALTH TECHNOLOGIES, INC. is hereby
      accepted and agreed to as of the date first above written.

    

    
      	
               

              DAWSON
JAMES
SECURITIES, INC.

              As
                Selling Agent

               

              By:
                __________________________

              (Authorized
                Officer)

               

              By:
                __________________________

              (Authorized
                Officer)

            

    

    

 

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    Exhibit
      A

     

    

     

    Date

    Performance
      Health Technologies, Inc.

    

    Private
      Placement of Convertible Notes

    

    

    Offering
      Size:$600,000

    

    Attached
      is a proposed structure for a possible financing arranged by Dawson James
      Securities, Inc. for Performance Health Technologies, Inc  The terms
      of this proposal (this “Proposal”) are preliminary, for discussion purposes
      only.  Your receipt of this Proposal constitutes your agreement that
      this Proposal is the confidential information of Dawson James Securities, Inc.
      and may not be distributed without our prior written consent other than to
      your
      attorneys, accountants and as required by law.

     

    
      	
              Issuer:

            	
              Performance
                Health Technologies, Inc (the “Company”).

               

            
	
              Securities
                Offered:

            	
              600
                Units,  Each unit consists of a $1,000 Convertible Note (the
                “Notes”) and 2,000 class A warrants and 2,000 class B
                warrants.

               

            
	
              Conversion
                Price of Notes:

            	
              The
                conversion price of the Notes shall be the lower of $0.75 or 70%
                of the
                average of the closing bid price for the Company’s common stock for the 20
                days preceding the conversion notice, as reported by the exchange
                on which
                the Company’s common stock is then traded but in any event not less than $
                0.30 (the “Conversion Price”).

               

            
	
              Term
                of Notes:

            	
              12
                months.

               

            
	
              Note
                Interest:

            	
              10.0%
                per annum, payable at maturity.

               

            
	
              Warrants:

            	
              Subject
                to certain adjustments, the class A Warrant exercise price shall
                be $0.75
                and the class B warrant exercise price shall be $1.50, each to have
                a 5
                year term.

               

            
	
              Most
                Favored Nations Exchange Right:

            	
              For
                the term of the Notes, if the Company does a private equity or equity
                linked financing (a “Subsequent Financing”) prior to an IPO, the holders
                of the Notes may exchange the Notes at the stated value for the securities
                issued in the Subsequent Financing.

               

            
	
              Use
                of Proceeds:

            	
              Working
                capital.

               

            

    

    

     

     

    
      
        
        

      

      
        17WWW.EXFILE.COM, INC. -- PERFORMANCE HEALTH TECHNOLOGIES, INC. -- EXHIBIT 10.91 TO FORM 10-QSB

    EXHIBIT
      10.91

    

    THIS
      WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), AND
      MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED OR DISPOSED OF EXCEPT
      PURSUANT TO (1) A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
      UNDER
      THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
      LAWS OF ANY STATE OF THE UNITED STATES OR (2) UPON DELIVERY OF A LEGAL OPINION
      TO THE COMPANY, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY,
      THAT ANY SUCH TRANSACTION IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

    

     Dated:
      August 15, 2007

    

    

    WARRANT

    

    To
      Purchase 250,000 shares of

    Common
      Stock, $.01 par value

    

    of

    

    Performance
      Health Technologies, Inc.

    

    Expiring
      August 15, 2012

    

    THIS
      IS
      TO CERTIFY THAT, for value received, DAWSON JAMES SECURITIES, INC.,
or its registered assigns (hereinafter referred to as the
      (“Holder”),
      is entitled to subscribe and purchase from PERFORMANCE HEALTH
      TECHNOLOGIES, INC., a Delaware corporation (the
“Company”), commencing on the date hereof, 250,000 shares of Common
      Stock, $.01
      par value, of the Company (the “Shares”), at the place where the Warrant Agency
      (as hereinafter defined) is located, at the Exercise Price (as hereinafter
      defined), all subject to adjustment and upon the terms and conditions as
      hereinafter provided, and is entitled also to exercise the other appurtenant
      rights, powers and privileges hereinafter described; provided, however, that
      in
      no event shall the Holder be entitled to exercise this Warrant for a number
      of
      Shares in excess of that number of Shares which, upon giving effect to such
      exercise, would cause the aggregate number of shares of Company Common Stock
      beneficially owned by the Holder and its affiliates to exceed 9.99% of the
      outstanding shares of the Company Common Stock following such exercise, except
      within sixty (60) days of the Expiration Date.  For purposes of the
      foregoing proviso, the aggregate number of shares of Common Stock beneficially
      owned by the Holder and its affiliates shall include the number of shares of
      Common Stock issuable upon exercise of this Warrant with respect to which the
      determination of such proviso is being made, but shall exclude shares of Common
      Stock which would be issuable 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    upon
      (i)
      exercise of the remaining, unexercised Warrants beneficially owned by the holder
      and its affiliates and (ii) exercise or conversion of the unexercised or
      unconverted portion of any other securities of the Company beneficially owned
      by
      the holder and its affiliates (including, without limitation, any convertible
      notes or preferred stock) subject to a limitation on conversion or exercise
      analogous to the limitation contained herein.  Except as set forth in
      the preceding sentence, for purposes of this paragraph, beneficial ownership
      shall be calculated in accordance with Section 13(d) of the Securities Exchange
      Act of 1934, as amended.  For purposes of this Warrant, in determining
      the number of outstanding shares of Common Stock a Holder may rely on the number
      of outstanding shares of Common Stock as reflected in (1) the Company’s most
      recent Form 10-QSB or Form 10-KSB, as the case may be, (2) a more recent public
      announcement by the Company or (3) any other notice by the Company or its
      transfer agent setting forth the number of shares of Common Stock
      outstanding.  Upon the written request of any holder, the Company
      shall promptly, but in no event later than one (1) Business Day following the
      receipt of such notice, confirm in writing to any such holder the number of
      shares of Common Stock then outstanding.  In any case, the number of
      outstanding shares of Common Stock shall be determined after giving effect
      to
      the exercise of Warrants (as defined below) by such holder and its affiliates
      since the date as of which such number of outstanding shares of Common Stock
      was
      reported.

     

    This
      Warrant is issued pursuant to the Financial Advisory and Consulting Agreement
      dated July 2, 2007 between the Company and Dawson James Securities, Inc.
      Capitalized terms used in this Warrant and not otherwise defined shall have
      the
      meanings set forth in Article IV hereof.

    

    ARTICLE
      I

    EXERCISE OF WARRANTS

    

    Section
      1.01 Method of Exercise.  To exercise this Warrant in whole or
      in part, the Holder shall deliver to the Company at the Warrant Agency, (a)
      this
      Warrant, (b) a written notice, in substantially the form of the Subscription
      Notice attached hereto, of such Holder’s election
      to
      exercise this Warrant, which notice shall specify the number of Shares to be
      purchased, the denominations of the share certificate or certificates desired
      and the name or names in which such certificates are to be registered and (c)
      the aggregate Exercise Price for the Shares purchased (unless the Holder chooses
      the “cashless exercise” option provided in the third paragraph of this Section
      1.01).

    

    The
      Company shall, as promptly as practicable and in any event within seventy-two
      hours thereafter, execute and deliver or cause to be executed and delivered,
      in
      accordance with such notice, a certificate or certificates representing the
      aggregate number of Shares specified in said notice.  The Share
      certificate or certificates so delivered shall be in such denominations as
      determined by the Company, or as may be specified in such notice, and shall
      be
      issued in the name of the Holder or such other name or names as shall be
      designated in such notice.  Such certificate or certificates shall be
      deemed to have been issued, and such Holder or any other person so designated
      to
      be named therein shall be deemed for all purposes to have become holders of
      record of such Shares, as of the date the aforementioned notice is received
      by
      the Company.  If this Warrant shall have been exercised only in part,
      the Company shall, at the time of delivery of the certificate or certificates,
      deliver to the Holder a new Warrant evidencing 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    the
      rights to purchase the remaining Shares called for by this Warrant, which new
      Warrant shall in all other respects be identical with this Warrant, or, at
      the
      request of the Holder, appropriate notation may be made on this Warrant which
      shall then be returned to the Holder.  The Company shall pay all
      expenses, payable in connection with the preparation, issuance and delivery
      of
      Share certificates and new Warrants as contemplated by Section 2.07 below (other
      than transfer, income or similar taxes in connection with the transfer of
      securities), except that, if Share certificates or new Warrants shall be
      registered in a name or names other than the name of the Holder, funds
      sufficient to pay all transfer taxes payable as a result of such transfer shall
      be paid by the Holder at the time of delivering the aforementioned notice of
      exercise or promptly upon receipt of a written request of the Company for
      payment.

    

    In
      lieu
      of a monetary payment of the aggregate Exercise Price, the Holder may elect
      to
      receive, without the payment of any additional consideration, Shares equal
      to
      the value of this Warrant or portion thereof by the surrender of such Warrant
      to
      the Company with the “cashless exercise” election marked in the form of
      Subscription Notice.  Thereupon, the Company shall issue to the
      Holder, such number of fully paid and non-assessable Shares as is computed
      using
      the following formula:

    

     X  =  Y(A-B)

             A

    
      	
              Where

            	
              X=

            	
              the
                number of Shares to be issued to the Holder pursuant to this Section
                1.01  upon such cashless exercise
                election.

            

    

    

    
      	
               

            	
              Y=

            	
              the
                number of Shares covered by this Warrant in respect of which the
                cashless
                exercise election is made.

            

    

    

    
      	
               

            	
              A=

            	
              the
                Fair Market Value (as defined in Article IV hereof) of one Share,
                as at
                the time the cashless exercise election is
                made.

            

    

    

    
      	
               

            	
              B=

            	
              the
                Exercise Price in effect under this Warrant at the time the cashless
                exercise election is made.

            

    

    

    Section
      1.02 Shares To Be Fully Paid and Non-assessable.  All Shares
      issued upon the exercise of this Warrant (the “Warrant Shares”) pursuant to
      Section 1.01 above shall be validly issued, fully paid and nonassessable and
      the
      Company shall at all times reserve and keep available out of its authorized
      shares of Common Stock a sufficient number of Shares for the purpose of issuance
      of the Warrant Shares upon the exercise of this Warrant.

    

    Section
      1.03 No Fractional Shares To Be Issued.  The Company shall not
      be required to issue fractions of Shares upon exercise of this
      Warrant.  If any fraction of a Share would, but for this Section, be
      issuable upon any exercise of this Warrant, in lieu of such fractional Share
      the
      Company shall pay to the Holder or Holders, as the case may be, in cash, an
      amount equal to the same fraction of the Fair Market Value per share of
      outstanding Shares on the Business Day immediately prior to the date of such
      exercise.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Section
      1.04 Share Legend.  Each certificate for Shares issued upon
      exercise of this Warrant shall bear the legend set forth below, unless Holder’s
      Counsel (as defined below) shall render an opinion in form and substance
      reasonably satisfactory to the Company that such legend is not required or
      at
      the time of exercise such Shares are registered under the Securities
      Act:

    

    THE
      SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE
      OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED OR DISPOSED OF EXCEPT PURSUANT
      TO (1) A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
      SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
      OF ANY STATE OF THE UNITED STATES OR (2) UPON DELIVERY OF A LEGAL OPINION TO
      THE
      COMPANY, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY, THAT
      ANY
      SUCH TRANSACTION IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
      ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

    

    Any
      certificate issued at any time in exchange or substitution for any certificate
      bearing such legend (except a new certificate issued upon completion of a public
      distribution pursuant to a registration statement under the Securities Act)
      shall also bear such legend unless, in the opinion (in form and substance
      reasonably satisfactory to the Company) of counsel selected by the Holder of
      such certificate and who is reasonably acceptable to the Company (“Holder’s
      Counsel”), the securities represented thereby need no longer be subject to
      restrictions on resale under the Securities Act.

    

    ARTICLE
      II

    WARRANT
      AGENCY; TRANSFER,

    EXCHANGE
      AND REPLACEMENT OF WARRANTS

    

    Section
      2.01 Warrant Agency.  Until such time, if any, as an
      independent agency shall be appointed by the Company to perform services with
      respect to the Warrants described herein (the “Warrant Agency”), the Company
      shall perform the obligations of the Warrant Agency provided herein at its
      principal office address or such other address as the Company shall specify
      by
      prior written notice to all Holders.

    

    Section
      2.02 Ownership of Warrant.  The Company may deem and treat the
      person in whose name this Warrant is registered as the holder and owner hereof
      (notwithstanding any notations of ownership or writing hereon made by any person
      other than the Company) for all purposes and shall not be affected by any notice
      to the contrary, until presentation of this Warrant for registration of transfer
      as provided in this Article II.

    

    Section
      2.03 Transfer of Warrant.  The Company agrees to maintain at
      the Warrant Agency books for the registration of transfers of this Warrant
      and
      all rights hereunder shall be registered, in whole or in part, on such books,
      upon surrender of this Warrant at the Warrant 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Agency,
      together with a written assignment of this Warrant duly executed by the Holder
      or its duly authorized agent or attorney.  Subject to applicable law
      and regulation and Section 2.04 hereof, upon surrender of this Warrant as
      provided for herein, the Company shall execute and deliver a new Warrant or
      Warrants in the name of the assignee or assignees and in the denominations
      specified in the instrument of assignment, and this Warrant shall promptly
      be
      canceled.  Notwithstanding the foregoing, a Warrant may be exercised
      by a new Holder which has become the registered Holder of such Warrant without
      having a new Warrant issued.

    

    Section
      2.04 Restrictions on Transfer.  The Holder, by its acceptance
      hereof, represents that this Warrant is being acquired for its own account,
      as
      an investment and not with a view towards the further resale or the distribution
      thereof in violation of the Securities Act, and agrees that this Warrant may
      not
      be transferred, sold, assigned, hypothecated or otherwise disposed of, in whole
      or in part, except as provided in the legend on the first page hereof and
      provided that the Holder shall have furnished to the Company an opinion of
      Holder’s Counsel, in form and substance reasonably satisfactory to the Company,
      to the effect that such transfer is exempt from the registration requirements
      of
      the Securities Act and any applicable state securities laws.

    

    Section
      2.05 Division or Combination of Warrants.  This Warrant may be
      divided or combined with other Warrants upon surrender hereof and of any Warrant
      or Warrants with which this Warrant is to be combined at the Warrant Agency,
      together with a written notice specifying the names and denominations in which
      the new Warrant or Warrants are to be issued, signed by the holders hereof
      and
      thereof or their respective duly authorized agents or
      attorneys.  Subject to compliance with Section 2.04 as to any transfer
      which may be involved in the division or combination, the Company shall execute
      and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
      to
      be divided or combined in accordance with such notice.

    

    Section
      2.06 Loss, Theft, Destruction of Warrant Certificates.  Upon
      receipt by the Company of a written notice (or other evidence reasonably
      satisfactory to the Company) of the loss, theft, destruction or mutilation
      of
      any Warrant and, in the case of any such loss, theft or destruction, upon
      receipt of indemnity or security reasonably satisfactory to the Company or,
      in
      the case of any such mutilation, upon surrender and cancellation of such
      Warrant, the Company will make and deliver, in lieu of such lost, stolen,
      destroyed or mutilated Warrant, a new Warrant of like tenor and representing
      the
      right to purchase the same aggregate number of Shares.

    

    Section
      2.07 Expenses of Delivery of Warrants.  The Company shall pay
      all expenses (other than transfer taxes) and other charges payable in connection
      with the preparation, issuance and delivery of Warrants and Warrant Shares
      hereunder.

    

    ARTICLE
      III

    COMPANY
      COVENANTS AND REPRESENTATIONS

    

    Section
      3.01 Company Covenants.  In case at any time the Company shall
      (a) declare any dividend or distribution on its Shares, whether payable in cash,
      stock or other property, (b) offer to all holders of Shares any additional
      shares of Common Stock, or any option, right or warrant to subscribe therefore,
      or (c) declare a dissolution, liquidation or winding up of the Company (other
      than in connection with a consolidation or merger) or propose a sale of
      substantially all of 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    its
      property, assets and business as an entirety, then the Company shall give
      written notice to the Holder of the date on which the books of the Company
      shall
      close or a record shall be taken for such action.  Such notice shall
      also specify the date as of which the holders of Shares of record shall
      participate in such dividend or distribution.  Such written notice
      shall be given at least 30 days and not more than 90 days prior to the action
      in
      question, and not less than 15 days prior to the relevant record date or the
      date fixed for determining stockholders entitled to participate therein, as
      the
      case may be.

    

    Section
      3.02 Authority, Execution and Delivery.  The Company hereby
      represents and warrants that the Company has full corporate power and authority
      to enter into this Warrant and to issue Shares in accordance with the terms
      hereof.  The execution, delivery and performance of this Warrant by
      the Company have been duly and effectively authorized by the
      Company.  This Warrant has been duly executed and delivered by the
      Company and constitutes the legal, valid and binding obligation of the Company
      enforceable against the Company in accordance with its terms.

    

    Section
      3.03 Information Requirements.  To the extent applicable, the
      Company shall promptly furnish the Holder with copies of all reports, proxy
      statements and similar materials that it mails to holders of its Common
      Stock.

    

    ARTICLE
      IV

    CERTAIN
      DEFINITIONS

    

    The
      following terms, as used in this Warrant, have the following respective
      meanings:

    

    “Business
      Days” means each day in which banking institutions in New York are not required
      or authorized by law or executive order to close.

    

    “Exercise
      Price” means $0.50 per share, subject to adjustment pursuant to Article
      V.

    

     “Fair
      Market Value” means the value of a share of Common Stock on a particular date,
      determined as follows: (i) if the Common Stock is not listed on such date on
      any
      national securities exchange but is traded in the over-the-counter market,
      the
      closing “bid” quotations of a share of Common Stock on such date (or if none, on
      the most recent date on which there were bid quotations of a share of Common
      Stock), as reported on the National Association of Securities Dealers, Inc.
      Automated Quotation System, or, if not so reported, as reported by the National
      Quotation Bureau, Incorporated, or any other similar service selected by the
      Board; or (ii) if the Common Stock is listed on such date on one or more
      national securities exchanges, the last reported sale price of a share of Common
      Stock on such date as recorded on the composite tape system, or, if such system
      does not cover the Common Stock, the last reported sale price of a share of
      Common Stock on such date on the principal national securities exchange on
      which
      the Common Stock is listed, or if no sale of Common Stock took place on such
      date, the last reported sale price of a share of Common Stock on the most recent
      day on which a sale of a share of Common Stock took place as recorded by such
      system or on such exchange, as the case may be; or (iii) if the Common Stock
      is
      neither listed on such date on a national securities exchange nor traded in
      the
      over-the-counter market, as determined by the Company.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    ARTICLE
      V

    ADJUSTMENTS

     

    Section
      5.01 Adjustment of Warrant Exercise Price upon Subdivision or Combination of
      Common Stock.  If the Company at any time after the date of
      issuance of this Warrant subdivides (by any stock split, stock dividend,
      recapitalization or otherwise) one or more classes of its outstanding shares
      of
      Common Stock into a greater number of shares, any Warrant Exercise Price in
      effect immediately prior to such subdivision will be proportionately reduced
      and
      the number of shares of Common Stock obtainable upon exercise of this Warrant
      will be proportionately increased.  If the Company at any time after
      the date of issuance of this Warrant combines (by combination, reverse stock
      split or otherwise) one or more classes of its outstanding shares of Common
      Stock into a smaller number of shares, any Warrant Exercise Price in effect
      immediately prior to such combination will be proportionately increased and
      the
      number of Warrant Shares issuable upon exercise of this Warrant will be
      proportionately decreased.  Any adjustment under this Section 5.01
      shall become effective at the close of business on the date the subdivision
      or
      combination becomes effective.

     

    Section
      5.02 Notices.  Immediately upon any adjustment of the Warrant
      Exercise Price, the Company will give written notice thereof to the holder
      of
      this Warrant, setting forth in reasonable detail, and certifying, the
      calculation of such adjustment.

     

    ARTICLE
      VI

    MISCELLANEOUS

    

    Section
      6.01 Notices.  Any notice or other communication to be given
      hereunder shall be in writing and shall be delivered by recognized courier,
      telecopy or certified mail, return receipt requested, and shall be conclusively
      deemed to have been received by a party hereto and to be effective on the day
      on
      which delivered or telecopied to such party at its address set forth below
      (or
      at such other address as such party shall specify to the other parties hereto
      in
      writing), or, if sent by certified mail, on the third business day after the
      day
      on which mailed, addressed to such party at such address.  In the case
      of the Holder, such notices and communications shall be addressed to its address
      as shown on the books maintained by the Warrant Agency, unless the Holder shall
      notify the Company and the Warrant Agency that notices and communications should
      be sent to a different address, in which case such notices and communications
      shall be sent to the address specified by the Holder. In the case of the
      Company, such notices and communications shall be addressed as follows (until
      notice of a change is given as provided herein): Performance Health
      Technologies, Inc., 427 River View Plaza, Trenton, New Jersey 08611,
      Attention:  Robert Prunetti, Fax:  (609)
      656-0869.

    

    Section
      6.02 Waivers; Amendments.  No failure or delay of the Holder in
      exercising any power or right hereunder shall operate as a waiver thereof,
      nor
      shall any single or partial exercise of such right or power, or any abandonment
      or discontinuance of steps to enforce such a right or power, preclude any other
      or further exercise thereof or the exercise of any other right or
      power.  The rights and remedies of the Holder are cumulative and not
      exclusive of any rights or remedies which it would otherwise
      have.  The provisions of this Warrant may be amended, modified or
      waived with (and only with) the written consent of the Company and Holders
      holding a majority of Warrants at the time outstanding (or any permitted
      transferee of all of the Warrant).  In the 

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    event
      of
      any such amendment, modification or waiver the Company shall give prompt notice
      thereof to all Holders of Warrants and, if appropriate, notation thereof shall
      be made on all Warrants thereafter surrendered for registration of transfer
      or
      exchange.  No notice or demand on the Company in any case shall
      entitle the Company to any other or further notice or demand in similar or
      other
      circumstances.

    

    Section
      6.03 Governing Law.  This Warrant shall be construed in
      accordance with and governed by the laws of the State of Delaware without regard
      to choice of law doctrine.

    

    Section
      6.04 Covenants To Bind Successor and Assigns.  All covenants,
      stipulations, promises and agreements in this Warrant contained by or on behalf
      of the Company shall bind its successors and assigns, whether so expressed
      or
      not.

    

    Section
      6.05 Severability.  In case any one or more of the provisions
      contained in this Warrant shall be invalid, illegal or unenforceable in any
      respect, the validity, legality and enforceability of the remaining provisions
      contained herein and therein shall not in any way be affected or impaired
      thereby.  The parties shall endeavor in good faith negotiations to
      replace the invalid, illegal or unenforceable provisions with valid provisions
      the economic effect of which comes as close as possible to that of the invalid,
      illegal or unenforceable provisions.

    

    Section
      6.06 Section Headings.  The section headings used herein are
      for convenience of reference only, are not part of this Warrant and are not
      to
      affect the construction of or be taken into consideration in interpreting this
      Warrant.

    

    Section
      6.07 No Rights as Stockholder.  This Warrant shall not entitle
      the Holder to any rights as a stockholder of the Company.

    

    Section
      6.08 No Requirement to Exercise.  Nothing contained in this
      Warrant shall be construed as requiring the Holder to exercise this
      Warrant.

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed in its
      corporate name by one of its officers thereunto duly authorized, and attested
      by
      its Secretary or an Assistant Secretary, all as of the day and year first above
      written.

     

    
      	 	PERFORMANCE
              HEALTH TECHNOLOGIES, INC.	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ 	 
	 	 	Robert
              D.
              Prunetti	 
	 	 	President
              and
              Chief Executive Officer	 
	 	 	 	 

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    SUBSCRIPTION
      NOTICE

    (To
      be
      executed upon exercise of Warrant)

    

    To:  Performance
      Health Technologies, Inc. (the “Company”)

    

    The
      undersigned hereby irrevocably elects:

    

    (i)
      to
      exercise the right of purchase represented by the attached Warrant for, and
      to
      purchase thereunder, __________ Shares, as provided for therein, and tenders
      herewith payment of the Exercise Price in full in the form of certified or
      bank
      cashier’s check or wire transfer; or

    

    (ii)
      the
“cashless exercise” of its rights under the Section 1.01 of the attached Warrant
      with respect to ___________ Shares otherwise available for purchase to it under
      the Warrant and receive such number of Shares as provided in the formula set
      forth in such Section 1.01.

    

    Please
      issue a certificate or certificates for such Shares in the following name or
      names and denominations:

    
      

    

     

    
      
        

      

       

    

    In
      connection with the exercise of the Warrant, the undersigned hereby represents
      and warrants that:

    

    (i)
      it
      recognizes that the Shares issuable pursuant to the attached Warrant have not
      been registered under the Securities Act and may not be sold, pledged or
      otherwise transferred except pursuant to the exceptions set forth on the legend
      on such Shares which is also set forth in Section 1.04 of the attached
      Warrant;

    

    (ii)
      it
      has received all material information with respect to the Company which it
      deems
      necessary with its decision to exercise the attached Warrant and it has been
      given an opportunity to ask questions and receive answers from representatives
      of the Company;

    

    (iii)
      it
      is purchasing the Shares for its own account, for the purpose of investment
      only, and not with a view towards the further resale or distribution thereof;
      and

    

    (iv)
      it
      is an “Accredited Investor” within the meaning of Rule 501 of Regulation D under
      the Securities Act of 1933, as amended.

    

    If
      said
      number of Shares shall not be all the Shares issuable upon exercise of the
      attached Warrant, a new Warrant is to be issued in the name of the undersigned
      for the balance remaining of such Shares less any fraction of a Share paid
      in
      cash.

      

      By:
      _____________________________

      Name:
      ___________________________

      Its:
      _____________________________

      Dated:
      __________________________

    

    NOTE:   The
      above signatory should correspond exactly with the name on the face of the
      attached Warrant or with the name of the assignee appearing in the assignment
      form below.

    
 

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    ASSIGNMENT

    

    (To
      be
      executed upon assignment of Warrant)

    

    For
      value
      received and in accordance with Section 2.03 of the attached Warrant,
      ____________________ hereby sells, assigns and transfers unto
      ___________________________ the attached Warrant, together with all right,
      title
      and interest therein, and does hereby irrevocably constitute and appoint
      __________________ attorney to transfer said Warrant on the books of Performance
      Health Technologies, Inc. with full power of substitution in the
      premises.

     

    
 

    
      	 	
              By:
                ____________________________

               

              Name:
                __________________________

               

              Its:
                _____________________________
 
	
              Dated:____________________
 	 
	 	
              NOTE:  The
                above signatory should correspond exactly with the name on the face
                of the
                attached Warrant. 

            

    

     

     

     

    

    
      	
               

            	
               

            

    

    

    Consented
      to and approved in accordance with

    Section
      2.03 of the attached Warrant

    

    PERFORMANCE
      HEALTH TECHNOLOGIES, INC.

    

    

    By:  _________________________________

    Name:
      ___________________________

    Its:
      ______________________________

    

     

    
      
         

      

      
        10

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