Document:

PERFORMANCE HEALTH TECHNOLOGIES, INC.
                               427 RIVERVIEW PLAZA
                                TRENTON, NJ 08611
                            TELEPHONE: (609) 656-0800
                            FACSIMILE: (609) 656-0869

Dear Noteholder:

      The Company is requesting your consent to an amendment of the maturity
date of any promissory note issued in 2006 and held by you which has a maturity
date prior to January 9, 2007 (the "Original Maturity Date") to an amended
maturity date of June 30, 2007 (the "Amended Maturity Date") and waiver of any
event of default relating to the non-payment of such note on the Original
Maturity Date of such note with such waiver and amendment to be effective as of
the Original Maturity Date (the "Waiver").

      Toward that end, we ask that you complete, sign and return this letter by
January 19, 2007.

      Please take a moment to sign and return your consent by facsimile to
609-656-0869 or by mail in the enclosed envelope.

January 9, 2007                           Very truly yours,

                                          /s/ Dominique Prunetti Miller

                                          Dominique Prunetti Miller
                                          Secretary

The Amended Maturity Date and Waiver is
accepted and agreed by the undersigned
noteholder:

By:
    ----------------------------
    Name:
    Date:NORTH COAST SECURITIES CORPORATION
                             9995 GATE PARKWAY NORTH
                                    SUITE 300
                             JACKSONVILLE, FL 32246

                                December 7, 2006

Performance Health Technologies, Inc.
427 River View Plaza
Trenton, NJ  08611
Attn.: Robert Prunetti, President and CEO

Dear Mr. Prunetti:

We are pleased to confirm our mutual understanding regarding the retention of
North Coast Securities Corporation ("Agent") by Performance Health Technologies,
Inc. (collectively with its affiliates, the "Company"), subject to the terms and
conditions of this agreement (the "Agreement").

1. Agent will act as the Company's agent in connection with the private
placement of up to $300,000 of promissory notes (referred to as the "Notes"),
and $300,000 of Units pursuant to Regulation S under the Securities Act of 1933,
as amended (the "Units"), each Unit consisting of a convertible note in the
principal amount of $1,000.00 (the "Notes"), 2,000 warrants to purchase one
share of common stock at an exercise price of $0.75 per share and 2,000 warrants
to purchase one share of common stock at an exercise price of $1.50 per share.
The Notes and Units will be issued only to persons who are accredited investors
(as defined in Rule 501 under the Securities Act of 1933, as amended), on terms
mutually agreeable between the parties hereto, certain of which terms are set
forth on Exhibit A, annexed hereto and incorporated herein by reference (such
private placements referred to as the "Offerings"). The Notes will be offered
only to persons who are not U.S. Persons as defined in Regulation S. The
Offerings will be made on a best efforts basis subject to the terms and
conditions set forth herein. Agent will act as the non-exclusive Agent for the
Offerings.

2. Agent will provide the Company with the following services in connection with
the Offerings:

      A.    Assisting the Company in preparation of documents in connection with
            the Offerings, and acting as the Agent in connection with such
            Offerings;

      B.    Coordinating the marketing effort for the sale of the Securities;

      C.    Assisting the Company in negotiating transaction terms with
            potential investors in the Securities; and
<PAGE>

Performance Health Technologies, Inc.
December 7, 2006
Page 2

      D.    Providing such other advice, assistance or services as may be
            reasonably requested by the Company in connection with the Offerings
            and as mutually agreed upon by Agent and the Company.

3. Agent's compensation for acting as Agent for the Company in connection with
the Offerings pursuant to this Agreement will be as follows:

      A.    A fee equal to 12% of the gross proceeds raised in the Offerings by
            Agent (the "Offerings Amount"), payable on the Offerings Amount
            subscribed for and accepted at each Closing of the Offerings.

      B.    At each Closing of the Offerings, the Company shall pay to Agent, a
            non-accountable expense allowance in the amount equal to 3% of the
            Offerings Amount subscribed for and accepted at that Closing.

      C.    as a Due Diligence and Pre-Marketing Fee, a payment from the Company
            of up to $30,000, to cover the costs and expenses of Agent's due
            diligence investigation and pre-marketing activities on behalf of
            the Company.

4. The Company will pay all expenses incurred by or on behalf of the Company in
connection with the preparation and printing of the Securities, blue sky filings
and fees, and all other documents and instruments required in connection with
the Offerings.

5. In connection with Agent's activities on the Company's behalf, the Company
will cooperate with Agent and will furnish Agent with all information and data
concerning the Company which Agent reasonably believes appropriate to the
performance of services contemplated by this Agreement (all such information so
furnished being the "Information") and will provide Agent with reasonable access
to the Company's officers, directors, employees, independent accountants and
legal counsel. The Company recognizes and confirms that Agent (i) will use and
rely primarily on the Information and on information available from generally
recognized public sources in performing the services contemplated by the
Agreement, without having independently verified same, (ii) does not assume
responsibility for the accuracy or completeness of the Information and (iii)
will not make an independent appraisal of any of the Company's assets. The
Information to be furnished by the Company, when delivered, will be, to the best
of the Company's knowledge, true and correct in all material respects and will
not contain any material misstatements of fact or omit to state any material
fact necessary to make the statements contained therein not misleading. The
Company will promptly notify Agent if it learns of any material inaccuracy or
misstatement in, or material omission from any information thereto delivered to
<PAGE>

Performance Health Technologies, Inc.
December 7, 2006
Page 3

Agent. Agent agrees to keep the Information confidential and only to release the
Information with the consent of the Company. At the Closing, the Company shall
deliver to Agent an officer certificate and opinion of counsel reasonably
acceptable to the Company and Agent. If the transaction contemplated by this
Agreement is not completed for whatever reason, Agent will return the
Information (without keeping any copies thereof) forthwith on demand by the
Company. Agent on its part represents, warrants, and agrees that it has and at
all times while it is performing services under this Agreement it will comply
with all laws, rules, and regulations applicable to it in connection with the
services it performs under this Agreement, such compliance to include all
licenses in all applicable jurisdictions it and its agents are required to
maintain for purposes of its activities under this Agreement.

6. The Company agrees that Agent has the right to place "tombstone" or other
advertisements describing its services to the Company under this Agreement in
financial and other newspapers and journals, provided the Company consents to
the same, and which consent shall not be unreasonably withheld, and provided
further that any such advertisement complies with applicable law.

7. The Company agrees to indemnify Agent in accordance with the indemnification
provisions (the "Indemnification Provisions") attached to this Agreement, as
Exhibit B, and which Indemnification Provisions are incorporated herein and made
a part hereof and which shall survive the termination or expiration of this
Agreement.

8. The validity and interpretation of this Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Florida
applicable to agreements made and to be fully performed therein (excluding the
conflicts of laws rules).

9. The benefits of this Agreement shall inure to the parties hereto, their
respective successors and assigns and to the indemnified parties hereunder and
their respective successors and assigns and representatives, and the obligations
and liabilities assumed in this Agreement by the parties hereto shall be binding
upon their respective successors and assigns.

10. Each of the Company and Agent (and, to the extent permitted by law, on
behalf of their respective equity holders and creditors) hereby knowingly,
voluntarily and irrevocably waives any right it may have to a trial by jury in
respect of any claim based upon, arising out of or in connection with this
Agreement and the transactions contemplated hereby. Each of the Company and
Agent hereby certify that no representative or agent of the other party has
represented expressly or otherwise that such party would not seek to enforce the
provisions of this waiver. Further each of the Company and Agent acknowledges
that each party has been induced to enter this Agreement by, inter alia, the
provisions of this Section.

11. If it is found in a final judgment by a court of competent jurisdiction (not
subject to further appeal) that any term or provision hereof is invalid or
unenforceable, (i) the remaining terms and provisions hereof shall be unimpaired
and shall remain in full force and effect and (ii) the invalid or unenforceable
provision or term shall be replaced by a term or provision that is valid and
enforceable and that comes closest to expressing the intention of such invalid
or unenforceable term or provision.
<PAGE>

Performance Health Technologies, Inc.
December 7, 2006
Page 4

12. This Agreement embodies the entire agreement and understanding of the
parties hereto and supersedes any and all prior agreements, arrangements and
understanding relating to the matters provided for herein. No alteration,
waiver, amendment, change or supplement hereto shall be binding or effective
unless the same is set forth in writing signed by a duly authorized
representative of each party.

13. The Company has all requisite corporate power and authority to enter into
this Agreement and the transactions contemplated hereby. This Agreement has been
duly and validly authorized by all necessary corporate action on the part of the
Company and has been duly executed and delivered by the Company and constitutes
a legal, valid and binding agreement of the Company, enforceable in accordance
with its terms (except as enforceability may be limited by applicable
bankruptcy, insolvency or similar laws).

14. Agent has all requisite corporate power and authority to enter into this
Agreement, once executed by Agent's Officers. This Agreement has been duly and
validly authorized by all necessary corporate action on the part of Agent and
has been duly executed and delivered by Agent and constitutes a legal, valid and
binding agreement of Agent, enforceable in accordance with its terms (except as
enforceability may be limited by applicable bankruptcy, insolvency or similar
laws).

15. This Agreement does not create, and shall not be construed as creating,
rights enforceable by any person or entity not a party hereto, except those
entitled thereto by virtue of the Indemnification Provisions hereof. The Company
acknowledges and agrees that with respect to the services to be rendered by
Agent, Agent is not and shall not be construed as a fiduciary of the Company and
shall have no duties or liabilities to the equity holders or creditors of the
Company or any other person by virtue of this Agreement and the retention of
Agent hereunder, all of which are hereby expressly waived. The Company also
agrees that Agent shall not have any liability (including without limitation,
liability for losses, claims, damages, obligations, penalties, judgments,
awards, liabilities, costs, expenses or disbursements resulting from any
negligent act or omission of Agent, whether direct or indirect, in contract,
tort or otherwise) to the Company or to any person (including, without
limitation, equity holders and creditors of the Company) claiming through the
Company for or in connection with the engagement of Agent, this Agreement and
the transactions contemplated hereby, except for liabilities which arise as a
result of the gross negligence or willful misconduct of Agent. The Company
acknowledges that Agent was induced to enter into this Agreement by, INTER ALIA,
the provisions of this Section.
<PAGE>

Performance Health Technologies, Inc.
December 7, 2006
Page 5

16. For the convenience of the parties, any number of counterparts of this
Agreement may be executed by the parties hereto. Each such counterpart shall be,
and shall be deemed to be, an original instrument, but all such counterparts
taken together shall constitute one and the same Agreement.

      If the foregoing correctly sets forth our agreement, we would appreciate
your signing the enclosed copy of this letter in the space provided and
returning it to us.

                                       Very truly yours,

                                       NORTH COAST SECURITIES CORPORATION

                                       By:
                                           -------------------------------------
                                           Frank Pasterczyk
                                           President and Chief Executive Officer

Confirmed and agreed to:

PERFORMANCE HEALTH TECHNOLOGIES, INC.

By:
     -------------------------------------
     Robert A. Prunetti
     President and Chief Executive Officer
<PAGE>

                                    EXHIBIT A

                    SUMMARY OF CERTAIN TERMS OF NOTE OFFERING

Offering                                Sale of up to $300,000 of Notes to raise
                                        money principally for working capital
                                        purposes. No minimum dollar amount of
                                        Notes must be subscribed for in order to
                                        close. Expenses of the offering, sales
                                        commissions and additional fees and
                                        costs of the Agent will be deducted from
                                        the proceeds of the offering.

Additional Consideration                As additional consideration, the Company
                                        shall pay to each Holder 60 days prepaid
                                        interest and an origination fee equal to
                                        5% of the amount of the Note. These
                                        payments may be deducted by the Holder
                                        from the gross proceeds of the Loan.

Note Terms                              The Notes shall accrue interest at the
                                        rate of 15% per annum, payable on the
                                        Maturity Date, which shall be 60 days
                                        after issuance of the Note.

                                        The Notes shall be secured by a pledge
                                        of Put Notices under the Standby Equity
                                        Distribution Agreement with Cornell
                                        Capital Partners, L.P., in a principal
                                        amount equal to the principal amount of
                                        Notes issued.

Redemption of Notes                     If the Company receives gross financing
                                        proceeds of $2,000,000 or more before
                                        the Note's Maturity Date, the Holder may
                                        at its option elect to have the Note and
                                        all accrued interest paid from the
                                        financing proceeds.

Indemnification of                      The Company will indemnify the Placement
Placement Agent                         Agent for any and all claims by other
                                        brokers, dealers, placement agents,
                                        investment advisors or the like.

Qualified Investors                     Accredited investors only.

                                      A-1
<PAGE>

Confidentiality                         The Company will not disclose, and will
                                        not include in any public announcement,
                                        the name of the investors in this
                                        offering, unless expressly agreed to by
                                        the investor or unless such disclosure
                                        is required by law or applicable
                                        regulation, and then only to the extent
                                        of such requirement.

Governing Law                           New York law, New York courts.
and Jurisdiction

                                      A-2
<PAGE>

                   SUMMARY OF CERTAIN TERMS OF REG S OFFERING

Offering                                Sale of up to $300,000 of Units to raise
                                        money principally for working capital
                                        purposes. No minimum dollar amount of
                                        Units must be subscribed for in order to
                                        close. Expenses of the offering, sales
                                        commissions and additional fees and
                                        costs of the Agent will be deducted from
                                        the proceeds of the offering.

Equity Unit                             Each Unit consists of a convertible note
                                        in the principal amount of $1,000 (the
                                        "Notes") and 4000 warrants, with each
                                        warrant representing the right to
                                        purchase one share of common stock. The
                                        common stock underlying the Notes and
                                        the warrants contained in the Units
                                        shall be subject to piggyback
                                        registration rights as described below.

Purchase!Price                          The purchase price per unit is
                                        $1,000.00.

Notes                                   The Notes will be convertible into
                                        shares of Company common stock at a
                                        price equal to the lesser of (i) $0.75
                                        or (ii) 70% of the average of the
                                        closing bid price for the Borrower's
                                        Common Stock for the 20 days preceding
                                        the Conversion Notice (but in no event
                                        less than $0.30 per share, as reported
                                        by the exchange on which the Company's
                                        Common Stock is then traded (the
                                        "Conversion Price"). The Notes are
                                        convertible at the election of the
                                        holder thereof at any time.

                                        Each Note shall accrue interest at the
                                        rate of 10% per annum, payable on the
                                        Maturity Date, which shall be 120 days
                                        after issuance of the Note.

                                        The Notes shall be secured by a pledge
                                        of Put Notices under the Standby Equity
                                        Distribution Agreement with Cornell
                                        Capital Partners, L.P., in a principal
                                        amount equal to the principal amount of
                                        Notes issued.

                                      A-3

                                       6
<PAGE>

Warrants                                2000 of the warrants included in each
                                        Unit will be exercisable for a period of
                                        five years at an exercise price of $0.75
                                        per share, and 2000 of the warrants
                                        included in each Unit will be
                                        exercisable for a period of five years
                                        at an exercise price of $1.50 per share.
                                        The warrants will be subject to
                                        adjustment for anti-dilution purposes.
                                        The warrants shall include registration
                                        rights as described below.

Registration Rights                     Investors in the Offering will have the
                                        following registration rights with
                                        respect to the shares of common stock
                                        into which the Notes are convertible and
                                        warrants are exercisable. The Company
                                        will register the conversion shares and
                                        the shares underlying the warrants on a
                                        pre-effective amendment to the
                                        Registration Statement filed with the
                                        Securities and Exchange Commission on
                                        November 14, 2006.

Indemnification of                      The Company will indemnify the Placement
Placement Agent                         Agent for any and all claims by other
                                        brokers, dealers, placement agents,
                                        investment advisors or the like.

Qualified Investors                     Accredited investors and non U.S.
                                        Persons only.

Confidentiality                         The Company will not disclose, and will
                                        not include in any public announcement,
                                        the name of the investors in this
                                        offering, unless expressly agreed to by
                                        the investor or unless such disclosure
                                        is required by law or applicable
                                        regulation, and then only to the extent
                                        of such requirement.

Governing Law                           New York law, New York courts.
and Jurisdiction

                                      A-4
<PAGE>

                                    EXHIBIT B

                           INDEMNIFICATION PROVISIONS

      Capitalized terms used herein that are not defined in these
indemnification provisions ("Indemnification Provisions") have the meaning set
forth in the engagement letter agreement dated December 7, 2006, between North
Coast Securities Corporation ("Agent") and Performance Health Technologies, Inc.
as such agreement may be amended from time to time (the "Agreement").

      The Company agrees to indemnify and hold harmless Agent, to the fullest
extent permitted by law, from and against any and all losses, claims, damages,
liabilities, obligations, penalties, judgments, awards, 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), 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 Agent is a party), directly or indirectly, caused by,
relating to, based upon, arising out of or in connection with (a) Agent's acting
for the Company, including, without limitation, any act or omission by Agent in
connection with its acceptance of or the performance or nonperformance of its
obligations under the Agreement, (b) any untrue statement or alleged untrue
statement of a material fact contained in, or omissions or alleged omissions
from any information furnished to Agent by the Company or (c) any Offering;
provided, however, such indemnity agreement shall not apply to any portion of
any such loss, claim, damage, obligation, penalty, judgment, award, liability,
cost, expense or disbursement to the extent it is found in a final judgment by a
court of competent jurisdiction (not subject to further appeal) to have resulted
primarily and directly from the gross negligence or willful misconduct of Agent.

      These Indemnification Provisions shall be in addition to any liability
which the Company may otherwise have to Agent or the persons indemnified below
in this sentence and shall extend to the following Agent its affiliated
entities, directors, officers, employees, legal counsel, agents and controlling
persons (within the meaning of the federal securities laws). All references to
Agent in these Indemnification Provisions shall be understood to include any and
all of the foregoing.

      If any action, suit, proceeding or investigation is commenced, as to which
Agent proposes to demand indemnification, it shall notify the Company with
reasonable promptness; provided, however, that the Company shall be relieved
from its obligations hereunder to the extent a failure by Agent to notify the
Company with reasonable promptness results in a significant increase in the
Company's obligations hereunder. Agent shall have the right to retain counsel of
its own choice to represent it, which counsel shall be reasonably acceptable to
the Company, and the Company shall pay the fees, expenses and disbursements of
such counsel; and such counsel shall, to the extent consistent with its
professional responsibilities, cooperate with the Company and any counsel
designated by the Company. The Company shall be liable for any settlement of any
claim against Agent made with the Company's written consent, which consent shall
not be unreasonably withheld. The Company shall not, without the prior written
consent of Agent, settle or compromise any claim, or permit a default or consent
to the entry of any judgment in respect thereof, unless such settlement,
compromise or consent includes, as an unconditional term thereof, the giving by
the claimant to Agent of an unconditional and irrevocable release from all
liability in respect of such claim.

                                       B-1
<PAGE>

      In order to provide for just and equitable contribution, if a claim for
indemnification pursuant to these Indemnification Provisions is made but it is
found in a final judgment by a court of competent jurisdiction (not subject to
further appeal) that such indemnification may not be enforced in such case, even
though the express provisions hereof provide for indemnification in such case,
then the Company, on the one hand, and Agent, on the other hand, shall
contribute to the losses, claims, damages, obligations, penalties, judgments,
awards, liabilities, costs, expenses and disbursements to which the indemnified
persons may be subject in accordance with the relative benefits received by the
Company, on the one hand, and Agent, on the other hand, and also the relative
fault of the Company, on the one hand, and Agent, on the other hand, in
connection with the statement, acts or omissions which resulted in such losses,
claims, damages, obligations, penalties, judgments, awards, liabilities, costs,
expenses or disbursements and the relevant equitable considerations shall also
be considered. No person found liable for a fraudulent misrepresentation shall
be entitled to contribution from any person who is not also found liable for
such fraudulent misrepresentation. Notwithstanding the foregoing, Agent shall
not be obligated to contribute any amount hereunder that exceeds the amount of
fees previously received by Agent pursuant to the Agreement.

      Neither termination nor completion of the engagement of Agent referred to
above shall affect these Indemnification Provisions which shall then remain
operative and in full force and effect.

                                      B-2

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