Document:

WWW.EXFILE.COM, INC. -- 888-775-4789 -- PERFORMANCE HEALTH TECHNOLOGIES, INC. -- EXHIBIT 10.110 TO FORM 10-KSB

    EXHIBIT
10.110

    

    

    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 outstanding promissory note issued
by the Company and held by you dated May 14, 2007 which has an amended maturity
date of November 1, 2007 (the “Current Maturity Date”) to an amended maturity
date of June 1, 2008 (the “Amended Maturity Date”) and waiver of any event of
default relating to the non-payment of such note on the Current Maturity Date of
such note with such waiver and amendment to be effective as of the Current
Maturity Date (the “Waiver”).

    

    Toward that end, we ask that you
complete, sign and return this letter.

    

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

    

    March 19,
2008                                                                                     Very
truly yours,

    

    Dominique
Prunetti Miller

    

    Dominique Prunetti Miller

    Secretary

    

    

    The
Amended Maturity Date and Waiver is accepted

    and
agreed by the undersigned noteholder:

    

    Portfolio
Lenders II, LLC

    

    

    By:  /s/ Thomas P.
Gallagher                                                                

      Thomas P. Gallagher

      Date:  March 19,
2008WWW.EXFILE.COM, INC. -- 888-775-4789 -- PERFORMANCE HEALTH TECHNOLOGIES, INC. -- EXHIBIT 10.111 TO FORM 10-KSB

    EXHIBIT
10.111

    

    SUBSCRIPTION AGREEMENT AND
INVESTOR QUESTIONNAIRE

    

    This
Subscription Agreement and Investor Questionnaire (the “Agreement”) is made and
entered into as of the date set forth below by and between the person or entity
set forth on the signature page below (the “Investor”) and Performance Health
Technologies, Inc. ("PHT").

     

    Recitals

     

    WHEREAS, PHT has authorized
the issuance and sale of PHT's equity units up to an aggregate amount of
$300,000 (the "Units"), in a private offering (the “Offering”) with each Unit,
having a purchase price of $1,000, consisting of (i) an unsecured convertible
note in the amount of $1,000 (collectively referred to herein as the “Notes”)
and (ii) 2,000 warrants to purchase PHT common stock, 1,000 of which have an
exercise price of $1.00 per share and 1,000 of which have an exercise price of
$1.50 per share (collectively referred to herein as the “Warrants”);
and

    

    WHEREAS, the Investor desires
to purchase Units on the terms set forth herein;

     

    NOW, THEREFORE, in
consideration of the covenants, promises and representations set forth herein
and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereby agree as follows:

     

    1.   
         Purchase
and Sale of Notes

     

    1.1           At
the Closing (as defined below) the Investor shall purchase from PHT and PHT
shall sell to the Investor, subject to all of the terms and conditions hereof,
Units for the purchase price set forth on the signature page.

    

    2.      
      Closing

    

    2.1           Date of
Closing.  The closing (the "Closing") of the purchase and sale of
the Units shall take place on any date subsequent to the date of this Agreement
up to and including April 30, 2008 as determined by PHT (the "Closing
Date").

    

    2.2           Items to be Delivered by the
Investor to PHT.  The following shall be delivered by the Investor
to PHT on the Closing Date:

    

    (a)           this
Agreement executed by the Investor; and

    

    
      (b)          
the
purchase price for the Units by wire transfer to the account designated by
PHT.

    

    

    2.3           Items to be Delivered to the
Investor by PHT.  The following shall be delivered by PHT to the
Investor on the Closing Date:  the Notes and Warrants included in the
Units purchased by the Investor in the form attached hereto as Exhibits A and
B.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (a)           The
Note;

    

    (b)           An
origination fee equal to 5% of the Note; and

    

    (c)           Prepaid
interest equal to 60 days of interest on the Note.

    

    3.       
     Representations
and Warranties of PHT

     

    PHT hereby represents and warrants
to the Investor as follows:

     

    3.1  Corporate Existence and
Power.  PHT is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of
Delaware.  PHT has all corporate power and all material governmental
permits required to carry on its business as now conducted.

    

    3.2  Corporate Authorization;
Enforceability.  The execution, delivery and performance by PHT
of this Agreement, the Notes and the Warrants are within PHT's corporate powers
and have been duly authorized by the Board of Directors of PHT and no other
corporate action on the part of PHT is necessary to authorize this Agreement or
issuance of the Notes or the Warrants.  This Agreement has been, and
the Notes and Warrants will be, duly executed and delivered by
PHT.  This Agreement constitutes the valid and binding agreement of
PHT, enforceable against PHT in accordance with its terms, except to the extent
that its enforceability may be subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting the enforcement of
creditors' rights generally and by general principles of equity.

    

    3.3  No
Conflict.  The execution, delivery and performance by PHT of
this Agreement, and the consummation of the transactions contemplated hereby,
including issuance of the Units, do not and will not at the Closing, (a) violate
any provision of law, statute, rule or regulation, or any ruling, writ,
injunction, order, judgment or decree of any court, administrative agency or
other governmental body applicable to PHT, or any of its properties or assets,
(b) conflict with or result in any breach of any of the terms, conditions or
provisions of, or constitute (with due notice or lapse of time, or both) a
default (or give rise to any right of termination, cancellation or acceleration)
under, or result in the creation of any encumbrance upon any of the properties
or assets of PHT under any material contract to which PHT is a party or (c)
violate any organizational document of PHT.

     

    3.4  Notes and
Warrants.  The Notes and Warrants included in the Units and
common stock issuable upon conversion of the Notes (the “Conversion Shares”) and
upon exercise of the Warrants (the “Warrant Shares” and together with the
Conversion Shares, the "Common Shares"), when issued and delivered in accordance
with the terms of this Agreement (and the terms of the Notes or Warrants, as the
case may be) will be duly authorized, validly issued, fully paid, non-assessable
and free and clear of any lien or other limitation or restriction.

    

    3.5 Securities
Matters.  Subject to the accuracy of the representations of the
Investor set forth in Section 4.4 hereof the offer, sale and issuance of the
Units as contemplated by this Agreement are exempt from the registration
requirements of the Securities Act.  PHT has 

    
      
        
        

      

      
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    complied
and will comply with all applicable state "blue sky" or securities laws in
connection with the offer, sale and issuance of the Units as contemplated by
this Agreement.

    

    4.         
   Representations
and Warranties of the Investor

     

    The Investor hereby represents and
warrants to PHT as follows:

     

    4.1           Organization and Good
Standing; Power and Authority. Any Investor that is not a natural person
(a) is an organization that is duly organized, validly existing and in good
standing under the laws of its organization, and (b) has all requisite power and
authority and all authorizations, licenses and material permits necessary to
own, lease and operate its properties, to carry on its business as presently
conducted and as proposed to be conducted and to enter into and carry out the
transactions contemplated by this Agreement.

     

    4.2           Authorization of the
Agreement.  This Agreement constitutes a valid and legally
binding obligation of the Investor except to the extent that enforceability may
be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights
generally or by general principles of equity.

     

    4.3           No Conflict. The
execution, delivery and performance by the Investor of this Agreement and the
consummation by the Investor of the transactions contemplated hereby do not and
will not at the Closing (a) violate any provision of law, statute, rule or
regulation, or any ruling, writ, injunction, order, judgment or decree of any
court, administrative agency or other governmental body applicable to the
Investor, or any of its properties or assets, (b) conflict with or result in any
breach of any of the terms, conditions or provisions of, or constitute (with due
notice or lapse of time, or both) a default (or give rise to any right of
termination, cancellation or acceleration) under, or result in the creation of
any encumbrance upon any of the properties or assets of the Investor under any
material contract to which the Investor is a party or (c) violate any
organizational document of any Investor that is not a natural
person.

     

    4.4           Investment
Representation.

     

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

    

    

    Letter
dated January 17, 2008, describing terms of the Offering and certain risk
factors.

    

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

    

    

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

    

    

    
      
        
        

      

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

    

    

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

    

    

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

    

    

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

    

    

    
      (h)  The
Investor acknowledges that it will not be able to transfer the Notes and
Warrants included in the Units (and Common Shares) except upon compliance with
the registration requirements of the Securities Act and applicable state
securities laws or exemptions therefrom.

    

     

    
      (i)  The
certificates and/or instruments evidencing the Notes and Warrants included in
the Units (and Common Shares) will contain the following
legend:

    

    

    “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  THE SECURITIES MAY
NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM,
SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS SOLD PURSUANT TO RULE
144 UNDER SAID ACT.”

     

    5.         
   Registration
Rights

    

    5.1           Participation in Registered
Offerings.  If  PHT proposes or is required to
register any of its shares or other equity securities for public sale for cash
under the Securities Act (other 

    
      
        
        

      

      
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    than on
Forms S-4 or S-8 or similar registration forms), it will at each such time or
times give written notice to the Investor of its intention to do
so.  Upon the written request of the Investor given within twenty (20)
days after receipt of any such notice, PHT shall use its best efforts to cause
to be included in such registration any Common Shares held by the Investor
requested to be registered (the “Registrable Securities”); provided, that if the
managing underwriter advises that less than all of the shares requested to be
registered should be offered for sale so as not materially and adversely to
affect the price or salability of such offering being registered by PHT, the
Investor (but not PHT to the extent it desires to include shares for its own
account) shall reduce the number of its Common Shares to be included in the
registration statement as required by the underwriter to the extent requisite of
all prospective sellers of the securities proposed to be registered (other than
PHT) on a pro rata basis according to the amounts of securities proposed to be
registered by all prospective sellers to permit the sale or other disposition
(in accordance with the intended method of disposition thereof as aforesaid) by
the prospective seller or sellers of the securities so
registered.  The registration requested pursuant to this Section 5.1
is referred to herein as the "Piggyback Registration".

    

    5.2           Obligations of
Investor.  It shall be a condition precedent to the obligation
of PHT to register any Common Shares pursuant to this Section 5 that the
Investor shall furnish to PHT such information regarding the Common Shares held
and the intended method of disposition thereof and other information concerning
the Investor as PHT shall reasonably request and as shall be required in
connection with the registration statement to be filed by PHT.  If
after a registration statement becomes effective PHT advises the Investor that
PHT considers it appropriate to amend or supplement the applicable registration
statement, the Investor shall suspend further sales of the Registrable
Securities until PHT advises the Investor that such registration statement has
been amended or supplemented.

    

    5.3           Registration
Proceedings.  Whenever PHT is required by the provisions of
this Section 5 to effect the registration of the Registrable Securities under
the Securities Act, PHT shall:

    

    
      	
               
      

            	
              (i)

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

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Prepare
      and file with the SEC such amendments to such registration statement and
      supplements to the prospectus contained therein as may be necessary to
      keep such registration statement
effective;

            

    

    

    
      	
               
      

            	
              (iii)

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

            

    

    

    
      
        
        

      

      
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              (iv)

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

            

    

    

    
      	
               
      

            	
              (v)

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

            

    

    

    
      	
               
      

            	
              (vi)

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

            

    

    

    
      	
               
      

            	
              (vii)

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

            

    

    

    5.4           Expenses.  With
respect to the inclusion of the Registrable Securities in a registration
statement pursuant to this Section 5, all registration expenses, fees, costs and
expenses of and incidental to such registration, shall be borne by PHT;
provided, however, that Investor shall bear its own professional fees and pro
rata share of the underwriting discounts and commissions.  The fees,
costs and expenses of registration to be borne by PHT shall include, without
limitation, all registration, filing,  and printing expenses, fees and
disbursements of counsel and accountants for PHT, fees and disbursements of
counsel for the underwriter or underwriters of such securities (if PHT and/or
selling security holders are required to bear such fees and disbursements), and
all legal fees and disbursements and other expenses of complying with state
securities or Blue Sky laws of any jurisdiction in which the securities to be
offered are to be registered or qualified.

    

    5.5           Indemnification of the
Investor.  Subject to the conditions set forth below, in
connection with any registration of the Common Shares pursuant to this Section
5, PHT agrees to indemnify and hold harmless the Investor, any underwriter for
the offering and each of their 

    
      
        
        

      

      
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    officers
and directors and agents and each other person, if any, who controls Investor or
their underwriter (each, an “Investor Indemnified Party”), within the meaning of
Section 15 of the Securities Act, as follows:

    

    
      	
               
      

            	
              (i)

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

            

    

    

    
      	
               
      

            	
              (ii)

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

            

    

    

    
      	
               
      

            	
              (iii)

            	
              In
      no case shall PHT be liable under this indemnity agreement with respect to
      any claim made against any Investor Indemnified Party unless PHT shall be
      notified, by letter or by facsimile confirmed by letter, of any action
      commenced against such Investor Indemnified Party, promptly after such
      person shall have been served with the summons or other legal process
      giving information as to the nature and basis of the claim.  The
      failure to so notify PHT, if prejudicial in any material respect to PHT's
      ability to defend such claim, shall relieve PHT from its liability to the
      indemnified person under this Section 5.5, but only to the extent that PHT
      was prejudiced.  The failure to so notify PHT shall not relieve
      PHT from 

            

    

     

    
      
        
        

      

      
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                any
      liability which it may have otherwise than on account of this indemnity
      agreement.  PHT shall be entitled to participate at its own
      expense in the defense of any suit brought to enforce any such claim, but
      if PHT elects to assume the defense, such defense shall be conducted by
      counsel chosen by it, provided such counsel is reasonably satisfactory to
      the Investor Indemnified Party in any suit so brought.  In the
      event PHT elects to assume the defense of any such suit and retain such
      counsel, the Investor Indemnified Party in the suit shall, after the date
      they are notified of such election, bear the fees and expenses of any
      counsel thereafter retained by them, as well as any other expenses
      thereafter incurred by them in connection with the defense thereof;
      provided, however, that if the Investor Indemnified Party reasonably
      believes that there may be available to it any defense or counterclaim
      different than those available to PHT or that representation of the
      Investor Indemnified Party by counsel for PHT presents a conflict of
      interest for such counsel, then the Investor Indemnified Party shall be
      entitled to defend such suit with counsel of its own choosing and PHT
      shall bear the fees, expenses and other costs of such separate
      counsel.

              

      

       

    

    5.6           Indemnification of
PHT.  The Investor agrees to indemnify and hold harmless PHT,
each underwriter for the offering, and each of their officers and directors and
agents and each other person, if any, who controls PHT and the underwriter
within the meaning of Section 15 of the Securities Act and any other stockholder
selling securities against any and all such losses, liabilities, claims, damages
and expenses as are indemnified against by PHT under Section 5.5 (i), (ii) and
(iii) above; provided, however, that such indemnification by Investor hereunder
shall be limited to any losses, liabilities, claims, damages, or expenses to the
extent caused by any untrue statement of a material fact or omission of a
material fact (required to be stated therein or necessary to make statements
therein not misleading), if any made (or in settlement of any litigation
effected with the written consent of such Investors, alleged to have been made)
in any preliminary prospectus, the registration statement or prospectus or any
amendment or supplement thereof or in any application or other document in
reliance upon, and in conformity with, written information furnished in respect
of such Investor by or on behalf of such Investor expressly for use in any
preliminary prospectus, the registration statement or prospectus or any
amendment or supplement thereof or in any such application or other document or
arising out of any action or inaction of such Investor in implementing such
registered offering.  Notwithstanding the foregoing, the
indemnification obligation of Investor shall not exceed the purchase price of
the Units paid by Investor.  In case any action shall be brought
against PHT, or any other person so indemnified, in respect of which indemnity
may be sought against any Investor, such Investor shall have the rights and
duties given to PHT, and each other person so indemnified shall have the rights
and duties given to Investor, by the provisions of Section 5.5.  The
person indemnified agrees to notify the Investor promptly after the assertion of
any claim against the person indemnified in connection with the sale of
securities.

    

    5.7           Contribution.  If
the indemnification provided for in Sections 5.5 and 5.6 above are unavailable
or insufficient to hold harmless an indemnified party in respect of any losses,

     

    
      
        
        

      

      
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    claims,
damages or liabilities (or actions in respect thereof) referred to therein, then
each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative fault of the indemnified party, on one hand, and such indemnifying
party, on the other hand, in connection with the statements or omissions which
resulted in such losses, claims, damages, or liabilities (or actions in respect
thereof).  The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the indemnified party, on one hand, or such indemnifying
party, on the other hand, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or
omission.  No person who has committed fraudulent misrepresentation
(within the meaning of the Securities Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent
misrepresentation.  The amount paid or payable by an indemnified party
as a result of the losses, claims, damages or liabilities (or actions in respect
thereof) referred to above in this Section shall be deemed to include any legal
or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any such action or claim.

    

    5.8           Assignment of Registration
Rights.  The right to have PHT register Registrable Securities
pursuant to this Agreement shall be automatically assignable to any transferee
of all or any portion of the Registrable Securities if:  (a) the
Investor agrees in writing with the transferee or assignee to assign such
rights, and a copy of such agreement is furnished to PHT within a reasonable
time after such assignment, (b) PHT is, within a reasonable time after such
transfer or assignment, furnished with written notice of (i) the name and
address of such transferee or assignee, and (ii) the securities with respect to
which such registration rights are being transferred or assigned, (c) following
such transfer or assignment, the further disposition of such securities by the
transferee or assignee is restricted under the 1933 Act and applicable state
securities laws and, (d) at or before the time PHT receives the written notice
contemplated by clause (b) of this sentence, the transferee or assignee agrees
in writing with PHT to be bound by all of the provisions contained herein (the
foregoing a “Permitted Transferee”).

    

    6.      
      Miscellaneous

     

    6.1           Definitions.

    

     “Business Day” means a
day that is not a Saturday, Sunday or a day on which commercial banking
institutions located in New York City, New York are authorized or required to
close.

    

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

    

     “SEC” means the
Securities and Exchange Commission.

    

    “Securities Act” means
the Securities Act of 1933, as amended.

    

    6.2           Confidentiality.

    
      
        
        

      

      
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              (a)

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

            

    

    

    
      	
               
      

            	
              (b)

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

            

    

    

    
      	
               
      

            	
              (c)

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

            

    

     

    

    6.3           Costs and
Expenses.  PHT and the Investor shall bear their own costs and
expenses in connection with this transaction.

    

    6.4           Survival.  All
agreements, covenants, representations and warranties made by PHT or by the
Investor herein shall survive the execution and delivery of this
Agreement.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    6.5           Notices.  Except
as otherwise provided herein, all notices, requests, demands, consents,
instructions or other communications to or upon PHT, or the Investor under this
Agreement shall be in writing and facsimiled, mailed or delivered to each party
at the facsimile number or its address as provided below (or to such other
facsimile number or address as the recipient of any notice shall have notified
the other in writing).  All such notices and communications shall be
effective (a) when sent by Federal Express or other overnight service of
recognized standing, on the Business Day following the deposit with such
service; (b) when mailed, by registered or certified mail, first class postage
prepaid and addressed as aforesaid through the United States Postal Service,
upon receipt; (c) when delivered by hand, upon delivery; and (d) when
facsimiled, upon confirmation of receipt to the following:

    

    Performance
Health Technologies, Inc.

    427 River
View Plaza

    Trenton,
NJ  08611

    Attn.:  Robert
Prunetti, President and CEO

    Fax:  (609)
656-0869

    

    To the
Investor at the Address Set Forth on the Investor Questionnaire.

     

    

    6.6           Nonwaiver.  No
failure or delay on any party in exercising any right hereunder shall operate as
a waiver thereof or of any other right nor shall any single or partial exercise
of any such right preclude any other further exercise thereof or of any other
right.

    

    6.7           Amendments and
Waivers.  This Agreement may not be amended or modified, nor
may any of its terms be waived, except by written instruments signed by all of
the parties.  Such waiver or consent under any provision hereof shall
be effective only in the specific instances for the purpose for which
given.

    

    6.8           Assignments.  This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns.

    

    6.9           Partial
Invalidity.  If at any time any provision of this Agreement is
or becomes illegal, invalid or unenforceable in any respect under the law of any
jurisdiction, neither the legality, validity or enforceability of the remaining
provisions of this Agreement nor the legality, validity or enforceability of
such provision under the law of any other jurisdiction shall in any way be
affected or impaired thereby.

    

    6.10           Headings.  Headings
in this Agreement are for convenience of reference only and are not part of the
substance hereof or thereof.

    

    6.11           Entire
Agreement.  This Agreement constitutes and contains the entire
agreement of the parties hereto and supersedes any and all prior agreements,
negotiations, correspondence, understandings and communications among the
parties, whether written or oral, respecting the subject matter
hereof.

    

    6.12           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware without reference to conflicts
of law rules.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    6.13           Jurisdiction.  Any
suit, action or proceeding seeking to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement or the transactions
contemplated hereby may be brought in the courts of the State of New York
located in the County of New York and the federal courts of the United States of
America located in such State and County.  Each of the parties (a)
consents to the exclusive jurisdiction of such courts (and of the appropriate
appellate courts therefrom) in any such suit, action or proceeding, (b)
irrevocably waives, to the fullest extent permitted by law, any objection which
it may now or hereafter have to the laying of the venue of any such suit, action
or proceeding in any such court or that any such suit, action or proceeding
which is brought in any such court has been brought in an inconvenient forum,
(c) will not attempt to deny or defeat such personal jurisdiction by motion or
other request for leave from any such court, and (d) will not bring any
action relating to this Agreement or any of the transactions contemplated by
this Agreement in any other court.  Process in any such suit, action
or proceeding may be served on any party anywhere in the world, whether within
or without the jurisdiction of any such court.  Without limiting the
foregoing, each party agrees that service of process on such party as provided
in Section 6.6 will be deemed effective service of process on such
party.

    

    6.14           JURY
TRIAL.  EACH
PARTY HERETO, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO ANY
ISSUE.

    

    6.15           Counterparts.  This
Agreement may be executed in several counterparts, each of which shall be deemed
an original, but such counterparts shall together constitute but one and the
same agreement.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date set
forth below.

     

    
 

    If
Investor is an individual:

     

    
      	
              _____________________________

              Signature of
      Investor   

            	
              __________________________________ 

              Print Name of
      Investor

            

    

                                                                                             

    

     

    $
________________ of Units to be Purchased Under this Agreement

     

    

     

    Date:
______________________, 2008

     

    

     

    If
Investor is an entity:

     

    

    _____________________________

      
             Print
Name of Entity

    

    

    _____________________________                            
__________________________________

    Signature of
Officer,                                                                     Print
Name of Officer,

    Trustee or Partner, as
applicable                                                Trustee
or Partner, as applicable

     

     

    $
________________ of Units to be Purchased Under this Agreement

     

    

    Date:
______________________, 2008

    

    Accepted:

    

    
      Date:
______________________, 2008 

       

      
        
          	 	
                  PERFORMANCE HEALTH
      TECHNOLOGIES,
      INC.

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

        

         

      

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    ACCREDITED
INVESTOR QUESTIONNAIRE

    

    The
Investor understands that:

    

     •           In
making a decision to invest in the Offering, the Investor must rely on its own
examination of PHT and the terms of the Offering, including the merits and risks
involved.

     

     •           The
Offering has not been recommended or approved by any federal or state securities
commission or regulatory authority.

     

     •           The
Investor should consult his or her own competent counsel, including, without
limitation, legal counsel, accountant, or business advisor as to legal, tax,
financial, and related matters concerning a purchase of the Units.

    

    An
investment in the Units involves a high degree of risk.  Among other
factors, Investors should consider the following risk factors, which are
included in the PHT Documents.  Investors should carefully review the
entire PHT Documents, however, for a more complete description of PHT and the
risks involved in an investment in our Units.

    

    Risks Concerning the Units
and the Offering

    

    This is an illiquid investment and
there is no current trading market for our securities.  There
is no established trading market for the Notes or our common stock or any or our
securities and no assumption should be made that one will ever
exist.  The Company has been a public reporting company under the
Securities Exchange Act of 1934 since July 13, 2007.  The Company’s
common stock is presently not traded on any market or securities exchange. The
Company is in the process of filing, through a market maker, an information
statement pursuant to Section 15c-211 with the National Association of
Securities Dealers, Inc.  Once a trading market is established, there
can be no assurance that it will be active. An absence of an active trading
market could adversely affect our stockholders’ ability to sell our common stock
in short time periods, or possibly at all. Our common stock is likely to
experience in the future, significant price and volume fluctuations that could
adversely affect the market price of our common stock without regard to our
operating performance. In addition, we believe that factors such as fluctuations
in our financial results and changes in the overall economy or the condition of
the financial markets could cause the price of our common stock to
fluctuate substantially.  There is no assurance that the National
Association of Securities Dealers, Inc. will approve our application. Since our
common stock has not traded on any public market before, we cannot predict the
extent to which an active public market for our common stock will develop. For this and other
reasons, there is
substantial risk of non-payment of the Notes. The Units, Notes,
Warrants, and the common stock (including the common stock which may be issued
in payment of interest due under the Notes and into which the Notes may be
converted or issuable upon exercise of the Warrants) are and will be “restricted
securities.”  As restricted securities they may be sold only upon
registration under the Securities Act and applicable state securities laws, or
upon reliance on an exemption from the registration
requirements.  Offerees should consider purchasing the Units only as a
long-term investment.  Offerees may not be able to promptly

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    liquidate
their investment at a reasonable price, or for any price, in the event of a
personal financial emergency or otherwise.

    

    We may not be able to obtain the
significant financing that we need to continue to operate and any additional
financing may be on terms adverse to your interests.  We have
recently entered into a number of financing transactions. We are continuing to
seek other financing initiatives. We need to raise additional capital to meet
our working capital needs, for the repayment of debt and for capital
expenditures. Such capital is expected to come from the sale of debt and/or
equity securities through private placement offerings and/or the sale of common
stock.

    

    We
believe that if we raise approximately $5.6 million in debt and equity
financings we would have sufficient funds to meet our needs for working capital
($1.2 million), repayment of debt (approximately $2.6 million expected to mature
from September 30, 2007 to September 30, 2008), accounts payable, accrued
expenses and marketing and development (approximately $1.8 million) and for
capital expenditures (approximately $0.1 million) over the next twelve
months.  As of September 30, 2007, we have cash balances in excess of
$0.1 million.

    

    No assurance can be given that we will
be successful in completing any financings at the minimum level necessary to
fund our capital equipment, debt repayment or working capital requirements, or
at all. If we are unsuccessful in completing these financings, we will not be
able to meet our working capital, debt repayment or capital equipment needs or
execute our business plan. In such case we will assess all available
alternatives including a sale of our assets or merger, the suspension of
operations and possibly liquidation, auction, bankruptcy, or other
measures.  For
this and other reasons, there
is substantial risk of non-payment of the Notes.

    

    We have had limited product sales, a
history of operating losses and have been unprofitable since
inception.  We have had limited sales of our products to date.
We incurred net losses of approximately $5.3 million during the year ended
December 31, 2006 and approximately $4.3 million for the nine months ended
September 30, 2007. We expect to incur substantial additional operating losses
in the future. During the year ended December 31, 2006 and the nine months ended
September 30, 2007, we generated revenues from product sales in the amounts of
approximately $5,278 and $589, respectively. We cannot assure you that we will
continue to generate revenues from operations or achieve profitability in the
near future or at all.  For this and other reasons, there is
substantial risk of non-payment of the Notes.

    

    We have a working capital loss, which
means that our current assets on September 30, 2007 were not sufficient to
satisfy our current liabilities.  We had a working capital
deficit of $6,352,667 at September 30, 2007, which means that our current
liabilities exceeded our current assets on September 30, 2007 by $6,352,667.
Current assets are assets that are expected to be converted to cash or otherwise
utilized within one year and, therefore, may be used to pay current liabilities
as they become due. Our working capital deficit means that our current assets on
September 30, 2007 were not sufficient to satisfy all of our current liabilities
on that date.  For this and other reasons, there is
substantial risk of non-payment of the Notes.

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    There is no minimum amount of Units;
consummation of the Offering is in multiple closings.  There is
no minimum amount of Units that must be subscribed for in order for us to close
on any Units.  We intend to use the proceeds we receive from any Unit
subscriptions we accept when and if received, irrespective of the amount of Unit
subscriptions we receive.  This offering of Units will be subject to
multiple closings, if and when we receive any subscriptions.  All
subscriptions we receive and accept will be treated exactly the same,
irrespective of whether we receive certain subscriptions earlier and a closing
was effectuated with respect thereto in advance of our receipt of other
subscriptions in this Offering.  Accordingly, Investors who purchase
Units prior to other Investors may be more at risk, depending in part, on the
aggregate amount of Units ultimately subscribed for.  Once we accept a
subscription, irrespective of the ultimate amount of proceeds raised in this
Offering, the Investor may not ask for a return of such
investment.  For this and other reasons, there is
substantial risk of non-payment of the Units.

    

    The Notes are unsecured.  We will not
pledge any assets to secure the payment of the Notes.  The Notes will
be general unsecured obligations of PHT.  The terms of the Notes allow
us to incur indebtedness and obligations that may be secured by its
assets.  Any such secured indebtedness and obligations will have a
claim to our assets prior to the claims of any holder of a Note.  All
general unsecured claims against us will be equal to the claims of any holder of
a Note.

    

    There may be no remaining proceeds
for stockholders in the event of the dissolution of PHT.  In
the event of our dissolution, the proceeds from the liquidation of our assets,
if any, will be first used to satisfy the claims of creditors.  Only
after all outstanding debts are satisfied will the remaining proceeds, if any,
be distributed to our stockholders.  Accordingly, the ability of any
investor to recover all or any portion of an investment in our securities under
such circumstances will depend on the amount of funds so realized and claims to
be satisfied therefrom.

    

    Payment of interest in common stock
may be worth less than cash payments.  We may elect to pay
interest under the Notes in cash, common stock, or a combination of cash and
common stock.  Any payment of interest in common stock will be at the
Conversion Rate.  The value of the common stock may be worth
substantially less than cash payments.

    

    No advice is given as to the tax
aspects of the Units.  Offerees are advised that we are giving
no advice as to the tax implications of an investment in the Units, the payment
of interest in common stock, the conversion of a Note into common stock, or the
exercise of the Warrants.  The characterization of the Notes as debt
or equity, the treatment of the payment of interest either in cash or in common
stock, the treatment of gain or loss on the sale or maturity of the Notes, the
conversion of the Notes to common stock, and the exercise of the Warrants may
all have tax implications to an Offeree.  Offerees should obtain their
own tax advice prior to making a decision to purchase a Unit.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    The interest rate of the Notes, the
number of shares to be issued upon conversion or in payment of interest of each
Note, and the exercise price of the Warrants has been arbitrarily set by the
Board of Directors.  The interest rate of the Notes, the number
of shares to be issued upon conversion or in payment of interest of each Note,
and the exercise price of the Warrants have been or will be determined by the
Board of Directors, based, in part, on the cost of the Offering, the prospects
in the industry, and an assessment of our financial condition and other factors
deemed relevant.  The interest rate of the Notes, the number of shares
to be issued upon conversion or in payment of interest of each Note, and the
exercise price of the Warrants, however, are not based on historical earnings,
the book value of the common stock, or any other objective criteria and should
not be deemed to be an indication of the value of the common stock.

    

    THE
INVESTOR HAS BEEN ADVISED BY PHT THAT AN INVESTMENT IN PHT WILL INVOLVE AN
EXTREMELY HIGH DEGREE OF RISK AND SHOULD ONLY BE MADE IF INVESTOR CAN AFFORD A
COMPLETE LOSS OF ITS INVESTMENT.

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    A.          INDIVIDUALS
(If Investor is an individual, complete this Part A)

    

    1.           Name
of Investor(s)1 

    
      

    

     

    
      
        

      

    

    Address
(including Zip
Code)                                                                

    

    Telephone No.  (           ) 

    
      

    
b

    Facsimile
No.    (           )

    
      

    
b

    

    2.           Indicate
type of ownership subscribed for:

    
      	
            	
              _____

            	
              Individual

            

    

    
      	
            	
              _____

            	
              Joint
      Tenants with Rights of Survivorship

            

      	
            	
              _____

            	
              Tenant
      in Common

            

      	
            	
              _____

            	
                    
                Tenants
      by the Entirety

              

            

    

    

    3.           Social
Security
Number(s)                                                                

    

    4.           Date(s)
of Birth ___________________________________________________

    

    5.           Employment
Position(s) _____________________________________________

    

    6.           State(s)
from which driver’s license is issued _____________________________

    

    7.           State(s)
in which registered to vote ____________________________________

    

    

      

    

      
      
        	
                1

              	
                If
      there is more than one Investor other than husband and wife, a separate
      Investor Questionnaire must be completed for each such Investor and
      attached to this Investor Questionnaire.  If Investors are
      husband and wife, please include both names, be certain to complete item 2
      and include both social security numbers (indicating to which individual
      each social security number belongs) in item
3.

              

      

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

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

    

    
      	
               
      

            	
              ____

            	
              (a)

            	
              Investor
      certifies that he/she is a director or executive officer of
      PHT.

            

    

    

    
      	
               
      

            	
              ____

            	
              (b)

            	
              Investor
      certifies that he/she is a natural person whose individual net worth, or
      joint net worth with his/her spouse, at the time of his/her Loan to PHT
      exceed $1,000,000 (inclusive of the value of his/her home, home
      furnishings and automobiles).

            

    

    

    
      	
               
      

            	
              ____

            	
              (c)

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

            

    

    

    B.          ENTITIES
(If Investor is an entity, complete this Part B)

    

    1.           Name
of
Investor                                                                                                                                

    

     
Address (including Zip
Code)                                                                

    

    Telephone
No.         (           )                                                      

    Telecopy
No.           (           )                                                      

    

    2.           Indicate
type of entity:

    

    ____    Corporation                        ____     Trust         ____    
Limited Partnership

    

    ____    General
Partnership          ____      IRA           ____    
Pension Plan or Trust

    

    Other:                      

    

    3.           Date
of formation or
incorporation:                                                                           

    

    4.           State
of formation or
incorporation:                                                                           

    

    
      5.          
Indicate
whether Investor was organized for the specific purpose of acquiring Common
Stock of PHT.

    

     

     
Yes  ____     No  ____

     

    
      

        
        
          	
                  2

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

                

        

      

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

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

    

    

    
      Name:
_______________________

    

    
      Title:
________________________

    

    

    
      7.          
Taxpayer
Identification Number: ______________________

    

    

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

    

    

    
      	
               
      

            	
              ____

            	
              (a)

            	
              Investor
      certifies that it is a bank as defined in Section 3(a)(2) of the
      Securities Act of 1933, as amended (the “Act”), or any savings and loan
      association or other institution as defined in Section 3(a)(5)(A) of the
      Act, whether acting in its individual or fiduciary
    capacity.

            

    

    

    
      	
               
      

            	
              ____

            	
              (b)

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

            

    

    

    
      	
               
      

            	
              ____

            	
              (c)

            	
              Investor
      certifies that it is a broker/dealer registered pursuant to the Securities
      Exchange Act of 1934, as amended.

            

    

    

    
      	
               
      

            	
              ____

            	
              (d)

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

            

    

    

    
      	
               
      

            	
              ____

            	
              (e)

            	
              Investor
      certifies that it is a Small Business Investment Company licensed by the
      U.S. Small Business Administration under Section 301(c) or (d) of the
      Small Business Investment Act of
1958.

            

    

    

    
      	
               
      

            	
              ____

            	
              (f)

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

            

    

    

    
      	
               
      

            	
              ____

            	
              (g)

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

            

    

    

    
      	
               
      

            	
              ____

            	
              (h)

            	
              Investor
      certifies that it is a corporation, partnership, a Massachusetts or
      similar business trust or other trust (if the trust’s purchase of
      securities is directed by a sophisticated person as described in Rule
      506(b)(2)(ii) of 

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
      	
            	
               

            	
               

            	
              Regulation
      D under the Act) or other organization described in Section 501(c)(3) of
      the Internal Revenue Code of 1986, as amended, not formed for the specific
      purpose of acquiring the Common Stock, with total assets in excess of
      $5,000,000.

            

       

    

    
      	
               
      

            	
              ____

            	
              (i)

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

            

    

    

    
      	
               
      

            	
              ____

            	
              (j)

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

            

    

    

    
      	
              9.

            	
              Investor
      agrees to provide, upon request by PHT, the following
      information:

            

    

    

    
      	
               
      

            	
              (A)

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

            

    

    

    
      	
               
      

            	
              (B)

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

            

    

    

    
      	
               
      

            	
              (C)

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

            

    

    

    
      
        
           

        

        
          21

          
            

          

        

        
           

        

      

    

    
      	
              C.

            	
              ACKNOWLEDGEMENTS
      AND REPRESENTATIONS TO BE MADE BY ALL INVESTORS (Every Investor must
      complete this Part C)

            

    

    

    Investor understands that PHT will be
relying on the accuracy and completeness of the representations made above as
well as Investor’s responses to the questions contained in this Investor
Questionnaire.  Investor understands that a false representation may
constitute a violation of law, and that any person who suffers damage as a
result of a false representation may have a claim for damages as a result of
such false representation.

    

    ALL INFORMATION CONTAINED IN THIS
QUESTIONNAIRE WILL BE TREATED CONFIDENTIALLY.  However, Investor
agrees that PHT may present this Investor Questionnaire to such parties as PHT
deems appropriate if called upon to establish that the Loan is exempt from
registration under the Securities Act of 1933, as amended, or meets the
requirements of applicable state securities law.

    

    Investor represents and warrants to PHT
as follows (each Investor must initial all of the following):

    

    
      	
              _______

            	
              a)

            	
              The
      representations and the answers to the questions in this Investor
      Questionnaire are complete and correct and may be relied upon by PHT and
      its counsel.

               

            
	
              _______

            	
              b)

            	
              Investor
      has full power and authority to subscribe for and purchase the
      Units.

               

            
	
              _______

            	
              c)

            	
              The
      Investor Questionnaire has been duly and validly authorized, executed, and
      delivered by Investor and constitutes the valid, binding, and enforceable
      agreement of Investor.

               

            
	
              _______

            	
              d)

            	
              Investor
      has reviewed the PHT Documents and has received all information Investor
      has deemed relevant and has had all of Investor’s questions answered with
      respect to the purchase of the Units and PHT and has made such independent
      investigation into PHT as Investor has deemed necessary.

               

            
	
              _______

            	
              e)

            	
              The
      purchase of the Units is made solely for the account of Investor with a
      view to and for investment and not with a view to or for distribution,
      assignment, participation, or resale.  Investor has no contract,
      undertaking, agreement, or arrangement with any person to sell, transfer,
      or pledge the Units, or any interest therein.  There are
      substantial restrictions on the transferability of the
      Units.  Investor is prepared to bear the economic risk involved
      in the purchase of the Units for an indefinite term.

               

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    
      	
              _______

            	
              f)

            	
              Investor
      acknowledges there is a substantial economic risk with respect to
      Investor’s investment in the Units and that Investor has such knowledge
      and experience in financial and business matters that Investor is able to
      evaluate the risks and merits of the investment in the Units and is making
      an informed decision to purchase the Units.

               

            
	
              _______

            	
              g)

            	
              Investor
      did not learn about the offer to purchase the Units through any
      advertisement, article, notice, or other communication published in any
      newspaper, magazine, or similar media or broadcast over television, radio,
      or the internet or at any seminar or meeting to which Investor was invited
      by a general solicitation or advertising.

               

            
	
              _______

            	
              h)

            	
              Investor
      hereby agrees to indemnify PHT and its affiliates and each and any of
      their respective officers, directors, shareholders, “controlling persons”,
      agents, and employees and to hold each of such entities and persons
      harmless from and against any and all liabilities, loss, damages, costs,
      or expenses (including reasonable attorneys’ fees) to which they, or any
      of them, may be put or which they, or any of them, may incur by reason of
      any breach of the representations and warranties made by Investor in the
      Subscription Agreement or this Investor Questionnaire.

               

            
	
              _______

            	
              i)

            	
              Investor
      will notify PHT immediately of any material change in any representation
      made above or any statement made herein that occurs prior to the closing
      of the sale of the Units.

               

            
	
              _______

            	
              j)

            	
              Investor
      will provide such further information as may be requested by PHT or its
      counsel to verify the information contained herein.

               

            
	
              _______

            	
              k)

            	
              In
      evaluating the suitability of Investor’s decision to purchase the Units,
      Investor has relied solely upon the information provided in the Memorandum
      and the exhibits and schedules attached hereto and Investor’s own
      independent investigation of PHT, and acknowledges that no representations
      (oral or written) have been made to the Investor with respect
      thereto.

               

            
	
              _______

            	
              l)

            	
              In
      making a decision to invest in the Offering, the Investor must rely on its
      own examination of PHT and the terms of the Offering, including the merits
      and risks involved.

               

            
	
              _______

            	
              m)

            	
              The
      Offering has not been recommended or approved by any federal or state
      securities commission or regulatory authority.

               

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    
      	
              _______

            	
              n)

            	
              The
      Investor should consult his or her own competent counsel, including,
      without limitation, legal counsel, accountant, or business advisor as to
      legal, tax, financial, and related matters concerning a purchase of the
      Units.

               

            
	
              _______

            	
              o)

            	
              The
      Investor acknowledges that there is no public market for PHT’s Common
      Stock and no assumption should be made that one will ever exist; the
      Common Stock, Warrants and Common Stock underlying the warrants are and
      will be “restricted securities”; as restricted securities, they may be
      sold only upon registration under the Securities Act and applicable state
      securities laws, or upon reliance on an exemption from such registration
      requirements.  Investors should consider purchasing the Units
      only as a long-term investment.  Investors may not be able to
      promptly liquidate at a reasonable price, or for any price, in the event
      of a personal financial emergency or otherwise.

               

            
	
              _______

            	
              p)

            	
              The
      Investor acknowledges that:  In the future, PHT’s financial
      needs may be such that it is forced to offer for sale its Common Stock on
      terms more favorable than the terms offered to investors in this
      Offering.  If such an event were to occur, investors purchasing
      Units in this Offering would have the right to participate in such future
      offering on the terms and conditions of such future
      offering.  The ownership interest percentages of Investors who
      do not wish to participate in such future offering will be diluted to the
      extent of the Common Stock sold by us in the future offering.

               

            
	
              _______

            	
              q)

            	
              The
      Investor acknowledges that:  If the Investor purchases in this
      Offering, the Investor will pay a price that was not established in a
      competitive market but was been determined by PHT’s management, based, in
      part, on the price paid by our prior investors, the prospects in our
      industry, an assessment of our financial condition and other factors
      deemed relevant.  The price, however, is not based on historical
      earnings, the book value of PHT, or any other objective
      criteria.  The offering price should not be deemed an indication
      of our value.  An Investor should consider in making an
      investment in our securities that we have insufficient assets to meet our
      obligations and we have a working capital deficit.

               

            

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    

    
      	
              ­_______

            	
              r)

            	
              PHT
      is continuing to seek other financing initiatives to meet its working
      capital needs.  PHT’s operating plan seeks to minimize its
      capital requirements, but further commercialization of its products will
      require additional capital. PHT expects that product development and
      operating and production expenses will increase significantly as it
      continues to develop, produce and sell products. The Investor further
      acknowledges that no assurance can be given that PHT will be successful in
      completing this Offering or any other financings at the minimum level
      necessary to fund its capital requirements, current operations or at all.
      If PHT is unsuccessful in completing these financings at such minimum
      level, PHT will not be able to fund its capital requirements or current
      expenses. If PHT is unsuccessful in completing these financings at or near
      the maximum level or an additional financing, PHT will not be able to
      pursue its business strategy.  Additional financing may not be
      available on terms favorable to PHT or at
all.

            

    

    

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    If
Investor is an individual:

    

    

    ____________________________                    
____________________________
Signature
of
Investor                                                 Print
Name of Investor

    

    

    ____________________________                    
____________________________
Signature
of Spouse, if
applicable                           Print
Name of Spouse, if applicable

    

    Date:
______________, 2008

    

    

    If
Investor is an entity:

    

    

    ____________________________                    
____________________________
Signature
of
Officer,                                                   Print
Name of Officer,

    Trustee
or Partner, as
applicable                             Trustee,
or Partner, as applicable

    

    Date:
______________, 2008

    

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  THE SECURITIES MAY
NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM,
SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS SOLD PURSUANT TO RULE
144 UNDER SAID ACT.

     

    FORM
OF CONVERTIBLE NOTE

     

    Trenton,
New Jersey

     

    ______________,
2008 

    $________

     

    FOR VALUE RECEIVED, PERFORMANCE HEALTH TECHNOLOGIES,
INC., a Delaware corporation (hereinafter called the “Borrower”), hereby
promises to pay to the order of _________________or registered assigns (the
“Holder”) the sum of _________, on ________________, 2008 [180 days after the
date of issuance] (such date, the “Maturity Date”), and to pay interest on the
unpaid principal balance hereof at the rate of ten percent (10%) per annum from
the date of this Note (the “Issue Date”) until the same becomes due and payable,
whether at maturity or upon acceleration or by prepayment or
otherwise.  Interest shall commence accruing on the Issue Date, shall
be computed on the basis of a 365-day year and the actual number of days elapsed
and shall be payable in shares of Common Stock at the Conversion Price (as
defined below) on the Maturity Date or at the time of conversion of the
principal to which such interest relates in accordance with Article I
below.  The Borrower shall pay prepaid interest on the Issue Date
representing 60 days worth of interest on the Note.

     

    All
amounts due hereunder (to the extent not converted into Common Stock by the
Holder or redeemed by the Borrower in accordance with the terms hereof) shall be
made in shares of Common Stock of the Borrower valued at the then applicable
Conversion Price. All payments due hereunder shall be made at such address as
the Holder shall hereafter give to the Borrower by written notice made in
accordance with the provisions of this Note.

     

    Whenever
any amount expressed to be due by the terms of this Note is due on any day which
is not a business day, the same shall instead be due on the next succeeding day
which is a business day and, in the case of any interest payment date which is
not the date on which this Note is paid in full, the extension of the due date
thereof shall not be taken into account for purposes of determining the amount
of interest due on such date.  As used in this Note, the term
“business day” shall mean any day other than a Saturday, Sunday or a day on
which commercial banks in the city of New York, New York are authorized or
required by law or executive order to remain closed.  Each capitalized
term used herein, and not otherwise defined, shall have the meaning ascribed
thereto in that certain Subscription Agreement between the Holder and the
Borrower to which this Note relates, as amended from time to time, pursuant to
which the Holder subscribed to purchase this Note (the “Subscription
Agreement”).

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    This Note
is free from all taxes, liens, claims and encumbrances with respect to the issue
thereof and shall not be subject to preemptive rights or other similar rights of
shareholders of the Borrower and will not impose personal liability upon the
Holder thereof.

     

    The
following terms shall apply to this Note:

     

    1.        
   CONVERSION RIGHTS

    

    The Holder shall have the following
conversion rights with respect to this Note (the “Conversion
Rights”):

    

    A.           Holder Right to
Convert.  The Holder is entitled, at its option, to convert,
and sell on the same day, at any time and from time to time commencing on the
date hereof until the Maturity Date, all or any part of the principal amount of
the Note into shares (the “Conversion Shares”) of the Borrower’s Common Stock,
at the price per share equal to 80% of the average of the closing bid price for
the Borrower’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 no event less than $0.40 per share (the “Conversion Price”).  No
fraction of shares or scrip representing fractions of shares will be issued on
conversion, but the number of shares issuable shall be rounded to the nearest
whole share.  To convert this Note, the Holder hereof shall deliver
written notice thereof, substantially in the form of Exhibit “A” to this
Note, with appropriate insertions (the “Conversion Notice”), to the Borrower at
its address as set forth herein.  The date upon which the conversion
shall be effective (the “Conversion Date”) shall be deemed to be the date set
forth in the Conversion Notice.

     

    B.           Mandatory
Conversion.

     

    1. If this
Note is outstanding in whole or in part on the Mandatory Conversion Date it
shall automatically and without any action on the part of the Holder, convert
into a number of fully paid and nonassessable shares of Common Stock equal to
the quotient of (i) $1,000 divided by (ii) the Conversion Price in effect on the
Mandatory Conversion Date.

    

    2. As used
herein, "Mandatory Conversion Date" shall be the Maturity Date of this
Note.  The Mandatory Conversion Date and the Voluntary Conversion Date
collectively are referred to herein as the "Conversion Date."

    

    3. On the
Mandatory Conversion Date, any amounts outstanding under this Note shall be
converted automatically without any further action by the Holder and whether or
not this Note surrendered to the Borrower; provided, however, that the
Borrower shall not be obligated to issue the shares of Common Stock issuable
upon conversion of this Note unless this Note is either delivered to the
Borrower or the Holder notifies the Borrower that such Note has been lost,
stolen, or destroyed, and executes an agreement satisfactory to the Borrower to
indemnify the Borrower from any loss incurred by it in connection
therewith.  Upon the occurrence of the automatic conversion of this
Note pursuant to this Section, the Holder shall surrender this Note to the
Borrower and the Borrower shall deliver the shares of Common Stock issuable upon
such conversion to the Holder within three (3) business days of the Holder's
delivery of this Note.

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    C.           Reservation of Common
Stock.  The Borrower shall reserve and keep available out of
its authorized but unissued shares of Common Stock, solely for the purpose of
effecting the conversion of this Note, such number of shares of Common Stock as
shall from time to time be sufficient to effect such conversion, based upon the
Conversion Price.  If at any time the Borrower does not have a
sufficient number of Conversion Shares authorized and available, then the
Borrower shall call and hold a special meeting of its stockholders within thirty
(30) days of that time for the sole purpose of increasing the number of
authorized shares of Common Stock.

     

    D.           Conversion
Restrictions.  The Holder may not convert this Note or receive
shares of Common Stock hereunder to the extent such conversion would result in
the Holder, together with any affiliate thereof, beneficially owning as
determined in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended, and the rules promulgated thereunder (the “Exchange Act”) in
excess of 9.99% of the then issued and outstanding shares of Common Stock,
including shares issuable upon conversion of, and payment of interest on, this
Note held by such Holder after application of this Section.  Since the
Holder will not be obligated to report to the Borrower the number of shares of
Common Stock it may hold at the time of a conversion hereunder, unless the
conversion at issue would result in the issuance of shares of Common Stock in
excess of 9.99% of the then outstanding shares of Common Stock without regard to
any other shares which may be beneficially owned by the Holder or an affiliate
thereof, the Holder shall have the authority and obligation to determine whether
the restriction contained in this Section will limit any particular conversion
hereunder and to the extent that the Holder determines that the limitation
contained in this Section applies, the determination of which portion of the
principal amount of this Note is convertible shall be the responsibility and
obligation of the Holder.  If the Holder has delivered a Conversion
Notice for a principal amount of this Note that, without regard to any other
shares that the Holder or its affiliates may beneficially own, would result in
the issuance in excess of the permitted amount hereunder, the Borrower shall
notify the Holder of this fact and shall honor the conversion for the maximum
principal amount permitted to be converted on such Conversion Date and, at the
option of the Holder, either retain any principal amount tendered for conversion
in excess of the permitted amount hereunder for future conversions or return
such excess principal amount to the Holder. The provisions of this Section may
be waived by a Holder (but only as to itself and not to any other Holder) upon
not less than 65 days prior notice to the Borrower.  Other Holders
shall be unaffected by any such waiver.  No interest shall be paid by
the Borrower for any portion of this Note which is not permitted to be converted
on any Conversion Date or the Maturity Date because of the conversion
restrictions set forth herein.

     

    2.           REDEMPTION

    

    A.           Optional
Redemption.  At any time prior to the Maturity Date the
Borrower at its option shall have the right, with ten (10)  business
days advance written notice (the “Optional Redemption Notice”), to redeem a
portion or all amounts outstanding under this Note in an amount equal to the
principal amount outstanding and accrued interest being redeemed (the “Optional
Redemption Amount”).  The Borrower shall deliver to the Holder the
Optional Redemption Amount on the tenth (10th)
business day after the Optional Redemption Notice (the “Optional Repayment
Date”).

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    In the
event that the Borrower redeems a portion of the amount outstanding under this
Note, or the Holder converts a portion of the principal amount outstanding and
accrued interest under this Note as contemplated herein, the Borrower shall be
entitled to an off-set of the amount of principal and accrued interest due equal
to the amount of principal and accrued interest redeemed or
converted.

    

    Notwithstanding
the foregoing in the event that the Borrower has delivered an Optional
Redemption Notice to the Holder the Holder shall still be entitled to effectuate
conversions as contemplated under Section 1 until the business day immediately
prior to the Optional Payment Date.

    

    B.           Mandatory
Redemption.  At any time prior to the Maturity Date the
Borrower shall upon a Mandatory Redemption Event (as herein defined) have the
obligation, with ten (10)  business days advance written notice (the
“Mandatory Redemption Notice”), to redeem all amounts outstanding under this
Note in an amount equal to the principal amount outstanding and accrued interest
being redeemed (the “Mandatory Redemption Amount”).  The Borrower
shall deliver to the Holder the Mandatory Redemption Amount on the tenth
(10th)
business day after the Mandatory Redemption Notice.  The “Mandatory
Redemption Event” shall be the date on which the Company has closed on aggregate
gross equity financings of $1 million prior to the Maturity Date.

    

    In the
event that the Holder converts a portion of the principal amount outstanding and
accrued interest under this Note as contemplated herein, the Borrower shall be
entitled to an off-set of the amount of principal and accrued interest due equal
to the amount of principal and accrued interest redeemed or
converted.

    

    Notwithstanding
the foregoing in the event that the Borrower has delivered a Mandatory
Redemption Notice to the Holder the Holder shall still be entitled to effectuate
conversions as contemplated under Section 1 until the business day immediately
prior to the Mandatory Payment Date.

    

    3.           EVENTS
OF DEFAULT

    

    If any of
the following events of default (each, an “Event of Default”) shall
occur:

     

    A.           Failure to Pay Principal or
Interest.  The Borrower fails to pay the principal hereof or
interest thereon when due on this Note, whether at maturity, upon acceleration
or otherwise;

     

    B.           Conversion and the
Shares.  The Borrower fails to issue shares of Common Stock to
the Holder (or announces or threatens that it will not honor its obligation to
do so) upon exercise by the Holder of the conversion rights of the Holder in
accordance with the terms of this Note, or fails to transfer or cause its
transfer agent to transfer (electronically or in certificated form) any
certificate for shares of Common Stock issued to the Holder upon conversion of
or otherwise pursuant to this Note as and when required by this Note, and any
such failure shall continue uncured (or any announcement, statement or threat
not to honor its obligations shall not be rescinded in writing) for ten (10)
days after the Borrower shall have been notified thereof in writing by the
Holder;

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    C.           Receiver or
Trustee.  The Borrower or any subsidiary of the Borrower shall
make an assignment for the benefit of creditors, or apply for or consent to the
appointment of a receiver or trustee for it or for a substantial part of its
property or business, or such a receiver or trustee shall otherwise be
appointed;

     

    D.           Bankruptcy.  Bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for
relief under any bankruptcy law or any law for the relief of debtors shall be
instituted by or against the Borrower or any subsidiary of the Borrower which
remains unvacated, unbonded or unstayed for a period of thirty (30)
days;

     

    then,
upon the occurrence and during the continuation of any Event of Default
specified in Section 3.A or B, upon the delivery of written notice to the
Borrower by such Holders (the “Default Notice”), and upon the occurrence of an
Event of Default specified in Section 3.C or D, the Notes shall become
immediately due and payable (the “Mandatory Prepayment Date”).  On the
Mandatory Prepayment Date the Borrower shall deliver to the Holder, in full
satisfaction of its obligations hereunder, shares of Common Stock of the
Borrower in an amount equal to the then outstanding principal amount of this
Note for purposes of determining the lowest applicable Conversion Price, multiplied by (b) the
highest Closing Price for the Common Stock during the period beginning on the
date of first occurrence of the Event of Default and ending one day prior to the
Mandatory Prepayment Date (the “Default Amount”) and all other amounts payable
hereunder shall immediately become due and payable, all without demand,
presentment or notice, all of which hereby are expressly waived, together with
all costs, including, without limitation, legal fees and expenses, of
collection, and the Holder shall be entitled to exercise all other rights and
remedies available at law or in equity.  If the Borrower fails to pay
the Default Amount within five (5) business days of written notice that such
amount is due and payable, then the Holder shall have the right at any time, so
long as the Borrower remains in default (and so long and to the extent that
there are sufficient authorized shares), to require the Borrower, upon written
notice, to immediately issue, in lieu of the Default Amount, the number of
shares of Common Stock of the Borrower equal to the Default Amount divided by
the Conversion Price then in effect.

     

    Upon an
Event of Default, notwithstanding any other provision of this Note, the Holder
shall have no obligation to comply with or adhere to any limitations, if any, on
the conversion of this Note or the sale of the underlying shares of Common
Stock.

     

    4.           MISCELLANEOUS

    

    A.           Failure or Indulgence Not
Waiver.  No failure or delay on the part of the Holder in the
exercise of any power, right or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other right,
power or privileges.  All rights and remedies existing hereunder are
cumulative to, and not exclusive of, any rights or remedies otherwise
available.

     

    B.           Notices.  Any
notice herein required or permitted to be given shall be in writing and may be
personally served or delivered by courier or sent by United States mail and
shall be deemed to have been given upon receipt if personally served (which
shall include telephone line facsimile transmission) or sent by courier or three
(3) days after being deposited in the United 

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    States
mail, certified, with postage pre-paid and properly addressed, if sent by
mail.  For the purposes hereof, the address of the Holder shall be as
shown on the records of the Borrower; and the address of the Borrower shall be
427 River View Plaza, Trenton, NJ  08611 facsimile number: (609)
656-0869.  Both the Holder and the Borrower may change the address for
service by service of written notice to the other as herein
provided.

     

    C.           Amendments.  This
Note and any provision hereof may only be amended by an instrument in writing
signed by the Borrower and the Holder.  The term “Note” and all
reference thereto, as used throughout this instrument, shall mean this
instrument as originally executed, or if later amended or supplemented, then as
so amended or supplemented.

     

    D.           Assignability.  This
Note shall be binding upon the Borrower and its successors and assigns, and
shall inure to be the benefit of the Holder and its successors and
assigns.  Each transferee of this Note must be an “accredited
investor” (as defined in Rule 501(a) of the Securities
Act).  Notwithstanding anything in this Note to the contrary, this
Note may be pledged as collateral in connection with a bona fide margin account
or other lending arrangement, subject to all applicable federal and state
securities laws.

     

    E.           Governing
Law.  THIS NOTE SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE
AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES
OF CONFLICT OF LAWS.  THE BORROWER HEREBY SUBMITS TO THE EXCLUSIVE
JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK
WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS NOTE, THE AGREEMENTS ENTERED INTO
IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH
PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH SUIT OR PROCEEDING.  BOTH PARTIES FURTHER AGREE
THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED
IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
PROCEEDING.  NOTHING HEREIN SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.  BOTH PARTIES AGREE THAT
A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT
OR IN ANY OTHER LAWFUL MANNER.  THE PARTY WHICH DOES NOT PREVAIL IN
ANY DISPUTE ARISING UNDER THIS NOTE SHALL BE RESPONSIBLE FOR ALL FEES AND
EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY IN
CONNECTION WITH SUCH DISPUTE.

     

    F.           Denominations.  At
the request of the Holder, upon surrender of this Note, the Borrower shall
promptly issue new Notes in the aggregate outstanding principal amount hereof,
in the form hereof, in such denominations of at least $1,000 as the Holder shall
request.

     

    G.        
 ­No Preemptive
Rights.  Except as provided herein no Holder of this Note shall
be entitled to rights to subscribe for, purchase or receive any part of any new
or additional shares of 

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    any
class, whether now or hereinafter authorized, or of bonds or Notes, or other
evidences of indebtedness convertible into or exchangeable for shares of any
class, but all such new or additional shares of any class, or any bond, Notes or
other evidences of indebtedness convertible into or exchangeable for shares, may
be issued and disposed of by the Board of Directors on such terms and for such
consideration (to the extent permitted by law), and to such person or persons as
the Board of Directors in their absolute discretion may deem
advisable.

     

    IN WITNESS WHEREOF, Borrower
has caused this Note to be signed in its name by its duly authorized
officer.

     

     

    
      
        	 	
                PERFORMANCE
      HEALTH TECHNOLOGIES, INC.

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

      

    

    

      
        
           

        

        
          33

          
            

          

        

        
           

        

      

    

    EXHIBIT
A

     

    NOTICE
OF CONVERSION

    (To be
Executed by the Registered Holder

    in order
to Convert the Notes)

     

    The
undersigned hereby irrevocably elects to convert $__________ principal amount of
the Note (defined below) into shares of common stock, par value $.01 per share
(“Common Stock”), of Performance Health Technologies, Inc., a Delaware
corporation (the “Borrower”) according to the conditions of the convertible
Notes of the Borrower dated as of _____________, 2008 (the “Notes”), as of the
date written below.  If securities are to be issued in the name of a
person other than the undersigned, the undersigned will pay all transfer taxes
payable with respect thereto and is delivering herewith such
certificates.  No fee will be charged to the Holder for any
conversion, except for transfer taxes, if any.  A copy of each Note is
attached hereto (or evidence of loss, theft or destruction
thereof).

     

    The
undersigned represents and warrants that all offers and sales by the undersigned
of the securities issuable to the undersigned upon conversion of the Notes shall
be made pursuant to registration of the securities under the Securities Act of
1933, as amended (the “Act”), or pursuant to an exemption from registration
under the Act.

     

    Date of
Conversion:___________________________

    Applicable
Conversion Price:____________________

    Number of
Shares of Common Stock to be Issued Pursuant to

    Conversion
of the Notes:_______________________

    Signature:__________________________________

    Name:_____________________________________

    Address:___________________________________

     

    The
Borrower shall issue and deliver shares of Common Stock to an overnight courier
not later than three (3) business days following receipt of the original Note(s)
to be converted, and shall make any applicable payments pursuant to the Notes
for the number of business days such issuance and delivery is late.

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    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:
_____________, 2008

    

    FORM OF WARRANT

    

    To
Purchase _____ shares of

    Common
Stock, $.01 par value

    

    of

    

    Performance
Health Technologies, Inc.

    

    Expiring
________________, 2013

    

    THIS IS
TO CERTIFY THAT, for value received, _______________________________, or his 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, _________ 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

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    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.

     

    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 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

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    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.

    

    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:

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    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 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

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    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 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

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    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.

     

    
 

    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
$[1.00] [1.50] 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.

     

    
 

    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

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    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, and in either case a copy of such
notices and communications shall be sent to Thomas P. Gallagher, Gallagher,
Briody & Butler, 155 Village Boulevard, Princeton, New Jersey 08540 Fax:
(609) 454-0090.  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 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.

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    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:
      

              	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

      

      
        
           

        

        
          42

          
            

          

        

        
           

        

      

    

    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.

    
      
         

      

      
        43

        
          

        

      

      
         

      

    

    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: 	 
	 	 	 

      

    

    

     

    
      
         

      

      
        44

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]