Document:

EXHIBIT 10.62
                                                                   -------------

                       NORTH COAST SECURITIES CORPORATION
                             9995 GATE PARKWAY NORTH
                                    SUITE 300
                             JACKSONVILLE, FL 32246

                                  May 15, 2007

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

Dear Mr. Prunetti:

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

1.   Agent will act as the Company's agent in connection with the private
     placement of up to $700,000 of equity securities of the Company (the "First
     Units"), each First Unit consisting of a convertible note in the principal
     amount of $1,000, which is unsecured, and 4,000 warrants to purchase one
     share of our common stock. The First Units will be issued only to
     accredited investors as defined in Rule 501 under the Securities Act of
     1933, as amended, (the "Securities Act") on terms mutually agreeable
     between the parties hereto, certain of which terms are set forth on Exhibit
     A, annexed hereto and incorporated herein by reference (such private
     placement referred to as the "First Offering"). The First Offering will be
     made on a best efforts basis subject to the terms and conditions set forth
     herein. Agent will act as the non-exclusive Agent for the First Offering
     and sale of the First Units constituting the First Offering.

2.   Agent will act as the Company's agent in connection with the private
     placement of up to $3,500,000 of equity securities of the Company (the
     "Second Units"). The Second Units will be issued only to accredited
     investors as defined in Rule 501 under the Securities Act, on terms
     mutually agreeable between the parties hereto (such private placement
     referred to as the "Second Offering"). The Second Offering will be made on
     a best efforts basis after the Company is a reporting company ("Reporting
     Company") under the Securities Act of 1934, as amended (the "Exchange
     Act"). Agent will act as the non-exclusive Agent for the Second Offering
     and sale of the Second Units constituting the Second Offering.

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Performance Health Technologies, Inc.
May 15, 2007
Page 2

3.   The Company and the Agent acknowledge that the Company may not become a
     reporting company under the Exchange Act in the near future or at all and
     that the Company may need to raise additional financing before the Second
     Offering. Such additional financing may be offered through the Agent or
     otherwise. The Agent agrees to assist the Company in such financing. The
     Second Offering may be commenced prior to the time that the Company is a
     Reporting Company if the Company and the Agent agree to waive such
     condition to the offering of the Second Units.

4.   Agent will provide the Company with the following services in connection
     with the First Offering and the Second Offering (together, or individually,
     the "Offering"):

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

     B.   Coordinating the marketing effort for the sale of the securities to be
          sold in the Offering (the "Securities");

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

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

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

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

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

     C.   At each Closing of the Second Offering, the Agent will receive
          warrants ("Warrants") to purchase that number of shares of common
          stock of the Company as equals either (i) 10% of the number of shares
          of common stock that are issued to investors in the Second Offering
          (the "Common Shares") with an exercise price equal to 110% of the
          price of the Common Shares or (ii) 10% of the number of shares of
          common stock that would be issuable to investors in the Second

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Performance Health Technologies, Inc.
May 15, 2007
Page 3

          Offering if convertible notes or debentures are sold in the Second
          Offering ("Convertible Securities") assuming conversion of such
          Convertible Securities at each applicable closing date, with an
          exercise price equal to 110% of the conversion price of the
          Convertible Securities on such date. The Warrants shall have a term of
          five years and all other terms substantially the same as those of
          other warrants issued by the Company in the Second Offering.

     D.   Agent will receive as a Due Diligence and Pre-Marketing Fee, a payment
          from the Company of $125,000 upon execution of this Agreement, to
          cover the costs and expenses of Agent's due diligence investigation
          and pre-marketing activities on behalf of the Company.

6.   The Company will pay all expenses incurred by or on behalf of the Company
     in connection with the preparation and printing of the securities sold in
     the Offering, blue sky filings and fees, legal expenses of the Agent up to
     a maximum of $3,000, and all other documents and instruments required in
     connection with the Offering.

7.   In connection with Agent's activities on the Company's behalf, the Company
     will cooperate with Agent and will furnish Agent with all information and
     data concerning the Company which Agent reasonably believes appropriate to
     the performance of services contemplated by this Agreement (all such
     information so furnished being the "Information") and will provide Agent
     with reasonable access to the Company's officers, directors, employees,
     independent accountants and legal counsel. The Company recognizes and
     confirms that Agent (i) will use and rely primarily on the Information and
     on information available from generally recognized public sources in
     performing the services contemplated by the Agreement, without having
     independently verified same, (ii) does not assume responsibility for the
     accuracy or completeness of the Information and (iii) will not make an
     independent appraisal of any of the Company's assets. The Information to be
     furnished by the Company, when delivered, will be, to the best of the
     Company's knowledge, true and correct in all material respects and will not
     contain any material misstatements of fact or omit to state any material
     fact necessary to make the statements contained therein not misleading. The
     Company will promptly notify Agent if it learns of any material inaccuracy
     or misstatement in, or material omission from any information thereto
     delivered to Agent. Agent agrees to keep the Information confidential and
     only to release the Information with the consent of the Company. At the
     Closing, the Company shall deliver to Agent an officer certificate and
     opinion of counsel reasonably acceptable to the Company and Agent. If the
     transaction contemplated by this Agreement is not completed for whatever
     reason, Agent will return the Information (without keeping any copies
     thereof) forthwith on demand by the Company. Agent on its part represents,
     warrants, and agrees that it has and at all times while it is performing
     services under this Agreement it will comply with all laws, rules, and
     regulations applicable to it in connection with the services it performs
     under this Agreement, such compliance to include all licenses in all
     applicable jurisdictions it and its agents are

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Performance Health Technologies, Inc.
May 15, 2007
Page 4

     required to maintain for purposes of its activities under this Agreement.

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

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

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

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

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

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

14.  This Agreement embodies the entire agreement and understanding of the
     parties hereto and supersedes any and all prior agreements, arrangements
     and understanding relating to the matters provided for herein. No
     alteration, waiver, amendment, change or supplement

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Performance Health Technologies, Inc.
May 15, 2007
Page 5

     hereto shall be binding or effective unless the same is set forth in
     writing signed by a duly authorized representative of each party.

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

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

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

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

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Performance Health Technologies, Inc.
May 15, 2007
Page 6

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

                                       Very truly yours,

                                       NORTH COAST SECURITIES CORPORATION

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

Confirmed and agreed to:

PERFORMANCE HEALTH TECHNOLOGIES, INC.

By:
    ------------------------------
    Robert D. Prunetti
    President and Chief Executive Officer

<PAGE>

                                    EXHIBIT A

                 SUMMARY OF CERTAIN TERMS OF THE FIRST OFFERING

SECURITIES OFFERED

We are offering up to $700,000 of our Units, each Unit consisting of a
convertible promissory Note in the principal amount of $1,000, which is
unsecured, and 4,000 Warrants to purchase one share of common stock. The Units
and underlying securities are subject to transfer restrictions.

SELLING AGENT FEES AND OFFERING EXPENSES

In consideration of services rendered to us in connection with this Offering, we
will pay to the Agents for this Offering, the fees and additional costs as set
forth below:

o    a commission of up to 12% of the gross offering proceeds raised by the
     Agent.

o    a non-accountable expense allowance of up to 3% of the gross offering
     proceeds raised by the Agent.

Such fees and costs and all other expenses of this Offering will be deducted
from the proceeds of this Offering. We will indemnify the Agent for any and all
claims by other brokers, dealers, selling agents, investment advisors or the
like.

PURCHASE PRICE

The purchase price per Unit is $1,000.

INTEREST

10% per annum payable at Maturity or at the time of conversion in shares of PHT
common stock at the Conversion Price.

CONVERSION

The Notes are convertible at the election of the holder thereof, at any time
commencing from and after their date of issuance, upon written notice to us at
Performance Health Technologies, Inc., 427 Riverview Plaza, Trenton, NJ 08611.

CONVERSION PRICE OF NOTES

The Notes will be convertible into shares of common stock at a price equal to
the lesser of (i) $0.75 or (ii) 70% of the average of the closing bid price for
PHT's common stock for the 20 days preceding the Conversion Notice, as reported
by the exchange on which PHT's common stock is then traded, but in any event not
less than $0.30 (the "Conversion Price").

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REDEMPTION OF NOTES

The Notes may be redeemed by PHT once the Company is a reporting company under
the Exchange Act, upon ten trading days prior notice, during which time the
Noteholder may convert the Notes into PHT common stock.

PAYMENT IN SHARES ON THE MATURITY DATE

If the Notes have not been redeemed or converted as of the Maturity Date, the
principal and interest due thereunder will be paid by the Company in shares of
common stock of the Company valued at the then applicable Conversion Price.

WARRANTS CONTAINED IN THE UNITS

The Warrants included in the Units are exercisable for shares of PHT common
stock at any time beginning on the date of conversion of the Notes and ending
five years from the date of issuance. Each Unit includes 4,000 Warrants to
purchase one share of PHT common stock. The per share exercise price of 2,000 of
the Warrants is $0.75 and the per share exercise price of the remaining 2,000 of
the Warrants is $1.50.

PIGGY-BACK REGISTRATION RIGHTS

The Notes and Warrants included in the Units (and the conversion and Warrant
shares) have not been registered under federal and applicable state securities
laws and will therefore constitute "restricted securities". The Notes and
Warrants included in the Units (and the conversion and Warrant shares) may be
sold only (i) upon registration under the Securities Act or (ii) upon reliance
on an exemption from such registration requirements. The Conversion Shares and
the shares underlying the Warrants will have piggy-back registration rights.

QUALIFIED INVESTORS

Accredited Investors only

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<PAGE>

                                    EXHIBIT B

                           INDEMNIFICATION PROVISIONS

Capitalized terms used herein that are not defined in these indemnification
provisions ("Indemnification Provisions") have the meaning set forth in the
engagement letter agreement dated May 15, 2007, between North Coast Securities
Corporation ("Agent") and Performance Health Technologies, Inc. as such
agreement may be amended from time to time (the "Agreement").

The Company agrees to indemnify and hold harmless Agent, to the fullest extent
permitted by law, from and against any and all losses, claims, damages,
liabilities, obligations, penalties, judgments, awards, costs, expenses and
disbursements (and any and all actions, suits, proceedings and investigations in
respect thereof and any and all legal and other costs, expenses and
disbursements in giving testimony or furnishing documents in response to a
subpoena or otherwise), including, without limitation, the costs, expenses and
disbursements, as and when incurred, of investigating, preparing or defending
any such action, suit, proceeding or investigation (whether or not in connection
with litigation in which Agent is a party), directly or indirectly, caused by,
relating to, based upon, arising out of or in connection with (a) Agent's acting
for the Company, including, without limitation, any act or omission by Agent in
connection with its acceptance of or the performance or nonperformance of its
obligations under the Agreement, (b) any untrue statement or alleged untrue
statement of a material fact contained in, or omissions or alleged omissions
from any information furnished to Agent by the Company or (c) any Offering;
provided, however, such indemnity agreement shall not apply to any portion of
any such loss, claim, damage, obligation, penalty, judgment, award, liability,
cost, expense or disbursement to the extent it is found in a final judgment by a
court of competent jurisdiction (not subject to further appeal) to have resulted
primarily and directly from the gross negligence or willful misconduct of Agent.

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

If any action, suit, proceeding or investigation is commenced, as to which Agent
proposes to demand indemnification, it shall notify the Company with reasonable
promptness; provided, however, that the Company shall be relieved from its
obligations hereunder to the extent a failure by Agent to notify the Company
with reasonable promptness results in a significant increase in the Company's
obligations hereunder. Agent shall have the right to retain counsel of its own
choice to represent it, which counsel shall be reasonably acceptable to the
Company, and the Company shall pay the fees, expenses and disbursements of such
counsel; and such counsel shall, to the extent consistent with its professional
responsibilities, cooperate with the Company and any counsel designated by the
Company. The Company shall be liable for any settlement of any claim against
Agent made with the Company's written consent, which consent shall not be

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<PAGE>

unreasonably withheld. The Company shall not, without the prior written consent
of Agent, settle or compromise any claim, or permit a default or consent to the
entry of any judgment in respect thereof, unless such settlement, compromise or
consent includes, as an unconditional term thereof, the giving by the claimant
to Agent of an unconditional and irrevocable release from all liability in
respect of such claim.

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

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

                                       10EXHIBIT 10.63
                                                                   -------------

                             SUBSCRIPTION AGREEMENT

     This Subscription Agreement (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 a note in the
principal amount of $300,000 (the "Note"); and

     WHEREAS, the Investor desires to purchase the Note 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 NOTE

     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, the Note.

2. CLOSING

     2.1 Date of Closing. The closing (the "Closing") of the purchase and sale
of the Note shall take place on any date agreed to by the Investor and 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 Note by wire transfer to the following
     account:

                               Bank:
                               Account Name:
                               ABA/ Routing #:
                               Account #:

     2.3 Items to be Delivered to the Investor by PHT.

          (a) The following shall be delivered by PHT to the Investor on the
     Closing Date:

               (i)  the Note;

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<PAGE>

               (ii) 1,500,000 warrants to purchase Common Stock of PHT (with
                    such warrants having an exercise price of $0.30 per share
                    and a five year term (the "Warrants");

               (iii) an origination fee of $15,000; and

               (iv) a Security Agreement granting Holder a security interest in
                    substantially all of the assets of the Company.

          (b) In the event the Note is not repaid on the Maturity Date set forth
     in the Note, PHT shall issue to the Investor an additional 50,000 warrant
     to purchase shares of PHT common stock for each 45 days that the Note is
     unpaid past the Maturity Date, with such warrants having substantially the
     same terms as the warrants.

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 Note and the Warrants is 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 Note. This Agreement has been, and the Note and the
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 Capitalization. The authorized capital stock of PHT consists of
70,000,000 shares of Common Stock and 1,000,000 shares of Preferred Stock, $0.01
par value per share ("Preferred Stock"), of which 48,527,727 shares of Common
Stock and no shares of Preferred Stock are issued and outstanding. All of such
outstanding shares have been validly issued and are fully paid and
nonassessable.

     3.4 No Conflict. The execution, delivery and performance by PHT of this
Agreement, and the consummation of the transactions contemplated hereby,
including issuance of the Note and the Warrants, 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

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<PAGE>

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.

     3.5 Note and Warrants. The Note and Warrants, when issued and delivered in
accordance with the terms of this Agreement, will be duly authorized, validly
issued, fully paid, non-assessable and free and clear of any lien or other
limitation or restriction.

     3.6 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
Note and Warrants as contemplated by this Agreement are exempt from the
registration requirements of the Securities Act. PHT has complied and will
comply with all applicable state "blue sky" or securities laws in connection
with the offer, sale and issuance of the Note and Warrants 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 a corporation (a) is a corporation duly organized, validly existing and in
good standing under the laws of its organization, and (b) has all requisite
corporate 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 corporate Investor.

     4.4 Investment Representation.

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

          1. Subscription Agreement
          2. The Note

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<PAGE>

          3. The Warrants

               (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 Note is speculative and
                    involves a high degree of risk and the Investor represents
                    that it is able to sustain the loss of the entire amount of
                    its investment.

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

               (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 Note and the Warrants for
                    investment purposes only without intent to distribute the
                    same, and acknowledges that the Note has not been registered
                    under the Securities Act and applicable state securities
                    laws, and accordingly, constitutes "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 Note and the Warrants 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 Note and
                    the Warrants will contain the following legend:

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD,
TRANSFERRED, PLEDGED, ASSIGNED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, OR AN EXEMPTION
FROM REGISTRATION AND OTHERWISE IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT
BETWEEN THE ISSUER AND THE ORIGINAL OWNER OF THE SECURITIES, A COPY OF WHICH IS
ON FILE AT THE PRINCIPAL EXECUTIVE OFFICE OF THE ISSUER."

                                        4
<PAGE>

5. REGISTRATION RIGHTS

     5.1 Definitions. As used in this Agreement, the following terms shall have
the following meanings:

               (a)  "Person" means a corporation, a limited liability company,
                    an association, a partnership, an organization, a business,
                    an individual, a governmental or political subdivision
                    thereof or a governmental agency.

               (b)  "Register," "registered," and "registration" refer to a
                    registration effected by preparing and filing one or more
                    Registration Statements (as defined below) in compliance
                    with the 1933 Act and pursuant to Rule 415 under the 1933
                    Act or any successor rule providing for offering securities
                    on a continuous or delayed basis ("Rule 415"), and the
                    declaration or ordering of effectiveness of such
                    Registration Statement(s) by the United States Securities
                    and Exchange SEC (the "SEC").

               (c)  "Registrable Securities" means the PHT common shares
                    underlying the Note and Warrants.

               (d)  "Registration Statement" means a registration statement
                    under the 1933 Act which covers the Registrable Securities.

     5.2 Piggyback Registration. If at any time prior to the second anniversary
of the Closing Date, PHT shall determine to file with the SEC a Registration
Statement relating to an offering for its own account or the account of others
under the 1933 Act of any of its equity securities (other than on Form S-4 or
Form S-8 or their then equivalents relating to equity securities to be issued
solely in connection with any acquisition of any entity or business or equity
securities issuable in connection with stock option or other bona fide employee
benefit plans) PHT shall use its best efforts to include in such Registration
Statement the Registrable Securities.

     5.3 Registration Period. PHT shall keep the Registration Statement
effective pursuant to Rule 415 at all times through the earlier of (i) the
Registrable Securities have been sold, or (ii) the date the Registrable
Securities become eligible for sale without restriction under Rule 144(k)
promulgated under the Securities Act of 1933 (the "Registration Period").

     5.4 Expenses. All expenses incurred in connection with registrations,
filings or qualifications pursuant to this Section 5 shall be paid by PHT. The
Investor shall pay his own legal fees, if any.

     5.5 Indemnification. With respect to Registrable Securities which are
included in a Registration Statement under this Agreement:

               (a)  To the fullest extent permitted by law, PHT will, and hereby
                    does, indemnify, hold harmless and defend the Investor, the
                    directors, officers, partners, employees, agents,
                    representatives of, and each Person, if any, who controls
                    any Investor within the meaning of the 1933 Act or the 1934

                                        5
<PAGE>

                    Act (each, an "Indemnified Person"), against any losses,
                    claims, damages, liabilities, judgments, fines, penalties,
                    charges, costs, reasonable attorneys' fees, amounts paid in
                    settlement or expenses, joint or several (collectively,
                    "Claims") incurred in investigating, preparing or defending
                    any action, claim, suit, inquiry, proceeding, investigation
                    or appeal taken from the foregoing by or before any court or
                    governmental, administrative or other regulatory agency,
                    body or the SEC, whether pending or threatened, whether or
                    not an indemnified party is or may be a party thereto
                    ("Indemnified Damages"), to which any of them may become
                    subject insofar as such Claims (or actions or proceedings,
                    whether commenced or threatened, in respect thereof) arise
                    out of or are based upon: (i) any untrue statement or
                    alleged untrue statement of a material fact in a
                    Registration Statement or any post-effective amendment
                    thereto or in any filing made in connection with the
                    qualification of the offering under the securities or other
                    "blue sky" laws of any jurisdiction in which Registrable
                    Securities are offered ("Blue Sky Filing"), or the omission
                    or alleged omission to state a material fact required to be
                    stated therein or necessary to make the statements therein
                    not misleading; (ii) any untrue statement or alleged untrue
                    statement of a material fact contained in any final
                    prospectus (as amended or supplemented, if PHT files any
                    amendment thereof or supplement thereto with the SEC) or the
                    omission or alleged omission to state therein any material
                    fact necessary to make the statements made therein, in light
                    of the circumstances under which the statements therein were
                    made, not misleading; or (iii) any violation or alleged
                    violation by PHT of the 1933 Act, the 1934 Act, any other
                    law, including, without limitation, any state securities
                    law, or any rule or regulation there under relating to the
                    offer or sale of the Registrable Securities pursuant to a
                    Registration Statement (the matters in the foregoing clauses
                    (i) through (iii) being, collectively, "Violations"). PHT
                    shall reimburse the Investor and each such controlling
                    person promptly as such expenses are incurred and are due
                    and payable, for any reasonable legal fees or disbursements
                    or other reasonable expenses incurred by them in connection
                    with investigating or defending any such Claim.
                    Notwithstanding anything to the contrary contained herein,
                    the indemnification agreement contained in this Section
                    5.5(a): (x) shall not apply to a Claim by an Indemnified
                    Person arising out of or based upon a Violation which occurs
                    in reliance upon and in conformity with information
                    furnished in writing to PHT by such Indemnified Person
                    expressly for use in connection with the preparation of the
                    Registration Statement or any such amendment thereof or
                    supplement thereto; (y) shall not be available to the extent
                    such Claim is based on a failure of the Investor to deliver
                    or to cause to be delivered the prospectus made available by
                    PHT, if such prospectus was timely made available by PHT;
                    and (z) shall not apply to amounts paid in settlement of any
                    Claim if such settlement is effected without the prior
                    written consent of PHT, which consent shall not be
                    unreasonably withheld. Notwithstanding anything to the
                    contrary herein or in any other

                                        6
<PAGE>

                    agreement entered into between PHT and the Investor, PHT
                    acknowledges and agrees that it is solely responsible and
                    shall indemnify each Indemnified Person for the contents of
                    any registration statement, prospectus or other filing made
                    with the SEC or otherwise used in the offering of PHT's
                    securities (except as such disclosure relates solely to the
                    Investor and then only to the extent that such disclosure
                    conforms with information furnished in writing by the
                    Investor to PHT), even if the Investor or its agents as an
                    accommodation to PHT participate or assist in the
                    preparation of such registration statement, prospectus or
                    other SEC filing. PHT shall retain its own legal counsel to
                    review, edit, confirm and do all things such counsel deems
                    necessary or desirable to such registration statement,
                    prospectus or other SEC filing to ensure that it does not
                    contain an untrue statement or alleged untrue statement of
                    material fact or omit or alleged to omit a material fact
                    necessary to make the statements made therein, in light of
                    the circumstances under which the statements were made, not
                    misleading. Such indemnity shall remain in full force and
                    effect regardless of any investigation made by or on behalf
                    of the Indemnified Person and shall survive the transfer of
                    the Registrable Securities by the Investor.

               (b)  In connection with a Registration Statement, the Investor
                    agrees to indemnify, hold harmless and defend, to the same
                    extent and in the same manner as is set forth in Section
                    5.5(a), PHT, each of its directors, each of its officers,
                    employees, representatives, or agents and each Person, if
                    any, who controls PHT within the meaning of the 1933 Act or
                    the 1934 Act (each an "Indemnified Party"), against any
                    Claim or Indemnified Damages to which any of them may become
                    subject, under the 1933 Act, the 1934 Act or otherwise,
                    insofar as such Claim or Indemnified Damages arise out of or
                    is based upon any Violation, in each case to the extent, and
                    only to the extent, that such Violation occurs in reliance
                    upon and in conformity with written information furnished to
                    PHT by such Investor expressly for use in connection with
                    such Registration Statement; and, subject to Section 5i,
                    such Investor will reimburse any legal or other expenses
                    reasonably incurred by them in connection with investigating
                    or defending any such Claim; provided, however, that the
                    indemnity agreement contained in this Section 5.5(b) and the
                    agreement with respect to contribution contained below shall
                    not apply to amounts paid in settlement of any Claim if such
                    settlement is effected without the prior written consent of
                    such Investor, which consent shall not be unreasonably
                    withheld; provided, further, however, that the Investor
                    shall be liable under this Section 5.5(b) for only that
                    amount of a Claim or Indemnified Damages as does not exceed
                    the net proceeds to such Investor as a result of the sale of
                    Registrable Securities pursuant to such Registration
                    Statement. Such indemnity shall remain in full force and
                    effect regardless of any investigation made by or on behalf
                    of such Indemnified Party and shall survive the transfer of
                    the Registrable Securities by the Investor. Notwithstanding
                    anything to the contrary contained herein, the

                                        8
<PAGE>

                    indemnification agreement contained in this Section 5h(2)
                    with respect to any prospectus shall not inure to the
                    benefit of any Indemnified Party if the untrue statement or
                    omission of material fact contained in the prospectus was
                    corrected and such new prospectus was delivered to each
                    Investor prior to such Investor's use of the prospectus to
                    which the Claim relates.

               (c)  Promptly after receipt by an Indemnified Person or
                    Indemnified Party under this Section of notice of the
                    commencement of any action or proceeding (including any
                    governmental action or proceeding) involving a Claim, such
                    Indemnified Person or Indemnified Party shall, if a Claim in
                    respect thereof is to be made against any indemnifying party
                    under this Section 5, deliver to the indemnifying party a
                    written notice of the commencement thereof, and the
                    indemnifying party shall have the right to participate in,
                    and, to the extent the indemnifying party so desires,
                    jointly with any other indemnifying party similarly noticed,
                    to assume control of the defense thereof with counsel
                    mutually satisfactory to the indemnifying party and the
                    Indemnified Person or the Indemnified Party, as the case may
                    be; provided, however, that an Indemnified Person or
                    Indemnified Party shall have the right to retain its own
                    counsel with the fees and expenses of not more than one (1)
                    counsel for such Indemnified Person or Indemnified Party to
                    be paid by the indemnifying party, if, in the reasonable
                    opinion of counsel retained by the indemnifying party, the
                    representation by such counsel of the Indemnified Person or
                    Indemnified Party and the indemnifying party would be
                    inappropriate due to actual or potential differing interests
                    between such Indemnified Person or Indemnified Party and any
                    other party represented by such counsel in such proceeding.
                    The Indemnified Party or Indemnified Person shall cooperate
                    fully with the indemnifying party in connection with any
                    negotiation or defense of any such action or claim by the
                    indemnifying party and shall furnish to the indemnifying
                    party all information reasonably available to the
                    Indemnified Party or Indemnified Person which relates to
                    such action or claim. The indemnifying party shall keep the
                    Indemnified Party or Indemnified Person fully apprised at
                    all times as to the status of the defense or any settlement
                    negotiations with respect thereto. No indemnifying party
                    shall be liable for any settlement of any action, claim or
                    proceeding effected without its prior written consent;
                    provided, however, that the indemnifying party shall not
                    unreasonably withhold, delay or condition its consent. No
                    indemnifying party shall, without the prior written consent
                    of the Indemnified Party or Indemnified Person, consent to
                    entry of any judgment or enter into any settlement or other
                    compromise which does not include as an unconditional term
                    thereof the giving by the claimant or plaintiff to such
                    Indemnified Party or Indemnified Person of a release from
                    all liability in respect to such claim or litigation.
                    Following indemnification as provided for hereunder, the
                    indemnifying party shall be subrogated to all rights of the
                    Indemnified Party or Indemnified Person with respect to all
                    third parties, firms or

                                        8
<PAGE>

                    corporations relating to the matter for which
                    indemnification has been made. The failure to deliver
                    written notice to the indemnifying party within a reasonable
                    time of the commencement of any such action shall not
                    relieve such indemnifying party of any liability to the
                    Indemnified Person or Indemnified Party under this Section
                    5, except to the extent that the indemnifying party is
                    prejudiced in its ability to defend such action.

               (d)  The indemnification required by this Section 5 shall be made
                    by periodic payments of the amount thereof during the course
                    of the investigation or defense, as and when bills are
                    received or Indemnified Damages are incurred.

               (e)  The indemnity agreements contained herein shall be in
                    addition to (i) any cause of action or similar right of the
                    Indemnified Party or Indemnified Person against the
                    indemnifying party or others, and (ii) any liabilities the
                    indemnifying party may be subject to pursuant to the law.

     5.6 Contribution. To the extent any indemnification by an indemnifying
party is prohibited or limited by law, the indemnifying party agrees to make the
maximum contribution with respect to any amounts for which it would otherwise be
liable under Section 5.5 to the fullest extent permitted by law; provided,
however, that: (i) no seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled to contribution from any seller of Registrable Securities who was not
guilty of fraudulent misrepresentation; and (ii) contribution by any seller of
Registrable Securities shall be limited in amount to $300,000.

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.

     "Securities Act" means the Securities Act of 1933, as amended.

     6.2 Confidentiality.

               (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

                                        9
<PAGE>

                    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.

     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

                                       10
<PAGE>

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, New Jersey 08611
          Attention: Robert Prunetti
          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 New York without reference to conflicts
of law rules.

     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

                                       11
<PAGE>

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
<PAGE>

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

                                       By: _________________________

                                       PERFORMANCE HEALTH TECHNOLOGIES, INC.

                                       By: _________________________
                                           Robert D. Prunetti
                                           President and Chief Executive Officer

                                       13
<PAGE>

A. INDIVIDUALS (IF INVESTOR IS AN INDIVIDUAL, COMPLETE THIS PART A)

1. Name of Investor(s)(1)______________________________________________

         Address (including Zip Code)__________________________________
         ______________________________________________________________
         Telephone No. (    )__________________________________________
         Telecopy No.  (    )__________________________________________

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. 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 income(2) in excess of $200,000 in each
                       of the two most recent years or joint income with his/her
                       spouse in excess of $300,000 in each of those years, and
                       has a reasonable expectation of reaching the same income
                       level in the current year.
_________________
(1)      If there is more than one Investor other than husband and wife, a
         separate Investor Questionnaire must be completed for each such
         Investor and attached to this Investor Questionnaire. If Investors are
         husband and wife, please include both names, be certain to complete
         item 2 and include both social security numbers (indicating to which
         individual each social security number belongs) in item 3.

(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.

                                       14
<PAGE>

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 ____

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

     Name: ______________________________
     Title: _____________________________

     Taxpayer Identification Number: ________________________________

7. 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.

                                       15
<PAGE>

         ____    (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 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.

8. 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

                                       16
<PAGE>

                  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.

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 make the Loan to
                       PHT.

         ____    (c)   The Loan and this Investor Questionnaire have been duly
                       and validly authorized, executed, and delivered by
                       Investor and constitute the valid, binding, and
                       enforceable agreement of Investor.

         ____    (d)   Investor has reviewed this Questionnaire, including, but
                       not limited to the information set forth on pages 1-2,
                       the Cover Letter accompanying this Subscription
                       Agreement, the Note and has received all information
                       Investor has deemed relevant and has had all of
                       Investor's questions answered with respect to the Loan
                       and PHT and has made such independent investigation into
                       PHT as Investor has deemed necessary.

                                       17
<PAGE>

         ____    (e)   The Loan 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 Note, the Loan, or any interest therein. There are
                       substantial restrictions on the transferability of the
                       Note. There will be no public market for the Note and
                       Investor must bear the economic risk involved in the Loan
                       and the Common Stock for an indefinite term.

         ____    (f)   Investor acknowledges there is a substantial economic
                       risk with respect to the repayment of the Loan or any
                       interest therein 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
                       Loan and is making an informed decision to make the Loan.

         ____    (g)   Investor did not learn about the Loan 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 officers,
                       directors, shareholders, 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 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 Loan.

IF INVESTOR IS AN INDIVIDUAL:

____________________________                 ________________________________
Signature of Investor                        Print Name of Investor

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

Date: _____________________________

                                       18
<PAGE>

IF INVESTOR IS AN ENTITY:

____________________________                 ________________________________
Signature of Officer,                        Print Name of Officer,
Trustee or Partner, as applicable            Trustee, or Partner, as applicable

Date: _____________________________

PHT HEREBY ACCEPTS THE LOAN FROM
INVESTOR AS OF MAY 14, 2007

Performance Health Technologies, Inc.

By: _______________________________
    Robert D. Prunetti

                                       19

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