Exhibit 10.16  Universal Hospital Services, Inc. Executive Severance Pay Plan  June 1, 2007  I.Purpose  To
provide a severance pay plan for the Executives (as defined below) of Universal
Hospital Services, Inc. (the Company) who are not eligible for severance pay
under any other plan or agreement with the Company. The provisions of this
Executive Severance Pay Plan (the Plan) will not apply to any Executive who
is covered by an employment agreement. Executives who receive severance under
this Plan will not be eligible to receive severance under any other plan or
agreement of the Company. No severance benefits become payable pursuant to this
Plan in the event of termination of employment upon an Executives death or
disability. This Plan replaces the Executive Severance Pay Plan dated November
1, 2006.  II.Definitions.  A.Cause means:  (i.)Executives
continued failure, whether willful, intentional, or grossly negligent, after
written notice, to perform substantially Executives duties (the Duties) as
determined by Executives immediate supervisor, or the Chief Executive Officer,
or a Senior Vice President of the Company (other than as a result of a
disability);  (ii.)dishonesty
or fraud in the performance of Executives Duties or a material breach of
Executives duty of loyalty to the Company or its subsidiaries;  (iii.)conviction
or confession of an act or acts on Executives part constituting a felony under
the laws of the United States or any state thereof or any misdemeanor which
materially impairs such Executives ability to perform the Duties;  (iv.)any
willful act or omission on Executives part which is materially injurious to
the financial condition or business reputation of the Company or any of its
subsidiaries; or  (v.)any
breach by Executive of any non-competition, non-solicitation, non-disclosure or
confidentiality agreement applicable to Executive.  B.Change of Control means (i) any event as a
result of which Bear Stearns Merchant Manager III (Cayman), L.P. and its
affiliates collectively cease to own and control all of the economic and voting
rights associated with ownership of at least 50.1% of the outstanding capital
stock of Company; or (ii) any sale or transfer of all or substantially all of
the assets of the Company.  1


C.Change of Control Period means the period
starting 30 days before the Change in Control and continuing through 6 months
after the Change in Control.  D.Date of Termination means the date
specified as Executives last date of employment in the Companys notice of
termination to Executive or Executives Notice of Resignation for Good Reason
to the Company.  E.Executive means any Executive Vice
President, Senior Vice President or any Vice President of the Company, and the
Controller as such titles are in use effective June 1, 2007.  F.Resignation for Good Reason means:  Executives
termination of employment upon 30 days written notice to the Company, for Good
Reason. Executive shall have Good Reason for termination of employment if,
other than for cause, any of the following has occurred, Executive has given
notice thereof within 90 days of the event, the Company has not cured within 30
days of receive of such notice, and Executive actually terminates employment
within 60 days thereafter:  (i.)The
Company has reduced or reassigned a material portion of Executive duties (per
Executive job description);  (ii.)The
Executives base salary has been materially reduced other than in connection
with an across-the-board reduction (of approximately the same percentage) in
executive compensation to employees imposed by the board of directors of the
Company in response to negative financial results or other adverse
circumstances affecting the Company; or  (iii.)The Company
has required Executive to relocate in excess of 50 miles from the location
where the Executive is currently employed.  G.Severance Period means the period from the
Date of Termination through the date which is 12 months from the Date of Termination.  III.Severance
Pay  A.Executives who separate from the Company as a
result of termination by the Company without Cause (other than death or
disability) or by the Executive for Good Reason and who sign the general
release and other agreement described in Section IV below within 45 days of
such termination and who do not rescind the general release within the time
allowed by the Company are entitled to the severance pay specified below. An
Executive who is separated from employment due to dismissal for Cause is not
entitled to any severance pay and an Executive who voluntarily resigns, except
for Resignation for Good Reason, from employment is not entitled to severance
pay. The Controller is entitled to the severance pay specified below only if he
or she is terminated by the Company without Cause (other than death or
disability) or resigns for Good Reason, during the Change of Control Period,
but the Controller is not entitled to any severance pay if he or she is
terminated for Cause or resigns without Good  2


Reason, or for any other termination that is not
during the Change of Control Period.  B.Upon qualifying for severance pay subject to
Section IV, Executive will be paid the following amounts in the following
manner:  (i.)Executive
will continue to be paid his or her salary through the Severance Period, in the
manner and at the times paid during such Executives employment with the
Company; provided, however, that the first such payment will be made
immediately following the effectiveness of the release described in Section IV,
and will include any such payments that would otherwise have been made prior to
the time the release was effective.  (ii.)Executive may elect to continue group health and
dental benefits under COBRA to the extent he or she is eligible. If the
Executive timely elects to continue these benefits under COBRA, the Company
will pay the full premium for group health and dental benefits for 12 months
following the Date of Termination (or such shorter period as such coverage is
elected by Executive). The Company will make such payments beginning as soon as practicable following the
effectiveness of the release described in Section IV for any payment then due,
and thereafter on a monthly basis.. This 12 months of coverage at the
Companys expense (or such shorter period as such coverage is elected by
Executive) will be considered the first 12 months (or shorter period) of the
Executives continuation period for group health and dental benefits in
accordance with COBRA. After such period, the Executive will be responsible for
the full cost of premiums if the Executive chooses to continue these benefits.  (iii.)If prior to
the date which is 12 months after the Date of Termination, Executive finds
other employment, the amount of severance payments payable to Executive after
such termination in accordance with B(i) above will be reduced by the value of
the compensation Executive receives in his or her new employment through the
date which is 12 months after the Date of Termination and the amounts payable
in accordance with B(ii) will be similarly discontinued if similar medical and
dental benefits are secured through the new employer.  (iv.)If
termination is pursuant to Resignation for Good Reason, the Company will
provide the Executive a prorated portion of the bonus earned for the then
current fiscal year, based upon the number of days Executive was employed
during that year. Such Executive bonus will be payable in the next calendar year
at the time annual bonuses are paid to the other executives employed by the
Company, on that last day of the Companys fiscal year.  (v.)Executive
will be paid or otherwise provided such benefits as may be required by law.  (vi.)All
severance payments are subject to any required withholding.  3


IV.General
Release and Other Agreements.  Executive
will not be entitled to receive any of the severance pay described above until
such time as Executive signs (A) an effective general release of all claims
against the Company and its affiliates in the form and manner prescribed by the
Company and (B) an agreement further providing (i) Executives agreement not to
disclose or use confidential information of the Company, (ii) Executives
agreement during the Severance Period not to compete with the Company in the
medical equipment rental business, (iii) Executives agreement during the
Severance Period not to solicit for employment or hire any person who was an
employee of the Company at any time within the one year period before the
Executives Date of Termination, and (iv) Executives agreement during the
Severance Period not to induce or attempt to induce any customer, supplier,
licensee, licensor, franchisee or other business relation of the Company to
cease doing business with the Company, or in any way interfere with the
relationship between any such customer, supplier, licensee or business relation
and the Company or any Subsidiary. A failure to execute such a general release
and other agreements within 45 days of Executives Date of Termination or a
subsequent rescission of such general release within the time allowed will
result in the loss of any rights to receive payments or benefits under this
Plan.  V.Section 409A.  This
Plan is intended to be exempt from the requirements of Section 409A of the
Internal Revenue Code of 1986, as amended (the Code). To the extent that this
Plan or any part thereof is deemed to be a nonqualified deferred compensation
plan subject to Section 409A of the Code and the Treasury Regulations
(including proposed regulations) and guidance promulgated thereunder, the
provisions of this Plan shall be interpreted in a manner to the maximum extent
possible to comply with Section 409A of the Code.  VI.Amendment
and Modification of Plan.
This Plan may be modified, amended or terminated at any time by the CEO and the
Board of Directors of the Company.  VII.No
Employment Rights. Neither
this Plan for the benefits hereunder shall be a term of the employment of any
employee, and the Company shall not be obligated in any way to continue the
Plan. The terms of this Plan shall not give any employee the right to be
retained in the employment of the Company.  4