Document:

EXHIBIT 10.2

U.S. PHYSICAL THERAPY, INC. ("USPH")

DISCRETIONARY LONG-TERM INCENTIVE PLAN FOR SENIOR MANAGEMENT

FOR 2016 ("Discretionary LTIP")

Purpose:  To incentivize Executives eligible for this Discretionary LTIP to achieve certain strategic, operational, business growth & development and other criteria and reward Executives when such criteria are achieved, and to align the long-term interests of Executives and shareholders of USPH by compensating the Executives in shares of USPH stock that vest over time, thereby increasing the Executives' equity interest in USPH.

Effective Date:  This Discretionary LTIP is established effective March 10, 2016.

Description of Discretionary Awards Criteria:  In addition to any other awards under the U.S. Physical Therapy, Inc. 2003 Stock Incentive Plan (as amended and restated) (the "2003 Plan") or any other long term incentive plan or bonus plan, policy or program of USPH, and not in lieu of any other such award or payment, the Compensation Committee of the Board of Directors of USPH (as the term "Committee" is defined in Section 1.8 of the 2003 Plan) may, in its judgment and at its sole discretion, grant Restricted Stock Awards ("RSAs") under the 2003 Plan, based on its evaluation of an Executive's performance and the collective corporate performance for 2016. Factors to be considered will include, but shall not be limited to:

	
1.

	
General operational management effectiveness relative to external environment

	
2.

	
Growth in earnings power and cash flow from operations

	
3.

	
Accretive acquisitions

	
4.

	
Clinic productivity and efficiency improvements

	
5.

	
Initiatives to enhance the overall quality of patient care

	
6.

	
Manage organic growth in our existing business segments

	
7.

	
Development of add-ons and/or new services that compliment or enhance existing business.

	
8.

	
Creative and effective sales and marketing

	
9.

	
Same store growth

	
10.

	
Regulatory compliance

	
11.

	
Maintaining adequate internal controls

	
12.

	
Management development and succession planning

	
13.

	
Corporate productivity and efficiency improvements

	
14.

	
Dividends, share repurchases and other effective means to deploy capital

	
15.

	
Investor relations and communication

	
16.

	
Cash flow, including management of accounts receivables

	
17.

	
Stock price performance

Participants:  Executives who will have an opportunity to be granted RSAs under this Discretionary LTIP shall be the Chief Executive Officer ("CEO"), the Chief Financial Officer ("CFO") and the Chief Operation Officer ("COO"). The following shall be the maximum amount of shares that may be awarded under this program to each specified participant: CEO = up to 15,000 shares; CFO = up to 7,500 shares; COO = up to 7,500 shares.

Administration:  The Compensation Committee shall administer this Discretionary LTIP. The Compensation Committee shall have the exclusive authority to interpret and construe the terms of this Discretionary LTIP and make all determinations under this plan, and its decisions shall be final and binding in all persons.

Award Grant Date:  Any RSAs granted under this program shall be granted under the 2003 Plan in the first quarter of 2017 after the Compensation Committee determines the amount, if any, of the RSAs to be granted to each participant but in all events on or before March 15, 2017. In addition, RSAs shall be granted only if the participant remains employed by USPH (or its affiliates) continuously from the Effective Date through the date of the grant of the RSA. All RSAs shall be granted in writing and subject to the terms of the 2003 Plan and the specific terms and conditions (including without limitation, restrictions in transfer and substantial risk of forfeiture) as determined by the Compensation Committee in its sole discretion. RSAs that are granted under this Objective LTIP will vest evenly over 16 quarters, beginning April 1, 2017 and ending January 1, 2021. To vest, Executive must be a full-time employee/officer of USPH at vesting date, except in the event that an acceleration of vesting is triggered pursuant to Executive's employment agreement. The terms set forth above and all other terms of any RSA grant shall be set forth in a Restricted Stock Agreement between the Executive and USPH, to be signed by the Executive and by the Chairman of the Compensation Committee (on behalf of USPH).

Certain Tax Considerations:  The Compensation Committee in its discretion has determined that this program is not intended to meet the performance-based exemption under Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code"). Any awards actually granted under this program shall be subject to Code Section 83(b).EXHIBIT 10.3

U.S. PHYSICAL THERAPY, INC. ("USPH")

OBJECTIVE CASH BONUS PLAN FOR SENIOR MANAGEMENT

FOR 2016 ("OBJECTIVE BONUS PLAN")

Purpose:  To incentivize and retain Executives eligible for this Objective Bonus Plan to achieve certain corporate earnings criteria and reward Executive Officers of USPH when such criteria are achieved, and to align the long-term interests of Executives and shareholders of USPH.

Effective Date:  The effective date of this Objective Bonus Plan and the establishment of performance goals and formula for the amount payable hereunder is March 10, 2016.

Eligibility:  The Executives of USPH eligible for this Objective Bonus Plan are the Chief Executive Officer ("CEO"), the Chief Financial Officer ("CFO") and the Chief Operating Officer ("COO").

Description, Conditions and Payment Date:  Under this Objective Bonus Plan, Executives have an opportunity to receive a "Cash Bonus" of up to 75% of the Executive's annual base salary for 2016 ("Base") as performance awards under the U. S. Physical Therapy, Inc. 2003 Stock Incentive Plan (as amended and restated). All amounts earned will be awarded by the Compensation Committee of the Board of Directors of USPH (the "Compensation Committee") in the first quarter of 2017. Before any Cash Bonus is paid, the Compensation Committee shall certify in writing that the performance goals have been obtained in accordance with Code Section 162(m), and any Cash Bonus paid hereunder shall be made in a lump-sum amount no later than March 15, 2017. The Executive must be continuously employed by USPH or its affiliates from the Effective Date through December 31, 2016 to receive the Cash Bonus.

Administration:  The Compensation Committee has authority to administer this Objective Bonus Plan, grant awards and decide all questions of interpretation; provided, however, that the Compensation Committee shall have no discretion to increase the maximum award amounts that are payable as provided below and/or otherwise increase or modify an award which would disqualify the award for the performance-based exception under Code Section 162(m). The Compensation Committee's determinations and interpretations under this Objective Bonus Plan shall be final and binding on all persons.

Objective Bonus Calculation:  Based on 2016 fully diluted earnings per share ("EPS") ) (before the impact of EPS of revaluation of non-controlling interests and any extraordinary items and after consideration of the compensation expense required to be reported in 2016 related to this and all other management incentive plans), the goals and amounts payable are as follows:

2016                                        Cash Bonus

 EPS                                         (Compared to Base)

		$1.86	15.0%

$1.87                                                       17.0%

		$1.88	19.0%

		$1.89	21.0%

		$1.90	23.0%

		$1.91	25.0%

		$1.92	28.0%

		$1.93	31.0%

		$1.94	34.0%

		$1.95	38.0%

		$1.96	42.0%

		$1.97	46.0%

		$1.98	50.0%

		$1.99	54.0%

		$2.00	58.0%

		$2.01	62.0%

		$2.02	66.0%

		$2.03	70.0%

		$2.04 and over	75.0%

No Trust or Fund:  There shall be no separate trust or fund for this Objective Bonus Plan. Any amount payable hereunder shall be an unfunded obligation of USPH and shall be payable out of the general assets of USPH and no amount payable shall be assignable by the participant.Exhibit 10.4

 

U.S. PHYSICAL THERAPY, INC. ("USPH")

DISCRETIONARY CASH BONUS PLAN FOR SENIOR MANAGEMENT

FOR 2016 ("DISCRETIONARY BONUS PLAN")

Purpose:  The purpose of this Discretionary Bonus Plan is to retain and incentivize the Executive Officers of USPH by providing an annual cash bonus opportunity to the Executives to reward them when certain individual and corporate subjective performance measures are achieved.

Participants:  Executives of USPH who shall be "Participants" in this Discretionary Bonus Plan are the Chief Executive Officer ("CEO"), Chief Financial Officer ("CFO") and Chief Operating Officer ("COO"). In addition to awards under any other plan or program at USPH for which such Executives are eligible and not in lieu thereof, each Participant in this Discretionary Bonus Plan has the potential to be awarded a "Subjective Bonus" of up to 50% of the Participant's annual base salary for 2016 ("Base") pursuant to the subjective criteria as set forth below.

Effective Date:  This Discretionary Bonus Plan is established effective March 10, 2016.

Administration:  The Compensation Committee of the Board of Directors of USPH (the "Compensation Committee") shall administer this Discretionary Bonus Plan, and the Compensation Committee shall have the sole authority to interpret and construe all of the terms of this Discretionary Bonus Plan, establish the criteria for awards, determine the amounts payable under this plan, and grant awards. The amount, if any, of the Subjective Bonus payable to each participant in this Discretionary Bonus Plan shall be determined by the Compensation Committee in its sole discretion based upon subjective criteria described below. All decisions of the Compensation Committee shall be final and binding on all persons.

Payment Date:  All amounts payable hereunder shall be paid in cash in a lump sum amount after the Compensation Committee has determined that goals have been met and has calculated the amounts payable hereunder, in the first quarter of 2017 but no later than March 15, 2017. A Subjective Bonus shall be payable only if the Participant remains continuously employed from the Effective Date through the date of the determination of the amount payable by the Compensation Committee.

Subjective Bonus Calculation:  The Subjective Bonus criteria that have been established by the Compensation Committee and shall be used in the Compensation Committee's sole discretion to award up to 50% of Base for each participant are as follows:

	
1.

	
General operational management effectiveness relative to external environment

	
2.

	
Growth in earnings power and cash flow from operations

	
3.

	
Accretive acquisitions

	
4.

	
Clinic productivity and efficiency improvements

	
5.

	
Initiatives to enhance the overall quality of patient care

	
6.

	
Manage organic growth in our existing business segments

	
7.

	
Development of add-ons and/or new services that compliment or enhance existing business.

	
8.

	
Creative and effective sales and marketing

	
9.

	
Same store growth

	
10.

	
Regulatory compliance

	
11.

	
Maintaining adequate internal controls

	
12.

	
Management development and succession planning

	
13.

	
Corporate productivity and efficiency improvements

	
14.

	
Dividends, share repurchases and other effective means to deploy capital

	
15.

	
Investor relations and communication

	
16.

	
Cash flow, including management of accounts receivables

	
17.

	
Stock price performance

No Trust or Fund:  There shall be no separate trust or fund for this Discretionary Bonus Plan. Any amount payable hereunder shall be an unfunded obligation of USPH and shall be payable out of the general assets of USPH and no amount payable shall be assignable by the participant.

Certain Tax Considerations:  The Compensation Committee in its discretion has determined that this program is not intended to meet the performance-based exemption under Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code").

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