<SEC-DOCUMENT>0001140361-19-009655.txt : 20190522
<SEC-HEADER>0001140361-19-009655.hdr.sgml : 20190522
<ACCEPTANCE-DATETIME>20190522163339
ACCESSION NUMBER:		0001140361-19-009655
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20190520
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Submission of Matters to a Vote of Security Holders
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20190522
DATE AS OF CHANGE:		20190522

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			U S PHYSICAL THERAPY INC /NV
		CENTRAL INDEX KEY:			0000885978
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-HEALTH SERVICES [8000]
		IRS NUMBER:				760364866
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11151
		FILM NUMBER:		19846220

	BUSINESS ADDRESS:	
		STREET 1:		1300 WEST SAM HOUSTON PARKWAY
		STREET 2:		SUITE 300
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77043
		BUSINESS PHONE:		7132977000

	MAIL ADDRESS:	
		STREET 1:		1300 WEST SAM HOUSTON PARKWAY
		STREET 2:		SUITE 300
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77043
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
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<FILENAME>form8k.htm
<DESCRIPTION>8-K
<TEXT>
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    <div style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 14pt;">UNITED STATES</div>
    <div style="text-align: center; font-size: 14pt;"><font style="font-family: &quot;Times New Roman&quot;;">SECURITIES AND EXCHANGE COMMISSION</font></div>
    <div style="text-align: center; font-size: 12pt;"><font style="font-family: &quot;Times New Roman&quot;;">Washington, D.C. 20549</font></div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
    <div style="text-align: center; font-size: 18pt;"><font style="font-family: &quot;Times New Roman&quot;; font-weight: bold;">Form 8-K</font></div>
    <div><br>
    </div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Current Report Pursuant to Section 13 or 15(d) of</font></div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">the Securities Act of 1934</font></div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Date of Report (Date of earliest event reported):&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">May






          20, 2019</font></font></div>
    <div><br>
    </div>
    <div style="text-align: center; font-size: 24pt;"><font style="font-family: &quot;Times New Roman&quot;; font-weight: bold;">U.S. Physical Therapy, Inc.</font></div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(Exact name of registrant as specified in its charter)</font></div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" border="0" id="z19ac82fb4591427c95129a4054dc0967" style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 100%; border-collapse: collapse;">

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          <td style="width: 33%; vertical-align: top;">
            <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Nevada</font></div>
          </td>
          <td style="width: 34%; vertical-align: top;">
            <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">001-11151</font></div>
          </td>
          <td style="width: 33%; vertical-align: top;">
            <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">76-0364866</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 33%; vertical-align: top; text-align: center;" rowspan="1"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(State or other jurisdiction of incorporation)</font></td>
          <td style="width: 34%; vertical-align: top;" rowspan="1">
            <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(Commission File Number)</font></div>
          </td>
          <td style="width: 33%; vertical-align: top;" rowspan="1">
            <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(I.R.S. Employer Identification No.)</font></div>
          </td>
        </tr>

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    <div><br>
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          <td style="width: 49.04%; vertical-align: top;">
            <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">1300 West Sam Houston Parkway South,</font></font></div>
            <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Suite 300, Houston, Texas</font></font></div>
          </td>
          <td style="width: 2%; vertical-align: top; text-align: center;">&#160;</td>
          <td style="width: 49%; vertical-align: top;">
            <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">77042</font></div>
            <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(Zip Code)</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 49.04%; vertical-align: top;" rowspan="1">
            <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(Address of principal executive offices)</font></div>
          </td>
          <td style="width: 2%; vertical-align: top; text-align: center;" rowspan="1">&#160;</td>
          <td style="width: 49%; vertical-align: top; text-align: center;" rowspan="1">&#160;</td>
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    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;"> <br>
      </font></div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">(713) 297-7000</font></div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(Registrant&#8217;s telephone number, including area code)</font></div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
    <div style="text-align: justify; text-indent: 18pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
        registrant under any of the following provisions (see General Instruction A.2. below):</font></div>
    <div style="text-align: justify; text-indent: 18pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
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              <td style="width: 18pt; vertical-align: top;">&#9744;</td>
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                <div><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div>
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              <td style="width: 18pt; vertical-align: top;">&#9744;</td>
              <td style="width: auto; vertical-align: top; text-align: left;">
                <div><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></div>
              </td>
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              <td style="width: 18pt; vertical-align: top;">&#9744;</td>
              <td style="width: auto; vertical-align: top; text-align: left;">
                <div><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14-2(b))</font></div>
              </td>
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        </div>
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        <table cellspacing="0" cellpadding="0" id="z6c528d771d784d988c94f8a815d21486" class="DSPFListTable" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%;">

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              <td style="width: 18pt; vertical-align: top;">&#9744;</td>
              <td style="width: auto; vertical-align: top; text-align: left;">
                <div><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CRF 240.133-4(c))</font></div>
              </td>
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    </div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of
        this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2 of this chapter).</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Emerging growth company&#160; &#160; &#160; &#9744;</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">If an emerging growth company, indicate by check mark if the registrant
          has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided </font>pursuant to Section 13(a) of the Exchange Act.</font><font style="font-size: 10pt; font-family:
        &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> </font></font><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times
          New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">&#160; &#160; </font></font>&#9744;</font></div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
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      <table cellspacing="0" cellpadding="0" border="0" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%;" id="z4408f3fe5e4246df9066fb4ad54e932f">

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              <div style="color: rgb(35, 31, 32); font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Title of each class</div>
            </td>
            <td style="width: 33.33%; border-left: 2px solid rgb(0, 0, 0); border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0); text-align: center; vertical-align: bottom;">
              <div style="color: rgb(35, 31, 32); font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Trading</div>
              <div><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; color: rgb(35, 31, 32);">Symbol(s)</font></div>
            </td>
            <td style="width: 33.33%; border-left: 2px solid rgb(0, 0, 0); border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0); text-align: center; vertical-align: bottom;">
              <div style="color: rgb(35, 31, 32); font-family: &quot;Times New Roman&quot;; font-size: 10pt;">Name of each exchange on which registered</div>
            </td>
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            <td style="width: 33.33%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px; text-align: left; vertical-align: bottom;">
              <div>Common Stock, $.01 par value</div>
            </td>
            <td style="width: 33.33%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px; text-align: left; vertical-align: bottom;">
              <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">USPH</div>
            </td>
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              <div>
                <div style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">New York Stock Exchange</div>
              </div>
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      <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> </font></div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
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      <hr align="center" style="border: none; border-bottom: 4px solid black; border-top: 1px solid black; height: 10px; color: #ffffff; background-color: #ffffff; text-align: center; margin-left: auto; margin-right: auto;"><font style="font-size: 10pt;
        font-family: &quot;Times New Roman&quot;;"> </font></div>
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        <table cellspacing="0" cellpadding="0" id="zc8f4b5b47b6143fca62e5005ecd70be7" class="DSPFListTable" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%;">

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              <td style="width: 54pt; vertical-align: top;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Item 1.01</font></td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Entry into a Material Definitive Agreement.</font></div>
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    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The information in Item 5.02 below is incorporated by reference into this Item 1.01.</font></div>
    <div><br>
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        <table cellspacing="0" cellpadding="0" id="zcc9bf9d9f5844e939fc3552c4edb9a0b" class="DSPFListTable" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%;">

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              <td style="width: 54pt; vertical-align: top;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Item 5.02</font></td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain
                    Officers.</font></div>
              </td>
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    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">On April 5, 2019, U.S. Physical Therapy, Inc. (the &#8220;<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Company</u></font>&#8221;)






        filed a definitive proxy statement (the &#8220;<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Proxy Statement</u></font>&#8221;) with the U.S. Securities and Exchange Commission relating to the Company&#8217;s 2019 annual meeting of
        stockholders which was held on May 21, 2019 (the &#8220;<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Meeting</u></font>&#8221;).&#160; As previously disclosed in the Proxy Statement, the Company sought the stockholders&#8217; non-binding,
        advisory approval on the compensation of the Company&#8217;s named executive officers (the &#8220;say-on-pay proposal&#8221;).&#160; The Proxy Statement described compensation related terms and conditions in the various agreements between the Company and its executive
        officers.</font></div>
    <div style="text-align: justify; text-indent: 72pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">After making the Proxy Statement available to stockholders, the Company received a report from a proxy advisory firm regarding
        the &#8220;single-trigger&#8221; benefit provided to the executive officers in the event of a change of control transaction involving the Company.&#160;&#160; The proxy advisory firm&#8217;s report indicated that the firm prefers such benefits to be provided to such executive
        officers only if there is a &#8220;double-trigger&#8221;, with the second trigger being a termination of employment.&#160; Based largely on this issue, the proxy advisory firm recommended that Company stockholders vote &#8220;AGAINST&#8221; the say-on-pay proposal, and that
        the stockholders vote &#8220;WITHHOLD&#8221; on the election of the three directors who serve on the Company&#8217;s Compensation Committee of the Board of Directors (&#8220;Compensation Committee&#8221;): Jerald Pullins, Edward Kuntz, and Harry Chapman.</font></div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> </font><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The Company did not have adequate time to address the proxy advisory firm&#8217;s concerns prior to the Meeting.&#160; The Company
        contacted and communicated with representatives of the institutional stockholders that own collectively a majority of the Company&#8217;s outstanding common stock, to better understand any concerns that such stockholders might have regarding the
        Company&#8217;s executive compensation program.&#160; Those institutional stockholders did not express any concerns regarding the &#8220;single-trigger&#8221; executive compensation benefit.<br>
        <br>
      </font></div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div id="DSPFPageBreak" style="page-break-after:always;">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The Meeting was held as scheduled on May 21, 2019 and, at the Meeting, 62.98% of votes cast were &#8220;FOR&#8221; the say-on-pay proposal
        and Messrs. Pullins, Kuntz and Chapman were elected as directors based on a plurality of the votes, each of them received more than 77% of the votes cast &#8220;FOR&#8221; their election.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Nonetheless, to address the proxy advisory firm&#8217;s concerns regarding &#8220;single-trigger&#8221; benefits, the Company has amended and
        restated the employment agreements with its executive officers to&#160; modify the change in control payment benefit to a &#8220;double-trigger&#8221; benefit, such that the payment becomes due if there is both (1) a change in control and (2) a termination event
        involving the particular executive officer, and additionally to eliminate the contractual right that future grants of restricted stock to such executive officers shall automatically accelerate upon a &#8220;single-trigger&#8221; change in control. The
        amendments also modified the definition of termination for &#8220;good reason&#8221; to include a trigger based on a change in non-salary based annual compensation in connection with a change in control.&#160;&#160; There were no other changes to the terms of the prior
        employment agreements of the executive officers.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The foregoing description of the employment agreements is not complete and is qualified by reference to the complete
        documents, which are filed as Exhibits 10.1 through 10.4, respectively, to this Form 8-K, and are incorporated herein by reference.</font></div>
    <div><br>
    </div>
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        <table cellspacing="0" cellpadding="0" id="z662e142c89ff4ea1b1f309bf78469386" class="DSPFListTable" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%;">

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              <td style="width: 54pt; vertical-align: top;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Item </font><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">5.07</font></td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Submission of Matters to a Vote of Security Holders</font>.</font></div>
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    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">At the Meeting, the Company&#8217;s stockholders approved three proposals, one of which is non-binding, which are described in
        detail in the Proxy Statement. Abstentions and broker non-votes were counted for purposes of determining whether a quorum was present.</font></div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> </font><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The results are as follows:</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Proposal 1 - Election of ten directors to serve until the next annual meeting of stockholders.</font></div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div id="DSPFPageBreak" style="page-break-after:always;">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <table cellspacing="0" cellpadding="0" border="0" id="z3e944eb8e033411982943dc4ab1e1a20" style="border-collapse: collapse; width: 70%; font-family: 'Times New Roman'; font-size: 10pt;">

        <tr>
          <td style="width: 38%; vertical-align: bottom;">
            <div style="text-align: left;"><u><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Nominees</font></font></u></div>
          </td>
          <td style="width: 10%; vertical-align: bottom;">
            <div style="text-align: left;"><u><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Votes For</font></font></u></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom;">&#160;</td>
          <td style="width: 10%; vertical-align: bottom;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Votes</font></div>
            <div style="text-align: left;"><u><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Withheld</font></font></u></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom;">&#160;</td>
          <td style="width: 10%; vertical-align: bottom;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Broker</font></div>
            <div style="text-align: left;"><u><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Non-Votes</font></font></u></div>
          </td>
        </tr>
        <tr>
          <td style="width: 38%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Jerald L. Pullins</font></div>
          </td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">8,715,511</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">2,593,103</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">777,960</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 38%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Christopher J. Reading</font></div>
          </td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">11,200,888</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(255, 255, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">&#160;107,726</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(255, 255, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">777,960</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 38%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Lawrance W. McAfee</font></div>
          </td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">9,984,204</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">1,324,410</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">777,960</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 38%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Mark J. Brookner</font></div>
          </td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">11,174,071</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(255, 255, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">134,543</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(255, 255, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">777,960</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 38%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Harry S. Chapman</font></div>
          </td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">8,826,966</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">2,481,648</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">777,960</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 38%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Bernard A. Harris, Jr.</font></div>
          </td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">10,859,537</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(255, 255, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">449,077</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(255, 255, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">777,960</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 38%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Kathleen A. Gilmartin</font></div>
          </td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">11,225,985</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">82,629</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">777,960</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 38%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Edward L. Kuntz</font></div>
          </td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">&#160;8,888,037</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(255, 255, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">2,420,577</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(255, 255, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">777,960</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 38%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Reginald E. Swanson</font></div>
          </td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">&#160;11,195,264</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">113,350</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">777,960</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 38%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Clayton K. Trier</font></div>
          </td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">10,859,337</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(255, 255, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">449,277</font></div>
          </td>
          <td colspan="1" style="width: 1%; vertical-align: bottom; background-color: rgb(255, 255, 255);">&#160;</td>
          <td style="width: 10%; vertical-align: bottom; background-color: rgb(255, 255, 255);">
            <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">777,960</font></div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-family: &quot;Times New Roman&quot;; font-size: 1pt;">&#160;&#160;&#160;&#160;</font>Proposal 2 - Advisory vote to approve named executive officer
        compensation.</font></div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
    <table cellspacing="0" cellpadding="0" border="0" id="zba3c391e24a24799968a80f07878b062" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse;">

        <tr>
          <td style="width: 25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Votes For</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Votes</font></div>
              <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Against</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Votes</font></div>
              <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Abstaining</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Broker</font></div>
              <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Non-Votes</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 25%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">6,830,869</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">4,013,767</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">&#160;463,978</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">777,690</font></div>
          </td>
        </tr>

    </table>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> </font><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-family: &quot;Times New Roman&quot;; font-size: 1pt;">&#160;&#160;&#160;&#160;</font>Proposal 3 - Ratification of the appointment of Grant Thornton
        LLP as our independent registered public accounting firm for 2019.</font></div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> </font><br>
    </div>
    <table cellspacing="0" cellpadding="0" border="0" id="z3bed36c718fb4a3fb6533498f1dead94" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse;">

        <tr>
          <td style="width: 25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Votes For</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Votes</font></div>
              <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Against</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Votes</font></div>
              <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Abstaining</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Broker</font></div>
              <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Non-Votes</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 25%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">12,019,073</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">58,690</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">8,811</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; background-color: rgb(204, 238, 255);">-<br>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-family: &quot;Times New Roman&quot;; font-size: 1pt;">&#160;&#160;&#160;&#160;</font>Proposal 4 &#8211; Consideration of any other matters that may
        properly come before the meeting or any adjournments.</font></div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" border="0" id="zc83ba45a6f5041bfa2887899d851e9f7" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse;">

        <tr>
          <td style="width: 25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Votes For</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Votes</font></div>
              <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Against</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Votes</font></div>
              <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Abstaining</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Broker</font></div>
              <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Non-Votes</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 25%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">667,072</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">8,871,731</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">1,554,085</font></div>
          </td>
          <td style="width: 25%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">993,686</font></div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">With respect to proposal 1, broker non-votes were not treated as a vote for or against any particular nominee and did not affect the outcome of
        the election of directors. With Proposal 2, broker non-votes did not have any effect on the outcome of the vote.</font></div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
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    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" id="z35a3a2bb742b44efb240ada94e1fca58" class="DSPFListTable" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%;">

            <tr>
              <td style="width: 54pt; vertical-align: top;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold; color: rgb(0, 0, 0);">Item 8.01.</font></td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold; color: rgb(0, 0, 0);">Other Events.</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; color: rgb(0, 0, 0);"> <br>
      </font></div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; color: rgb(0, 0, 0);">On May 20, 2019, the Compensation Committee of the Company&#8217;s board of directors approved a new form of
        restricted stock grant agreement for future grants to executive officers.&#160;&#160; The new form no longer contains a single-trigger provision that accelerates unvested restricted stock upon on a change in control.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The foregoing description of the new form is not complete and is qualified by reference to the complete document, which is
        filed as Exhibit 10.5 to this Form 8-K, and is incorporated herein by reference.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" id="z03d76acc075248d78e22fc8bfe672688" class="DSPFListTable" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%;">

            <tr>
              <td style="width: 54pt; vertical-align: top;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Item 9.01</font></td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Financial Statements and Exhibits.</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" border="0" id="z3c93684faedb446c9b0a4fa214810280" style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 100%; border-collapse: collapse;">

          <tr>
            <td style="width: 10%; vertical-align: top;">
              <div style="text-align: justify; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><a href="ex10_1.htm">10.1+*</a></div>
            </td>
            <td style="width: 90%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Third Amended and Restated Employment Agreement by and between the Company and Christopher J. Reading dated effective May 21, 2019.</font></div>
            </td>
          </tr>
          <tr>
            <td style="width: 10%; vertical-align: top;">&#160;</td>
            <td style="width: 90%; vertical-align: top;">&#160;</td>
          </tr>
          <tr>
            <td style="width: 10%; vertical-align: top;">
              <div style="text-align: justify;"><a href="ex10_2.htm"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">10.2+*</font></a></div>
            </td>
            <td style="width: 90%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Third Amended and Restated Employment Agreement by and between the Company and Lawrance W. McAfee dated effective May 21, 2019.</font></div>
            </td>
          </tr>
          <tr>
            <td style="width: 10%; vertical-align: top;">&#160;</td>
            <td style="width: 90%; vertical-align: top;">&#160;</td>
          </tr>
          <tr>
            <td style="width: 10%; vertical-align: top;">
              <div style="text-align: justify;"><a href="ex10_3.htm"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">10.3+*</font></a></div>
            </td>
            <td style="width: 90%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Second Amended and Restated Employment Agreement by and between the Company and Glenn D. McDowell dated effective May 21, 2019.</font></div>
            </td>
          </tr>
          <tr>
            <td style="width: 10%; vertical-align: top;">&#160;</td>
            <td style="width: 90%; vertical-align: top;">&#160;</td>
          </tr>
          <tr>
            <td style="width: 10%; vertical-align: top;">
              <div style="text-align: justify;"><a href="ex10_4.htm"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">10.4+*</font></a></div>
            </td>
            <td style="width: 90%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Amended &amp; Restated Employment Agreement commencing by and between the Company and Graham Reeve dated effective May 21, 2019.</font></div>
            </td>
          </tr>
          <tr>
            <td style="width: 10%; vertical-align: top;">&#160;</td>
            <td style="width: 90%; vertical-align: top;">&#160;</td>
          </tr>
          <tr>
            <td style="width: 10%; vertical-align: top;">
              <div style="text-align: justify;"><a href="ex10_5.htm"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">10.5+*</font></a></div>
            </td>
            <td style="width: 90%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Form o</font>f Restricted Stock Agreement.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <br>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">* Filed herewith.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-style: italic;">+ </font>Management contract or compensatory plan
        or arrangement<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-style: italic;">.</font></font></div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-style: italic;"> <br>
        </font></font></div>
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    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">SIGNATURE</font></div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;"> <br>
      </font></div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
        on its behalf by the undersigned hereunto duly authorized.</font></div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
    <table cellspacing="0" cellpadding="0" border="0" id="zff5ee0226e694ed79f2e1ef4f4ba7c68" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse;">

        <tr>
          <td style="width: 50.02%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Date:&#160; May 22, 2019</font></div>
          </td>
          <td style="width: 49.98%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 50.02%; vertical-align: top;">&#160;</td>
          <td style="width: 49.98%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">U.S. PHYSICAL THERAPY, INC.</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50.02%; vertical-align: top;">&#160;</td>
          <td style="width: 49.98%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 50.02%; vertical-align: top;">&#160;</td>
          <td style="width: 49.98%; vertical-align: top; border-bottom: 2px solid black;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">/s/ Lawrance W. McAfee</font></font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50.02%; vertical-align: top;">&#160;</td>
          <td style="width: 49.98%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Lawrance W. McAfee</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50.02%; vertical-align: top;">&#160;</td>
          <td style="width: 49.98%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Chief Financial Officer</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50.02%; vertical-align: top;" rowspan="1">&#160;</td>
          <td style="width: 49.98%; vertical-align: top;" rowspan="1">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(duly authorized officer and principal financial and accounting officer)</font></div>
          </td>
        </tr>

    </table>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex10_1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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    <div style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-weight: bold;">EXHIBIT 10.1</div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">THIRD AMENDED AND RESTATED</font></div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">EMPLOYMENT AGREEMENT</font></div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;"> <br>
      </font></div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">THIS THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT (&#8220;Agreement&#8221;) is entered into and effective as of the 21st day of May,
        2019, by and between&#160; &#160;&#160; U. S. Physical Therapy, Inc. a Nevada corporation (&#8220;Employer&#8221;) and Christopher J. Reading (&#8220;Employee&#8221;), and supersedes that certain Second Amended and Restated Employment Agreement between the parties dated as of February
        9, 2016.&#160; Employer and Employee may be referred to herein collectively as the &#8220;Parties&#8221; and individually as a &#8220;Party.&#8221;&#160; For the purposes of this Agreement, &#8220;Employer&#8221; includes U.S.P.T. Management, Inc.; for the purposes of Sections 11, 12, and 13
        &#8220;Employer&#8221; shall include all subsidiaries and affiliates (as defined under the Securities Exchange Act of 1934, as amended and regulations promulgated thereunder).</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 1.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Term</u></font>.&#160; Employer hereby continues the employment of Employee and Employee hereby accepts continued employment with Employer for a two-year term (the &#8220;Term&#8221;) commencing as of January 1, 2018.&#160; The Term
        shall automatically renew as of the end of each expiring Term for an additional two-year period.&#160; For purposes hereof, the &#8220;Term&#8221; shall refer to the current Term and any renewal of such Term.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 2.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Duties of Employee</u></font>.&#160; Employee is engaged to serve as President and Chief Executive Officer of Employer and to perform such duties and responsibilities as are customarily performed by persons acting in
        such capacity or such other duties as may be assigned by Employer from time to time.&#160; Employee shall report to the Employer&#8217;s Board of Directors and shall perform his duties in accordance with the policies and objectives established by such Board
        of Directors or its Chairman.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 3.</font>&#160;&#160;&#160; &#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Full-Time Employment</u></font>.&#160; Employee shall devote substantially all of his working time and talent to the business of Employer during the term hereof and shall diligently and to the best of his ability
        perform all duties incident to his employment hereunder, using his best efforts to promote the interests of Employer.&#160; Employee agrees that he shall not serve as an officer, director, consultant, or employee of any other person or entity, whether
        or not for compensation, without the prior consent of the Employer&#8217;s Board of Directors.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 4.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Position on the Board of Directors</u></font>.&#160; Employer agrees to use its best efforts to cause Employee to be elected to the Board of Directors of Employer.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 5.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Base Compensation</u></font>.&#160; Subject to the terms and conditions of this Agreement, as compensation for services rendered and Employee&#8217;s covenants and agreements under this Agreement, Employer shall pay to
        Employee a base salary of SEVEN HUNDRED SEVENTY THOUSAND DOLLARS ($770,000.00) per year (as adjusted from time to time, the &#8220;Base Compensation&#8221;), payable in accordance with Employer&#8217;s then-prevailing pay practices.&#160; From time to time (but at least
        once a year) Employer and Employee shall review Employee&#8217;s performance, and at that time Employer, in its sole discretion, shall determine whether Employee&#8217;s Base Compensation should be increased.&#160; At no time during the Term hereof will Employee&#8217;s
        Base Compensation be decreased without the express written consent of Employee.</font></div>
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    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 6.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Additional Compensation</u></font>.&#160; Subject to the terms and conditions of this Agreement, in addition to the Base Compensation, Employer may provide incentive compensation in the form of cash bonuses and other
        incentive awards, including stock option and restricted shares.&#160; The amount of any cash bonus and the award of any additional stock options or restricted shares is completely discretionary and will be determined solely by the Board of Directors of
        Employer or a compensation committee thereof, taking into consideration any factor the Board of Directors or compensation committee deems relevant.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 7.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Business Expenses</u></font>.&#160; Employer shall reimburse Employee for business expenses directly and reasonably incurred in the performance of his duties.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 8.</font>&#160;&#160;&#160;&#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Benefits and Plans</u></font>.&#160; Employee shall be entitled to such fringe benefits, including 20 vacation, 7 sick and personal days, and company holidays per calendar year, as well as insurance (health, disability
        and life) generally available to the executive officers of Employer, and Employee shall be entitled to participate, subject to all conditions of eligibility, in any employee benefit plans which may be adopted by Employer, including without
        limitation, qualified retirement plan(s), deferred compensation plans, and salary continuation, disability insurance, hospitalization insurance, major medical insurance, medical reimbursement and life insurance benefit plans.&#160; Also, Employer shall
        continue Employee&#8217;s monthly salary for a period of up to ninety (90) continuous days during any period of Employee&#8217;s sickness or disability.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 9.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Termination</u></font>.&#160; This Agreement shall terminate prior to the expiration of the Term hereof upon the occurrence of any one of the following events (each a &#8220;Termination Event&#8221;):</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(a)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Disability</u></font>.&#160; In the event that Employee is unable fully to perform his duties and responsibilities hereunder to the full extent required by Employer by reason of
        illness, injury or incapacity for ninety (90) consecutive days, this Agreement may be terminated by Employee or Employer; provided, however, that Employee shall continue to be compensated as provided in this Agreement during such ninety- (90) day
        period and until termination under this Section 9, Employee also shall be paid, in a lump sum, a special benefit equal to two (2) year&#8217;s Base Compensation, and all Restricted Stock owned by Employee shall immediately become Vested Shares, as such
        term is defined in the applicable grant agreement and plan documents; and, provided further, that Employee will be entitled to receive the benefits, rights and/or payments prescribed under any employee welfare or benefit plan in which Employee was
        participating at the time of such disability in accordance with the terms and conditions of such plans.&#160; In the event of any dispute under this Section 9, Employee shall submit to a physical examination by a licensed physician selected by Employer
        and reasonably acceptable to Employee.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(b)</font>&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Death</u></font>.&#160; In the event that Employee dies during the term hereof, Employer shall pay to his executors, legal representatives or administrators an amount equal to one
        (1) year&#8217;s Base Compensation, and thereafter Employer shall have no further liability or obligation hereunder to Employee&#8217;s executors, legal representatives, administrators, heirs or assigns or any other person claiming under or through Employee;
        provided, however, that all Restricted Stock owned by Employee shall immediately become Vested Shares, as such term is defined in the applicable grant agreement and plan documents, and Employee&#8217;s heirs, legal representatives or administrators will
        be entitled to receive the benefits, rights and/or payments prescribed under any employee welfare or benefit plans in which Employee was participating at the time of his death in accordance with the terms and conditions of such plans.</font></div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;">2</font></div>
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    </div>
    <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(c)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Cause</u></font>.&#160; Nothing in this Agreement shall be construed to prevent its termination by Employer at any time for &#8220;cause&#8221;.&#160; For purposes of this Agreement, &#8220;cause&#8221; shall
        mean (i) the willful and material failure of Employee to perform or observe (other than by reason of disability as contemplated in paragraph 9(a)) any of the terms or provisions of this Agreement, including the failure of Employee to follow the
        reasonable written directions of Employer&#8217;s Board of Directors, (ii) dishonesty or misconduct on the part of Employee that is or is reasonably likely to be damaging or detrimental to the business of Employer, (iii) conviction of a crime involving
        moral turpitude, (iv) habitual insobriety or failure to perform duties due to abuse of alcohol or drugs, or (v) misappropriation of funds.&#160; Prior to terminating this Agreement on account of Employee&#8217;s failure to perform or observe any of the terms
        and conditions of this Agreement (but not for any of the other enumerated &#8220;causes&#8221; stated in (ii) through (v) above), Employer shall give Employee thirty (30) days written notice and an opportunity to cure such failure to the satisfaction of
        Employer.&#160; Upon termination for cause, Employer shall pay to Employee all sums due to Employee through the date of such termination.&#160; Following such a termination, Employer shall have no further duty or obligation to Employee; provided, however,
        that Employee shall continue to be bound by Sections 11 through 17.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(d)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Voluntary Resignation by Employee not for good reason</u></font>.&#160; Upon a voluntary resignation by Employee not &#8220;for good reason&#8221; as defined in Section 10 F. herein, Employer
        shall pay to Employee all sums due to Employee through the date of such termination.&#160; Following such a termination, Employer shall have no further duty or obligation to Employee; provided, however, that Employee shall continue to be bound by
        Sections 11 through 17.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 10.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Special Benefits.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">A.</font>&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Special Benefit in the Event of a
        Termination Event and Change in Control.&#160; Employee shall be entitled to a Change of Control benefit of $500,000 in the event that a &#8220;Change in Control&#8221; occurs within six months after, or twelve months prior to, a Termination Event (as defined
        herein). For purposes hereof, a &#8220;Change in Control&#8221; is defined as:</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(a)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The transfer
        or sale by Employer of all or substantially all of the assets of Employer whether or not this Agreement is assigned or transferred as a part of such sale;</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(b)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The transfer
        or sale of more than fifty percent (50%) of the outstanding shares of Common Stock of Employer;</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(c)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">A merger or
        consolidation involving Employer in a transaction in which the shareholders of Employer immediately prior to the merger or consolidation own less than fifty percent (50%) of the company surviving the merger or consolidation; or</font></div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;">3</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
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    </div>
    <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(d)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">A merger or
        consolidation involving Employer in a transaction in which the board members of Employer after the merger or consolidation constitute less than fifty percent (50%) of the board of the company surviving the merger or consolidation; or</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(e)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The voluntary
        or involuntary dissolution of Employer.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">B.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Special Benefit in the Event of
        Termination Without Cause or Resignation for Good Cause.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">In the event of the termination of employment of Employee by Employer without &#8220;cause&#8221; as cause is defined in Section 9(c)
        hereof, or the resignation of employment by Employee &#8220;for good reason&#8221; as defined in Section 10 F. hereof (in either case, a &#8220;Termination Event&#8221;), Employee shall be entitled to the following special benefits:</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(i)&#160; Two (2) year&#8217;s Base Compensation; and</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(ii)&#160; The greater of (i) the bonus paid or payable to Employee with respect to last fiscal year of Employer completed prior to
        the occurrence of the Termination Event or (ii) the average of the bonuses paid to Employee over the three (3) fiscal years of Employer ending with last fiscal year of Employer completed prior to the occurrence of the Termination Event; and</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(iii) Employee&#8217;s accrued but unused vacation days; and</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(iv) All Restricted Stock owned by Employee shall immediately become Vested Shares, as such term is defined in the applicable
        grant agreement and plan documents.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The aggregate dollar amount of the special benefits described in subsections (i) and (ii) above shall be aggregated and paid ratably on a
        bi-weekly basis over the 24 month period following the Termination Event.&#160; If a Change in Control has occurred within six months after, or within twelve months prior to a Termination Event, Employee shall also be entitled to the special benefits
        under this Section 10 B.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">C.&#160; &#160;&#160;&#160;&#160; Employee&#8217;s accrued but unused vacation days shall be paid to Employee within thirty (30) days of the actual date of
        the termination of Employee&#8217;s employment.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">D.</font>&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">In the event Employee&#8217;s employment is
        terminated (whether by Employer or Employee) as a result of a Termination Event, Employee shall be entitled to such medical insurance benefits as he enjoyed prior to his termination for the twenty-four months following such termination of
        employment and at the same cost to Employee of such benefits as in effect prior to such termination.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">E.&#160;&#160;&#160;&#160;&#160; Should any special benefits provided in this Section 10 become payable, the covenants contained in Sections 11 through
        17 hereof shall continue to apply, and should Employee violate the terms of such covenants, in addition to any legal or equitable remedies, Employer may cease payment of the benefits and terminate any and all future payments otherwise called for
        under this Section 10.</font></div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;">4</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
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    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">F.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">For purposes of this Agreement, &#8220;for
        good reason&#8221; means the occurrence of any one or more of the following: (i) removal or other termination of Employee as the President and/or Chief Executive of Employer, without Employee&#8217;s express written consent; (ii) a reduction of Employee&#8217;s
        duties, authority or responsibilities or the assignment to Employee of such reduced duties, authority or responsibilities, in either case without Employee&#8217;s express written consent, (iii) a reduction by Employer in Employee&#8217;s Base Compensation
        without Employee&#8217;s express written consent; (iv) the relocation of Employee to a facility or a location more than 30 miles from Employee&#8217;s then present office location without Employee&#8217;s express written consent, or (v) within six months prior to,
        or within twelve months following, a Change in Control, a material change in the annual financial opportunity in the form of additional compensation awarded pursuant to Section 6 herein (as compared to the opportunity awarded during the prior two
        years).</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 11.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Non-Competition</u></font>.&#160; At all times that Employee remains employed by the Employer and for a two- (2) year period following the termination of his employment under this Agreement for any reason, Employee
        shall not, directly or indirectly, for himself or on behalf of any other person or entity as an employee, employer, consultant, agent, lender, principal, partner, stockholder, corporate officer, director, or in any other individual or
        representative capacity, (i) invest, engage in, or permit his name to be used in connection with any business that is in competition with Employer, (ii) accept employment with or render services to a competitor of Employer, as a director, officer,
        agent partner, employee or consultant, or (iii) solicit or accept from any of the customers of Employer or from any person or entity whose business Employer is soliciting, any business of the type which Employer is engaged in or in which Employer
        is actively preparing to so engage, in each case described in clauses (i), (ii) or (iii), within the Territory.&#160; Employee shall be prohibited from engaging in the activities described above within, or with respect to any business in competition
        with the Employer located within, fifty (50) miles of any of Employer&#8217;s rehabilitation clinic locations (the &#8220;Territory&#8221;).</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Notwithstanding the foregoing, Employee may own the voting common stock of any publicly held corporation so long as it does
        not exceed more than five percent (5%) of the outstanding stock thereof.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 12.</font>&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Non-Solicitation</u></font>.&#160; For a two (2) year period following the termination of the employment of the Employee under this Agreement for any reason, Employee agrees not to, directly or indirectly, for himself
        or on behalf of any other person or entity (a) solicit or induce, or attempt to solicit or induce, any person employed by, or any agent of, Employer, to terminate employee&#8217;s or agent&#8217;s relationship with Employer, nor (b) call on, solicit or divert,
        or attempt to call on, solicit or divert any person, firm, corporation or other entity who was or had been a customer or a patient referral source (including, without limitation, any physician) of Employer who referred ten or more customers or
        patients to Employer, who is a customer or a patient referral source of Employer who has referred ten or more customers or patients to Employer, or who is a prospective customer or a patient referral source of Employer with whom Employee had
        contact as an employee of Employer and who, within six months of such solicitation, Employer was or is actively recruiting as a customer or patient referral source.</font></div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;">5</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
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    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 13.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Confidential Information</u></font>.&#160; Employee will not, during or after the termination of this Agreement, disclose any trade secrets, financial and accounting information, customer lists, customer mailing lists,
        prospective customer lists, lists of referral sources or prospective referral sources, or pricing, marketing or advertising plans or methods used by Employer (the &#8220;Confidential Information&#8221;) to any person, firm, corporation, association or other
        entity for any reason or purpose whatsoever, nor shall Employee make use of the Confidential Information for his own purposes or for the benefit of any person, firm, corporation or other entity (except Employer) under any circumstances during or
        after the termination of this Agreement.&#160; On demand of Employer, at any time, Employee shall immediately deliver all printed or written Confidential Information to Employer.&#160; To the extent that Employee&#8217;s property does not contain Confidential
        Information, Employee may remove all of Employee&#8217;s property (such as computer software and tapes) upon termination of this Agreement.&#160; Confidential Information does not include information that (i) currently is generally available to or known by
        the public or hereafter becomes generally available to or known by the public through no fault of Employee, (ii) was already in the possession of Employee on the date of inception of Employee&#8217;s employment by Employer, or (iii) is obtained by
        Employee from a third party who is under no obligation of confidence to Employer.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 14.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Reasonableness of Restrictions</u></font>.&#160; Employee agrees that (a) the covenants contained in Sections 11, 12 and 13 hereof are necessary for the protection of Employer&#8217;s business goodwill and trade secrets, (b)
        a portion of the compensation paid to Employee under this Agreement is paid in consideration of the covenants herein contained, the sufficiency of which consideration is hereby acknowledged, and if the scope of any restriction contained in Sections
        11, 12 and 13 is too broad to permit enforcement of such restriction to its full extent, then such restriction shall be enforced to the maximum permitted by law, and the parties hereby consent that such scope may be judicially modified accordingly
        in any proceeding brought to enforce such restriction.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 15.</font>&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Enforcement</u></font>.&#160; Employee acknowledges Employee&#8217;s employment with Employer is special and unique in character and that Employee will acquire special skill and training and gain special knowledge during
        Employee&#8217;s employment with Employer, that the restrictions contained in Sections 11, 12 and 13 hereof are reasonable and necessary to protect the legitimate interests of Employer and its affiliates, that Employer would not have entered into this
        Agreement in the absence of such restrictions, and that any violation of any provision of those Sections will result in irreparable injury to Employer.&#160; Employee also acknowledges that Employer shall be entitled to preliminary and permanent
        injunctive relief, without the necessity of proving actual damages as well as an equitable accounting of all earnings, profits and other benefits arising from any such violation, which rights shall be cumulative and in addition to any other rights
        or remedies to which Employer may be entitled.&#160; The existence of any claim or cause of action of Employee against Employer, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by Employer of these
        covenants, except for Employer&#8217;s breach of this Agreement relating to its payment obligations to Employee after the termination of Employee&#8217;s employment under the terms of this Agreement.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 16.</font>&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Copy of Covenants</u></font>.&#160; Until the expiration of the applicable restrictions, Employee will provide, and Employer similarly may provide, a copy of the covenants contained in Sections 11, 12 and 13 of this
        Agreement to any business or enterprise which Employee may (i) directly or indirectly own, manage, operate, finance, join, control or participate in the ownership, management operation, financing, or control of, (ii) serve as an officer, director,
        employee, partner, principal, agent, representative, consultant, lender or otherwise, or (iii) with which he may use or permit his name to be used.</font></div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;">6</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
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    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 17.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Special Definition of Employer</u></font>.&#160; For the purposes of Sections 11 through 16 above, the definition of Employer shall include any subsidiary or affiliate of Employer, including all affiliated physical
        therapy partnerships of Employer.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 18.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Notices</u></font>.&#160; Any notices to be given hereunder by either Party to the other may be effected in writing either by personal delivery, via facsimile or by mail, registered or certified, postage prepaid with
        return receipt requested:</font></div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
    <table cellspacing="0" cellpadding="0" border="0" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse;" id="z2e17b437e5a84c3591a7542ead86461b">

        <tr>
          <td colspan="1" style="width: 6%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">If to Employer:</font></div>
          </td>
          <td style="width: 79%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">U.S. Physical Therapy, Inc.</font></div>
          </td>
        </tr>
        <tr>
          <td colspan="1" style="width: 6%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 79%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">1300 West Sam Houston Parkway South</font></div>
          </td>
        </tr>
        <tr>
          <td colspan="1" style="width: 6%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 79%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Suite 300</font></div>
          </td>
        </tr>
        <tr>
          <td colspan="1" style="width: 6%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 79%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Houston, Texas 77042</font></div>
          </td>
        </tr>
        <tr>
          <td colspan="1" style="width: 6%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 79%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Attention: Chairman of the Board</font></div>
          </td>
        </tr>
        <tr>
          <td colspan="1" style="width: 6%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 79%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td colspan="1" style="width: 6%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">If to Employee:</font></div>
          </td>
          <td style="width: 79%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Christopher J. Reading</font></div>
          </td>
        </tr>
        <tr>
          <td colspan="1" style="width: 6%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 79%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">30910 Lower Oxbow Trace</font></div>
          </td>
        </tr>
        <tr>
          <td colspan="1" style="width: 6%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Fulshear, TX 77441</font></div>
          </td>
        </tr>

    </table>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Mailed notices shall be addressed to the Parties at the addresses set forth above, but each Party may change the address by written notice in
        accordance with this Section 18.&#160; Notices delivered personally or by facsimile shall be deemed communicated upon actual receipt.&#160; Mailed notices shall be deemed communicated three (3) days after mailing.</font></div>
    <div><br>
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    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 19.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Entire Agreement</u></font>.&#160; This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of Employee by Employer, and contains all
        of the covenants and agreements between the parties with respect to such employment in any manner whatsoever.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 20.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Headings</u></font>.&#160; The headings or titles to sections in this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the heading or title of any
        section.</font></div>
    <div><br>
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    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 21.</font>&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Amendment or Modification; Waiver</u></font>.&#160; No provision of this Agreement may be amended, modified or waived unless such amendment, modification or waiver is authorized by Employer and is agreed to in writing,
        signed by Employee and by an officer of Employer (other than Employee) thereunto duly authorized.&#160; Except as otherwise specifically provided in this Agreement, no waiver by any Party hereto of any breach by any other Party hereto of any condition
        or provision of this Agreement to be performed by such other Party shall be deemed a waiver of a similar or dissimilar provision or condition at the same or at any prior or subsequent time nor shall the receipt or acceptance of Employee&#8217;s
        employment be deemed a waiver of any condition or provision hereof.</font></div>
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    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 22.</font>&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Assignability</u></font>.&#160; Employee shall not assign, pledge or encumber any interest in this Agreement or any part thereof without the express written consent of Employer, this Agreement being personal to
        Employee.&#160; This Agreement shall, however, inure to the benefit of Employee&#8217;s estate, dependents, beneficiaries and legal representatives.&#160; This Agreement shall not be assignable by Employer without the written consent of Employee which will not be
        unreasonably withheld.&#160; Subject to the terms of this Agreement, Employer may merge or consolidate with or into, or transfer substantially all of its assets to, another corporation or other form of business organization without Employee&#8217;s consent,
        and as a result of such merger, consolidation or transfer, this Agreement shall bind the successor of Employer resulting from such merger, consolidation or transfer.&#160; No such merger, consolidation or transfer, however, shall relieve the Parties
        from liability and responsibility for the performance of their respective duties and obligations hereunder.</font></div>
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    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 23.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Governing Law</u></font>.&#160; This Agreement shall be interpreted, construed and governed by and in accordance with the internal substantive law of the State of Texas.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 24.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;;"><u>Severability</u></font>.&#160; Each provision of this Agreement constitutes a separate and distinct undertaking, covenant and/or provision hereof.&#160; In the event that any provision of this Agreement shall finally be
        determined to be unlawful, such provision shall be deemed severed from this Agreement, but every other provision of this Agreement shall remain in full force and effect, and in substitution for any such provision held unlawful, there shall be
        substituted a provision of similar import reflecting the original intent of the Parties hereto to the extent permissible under law.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">IN WITNESS WHEREOF, this Agreement has been duly executed as of the day first written above.</font></div>
    <div><br>
    </div>
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        <tr>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">EMPLOYER:</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td colspan="2" style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">U.S. PHYSICAL THERAPY, INC.</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td colspan="2" style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">By:</font></div>
          </td>
          <td style="width: 47%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0); text-indent: 18pt;">/s/ <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Jerald L. Pullins</font></td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 3%; vertical-align: top;">&#160;</td>
          <td style="width: 47%; vertical-align: top;">
            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Jerald L. Pullins</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 3%; vertical-align: top;">&#160;</td>
          <td style="width: 47%; vertical-align: top;">
            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Chairman of the Board of Directors</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td colspan="2" style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td colspan="2" style="vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">EMPLOYEE:</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);">/s/ Christopher J. Reading<br>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td colspan="2" style="vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">CHRISTOPHER J. READING</font></div>
          </td>
        </tr>

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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>ex10_2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
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    <div style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-weight: bold;">EXHIBIT 10.2</div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">THIRD AMENDED AND RESTATED</font></div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">EMPLOYMENT AGREEMENT</font></div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;"> <br>
      </font></div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">THIS THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT (&#8220;Agreement&#8221;) is entered into and effective as of the 21st day of May,
        2019, by and between U. S. Physical Therapy, Inc. a Nevada corporation (&#8220;Employer&#8221;) and Lawrance W. McAfee (&#8220;Employee&#8221;), and supersedes that certain Second Amended and Restated Employment Agreement between the parties effective February 9, 2016.&#160;
        Employer and Employee may be referred to herein collectively as the &#8220;Parties&#8221; and individually as a &#8220;Party.&#8221;&#160; For the purposes of this Agreement, &#8220;Employer&#8221; includes U.S.P.T. Management, Inc.; for the purposes of Sections 11, 12, and 13 &#8220;Employer&#8221;
        shall include all subsidiaries and affiliates (as defined under the Securities Exchange Act of 1934, as amended and regulations promulgated thereunder).</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 1.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Term</u></font>.&#160; Employer hereby continues the employment of Employee and Employee hereby accepts continued employment with Employer for a two-year term (the &#8220;Term&#8221;)
        commencing as of January 1, 2018.&#160; The Term shall automatically renew as of the end of each expiring Term for an additional two-year period.&#160; For purposes hereof, the &#8220;Term&#8221; shall refer to the current Term and any renewal of such Term.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 2.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Duties of Employee</u></font>.&#160; Employee is engaged to serve as Executive Vice President and Chief Financial Officer of Employer and to perform such duties and responsibilities
        as are customarily performed by persons acting in such capacity or such other duties as may be assigned by Employer from time to time.&#160; Employee shall report to the Employer&#8217;s President and Chief Executive Officer and Board of Directors and shall
        perform his duties in accordance with the policies and objectives established by Employer.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 3.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Full-Time Employment</u></font>.&#160; Employee shall devote substantially all of his working time and talent to the business of Employer during the term hereof and shall diligently
        and to the best of his ability perform all duties incident to his employment hereunder, using his best efforts to promote the interests of Employer.&#160; Employee agrees that he shall not serve as an officer, director, consultant, or employee of any
        other person or entity, whether or not for compensation, without the prior consent of the Employer&#8217;s Board of Directors.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 4.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Position on the Board of Directors</u></font>.&#160; Employer agrees to use its best efforts to cause Employee to be elected to the Board of Directors of Employer.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 5.</font>&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size:
          10pt; font-family: &quot;Times New Roman&quot;;"><u>Base Compensation</u></font>.&#160; Subject to the terms and conditions of this Agreement, as compensation for services rendered and Employee&#8217;s covenants and agreements under this Agreement, Employer
        shall pay to Employee a base salary of FIVE HUNDRED&#160; THOUSAND AND NO/100THS DOLLARS ($500,000.00) per year (as adjusted from time to time, the &#8220;Base Compensation&#8221;), payable in accordance with Employer&#8217;s then-prevailing pay practices.&#160; From time to
        time (but at least once a year) Employer and Employee shall review Employee&#8217;s performance, and at that time Employer, in its sole discretion, shall determine whether Employee&#8217;s Base Compensation should be increased.&#160; At no time during the Term
        hereof will Employee&#8217;s Base Compensation be decreased without the express written consent of Employee.</font></div>
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    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 6.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Additional Compensation</u></font>.&#160; Subject to the terms and conditions of this Agreement, in addition to the Base Compensation, Employer may provide incentive compensation in
        the form of cash bonuses and other incentive awards, including stock option and restricted shares.&#160; The amount of any cash bonus and the award of any additional stock options or restricted shares is completely discretionary and will be determined
        solely by the Board of Directors of Employer or a compensation committee thereof, taking into consideration any factor the Board of Directors or compensation committee deems relevant.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 7.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Business Expenses</u></font>.&#160; Employer shall reimburse Employee for business expenses directly and reasonably incurred in the performance of his duties.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 8.</font>&#160;&#160;&#160;&#160;&#160; &#160; &#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Benefits and Plans</u></font>.&#160; Employee shall be entitled to such fringe benefits, including 20 vacation, 7 sick and personal days, and company holidays per calendar year, as
        well as insurance (health, disability and life) generally available to the executive officers of Employer, and Employee shall be entitled to participate, subject to all conditions of eligibility, in any employee benefit plans which may be adopted
        by Employer, including without limitation, qualified retirement plan(s), deferred compensation plans, and salary continuation, disability insurance, hospitalization insurance, major medical insurance, medical reimbursement and life insurance
        benefit plans.&#160; Also, Employer shall continue Employee&#8217;s monthly salary for a period of up to ninety (90) continuous days during any period of Employee&#8217;s sickness or disability.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 9.</font>&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Termination</u></font>.&#160; This Agreement shall terminate prior to the expiration of the Term hereof upon the occurrence of any one of the following events (each a &#8220;Termination
        Event&#8221;):</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 36pt; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(a)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Disability</u></font>.&#160; In the event that Employee is unable fully to perform his duties and responsibilities hereunder to the full extent required by Employer by reason of
        illness, injury or incapacity for ninety (90) consecutive days, this Agreement may be terminated by Employee or Employer; provided, however, that Employee shall continue to be compensated as provided in this Agreement during such ninety- (90) day
        period and until termination under this Section 9, Employee also shall be paid, in a lump sum, a special benefit equal to two (2) year&#8217;s Base Compensation, and all Restricted Stock owned by Employee shall immediately become Vested Shares, as such
        term is defined in the applicable grant agreement and plan documents; and, provided further, that Employee will be entitled to receive the benefits, rights and/or payments prescribed under any employee welfare or benefit plan in which Employee was
        participating at the time of such disability in accordance with the terms and conditions of such plans.&#160; In the event of any dispute under this Section 9, Employee shall submit to a physical examination by a licensed physician selected by Employer
        and reasonably acceptable to Employee.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(b)</font>&#160;&#160; &#160;&#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Death</u></font>.&#160; In the event that Employee dies during the term hereof, Employer shall pay to his executors, legal representatives or administrators an amount equal to one
        (1) year&#8217;s Base Compensation, and thereafter Employer shall have no further liability or obligation hereunder to Employee&#8217;s executors, legal representatives, administrators, heirs or assigns or any other person claiming under or through Employee;
        provided, however, that all Restricted Stock owned by Employee shall immediately become Vested Shares, as such term is defined in the applicable grant agreement and plan documents, and Employee&#8217;s heirs, legal representatives or administrators will
        be entitled to receive the benefits, rights and/or payments prescribed under any employee welfare or benefit plans in which Employee was participating at the time of his death in accordance with the terms and conditions of such plans.</font></div>
    <div><br>
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      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">2</font></div>
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    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(c)</font>&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Cause</u></font>.&#160; Nothing in this Agreement shall be construed to prevent its termination by Employer at any time for &#8220;cause&#8221;.&#160; For purposes of this Agreement, &#8220;cause&#8221; shall
        mean (i) the willful and material failure of Employee to perform or observe (other than by reason of disability as contemplated in paragraph 9(a)) any of the terms or provisions of this Agreement, including the failure of Employee to follow the
        reasonable written directions of Employer&#8217;s President and Chief Executive Officer or Board of Directors, (ii) dishonesty or misconduct on the part of Employee that is or is reasonably likely to be damaging or detrimental to the business of
        Employer, (iii) conviction of a crime involving moral turpitude, (iv) habitual insobriety or failure to perform duties due to abuse of alcohol or drugs, or (v) misappropriation of funds.&#160; Prior to terminating this Agreement on account of Employee&#8217;s
        failure to perform or observe any of the terms and conditions of this Agreement (but not for any of the other enumerated &#8220;causes&#8221; stated in (ii) through (v) above), Employer shall give Employee thirty (30) days written notice and an opportunity to
        cure such failure to the satisfaction of Employer.&#160; Upon termination for cause, Employer shall pay to Employee all sums due to Employee through the date of such termination.&#160; Following such a termination, Employer shall have no further duty or
        obligation to Employee; provided, however, that Employee shall continue to be bound by Sections 11 through 17.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(d)</font>&#160;&#160;&#160;&#160;&#160;&#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Voluntary Resignation by Employee not for good reason</u></font>.&#160; Upon a voluntary resignation by Employee not &#8220;for good reason&#8221; as defined in Section 10 F. herein, Employer
        shall pay to Employee all sums due to Employee through the date of such termination.&#160; Following such a termination, Employer shall have no further duty or obligation to Employee; provided, however, that Employee shall continue to be bound by
        Sections 11 through 17.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 10.</font>&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Special Benefits</u></font>.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">A.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Special Benefit in the Event of a
        Termination Event and Change in Control.&#160; Employee shall be entitled to a Change of Control benefit of $500,000 in the event that a &#8220;Change in Control&#8221; occurs within six months after, or within twelve months prior to a Termination Event (as defined
        herein).&#160; For purposes hereof, a &#8220;Change in Control&#8221; is defined as:</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(a)</font>&#160;&#160;&#160;&#160;&#160; &#160;&#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The
        transfer or sale by Employer of all or substantially all of the assets of Employer whether or not this Agreement is assigned or transferred as a part of such sale;</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(b)</font>&#160;&#160;&#160;&#160;&#160; &#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The
        transfer or sale of more than fifty percent (50%) of the outstanding shares of Common Stock of Employer;</font></div>
    <div><br>
    </div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">3</font></div>
      <div id="DSPFPageBreak" style="page-break-after:always;">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(c)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">A merger or
        consolidation involving Employer in a transaction in which the shareholders of Employer immediately prior to the merger or consolidation own less than fifty percent (50%) of the company surviving the merger or consolidation; or</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(d)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">A merger or
        consolidation involving Employer in a transaction in which the board members of Employer after the merger or consolidation constitute less than fifty percent (50%) of the board of the company surviving the merger or consolidation; or</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(e)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The
        voluntary or involuntary dissolution of Employer.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">B.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Special Benefit in the Event of
        Termination Without Cause or Resignation for Good Cause.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 72pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">In the event of the termination of employment of Employee by Employer without &#8220;cause&#8221; as cause is defined in Section 9(c)
        hereof, or the resignation of employment by Employee &#8220;for good reason&#8221; as defined in Section 10 F. hereof (in either case, a &#8220;Termination Event&#8221;), Employee shall be entitled to the following special benefits:</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 72pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(i) Two (2) year&#8217;s Base Compensation; and</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 72pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(ii) The greater of (i) the bonus paid or payable to Employee with respect to last fiscal year of Employer completed prior to
        the occurrence of the Termination Event or (ii) the average of the bonuses paid to Employee over the three (3) fiscal years of Employer ending with last fiscal year of Employer completed prior to the occurrence of the Termination Event; and</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 72pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(iii) Employee&#8217;s accrued but unused vacation days; and</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 72pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(iv) All Restricted Stock owned by Employee shall immediately become Vested Shares, as such term is defined in the applicable
        grant agreement and plan documents.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The aggregate dollar amount of the special benefits described in subsections (i) and (ii) above shall be aggregated and paid ratably on a
        bi-weekly basis over the 24 month period following the Termination Event.&#160; If a Change in Control has occurred within six months after, or within twelve months prior to a Termination Event, Employee shall also be entitled to the special benefits
        under this Section 10 B.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">C.</font>&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Employee&#8217;s accrued but unused
        vacation days shall be paid to Employee within thirty (30) days of the actual date of the termination of Employee&#8217;s employment.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">D.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">In the event Employee&#8217;s employment
        is terminated (whether by Employer or Employee) as a result of a Termination Event, Employee shall be entitled to such medical insurance benefits as he enjoyed prior to his termination for the twenty-four months following such termination of
        employment and at the same cost to Employee of such benefits as in effect prior to such termination.</font></div>
    <div><br>
    </div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">4</font></div>
      <div id="DSPFPageBreak" style="page-break-after:always;">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">E.</font>&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Should any special benefits
        provided in this Section 10 become payable, the covenants contained in Sections 11 through 17 hereof shall continue to apply, and should Employee violate the terms of such covenants, in addition to any legal or equitable remedies, Employer may
        cease payment of the benefits and terminate any and all future payments otherwise called for under this Section 10.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">F.</font>&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">For purposes of this Agreement,
        &#8220;for good reason&#8221; means the occurrence of any one or more of the following: (i) removal or other termination of Employee as the Executive Vice President and Chief Financial Officer of Employer, without Employee&#8217;s express written consent; (ii) a
        reduction of Employee&#8217;s duties, authority or responsibilities or the assignment to Employee of such reduced duties, authority or responsibilities, in either case without Employee&#8217;s express written consent, (iii) a reduction by Employer in
        Employee&#8217;s Base Compensation without Employee&#8217;s express written consent; (iv) the relocation of Employee to a facility or a location more than 30 miles from Employee&#8217;s then present office location without Employee&#8217;s express written consent, or (v)
        within six months prior to, or within twelve months following, a Change in Control, a material change in the annual financial opportunity in the form of additional compensation awarded pursuant to Section 6 herein (as compared to the opportunity
        awarded during the prior two years).</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 11.</font>&#160;&#160; &#160; &#160;&#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size:
          10pt; font-family: &quot;Times New Roman&quot;;"><u>Non-Competition</u></font>.&#160; At all times that Employee remains employed by the Employer and for a two- (2) year period following the termination of his employment under this Agreement for any
        reason, Employee shall not, directly or indirectly, for himself or on behalf of any other person or entity as an employee, employer, consultant, agent, lender, principal, partner, stockholder, corporate officer, director, or in any other individual
        or representative capacity, (i) invest, engage in, or permit his name to be used in connection with any business that is in competition with Employer, (ii) accept employment with or render services to a competitor of Employer, as a director,
        officer, agent partner, employee or consultant, or (iii) solicit or accept from any of the customers of Employer or from any person or entity whose business Employer is soliciting, any business of the type which Employer is engaged in or in which
        Employer is actively preparing to so engage, in each case described in clauses (i), (ii) or (iii), within the Territory.&#160; Employee shall be prohibited from engaging in the activities described above within, or with respect to any business in
        competition with the Employer located within, fifty (50) miles of any of Employer&#8217;s rehabilitation clinic locations (the &#8220;Territory&#8221;).</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Notwithstanding the foregoing, Employee may own the voting common stock of any publicly held corporation so long as it does
        not exceed more than five percent (5%) of the outstanding stock thereof.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 12.</font>&#160;&#160;&#160;&#160; &#160;&#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size:
          10pt; font-family: &quot;Times New Roman&quot;;"><u>Non-Solicitation</u></font>.&#160; For a two (2) year period following the termination of the employment of the Employee under this Agreement for any reason, Employee agrees not to, directly or
        indirectly, for himself or on behalf of any other person or entity (a) solicit or induce, or attempt to solicit or induce, any person employed by, or any agent of, Employer, to terminate employee&#8217;s or agent&#8217;s relationship with Employer, nor (b)
        call on, solicit or divert, or attempt to call on, solicit or divert any person, firm, corporation or other entity who was or had been a customer or a patient referral source (including, without limitation, any physician) of Employer who referred
        ten or more customers or patients to Employer, who is a customer or a patient referral source of Employer who has referred ten or more customers or patients to Employer, or who is a prospective customer or a patient referral source of Employer with
        whom Employee had contact as an employee of Employer and who, within six months of such solicitation, Employer was or is actively recruiting as a customer or patient referral source.</font></div>
    <div><br>
    </div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">5</font></div>
      <div id="DSPFPageBreak" style="page-break-after:always;">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 13.</font>&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size:
          10pt; font-family: &quot;Times New Roman&quot;;"><u>Confidential Information</u></font>.&#160; Employee will not, during or after the termination of this Agreement, disclose any trade secrets, financial and accounting information, customer lists,
        customer mailing lists, prospective customer lists, lists of referral sources or prospective referral sources, or pricing, marketing or advertising plans or methods used by Employer (the &#8220;Confidential Information&#8221;) to any person, firm, corporation,
        association or other entity for any reason or purpose whatsoever, nor shall Employee make use of the Confidential Information for his own purposes or for the benefit of any person, firm, corporation or other entity (except Employer) under any
        circumstances during or after the termination of this Agreement.&#160; On demand of Employer, at any time, Employee shall immediately deliver all printed or written Confidential Information to Employer.&#160; To the extent that Employee&#8217;s property does not
        contain Confidential Information, Employee may remove all of Employee&#8217;s property (such as computer software and tapes) upon termination of this Agreement.&#160; Confidential Information does not include information that (i) currently is generally
        available to or known by the public or hereafter becomes generally available to or known by the public through no fault of Employee, (ii) was already in the possession of Employee on the date of inception of Employee&#8217;s employment by Employer, or
        (iii) is obtained by Employee from a third party who is under no obligation of confidence to Employer.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 14.</font>&#160;&#160;&#160;&#160; &#160; &#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Reasonableness of Restrictions</u></font>.&#160; Employee agrees that (a) the covenants contained in Sections 11, 12 and 13 hereof are necessary for the protection of Employer&#8217;s
        business goodwill and trade secrets, (b) a portion of the compensation paid to Employee under this Agreement is paid in consideration of the covenants herein contained, the sufficiency of which consideration is hereby acknowledged, and if the scope
        of any restriction contained in Sections 11, 12 and 13 is too broad to permit enforcement of such restriction to its full extent, then such restriction shall be enforced to the maximum permitted by law, and the parties hereby consent that such
        scope may be judicially modified accordingly in any proceeding brought to enforce such restriction.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 15.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size:
          10pt; font-family: &quot;Times New Roman&quot;;"><u>Enforcement</u></font>.&#160; Employee acknowledges Employee&#8217;s employment with Employer is special and unique in character and that Employee will acquire special skill and training and gain special
        knowledge during Employee&#8217;s employment with Employer, that the restrictions contained in Sections 11, 12 and 13 hereof are reasonable and necessary to protect the legitimate interests of Employer and its affiliates, that Employer would not have
        entered into this Agreement in the absence of such restrictions, and that any violation of any provision of those Sections will result in irreparable injury to Employer.&#160; Employee also acknowledges that Employer shall be entitled to preliminary and
        permanent injunctive relief, without the necessity of proving actual damages as well as an equitable accounting of all earnings, profits and other benefits arising from any such violation, which rights shall be cumulative and in addition to any
        other rights or remedies to which Employer may be entitled.&#160; The existence of any claim or cause of action of Employee against Employer, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by
        Employer of these covenants, except for Employer&#8217;s breach of this Agreement relating to its payment obligations to Employee after the termination of Employee&#8217;s employment under the terms of this Agreement.</font></div>
    <div><br>
    </div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
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      <div id="DSPFPageBreak" style="page-break-after:always;">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 16.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size:
          10pt; font-family: &quot;Times New Roman&quot;;"><u>Copy of Covenants</u></font>.&#160; Until the expiration of the applicable restrictions, Employee will provide, and Employer similarly may provide, a copy of the covenants contained in Sections 11,
        12 and 13 of this Agreement to any business or enterprise which Employee may (i) directly or indirectly own, manage, operate, finance, join, control or participate in the ownership, management operation, financing, or control of, (ii) serve as an
        officer, director, employee, partner, principal, agent, representative, consultant, lender or otherwise, or (iii) with which he may use or permit his name to be used.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 17.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Special Definition of Employer</u></font>.&#160; For the purposes of Sections 11 through 16 above, the definition of Employer shall include any subsidiary or affiliate of Employer,
        including all affiliated physical therapy partnerships of Employer.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 18.</font>&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Notices</u></font>.&#160; Any notices to be given hereunder by either Party to the other may be effected in writing either by personal delivery, via facsimile or by mail, registered
        or certified, postage prepaid with return receipt requested:</font></div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
    <table cellspacing="0" cellpadding="0" border="0" id="z5c78c27fcf6e4bb7b38aa659c95daed1" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse;">

        <tr>
          <td style="width: 5%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">If to Employer:</font></div>
          </td>
          <td style="width: 80%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">U.S. Physical Therapy, Inc.</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 80%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">1300 West Sam Houston Parkway South</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 80%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Suite 300</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 80%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Houston, Texas 77042</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 80%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Attention: Chairman of the Board</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 80%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 80%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">If to Employee:</font></div>
          </td>
          <td style="width: 80%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Lawrance W. McAfee</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 80%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">221 Bryn Mawr Circle</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;">&#160;</td>
          <td style="width: 15%; vertical-align: top;">&#160;</td>
          <td style="width: 80%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Houston, Texas 77024</font></div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Mailed notices shall be addressed to the Parties at the addresses set forth above, but each Party may change the address by written notice in
        accordance with this Section 18.&#160; Notices delivered personally or by facsimile shall be deemed communicated upon actual receipt.&#160; Mailed notices shall be deemed communicated three (3) days after mailing.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 19.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size:
          10pt; font-family: &quot;Times New Roman&quot;;"><u>Entire Agreement</u></font>.&#160; This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of Employee by
        Employer, and contains all of the covenants and agreements between the parties with respect to such employment in any manner whatsoever.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 20.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Headings</u></font>.&#160; The headings or titles to sections in this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by
        reference to the heading or title of any section.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 21.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size:
          10pt; font-family: &quot;Times New Roman&quot;;"><u>Amendment or Modification; Waiver</u></font>.&#160; No provision of this Agreement may be amended, modified or waived unless such amendment, modification or waiver is authorized by Employer and is
        agreed to in writing, signed by Employee and by an officer of Employer (other than Employee) thereunto duly authorized.&#160; Except as otherwise specifically provided in this Agreement, no waiver by any Party hereto of any breach by any other Party
        hereto of any condition or provision of this Agreement to be performed by such other Party shall be deemed a waiver of a similar or dissimilar provision or condition at the same or at any prior or subsequent time nor shall the receipt or acceptance
        of Employee&#8217;s employment be deemed a waiver of any condition or provision hereof.</font></div>
    <div><br>
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    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 22.</font>&#160;&#160;&#160;&#160;&#160; &#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Assignability</u></font>.&#160; Employee shall not assign, pledge or encumber any interest in this Agreement or any part thereof without the express written consent of Employer,
        this Agreement being personal to Employee.&#160; This Agreement shall, however, inure to the benefit of Employee&#8217;s estate, dependents, beneficiaries and legal representatives.&#160; This Agreement shall not be assignable by Employer without the written
        consent of Employee which will not be unreasonably withheld.&#160; Subject to the terms of this Agreement, Employer may merge or consolidate with or into, or transfer substantially all of its assets to, another corporation or other form of business
        organization without Employee&#8217;s consent, and as a result of such merger, consolidation or transfer, this Agreement shall bind the successor of Employer resulting from such merger, consolidation or transfer.&#160; No such merger, consolidation or
        transfer, however, shall relieve the Parties from liability and responsibility for the performance of their respective duties and obligations hereunder.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 23.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Governing Law</u></font>.&#160; This Agreement shall be interpreted, construed and governed by and in accordance with the internal substantive law of the State of Texas.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 24.</font>&#160;&#160;&#160;&#160;&#160;&#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size:
          10pt; font-family: &quot;Times New Roman&quot;;"><u>Severability</u></font>.&#160; Each provision of this Agreement constitutes a separate and distinct undertaking, covenant and/or provision hereof.&#160; In the event that any provision of this Agreement
        shall finally be determined to be unlawful, such provision shall be deemed severed from this Agreement, but every other provision of this Agreement shall remain in full force and effect, and in substitution for any such provision held unlawful,
        there shall be substituted a provision of similar import reflecting the original intent of the Parties hereto to the extent permissible under law.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">IN WITNESS WHEREOF, this Agreement has been duly executed as of the day first written above.</font></div>
    <div><br>
    </div>
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        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;" colspan="2">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">EMPLOYER:</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;" colspan="2">&#160;</td>
        </tr>
        <tr>
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          <td style="vertical-align: top;" colspan="2">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">U.S. PHYSICAL THERAPY, INC.</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;" colspan="2">&#160;</td>
        </tr>
        <tr>
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          <td style="width: 3%; vertical-align: top; padding-bottom: 2px;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">By:</font></div>
          </td>
          <td style="width: 47%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0); text-indent: 18pt;">/s/ <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Jerald L. Pullins</font></td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 3%; vertical-align: top;">&#160;</td>
          <td style="width: 47%; vertical-align: top;">
            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Jerald L. Pullins</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 3%; vertical-align: top;">&#160;</td>
          <td style="width: 47%; vertical-align: top;">
            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Chairman of the Board of Directors</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;" colspan="2">&#160;</td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;" colspan="2">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">EMPLOYEE:</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top; padding-bottom: 2px;">&#160;</td>
          <td style="vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);" colspan="2">/s/ Lawrance W. McAfee<br>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top;" colspan="2">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">LAWRANCE W. MCAFEE</font></div>
          </td>
        </tr>

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<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>ex10_3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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  <div style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-weight: bold;">EXHIBIT 10.3</div>
  <div>&#160;</div>
  <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT</font></div>
  <div><br>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">THIS SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (&#8220;Agreement&#8221;) is entered into and effective as of the 21st day of May,
      2019, by and between U. S. Physical Therapy, Inc. a Nevada corporation (&#8220;Employer&#8221;), and Glenn D. McDowell (&#8220;Employee&#8221;), and supersedes that certain Amended and Restated Employment Agreement between the parties effective February 9, 2016.&#160; Employer
      and Employee may be referred to herein collectively as the &#8220;Parties&#8221; and individually as a &#8220;Party.&#8221;&#160; For the purposes of this Agreement, &#8220;Employer&#8221; includes U.S.P.T. Management, Inc.; for the purposes of Sections 10, 11, and 12 &#8220;Employer&#8221; shall
      include all subsidiaries and affiliates (as defined under the Securities Exchange Act of 1934, as amended and regulations promulgated thereunder)</font></div>
  <div>&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 1. &#160; &#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Term</u></font>.&#160; Employer hereby
      continues the employment of Employee and Employee hereby accepts continued employment with Employer for a two-year term (the &#8220;Term&#8221;) commencing as of January 1, 2018.&#160; The Term shall automatically renew as of the end of each expiring Term for an
      additional two-year period.&#160; For purposes hereof, the &#8220;Term&#8221; shall refer to the current Term and any renewal of such Term.</font></div>
  <div>&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 2.&#160; &#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Duties of Employee</u></font>.&#160;
      Employee is engaged to serve as Chief Operating Officer of Employer and to perform such duties and responsibilities as are customarily performed by persons acting in such capacity or such other duties as may be assigned by Employer from time to
      time.&#160; Employee shall report to the Employer&#8217;s President and Chief Executive Officer and shall perform his duties in accordance with the policies and objectives established by Employer.</font></div>
  <div>&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 3.&#160; &#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Full-Time Employment</u></font>.&#160;
      Employee shall devote substantially all of his working time and talent to the business of Employer during the term hereof and shall diligently and to the best of his ability perform all duties incident to his employment hereunder, using his best
      efforts to promote the interests of Employer.&#160; Employee agrees that he shall not serve as an officer, director, consultant, or employee of any other person or entity, whether or not for compensation, without the prior consent of the Employer&#8217;s Board
      of Directors.</font></div>
  <div>&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 4.&#160; &#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Base Compensation</u></font>.&#160;
      Subject to the terms and conditions of this Agreement, as compensation for services rendered and Employee&#8217;s covenants and agreements under this Agreement, Employer shall pay to Employee a base salary of FIVE HUNDRED THOUSAND AND NO/100THS DOLLARS
      ($500,000.00) per year (as adjusted from time to time, the &#8220;Base Compensation&#8221;), payable in accordance with Employer&#8217;s then-prevailing pay practices.&#160; From time to time (but at least once a year) Employer and Employee shall review Employee&#8217;s
      performance, and at that time Employer, in its sole discretion, shall determine whether Employee&#8217;s Base Compensation should be increased.&#160; At no time during the Term hereof will Employee&#8217;s Base Compensation be decreased, without the express written
      consent of Employee.</font></div>
  <div>&#160;</div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageBreak" style="page-break-after:always;">
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  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 5.&#160; &#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Additional Compensation</u></font>.&#160;


      Subject to the terms and conditions of this Agreement, in addition to the Base Compensation, Employer may provide incentive compensation in the form of cash bonuses and other incentive awards, including stock options and restricted shares.&#160; The
      amount of any cash bonus and the award of any additional stock options or restricted shares is completely discretionary and will be determined solely by the Board of Directors of Employer or a compensation committee thereof, taking into consideration
      any factor the Board of Directors or compensation committee deems relevant.</font></div>
  <div>&#160;</div>
  <div></div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 6.&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Business Expenses</u></font>.&#160;
      Employer shall reimburse Employee for business expenses directly and reasonably incurred in the performance of his duties.</font></div>
  <div>&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 7. &#160; &#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Benefits and Plans</u></font>.&#160;
      Employee shall be entitled to fringe benefits, including vacation days, sick and personal days and company holidays pursuant to the Employer&#8217;s paid time off plan as per the Employer&#8217;s employee handbook, and insurance (health, disability and life),
      and Employee shall be entitled to participate, subject to all conditions of eligibility, in any employee benefit plans which may be adopted by Employer, including without limitation, qualified retirement plan(s), deferred compensation plans, and
      salary continuation, disability insurance, hospitalization insurance, major medical insurance, medical reimbursement and life insurance benefit plans.&#160; Also, Employer shall continue Employee&#8217;s monthly salary for a period of up to ninety (90)
      continuous days during any period of Employee&#8217;s sickness or disability.</font></div>
  <div>&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 8.&#160; &#160;&#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Termination</u></font>.&#160; This
      Agreement shall terminate prior to the expiration of the Term hereof upon the occurrence of any one of the following events (each a &#8220;Termination Event&#8221;):</font></div>
  <div>&#160;</div>
  <div style="text-align: justify; text-indent: 27pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(a) &#160; &#160;&#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Disability</u></font>.&#160;




      In the event that Employee is unable fully to perform his duties and responsibilities hereunder to the full extent required by Employer by reason of illness, injury or incapacity for ninety (90) consecutive days, this Agreement may be terminated by
      Employee or Employer; provided, however, that Employee shall continue to be compensated as provided in this Agreement during such ninety- (90) day period and until termination under this Section 8 and Employee also shall be paid, in a lump sum, a
      special benefit equal to two (2) year&#8217;s Base Compensation, and all Restricted Stock owned by Employee shall immediately become Vested Shares, as such term is defined in the applicable grant agreement and plan documents; and, provided further, that
      Employee will be entitled to receive the benefits, rights and/or payments prescribed under any employee welfare or benefit plan in which Employee was participating at the time of such disability in accordance with the terms and conditions of such
      plans.&#160; In the event of any dispute under this Section 8, Employee shall submit to a physical examination by a licensed physician selected by Employer and reasonably acceptable to Employee.</font></div>
  <div>&#160;</div>
  <div style="text-align: justify; text-indent: 27pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(b) &#160; &#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Death</u></font>.&#160;
      In the event that Employee dies during the term hereof, Employer shall pay to his executors, legal representatives or administrators an amount equal to one (1) year&#8217;s Base Compensation, and thereafter Employer shall have no further liability or
      obligation hereunder to Employee&#8217;s executors, legal representatives, administrators, heirs or assigns or any other person claiming under or through Employee; provided, however, that all Restricted Stock owned by Employee shall immediately become
      Vested Shares, as such term is defined in the applicable grant agreement and plan documents, and Employee&#8217;s heirs, legal representatives or administrators will be entitled to receive the benefits, rights and/or payments prescribed under any employee
      welfare or benefit plans in which Employee was participating at the time of his death in accordance with the terms and conditions of such plans.</font></div>
  <div>&#160;</div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">2</font></div>
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  </div>
  <div style="text-align: justify; text-indent: 27pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(c)&#160; &#160; &#160;&#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Cause</u></font>.&#160;
      Nothing in this Agreement shall be construed to prevent its termination by Employer at any time for &#8220;cause&#8221;.&#160; For purposes of this Agreement, &#8220;cause&#8221; shall mean (i) the willful and material failure of Employee to perform or observe (other than by
      reason of disability as contemplated in paragraph 9(a)) any of the terms or provisions of this Agreement, including the failure of Employee to follow the reasonable written directions of Employer&#8217;s President and Chief Executive Officer or Board of
      Directors, (ii) dishonesty or misconduct on the part of Employee that is or is reasonably likely to be damaging or detrimental to the business of Employer, (iii) conviction of a crime involving moral turpitude, (iv) habitual insobriety or failure to
      perform duties due to abuse of alcohol or drugs, or (v) misappropriation of funds.&#160; Prior to terminating this Agreement on account of Employee&#8217;s failure to perform or observe any of the terms and conditions of this Agreement (but not for any of the
      other enumerated &#8220;causes&#8221; stated in (ii) through (v) above), Employer shall give Employee thirty (30) days written notice and an opportunity to cure such failure to the satisfaction of Employer.&#160; Upon termination for cause, Employer shall pay to
      Employee all sums due to Employee through the date of such termination.&#160; Following such a termination, Employer shall have no further duty or obligation to Employee; provided, however, that Employee shall continue to be bound by Sections 10 through
      16.</font></div>
  <div>&#160; <br>
  </div>
  <div style="text-align: justify; text-indent: 27pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(d)&#160;&#160; &#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Voluntary Resignation
          by Employee not for good reason</u></font>.&#160; Upon a voluntary resignation by Employee not &#8220;for good reason&#8221; as defined in Section 9 F. herein, Employer shall pay to Employee all sums due to Employee through the date of such termination.&#160;
      Following such a termination, Employer shall have no further duty or obligation to Employee; provided, however, that Employee shall continue to be bound by Sections 10 through 16.</font></div>
  <div>&#160; <br>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 9.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Special Benefits.</font></div>
  <div>&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">A.&#160;&#160;&#160;&#160;&#160;&#160; Special Benefit in the Event of a Termination Event and Change in Control.&#160; Employee shall be entitled to a Change of
      Control benefit of $283,333 in the event that a Change in Control&#8221; occurs within six months after, or within twelve months prior to a Termination Event (as defined herein). For purposes hereof, a &#8220;Change in Control&#8221; is defined as:</font></div>
  <div>&#160; <br>
  </div>
  <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The transfer or sale by Employer of all or substantially all of the assets of Employer whether or
      not this Agreement is assigned or transferred as a part of such sale;</font></div>
  <div style="margin-left: 36pt;">&#160; <br>
  </div>
  <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(b)&#160;&#160; &#160; &#160; &#160; The transfer or sale of more than fifty percent (50%) of the outstanding shares of Common Stock
      of Employer;</font></div>
  <div>&#160;</div>
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    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">3</font></div>
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  </div>
  <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(c)&#160; &#160; &#160; &#160; &#160; A merger or consolidation involving Employer in a transaction in which the shareholders of
      Employer immediately prior to the merger or consolidation own less than fifty percent (50%) of the company surviving the merger or consolidation; or</font></div>
  <div style="margin-left: 36pt;">&#160; <br>
  </div>
  <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(d) &#160; &#160; &#160; &#160; A merger or consolidation involving Employer in a transaction in which the board members of
      Employer after the merger or consolidation constitute less than fifty percent (50%) of the board of the company surviving the merger or consolidation; or</font></div>
  <div style="margin-left: 36pt;">&#160; <br>
  </div>
  <div style="text-align: justify; margin-left: 36pt; text-indent: 27pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(e)&#160;&#160; &#160; &#160; &#160;&#160; The voluntary or involuntary dissolution of Employer.</font></div>
  <div style="text-indent: 36pt;">&#160; <br>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">B.&#160;&#160;&#160;&#160;&#160;&#160; Special Benefit in the Event of Termination Without Cause or Resignation for Good Cause.</font></div>
  <div style="margin-left: 63pt;">&#160; <br>
  </div>
  <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">In the event of the termination of employment of Employee by Employer without &#8220;cause&#8221; as cause is defined in Section 8(c)
      hereof, or the resignation of employment by Employee&#160; &#8220;for good reason&#8221; as defined in Section 9 F. hereof (in either case, a &#8220;Termination Event&#8221;), Employee shall be entitled to the following special benefits:</font></div>
  <div style="margin-left: 63pt;">&#160; <br>
  </div>
  <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(i)&#160; Two (2) years&#8217; Base Compensation; and</font></div>
  <div style="margin-left: 63pt;">&#160; <br>
  </div>
  <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(ii) The greater of (i) the bonus paid or payable to Employee with respect to last fiscal year of Employer completed prior to
      the occurrence of the Termination Event or (ii) the average of the bonuses paid to Employee over the three (3) fiscal years of Employer ending with last fiscal year of Employer completed prior to the occurrence of the Termination Event; and</font></div>
  <div style="margin-left: 63pt;">&#160; <br>
  </div>
  <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(iii) Employee&#8217;s accrued but unused vacation days; and</font></div>
  <div style="margin-left: 63pt;">&#160; <br>
  </div>
  <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(iv)&#160;&#160; All Restricted Stock owned by Employee shall immediately become Vested Shares, as such term is defined in the applicable
      grant agreement and plan documents</font></div>
  <div>&#160; <br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The aggregate dollar amount of the special benefits described in subsections (i) and (ii) above shall be aggregated and paid ratably on a bi-weekly
      basis over the 24 month period following the Termination Event. If a Change in Control has occurred within six months after, or within twelve months prior to a Termination Event, Employee shall also be entitled to the special benefits under this
      Section 9 B.</font></div>
  <div>&#160; <br>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">C.&#160;&#160;&#160;&#160;&#160;&#160; Employee&#8217;s accrued but unused vacation days shall be paid to Employee within thirty (30) days of the actual date of the
      termination of Employee&#8217;s employment.</font></div>
  <div>&#160; <br>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">D.&#160;&#160;&#160;&#160;&#160; In the event Employee&#8217;s employment is terminated (whether by Employer or Employee) as a result of a Termination Event,
      Employee shall be entitled to such medical insurance benefits as he enjoyed prior to his termination for the twenty-four months following such termination and at the same cost to Employee of such benefits as in effect prior to such termination.</font></div>
  <div>&#160;</div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">4</font></div>
    <div id="DSPFPageBreak" style="page-break-after:always;">
      <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">E.&#160;&#160;&#160;&#160;&#160;&#160; Should any special benefits provided in this Section 9 become payable, the covenants contained in Sections 10 through
      16 hereof shall continue to apply, and should Employee violate the terms of such covenants Employer may, in addition to any legal or equitable remedies, cease payment of the benefits and terminate any and all future payments otherwise called for
      under this Section 9.</font></div>
  <div style="text-indent: 36pt;"><br>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">F.&#160;&#160;&#160;&#160;&#160;&#160; For purposes of this Agreement, &#8220;for good reason&#8221; means the occurrence of any one or more of the following: (i) removal
      or other termination of Employee as the Chief Operating Officer of Employer, without Employee&#8217;s express written consent; (ii) a reduction of Employee&#8217;s duties, authority or responsibilities or the assignment to Employee of such reduced duties,
      authority or responsibilities, in either case without Employee&#8217;s express written consent, (iii) a reduction by Employer in Employee&#8217;s Base Compensation without Employee&#8217;s express written consent; (iv) the relocation of Employee to a facility or a
      location more than 30 miles from Employee&#8217;s then present office location without Employee&#8217;s express written consent, or (v) within six months prior to, or within twelve months following, a Change in Control, a material change in the annual financial
      opportunity in the form of additional compensation awarded pursuant to Section 6 herein (as compared to the opportunity awarded during the prior two years).</font></div>
  <div style="text-indent: 36pt;"><br>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 10. &#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Non-Competition</u></font>.&#160; At
      all times that Employee remains employed by the Employer and for a two (2) year period following the termination of his employment under this Agreement for any reason, Employee shall not, directly or indirectly, for himself or on behalf of any other
      person or entity as an employee, employer, consultant, agent, lender, principal, partner, stockholder, corporate officer, director, or in any other individual or representative capacity, (i) invest, engage in, or permit his name to be used in
      connection with any business that is in competition with Employer, (ii) accept employment with or render services to a competitor of Employer, as a director, officer, agent partner, employee or consultant, or (iii) solicit or accept from any of the
      customers of Employer or from any person or entity whose business Employer is soliciting, any business of the type which Employer is engaged in or in which Employer is actively preparing to so engage, in each case described in clauses (i), (ii) or
      (iii), within the Territory.&#160; Employee shall be prohibited from engaging in the activities described above within, or with respect to any business in competition with the Employer located within, fifty (50) miles of any of Employer&#8217;s rehabilitation
      clinic locations (the &#8220;Territory&#8221;).</font></div>
  <div style="text-indent: 36pt;">&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Notwithstanding the foregoing, Employee may own the voting common stock of any publicly held corporation so long as it does not
      exceed more than five percent (5%) of the outstanding stock thereof.</font></div>
  <div style="text-indent: 36pt;">&#160;</div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">5</font></div>
    <div id="DSPFPageBreak" style="page-break-after:always;">
      <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 11.&#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Non-Solicitation</u></font>.&#160; For
      a two (2) year period following the termination of the employment of the Employee under this Agreement for any reason, Employee agrees not to, directly or indirectly, for himself or on behalf of any other person or entity (a) solicit or induce, or
      attempt to solicit or induce, any person employed by, or any agent of, Employer, to terminate employee&#8217;s or agent&#8217;s relationship with Employer, nor (b) call on, solicit or divert, or attempt to call on, solicit or divert any person, firm, corporation
      or other entity who was or had been a customer or a patient referral source (including, without limitation, any physician) of Employer who referred ten or more customers or patients to Employer, who is a customer or a patient referral source of
      Employer who has referred ten or more customers or patients to Employer, or who is a prospective customer or a patient referral source of Employer with whom Employee had contact as an employee of Employer and who, within six months of such
      solicitation, Employer was or is actively recruiting as a customer or patient referral source.</font></div>
  <div style="text-indent: 36pt;">&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 12.&#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Confidential Information</u></font>.&#160;


      Employee will not, during or after the termination of this Agreement, disclose any trade secrets, financial and accounting information, customer lists, customer mailing lists, prospective customer lists, lists of referral sources or prospective
      referral sources, or pricing, marketing or advertising plans or methods used by Employer (the &#8220;Confidential Information&#8221;) to any person, firm, corporation, association or other entity for any reason or purpose whatsoever, nor shall Employee make use
      of the Confidential Information for his own purposes or for the benefit of any person, firm, corporation or other entity (except Employer) under any circumstances during or after the termination of this Agreement.&#160; On demand of Employer, at any time,
      Employee shall immediately deliver all printed or written Confidential Information to Employer.&#160; To the extent that Employee&#8217;s property does not contain Confidential Information, Employee may remove all of Employee&#8217;s property (such as computer
      software and tapes) upon termination of this Agreement.&#160; Confidential Information does not include information that (i) currently is generally available to or known by the public or hereafter becomes generally available to or known by the public
      through no fault of Employee, (ii) was already in the possession of Employee on the date of inception of Employee&#8217;s employment by Employer, or (iii) is obtained by Employee from a third party who is under no obligation of confidence to Employer.</font></div>
  <div style="text-indent: 36pt;">&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 13. &#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Reasonableness of Restrictions</u></font>.&#160;


      Employee agrees that (a) the covenants contained in Sections 10, 11 and 12 hereof are necessary for the protection of Employer&#8217;s business goodwill and trade secrets, (b) a portion of the compensation paid to Employee under this Agreement is paid in
      consideration of the covenants herein contained, the sufficiency of which consideration is hereby acknowledged, and if the scope of any restriction contained in Sections 10, 11 and 12 is too broad to permit enforcement of such restriction to its full
      extent, then such restriction shall be enforced to the maximum permitted by law, and the parties hereby consent that such scope may be judicially modified accordingly in any proceeding brought to enforce such restriction.</font></div>
  <div style="text-indent: 36pt;">&#160;</div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">6</font></div>
    <div id="DSPFPageBreak" style="page-break-after:always;">
      <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 14. &#160; &#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Enforcement</u></font>.&#160; Employee
      acknowledges Employee&#8217;s employment with Employer is special and unique in character and that Employee will acquire special skill and training and gain special knowledge during Employee&#8217;s employment with Employer, that the restrictions contained in
      Sections 10, 11 and 12 hereof are reasonable and necessary to protect the legitimate interests of Employer and its affiliates, that Employer would not have entered into this Agreement in the absence of such restrictions, and that any violation of any
      provision of those Sections will result in irreparable injury to Employer.&#160; Employee also acknowledges that Employer shall be entitled to preliminary and permanent injunctive relief, without the necessity of proving actual damages as well as an
      equitable accounting of all earnings, profits and other benefits arising from any such violation, which rights shall be cumulative and in addition to any other rights or remedies to which Employer may be entitled.&#160; The existence of any claim or cause
      of action of Employee against Employer, whether predicated on this Agreement or otherwise,&#160; shall not constitute a defense to the enforcement by Employer of these covenants, except for Employer&#8217;s breach of this Agreement relating to its payment
      obligations to Employee after the termination of Employee&#8217;s employment under the terms of this Agreement.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 15.&#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Copy of Covenants</u></font>.&#160;
      Until the expiration of the applicable restrictions, Employee will provide, and Employer similarly may provide, a copy of the covenants contained in Sections 10, 11 and 12 of this Agreement to any business or enterprise which Employee may (i)
      directly or indirectly own, manage, operate, finance, join, control or participate in the ownership, management operation, financing, or control of, (ii) serve as an officer, director, employee, partner, principal, agent, representative, consultant,
      lender or otherwise, or (iii) with which he may use or permit his name to be used.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 16.&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Special Definition of Employer</u></font>.&#160;


      For the purposes of Sections 10 through 15 above, the definition of Employer shall include any subsidiary or affiliate of Employer, including all affiliated physical therapy partnerships of Employer.</font></div>
  <div><br>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 17. &#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Notices</u></font>.&#160; Any notices
      to be given hereunder by either Party to the other may be effected in writing either by personal delivery, via facsimile or by mail, registered or certified, postage prepaid with return receipt requested:</font></div>
  <div><br>
  </div>
  <div>
    <table cellspacing="0" cellpadding="0" border="0" align="left" id="zab39efa22b4e4314b12be6b9e55b057e" style="width: 100%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">

        <tr>
          <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
          <td style="width: 20%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">If to Employer:</font></div>
          </td>
          <td style="width: 75%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">U.S. Physical Therapy, Inc.</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
          <td style="width: 20%; vertical-align: top;">&#160;</td>
          <td style="width: 75%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">1300 West Sam Houston Parkway South</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
          <td style="width: 20%; vertical-align: top;">&#160;</td>
          <td style="width: 75%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Suite 300</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
          <td style="width: 20%; vertical-align: top;">&#160;</td>
          <td style="width: 75%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Houston, Texas 77042</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
          <td style="width: 20%; vertical-align: top;">&#160;</td>
          <td style="width: 75%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Attention: Chairman of the Board</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
          <td style="width: 20%; vertical-align: top;">&#160;</td>
          <td style="width: 75%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
          <td style="width: 20%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">If to Employee:</font></div>
          </td>
          <td style="width: 75%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Glenn D. McDowell</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
          <td style="width: 20%; vertical-align: top;">&#160;</td>
          <td style="width: 75%; vertical-align: top;">
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">12870 Kingsbridge Lane</font></div>
            <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Houston, Texas 77077</font></div>
          </td>
        </tr>

    </table>
  </div>
  <div style="clear: both;"><br>
  </div>
  <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Mailed notices shall be addressed to the Parties at the addresses set forth above, but each Party may change the address by written notice in
      accordance with this Section 17.&#160; Notices delivered personally or by facsimile shall be deemed communicated upon actual receipt.&#160; Mailed notices shall be deemed communicated three (3) days after mailing.</font></div>
  <div>&#160;</div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">7</font></div>
    <div id="DSPFPageBreak" style="page-break-after:always;">
      <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
  </div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 18.&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Entire Agreement</u></font>.&#160; This
      Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of Employee by Employer, and contains all of the covenants and agreements between the parties with respect to such
      employment in any manner whatsoever.</font></div>
  <div style="text-indent: 36pt;">&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 19.&#160;&#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Headings</u></font>.&#160; The
      headings or titles to sections in this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the heading or title of any section.</font></div>
  <div style="text-indent: 36pt;">&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 20. &#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Amendment or Modification; Waiver</u></font>.&#160;


      No provision of this Agreement may be amended, modified or waived unless such amendment, modification or waiver is authorized by Employer and is agreed to in writing, signed by Employee and by an officer of Employer (other than Employee) thereunto
      duly authorized.&#160; Except as otherwise specifically provided in this Agreement, no waiver by any Party hereto of any breach by any other Party hereto of any condition or provision of this Agreement to be performed by such other Party shall be deemed a
      waiver of a similar or dissimilar provision or condition at the same or at any prior or subsequent time nor shall the receipt or acceptance of Employee&#8217;s employment be deemed a waiver of any condition or provision hereof.</font></div>
  <div style="text-indent: 36pt;">&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 21.&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Assignability</u></font>.&#160;
      Employee shall not assign, pledge or encumber any interest in this Agreement or any part thereof without the express written consent of Employer, this Agreement being personal to Employee.&#160; This Agreement shall, however, inure to the benefit of
      Employee&#8217;s estate, dependents, beneficiaries and legal representatives.&#160; This Agreement shall not be assignable by Employer without the written consent of Employee which will not be unreasonably withheld.&#160; Subject to the terms of this Agreement,
      Employer may merge or consolidate with or into, or transfer substantially all of its assets to, another corporation or other form of business organization without Employee&#8217;s consent, and as a result of such merger, consolidation or transfer, this
      Agreement shall bind the successor of Employer resulting from such merger, consolidation or transfer.&#160; No such merger, consolidation or transfer, however, shall relieve the Parties from liability and responsibility for the performance of their
      respective duties and obligations hereunder.</font></div>
  <div style="text-indent: 36pt;">&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 22.&#160;&#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Governing Law</u></font>.&#160; This
      Agreement shall be interpreted, construed and governed by and in accordance with the internal substantive law of the State of Texas.</font></div>
  <div style="text-indent: 36pt;">&#160;</div>
  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 23.&#160; &#160; &#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Severability</u></font>.&#160; Each
      provision of this Agreement constitutes a separate and distinct undertaking, covenant and/or provision hereof.&#160; In the event that any provision of this Agreement shall finally be determined to be unlawful, such provision shall be deemed severed from
      this Agreement, but every other provision of this Agreement shall remain in full force and effect, and in substitution for any such provision held unlawful, there shall be substituted a provision of similar import reflecting the original intent of
      the Parties hereto to the extent permissible under law.</font></div>
  <div>&#160;</div>
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  <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">IN WITNESS WHEREOF, this Agreement has been duly executed as of the day first written above.</font></div>
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        <td style="width: 50%; vertical-align: top;">&#160;</td>
        <td style="width: 3%; vertical-align: top;">&#160;</td>
        <td style="width: 47%; vertical-align: top;">&#160;</td>
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          <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">U.S. PHYSICAL THERAPY, INC.</font></div>
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        <td style="width: 50%; vertical-align: top;">&#160;</td>
        <td style="width: 3%; vertical-align: top;">&#160;</td>
        <td style="width: 47%; vertical-align: top;">&#160;</td>
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          <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">By:</font></div>
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        <td style="width: 47%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0); text-indent: 18pt;">/s/ <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Jerald L. Pullins</font></td>
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        <td style="width: 50%; vertical-align: top;">&#160;</td>
        <td style="width: 3%; vertical-align: top;">&#160;</td>
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          <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Jerald L. Pullins</font></div>
        </td>
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        <td style="width: 50%; vertical-align: top;">&#160;</td>
        <td style="width: 3%; vertical-align: top;">&#160;</td>
        <td style="width: 47%; vertical-align: top;">
          <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Chairman of the Board of Directors</font></div>
        </td>
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        <td style="width: 50%; vertical-align: top;">&#160;</td>
        <td style="width: 3%; vertical-align: top;">&#160;</td>
        <td style="width: 47%; vertical-align: top;">&#160;</td>
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      <tr>
        <td style="width: 50%; vertical-align: top;">&#160;</td>
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        <td colspan="2" rowspan="1" style="width: 3%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);">/s/ Glenn D. McDowell<br>
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      <tr>
        <td style="width: 50%; vertical-align: top;">&#160;</td>
        <td style="vertical-align: top;" colspan="2">
          <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">GLENN D. McDOWELL</font></div>
        </td>
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<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
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<DESCRIPTION>EXHIBIT 10.4
<TEXT>
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    <div style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-weight: bold;">EXHIBIT 10.4</div>
    <div><br>
    </div>
    <div style="text-align: center; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">AMENDED AND RESTATED EMPLOYMENT AGREEMENT</font></div>
    <div style="text-indent: 36pt;"><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (&#8220;Agreement&#8221;) is entered into and effective as of the 21st day of May, 2019, by
        and between U. S. Physical Therapy, Inc. a Nevada corporation (&#8220;Employer&#8221;), and Graham Reeve (&#8220;Employee&#8221;), and supercedes that certain Employment Agreement between the parties dated as of January 2, 2018.&#160; Employer and Employee may be referred to
        herein collectively as the &#8220;Parties&#8221; and individually as a &#8220;Party.&#8221;&#160; For the purposes of this Agreement, &#8220;Employer&#8221; includes U.S.P.T. Management, Inc.; for the purposes of Sections 10, 11, and 12 &#8220;Employer&#8221; shall include all subsidiaries and
        affiliates (as defined under the Securities Exchange Act of 1934, as amended and regulations promulgated thereunder)</font></div>
    <div style="text-indent: 36pt;"><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 1.&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Term</u></font>.&#160; Employer hereby
        agrees to employ Employee and Employee hereby accepts employment with Employer for a two-year term (the &#8220;Term&#8221;) commencing as of March 1, 2018.&#160; The Term shall automatically renew as of the end of each expiring Term for an additional two-year
        period.&#160; For purposes hereof, the &#8220;Term&#8221; shall refer to the current Term and any renewal of such Term.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 2.&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Duties of Employee</u></font>.&#160;
        Employee is engaged to serve as Co-Chief Operating Officer of Employer and to perform such duties and responsibilities as are customarily performed by persons acting in such capacity or such other duties as may be assigned by Employer from time to
        time.&#160; Employee shall report to the Employer&#8217;s President and Chief Executive Officer and shall perform his duties in accordance with the policies and objectives established by Employer.</font></div>
    <br>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 3.&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Full-Time Employment</u></font>.&#160;
        Employee shall devote substantially all of his working time and talent to the business of Employer during the term hereof and shall diligently and to the best of his ability perform all duties incident to his employment hereunder, using his best
        efforts to promote the interests of Employer.&#160; Employee agrees that he shall not serve as an officer, director, consultant, or employee of any other person or entity, whether or not for compensation, without the prior consent of the Employer&#8217;s
        Board of Directors.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 4.&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Base Compensation</u></font>.&#160;
        Subject to the terms and conditions of this Agreement, as compensation for services rendered and Employee&#8217;s covenants and agreements under this Agreement, Employer shall pay to Employee a base salary of FOUR HUNDRED SEVENTY THOUSAND AND NO/100THS
        DOLLARS ($470,000.00) per year (as adjusted from time to time, the &#8220;Base Compensation&#8221;), payable in accordance with Employer&#8217;s then-prevailing pay practices.&#160; From time to time (but at least once a year) Employer and Employee shall review
        Employee&#8217;s performance, and at that time Employer, in its sole discretion, shall determine whether Employee&#8217;s Base Compensation should be increased.&#160; At no time during the Term hereof will Employee&#8217;s Base Compensation be decreased, without the
        express written consent of Employee.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
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    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 5.&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Additional Compensation</u></font>.&#160;







        Subject to the terms and conditions of this Agreement, in addition to the Base Compensation, Employer may provide incentive compensation in the form of cash bonuses and other incentive awards, including stock options and restricted shares.&#160; The
        amount of any cash bonus and the award of any additional stock options or restricted shares are completely discretionary and will be determined solely by the Board of Directors of Employer or a compensation committee thereof, taking into
        consideration any factor the Board of Directors or compensation committee deems relevant.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 6.&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Business Expenses</u></font>.&#160;
        Employer shall reimburse Employee for business expenses directly and reasonably incurred in the performance of his duties.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 7.&#160;&#160;&#160;&#160;&#160; </font><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;;"><u>Benefits and Plans</u></font>.&#160; Employee shall be entitled to fringe benefits, including vacation days, sick and personal days and company holidays pursuant to the Employer&#8217;s paid time off plan as per
        the Employer&#8217;s employee handbook (provided that paid vacation shall be at least 4 weeks annually), and insurance (health, disability and life), and Employee shall be entitled to participate, subject to all conditions of eligibility, in any employee
        benefit plans which may be adopted by Employer, including without limitation, qualified retirement plan(s), deferred compensation plans, and salary continuation, disability insurance, hospitalization insurance, major medical insurance, medical
        reimbursement and life insurance benefit plans.&#160; Also, Employer shall continue Employee&#8217;s monthly salary for a period of up to ninety (90) continuous days during any period of Employee&#8217;s sickness or disability.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 8.&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Termination</u></font>.&#160; This
        Agreement shall terminate prior to the expiration of the Term hereof upon the occurrence of any one of the following events (each a &#8220;Termination Event&#8221;):</font></div>
    <div style="text-indent: 36pt; margin-left: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 27pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(a)&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Disability</u></font>.&#160;








        In the event that Employee is unable fully to perform his duties and responsibilities hereunder to the full extent required by Employer by reason of illness, injury or incapacity for ninety (90) consecutive days, this Agreement may be terminated by
        Employee or Employer; provided, however, that Employee shall continue to be compensated as provided in this Agreement during such ninety- (90) day period and until termination under this Section 8 and Employee also shall be paid, in a lump sum, a
        special benefit equal to two (2) year&#8217;s Base Compensation, and all Restricted Stock owned by Employee shall immediately become Vested Shares, as such term is defined in the applicable grant agreement and plan documents; and, provided further, that
        Employee will be entitled to receive the benefits, rights and/or payments prescribed under any employee welfare or benefit plan in which Employee was participating at the time of such disability in accordance with the terms and conditions of such
        plans.&#160; In the event of any dispute under this Section 8, Employee shall submit to a physical examination by a licensed physician selected by Employer and reasonably acceptable to Employee.</font></div>
    <div style="text-indent: 27pt; margin-left: 36pt;">&#160; <br>
    </div>
    <div style="text-align: justify; text-indent: 27pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(b)&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Death</u></font>.&#160;
        In the event that Employee dies during the term hereof, Employer shall pay to his executors, legal representatives or administrators an amount equal to one (1) year&#8217;s Base Compensation, and thereafter Employer shall have no further liability or
        obligation hereunder to Employee&#8217;s executors, legal representatives, administrators, heirs or assigns or any other person claiming under or through Employee; provided, however, that all Restricted Stock owned by Employee shall immediately become
        Vested Shares, as such term is defined in the applicable grant agreement and plan documents, and Employee&#8217;s heirs, legal representatives or administrators will be entitled to receive the benefits, rights and/or payments prescribed under any
        employee welfare or benefit plans in which Employee was participating at the time of his death in accordance with the terms and conditions of such plans.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">2</font></div>
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    </div>
    <div style="text-align: justify; text-indent: 27pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(c)&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Cause</u></font>.&#160;&#160;
        Nothing in this Agreement shall be construed to prevent its termination by Employer at any time for &#8220;cause&#8221;.&#160; For purposes of this Agreement, &#8220;cause&#8221; shall mean (i) the willful and material failure of Employee to perform or observe (other than by
        reason of disability as contemplated in paragraph 9(a)) any of the terms or provisions of this Agreement, including the failure of Employee to follow the reasonable written directions of Employer&#8217;s President and Chief Executive Officer or Board of
        Directors, (ii) dishonesty or misconduct on the part of Employee that is or is reasonably likely to be damaging or detrimental to the business of Employer, (iii) conviction of a crime involving moral turpitude, (iv) habitual insobriety or failure
        to perform duties due to abuse of alcohol or drugs, or (v) misappropriation of funds.&#160; Prior to terminating this Agreement on account of Employee&#8217;s failure to perform or observe any of the terms and conditions of this Agreement (but not for any of
        the other enumerated &#8220;causes&#8221; stated in (ii) through (v) above), Employer shall give Employee thirty (30) days written notice and an opportunity to cure such failure to the satisfaction of Employer.&#160; Upon termination for cause, Employer shall pay
        to Employee all sums due to Employee through the date of such termination.&#160; Following such a termination, Employer shall have no further duty or obligation to Employee; provided, however, that Employee shall continue to be bound by Sections 10
        through 16.</font></div>
    <div style="text-indent: 27pt; margin-left: 36pt;">&#160; <br>
    </div>
    <div style="text-align: justify; text-indent: 27pt; margin-left: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(d)&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Voluntary
            Resignation by Employee not for good reason</u></font>.&#160; Upon a voluntary resignation by Employee not &#8220;for good reason&#8221; as defined in Section 9 F. herein, Employer shall pay to Employee all sums due to Employee through the date of such
        termination.&#160; Following such a termination, Employer shall have no further duty or obligation to Employee; provided, however, that Employee shall continue to be bound by Sections 10 through 16.</font></div>
    <div style="text-indent: 27pt; margin-left: 36pt;">&#160; <br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 9.</font>&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Special Benefits.</font></div>
    <div style="text-indent: 27pt; margin-left: 36pt;">&#160;</div>
    <div style="text-align: justify;">
      <div style="text-indent: 36pt;">
        <div>
          <div><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">A.&#160; </font><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Special Benefit in the Event of Termination Without Cause or Resignation for Good
              Cause.</font></div>
        </div>
      </div>
    </div>
    <div style="margin-left: 63pt;">&#160; <br>
    </div>
    <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">In the event of the termination of employment of Employee by Employer without &#8220;cause as cause is defined in Section 8(c)
        hereof, or the resignation of employment by Employee&#160; &#8220;for good reason&#8221; as defined in Section 9 D. hereof (in either case, a &#8220;Termination Event&#8221;), Employee shall be entitled to the following special benefits:</font></div>
    <div style="text-indent: 63pt;">&#160; <br>
    </div>
    <div style="text-align: justify; text-indent: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(i)&#160; Two (2) years&#8217; Base Compensation; and</font></div>
    <div style="text-indent: 63pt;">&#160; <br>
    </div>
    <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(ii) The greater of (i) the bonus paid or payable to Employee with respect to last fiscal year of Employer completed prior to
        the occurrence of the Termination Event or (ii) the average of the bonuses paid to Employee over the three (3) fiscal years of Employer ending with last fiscal year of Employer completed prior to the occurrence of the Termination Event; and</font></div>
    <div style="text-indent: 63pt;">&#160;</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">3</font></div>
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    <div style="text-align: justify; margin-left: 63pt;">&#160;<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(iii) Employee&#8217;s accrued but unused vacation days; and</font></div>
    <div style="margin-left: 63pt;">&#160; <br>
    </div>
    <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(iv) All Restricted Stock owned by Employee shall immediately become Vested Shares, as such term is defined in the applicable
        grant agreement and plan documents</font></div>
    <div style="margin-left: 63pt;">&#160; <br>
    </div>
    <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The aggregate dollar amount of the special benefits described in subsections (i) and (ii) above shall be aggregated and paid
        ratably on a bi-weekly basis over the 24 month period following the Termination Event.</font></div>
    <div style="margin-left: 63pt;">&#160; <br>
    </div>
    <div style="text-align: justify; margin-left: 63pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">If a Change in Control has occurred within six (6) months after, or within twelve (12) months prior to a Termination Event,
        Employee also shall be entitled to a Change of Control benefit of $283,333.00.&#160; For purposes hereof, a &#8220;Change in Control&#8221; is defined as:</font></div>
    <div style="margin-left: 90pt;">&#160; <br>
    </div>
    <div style="text-align: justify; margin-left: 90pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(i)&#160; The transfer or sale by Employer of all or substantially all of the assets of Employer whether or not this Agreement is
        assigned or transferred as a part of such sale;</font></div>
    <div style="margin-left: 90pt;">&#160; <br>
    </div>
    <div style="text-align: justify; margin-left: 90pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(i)&#160; The transfer or sale of more than fifty percent (50%) of the outstanding shares of Common Stock of Employer;</font></div>
    <div style="margin-left: 90pt;">&#160;</div>
    <div style="text-align: justify; margin-left: 90pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(ii) A merger or consolidation involving Employer in a transaction in which the shareholders of Employer immediately prior to
        the merger or consolidation own less than fifty percent (50%) of the company surviving the merger or consolidation; or</font></div>
    <div style="margin-left: 90pt;">&#160; <br>
    </div>
    <div style="text-align: justify; margin-left: 90pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(iii) A merger or consolidation involving Employer in a transaction in which the board members of Employer after the merger or
        consolidation constitute less than fifty percent (50%) of the board of the company surviving the merger or consolidation; or</font></div>
    <div style="margin-left: 90pt;">&#160;</div>
    <div style="text-align: justify; margin-left: 90pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(iv) The voluntary or involuntary dissolution of Employer.</font></div>
    <div style="text-indent: 36pt;">&#160; <br>
    </div>
    <div style="text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160; Employee&#8217;s accrued but unused vacation days shall be paid to Employee within thirty (30) days of the actual date of the termination of
        Employee&#8217;s employment.</font><br>
    </div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">C.&#160;&#160;&#160;&#160;&#160;&#160; In the event Employee&#8217;s employment is terminated (whether by Employer or Employee) as a result of a Termination
        Event, Employee shall be entitled to such medical insurance benefits as he enjoyed prior to his termination for the twenty-four months following such termination and at the same cost to Employee of such benefits as in effect prior to such
        termination.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">4</font></div>
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        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
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    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">D.&#160;&#160;&#160;&#160;&#160;&#160; For purposes of this Agreement, &#8220;for good reason&#8221; means the occurrence of any one or more of the following: (i)
        removal or other termination of Employee as the Co-Chief Operating Officer of Employer, without Employee&#8217;s express written consent; (ii) a reduction of Employee&#8217;s duties, authority or responsibilities or the assignment to Employee of such reduced
        duties, authority or responsibilities, in either case without Employee&#8217;s express written consent, (iii) a reduction by Employer in Employee&#8217;s Base Compensation without Employee&#8217;s express written consent; (iv) the relocation of Employee to a
        location more than 30 miles from Employee&#8217;s then present office location without Employee&#8217;s express written consent (it being understood that Employee shall split his time between Employer&#8217;s headquarters location in Houston, Texas and Employee&#8217;s
        residence, on a proportionate basis as determined by Employer from time to time); or (v) within six months prior to, or within twelve months following, a Change in Control, a material change in the annual financial opportunity in the form of
        additional compensation awarded pursuant to Section 6 herein (as compared to the opportunity awarded during the prior two years).</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 10.&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Non-Competition</u></font>.&#160; At
        all times that Employee remains employed by the Employer and for a two (2) year period following the termination of his employment under this Agreement for any reason, Employee shall not, directly or indirectly, for himself or on behalf of any
        other person or entity as an employee, employer, consultant, agent, lender, principal, partner, stockholder, corporate officer, director, or in any other individual or representative capacity, (i) invest, engage in, or permit his name to be used in
        connection with any business that is in competition with Employer, (ii) accept employment with or render services to a competitor of Employer, as a director, officer, agent partner, employee or consultant, or (iii) solicit or accept from any of the
        customers of Employer or from any person or entity whose business Employer is soliciting, any business of the type which Employer is engaged in or in which Employer is actively preparing to so engage, in each case described in clauses (i), (ii) or
        (iii), within the Territory.&#160; Employee shall be prohibited from engaging in the activities described above within, or with respect to any business in competition with the Employer located within, fifty (50) miles of any of Employer&#8217;s rehabilitation
        clinic locations (the &#8220;Territory&#8221;).</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Notwithstanding the foregoing, Employee may own the voting common stock of any publicly held corporation so long as it does
        not exceed more than five percent (5%) of the outstanding stock thereof.</font></div>
    <div style="text-indent: 36pt;">&#160; <br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 11.&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Non-Solicitation</u></font>.&#160; For
        a two (2) year period following the termination of the employment of the Employee under this Agreement for any reason, Employee agrees not to, directly or indirectly, for himself or on behalf of any other person or entity (a) solicit or induce, or
        attempt to solicit or induce, any person employed by, or any agent of, Employer, to terminate employee&#8217;s or agent&#8217;s relationship with Employer, nor (b) call on, solicit or divert, or attempt to call on, solicit or divert any person, firm,
        corporation or other entity who was or had been a customer or a patient referral source (including, without limitation, any physician) of Employer who referred ten or more customers or patients to Employer, who is a customer or a patient referral
        source of Employer who has referred ten or more customers or patients to Employer, or who is a prospective customer or a patient referral source of Employer with whom Employee had contact as an employee of Employer and who, within six months of
        such solicitation, Employer was or is actively recruiting as a customer or patient referral source.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">5</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 12.&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Confidential Information</u></font>.&#160;







        Employee will not, during or after the termination of this Agreement, disclose any trade secrets, financial and accounting information, customer lists, customer mailing lists, prospective customer lists, lists of referral sources or prospective
        referral sources, or pricing, marketing or advertising plans or methods used by Employer (the &#8220;Confidential Information&#8221;) to any person, firm, corporation, association or other entity for any reason or purpose whatsoever, nor shall Employee make
        use of the Confidential Information for his own purposes or for the benefit of any person, firm, corporation or other entity (except Employer) under any circumstances during or after the termination of this Agreement.&#160; On demand of Employer, at any
        time, Employee shall immediately deliver all printed or written Confidential Information to Employer.&#160; To the extent that Employee&#8217;s property does not contain Confidential Information, Employee may remove all of Employee&#8217;s property (such as
        computer software and tapes) upon termination of this Agreement.&#160; Confidential Information does not include information that (i) currently is generally available to or known by the public or hereafter becomes generally available to or known by the
        public through no fault of Employee, (ii) was already in the possession of Employee on the date of inception of Employee&#8217;s employment by Employer, or (iii) is obtained by Employee from a third party who is under no obligation of confidence to
        Employer.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 13.&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Reasonableness of Restrictions</u></font>.&#160;







        Employee agrees that (a) the covenants contained in Sections 10, 11 and 12 hereof are necessary for the protection of Employer&#8217;s business goodwill and trade secrets, (b) a portion of the compensation paid to Employee under this Agreement is paid in
        consideration of the covenants herein contained, the sufficiency of which consideration is hereby acknowledged, and if the scope of any restriction contained in Sections 10, 11 and 12 is too broad to permit enforcement of such restriction to its
        full extent, then such restriction shall be enforced to the maximum permitted by law, and the parties hereby consent that such scope may be judicially modified accordingly in any proceeding brought to enforce such restriction.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 14.&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Enforcement</u></font>.&#160; Employee
        acknowledges Employee&#8217;s employment with Employer is special and unique in character and that Employee will acquire special skill and training and gain special knowledge during Employee&#8217;s employment with Employer, that the restrictions contained in
        Sections 10, 11 and 12 hereof are reasonable and necessary to protect the legitimate interests of Employer and its affiliates, that Employer would not have entered into this Agreement in the absence of such restrictions, and that any violation of
        any provision of those Sections will result in irreparable injury to Employer.&#160; Employee also acknowledges that Employer shall be entitled to preliminary and permanent injunctive relief, without the necessity of proving actual damages as well as an
        equitable accounting of all earnings, profits and other benefits arising from any such violation, which rights shall be cumulative and in addition to any other rights or remedies to which Employer may be entitled.&#160; The existence of any claim or
        cause of action of Employee against Employer, whether predicated on this Agreement or otherwise,&#160; shall not constitute a defense to the enforcement by Employer of these covenants, except for Employer&#8217;s breach of this Agreement relating to its
        payment obligations to Employee after the termination of Employee&#8217;s employment under the terms of this Agreement.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">6</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 15.&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Copy of Covenants</u></font>.&#160;
        Until the expiration of the applicable restrictions, Employee will provide, and Employer similarly may provide, a copy of the covenants contained in Sections 10, 11 and 12 of this Agreement to any business or enterprise which Employee may (i)
        directly or indirectly own, manage, operate, finance, join, control or participate in the ownership, management operation, financing, or control of, (ii) serve as an officer, director, employee, partner, principal, agent, representative,
        consultant, lender or otherwise, or (iii) with which he may use or permit his name to be used.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 16.&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Special Definition of Employer</u></font>.&#160;







        For the purposes of Sections 10 through 15 above, the definition of Employer shall include any subsidiary or affiliate of Employer, including all affiliated physical therapy partnerships of Employer.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 17.&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Notices</u></font>.&#160; Any notices
        to be given hereunder by either Party to the other may be effected in writing either by personal delivery, via facsimile or by mail, registered or certified, postage prepaid with return receipt requested:</font></div>
    <div>&#160;</div>
    <div>
      <table cellspacing="0" cellpadding="0" border="0" style="width: 100%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;" id="z166628448bd74b2c973020b070a62007">

          <tr>
            <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
            <td style="width: 20%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">If to Employer:</font></div>
            </td>
            <td style="width: 75%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">U.S. Physical Therapy, Inc.</font></div>
            </td>
          </tr>
          <tr>
            <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
            <td style="width: 20%; vertical-align: top;">&#160;</td>
            <td style="width: 75%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">1300 West Sam Houston Parkway South</font></div>
            </td>
          </tr>
          <tr>
            <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
            <td style="width: 20%; vertical-align: top;">&#160;</td>
            <td style="width: 75%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Suite 300</font></div>
            </td>
          </tr>
          <tr>
            <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
            <td style="width: 20%; vertical-align: top;">&#160;</td>
            <td style="width: 75%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Houston, Texas 77042</font></div>
            </td>
          </tr>
          <tr>
            <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
            <td style="width: 20%; vertical-align: top;">&#160;</td>
            <td style="width: 75%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Attention: Chairman of the Board</font></div>
            </td>
          </tr>
          <tr>
            <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
            <td style="width: 20%; vertical-align: top;">&#160;</td>
            <td style="width: 75%; vertical-align: top;">&#160;</td>
          </tr>
          <tr>
            <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
            <td style="width: 20%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">If to Employee:</font></div>
            </td>
            <td style="width: 75%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Graham Reeve</font></div>
            </td>
          </tr>
          <tr>
            <td style="width: 5%; vertical-align: top;" colspan="1">&#160;</td>
            <td style="width: 20%; vertical-align: top;">&#160;</td>
            <td style="width: 75%; vertical-align: top;">
              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">8727 Timberland Trail</font></div>
              <div><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Fair Oaks Ranch, Texas 70815</font> <br>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Mailed notices shall be addressed to the Parties at the addresses set forth above, but each Party may change the address by written notice in
        accordance with this Section 17.&#160; Notices delivered personally or by facsimile shall be deemed communicated upon actual receipt.&#160; Mailed notices shall be deemed communicated three (3) days after mailing.</font></div>
    <div>&#160; <br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 18.&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Entire Agreement</u></font>.&#160; This
        Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of Employee by Employer, and contains all of the covenants and agreements between the parties with respect to
        such employment in any manner whatsoever.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 19.&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Headings</u></font>.&#160; The
        headings or titles to sections in this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the heading or title of any section.</font></div>
    <div>&#160;</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">7</font></div>
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        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 20.&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Amendment or Modification; Waiver</u></font>.&#160;







        No provision of this Agreement may be amended, modified or waived unless such amendment, modification or waiver is authorized by Employer and is agreed to in writing, signed by Employee and by an officer of Employer (other than Employee) thereunto
        duly authorized.&#160; Except as otherwise specifically provided in this Agreement, no waiver by any Party hereto of any breach by any other Party hereto of any condition or provision of this Agreement to be performed by such other Party shall be deemed
        a waiver of a similar or dissimilar provision or condition at the same or at any prior or subsequent time nor shall the receipt or acceptance of Employee&#8217;s employment be deemed a waiver of any condition or provision hereof.</font></div>
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    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 21.&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Assignability</u></font>.&#160;
        Employee shall not assign, pledge or encumber any interest in this Agreement or any part thereof without the express written consent of Employer, this Agreement being personal to Employee.&#160; This Agreement shall, however, inure to the benefit of
        Employee&#8217;s estate, dependents, beneficiaries and legal representatives.&#160; This Agreement shall not be assignable by Employer without the written consent of Employee which will not be unreasonably withheld.&#160; Subject to the terms of this Agreement,
        Employer may merge or consolidate with or into, or transfer substantially all of its assets to, another corporation or other form of business organization without Employee&#8217;s consent, and as a result of such merger, consolidation or transfer, this
        Agreement shall bind the successor of Employer resulting from such merger, consolidation or transfer.&#160; No such merger, consolidation or transfer, however, shall relieve the Parties from liability and responsibility for the performance of their
        respective duties and obligations hereunder.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 22.&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Governing Law</u></font>.&#160; This
        Agreement shall be interpreted, construed and governed by and in accordance with the internal substantive law of the State of Texas.</font></div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Section 23.&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Severability</u></font>.&#160; Each
        provision of this Agreement constitutes a separate and distinct undertaking, covenant and/or provision hereof.&#160; In the event that any provision of this Agreement shall finally be determined to be unlawful, such provision shall be deemed severed
        from this Agreement, but every other provision of this Agreement shall remain in full force and effect, and in substitution for any such provision held unlawful, there shall be substituted a provision of similar import reflecting the original
        intent of the Parties hereto to the extent permissible under law.</font></div>
    <div>&#160;</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">8</font></div>
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        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
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    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">IN WITNESS WHEREOF, this Agreement has been duly executed as of the day first written above.</font></div>
    <div>&#160;</div>
    <table cellspacing="0" cellpadding="0" border="0" style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 100%;" id="ze0dd194a941a4a6b9a7090c2c0caccc0">

        <tr>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">EMPLOYER:</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 3%; vertical-align: top;">&#160;</td>
          <td style="width: 46.94%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">U.S. PHYSICAL THERAPY, INC.</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 3%; vertical-align: top;">&#160;</td>
          <td style="width: 46.94%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">By:</font></div>
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        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 3%; vertical-align: top;">&#160;</td>
          <td style="width: 46.94%; vertical-align: top;">
            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Chris Reading</font></div>
          </td>
        </tr>
        <tr>
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          <td style="width: 3%; vertical-align: top;">&#160;</td>
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            <div style="text-align: left; margin-left: 18pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Chief Executive Officer</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 3%; vertical-align: top;">&#160;</td>
          <td style="width: 46.94%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">EMPLOYEE:</font></div>
          </td>
        </tr>
        <tr>
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        <tr>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">GRAHAM REEVE</font></div>
          </td>
        </tr>

    </table>
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    </div>
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  <div><br>
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<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>ex10_5.htm
<DESCRIPTION>EXHIBIT 10.5
<TEXT>
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    <div style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-weight: bold;">Exhibit 10.5</div>
    <div><br>
    </div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">RESTRICTED STOCK AGREEMENT</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">THIS RESTRICTED STOCK AGREEMENT (this &#8220;<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight:
          bold;">Agreement&#8221;</font>) is made and entered into by and between U.S. Physical Therapy, Inc., a corporation organized under the laws of the State of Nevada (the &#8220;<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;
          font-weight: bold;">Company&#8221;</font>) and an employee of the Company (&#8220;<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Grantee&#8221;</font>) on the ___ day of _______ , 20__ (the &#8220;<font style="font-size:
          10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Grant Date&#8221;</font>), pursuant to the U.S. Physical Therapy, Inc. 2003 Stock Incentive Plan (the &#8220;<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;
          font-weight: bold;">Plan&#8221;</font>).&#160; The Plan is incorporated by reference herein in its entirety.&#160; Capitalized terms not otherwise defined in this agreement shall have the meaning given to such terms in the Plan.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">WHEREAS, Grantee is an employee of the Company, and in connection therewith, the Company desires to grant to Grantee _______
        shares of the Company&#8217;s common stock, par value $.01 per share (the &#8220;<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Common Stock&#8221;</font>), subject to the terms and conditions of this Agreement and the
        Plan, with a view to increasing Grantee&#8217;s interest in the Company&#8217;s welfare and growth; and</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">WHEREAS, Grantee desires to have the opportunity to be a holder of shares of the Common Stock subject to the terms and
        conditions of this Agreement and the Plan.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">NOW, THEREFORE, in consideration of the premises, mutual covenants and agreements contained herein, and other good and
        valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:</font></div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Grant of Common Stock
          and Administration.&#160; </font>Subject to the restrictions, forfeiture provisions and other terms and conditions set forth herein (i) the Company grants to Grantee __________ shares of Common Stock (<font style="font-size: 10pt; font-family:
          &quot;Times New Roman&quot;; font-weight: bold;">&#8220;Restricted Shares&#8221;</font>) (granted per the lapsing schedule described in 2(a) below), and (ii) Grantee shall have and may exercise all rights and privileges of ownership of such shares,
        including, without limitation, the voting rights of such shares and the right to receive any dividends declared in respect thereof.&#160; This Agreement and its grant of Restricted Shares is subject to the terms and condition of the Plan, and the terms
        and conditions of the Plan shall control except to the extent otherwise permitted or authorized in the Plan and specifically addressed in this Agreement.&#160; The Plan and this Agreement shall be administered by the Committee pursuant to the Plan.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Transfer Restrictions.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(a)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;; font-style: italic;">Generally</font>.&#160; Grantee shall not sell, assign, transfer, exchange, pledge, encumber, gift, devise, hypothecate or otherwise dispose of (collectively, &#8220;<font style="font-size:
          10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Transfer&#8221;</font>) any Restricted Shares. The Transfer restrictions of this <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Section </u></font>2
        shall lapse with respect to the ________ Restricted Shares as follows: the Transfer restrictions shall lapse as to&#160; ___ shares of the total Restricted Shares on the&#160; ___day of ____, 20__ and thereafter as to ________ shares of the Restricted Shares
        on the first calendar day of each consecutive quarter (July 1, October 1, January 1, April 1) with the all Transfer restrictions lapsing on the remaining ______ shares as of January 1, _____. The Restricted Shares as to which such Transfer
        restrictions do not apply or so lapse are referred to as &#8220;<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Vested Shares.&#8221;</font></font></div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;">1</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
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    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-style: italic;">(b)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-style: italic;">Dividends, etc.</font>&#160; If the Company (i) declares a dividend or makes a distribution on Common Stock in shares of Common Stock, (ii) subdivides or
        reclassifies outstanding shares of Common Stock into a greater number of shares of Common Stock or (iii) combines or reclassifies outstanding shares of Common Stock into a smaller number of shares of Common Stock, then the number of shares of
        Grantee&#8217;s Common Stock subject to the transfer restrictions of this Section 2 will be proportionately increased or reduced so as to prevent the enlargement or dilution of Grantee&#8217;s rights and duties hereunder. In the event that, in connection with
        an acquisition or merger transaction where the Company is not the surviving entity, if any portion of the Restricted Shares do not become Vested Shares, such Restricted Shares shall not be forfeited in connection with such transaction unless the
        surviving or acquiring entity provides Grantee with securities with a value, conditions and vesting which is comparable to the pre-transaction Restricted Shares (as determined by the Committee in its reasonable discretion) on a similar unvested or
        vested basis.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Forfeiture.&#160; </font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; color: rgb(51, 51, 51);">Except as otherwise provided in Grantee&#8217;s Employment Agreement with the Company, if Grantee&#8217;s employment with the Company
        is terminated by the Company or Grantee for any reason, except for death or disability, then Grantee shall immediately forfeit all Restricted Shares which are not Vested Shares.&#160; If the Grantee&#8217;s employment with the Company is terminated due to
        Grantee&#8217;s death or disability, then all Restricted Shares shall immediately vest pursuant to the terms of the Plan.&#160; Any Restricted Shares forfeited under this Agreement shall automatically revert to the Company and become canceled and such shares
        shall be again subject to the Plan.&#160; Any certificate(s) representing Restricted Shares which include forfeited shares shall only represent that number of Restricted Shares which have not been forfeited hereunder.&#160; Upon the Company&#8217;s request,
        Grantee agrees for itself and any other holder(s) to tender to the Company any certificate(s) representing Restricted Shares which include forfeited shares for a new certificate representing the unforfeited number of Restricted Shares.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Issuance of Certificate.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(a)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The Restricted Shares may not be
        Transferred until they become Vested Shares.&#160; Further, the Restricted Shares may not be transferred and the Vested Shares may not be sold or otherwise disposed of in any manner which would constitute a violation of any applicable federal or state
        securities laws, any rules of the New York Stock Exchange, or violation of Company policy.&#160; The Company shall cause to be issued a stock certificate, registered in the name of the Grantee, evidencing the Restricted Shares upon receipt of a stock
        power duly endorsed in blank with respect to such shares.&#160; Each such stock certificate shall bear the following legend:</font></div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;">2</font></div>
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    <div style="text-align: justify; margin-right: 72pt; margin-left: 72pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE
        SUBJECT TO THE RESTRICTIONS, TERMS AND CONDITIONS (INCLUDING FORFEITURE AND RESTRICTIONS AGAINST TRANSFER) CONTAINED IN THE U.S. PHYSICAL THERAPY, INC. 2003 STOCK INCENTIVE PLAN AND AN AWARD AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER OF
        SUCH SHARES AND U.S. PHYSICAL THERAPY, INC.&#160; A COPY OF THE PLAN AND THE AWARD AGREEMENT ARE ON FILE IN THE CORPORATE OFFICES OF U.S. PHYSICAL THERAPY, INC.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Such legend shall not be removed from the certificate evidencing Restricted Shares until such time as the restrictions imposed by <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Section 2</u></font> hereof have lapsed.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(b)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The certificate issued pursuant
        to this <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>Section 4</u></font>, together with the stock powers relating to the Restricted Shares evidenced by such certificate, shall be held by the Company.&#160; The Company
        shall issue to the Grantee a receipt evidencing the certificates held by it which are registered in the name of the Grantee.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; font-weight: bold;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Tax Requirements.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(a)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;; font-style: italic;">Tax Withholding</font>.&#160; This grant of Restricted Shares is subject&#160; to and the Company shall have the power and the right to deduct or withhold from other amounts payable to Grantee
        from the Company, or require the Grantee to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a
        result of the Plan and this Agreement.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Miscellaneous.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(a)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;; font-style: italic;">Certain Transfers Void</font>.&#160; Any purported Transfer of shares of Common Stock or Restricted Shares in breach of any provision of this Agreement shall be void and ineffectual, and
        shall not operate to Transfer any interest or title in the purported transferee.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(b)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;; font-style: italic;">No Fractional Shares</font>.&#160; All provisions of this Agreement concern whole shares of Common Stock.&#160; If the application of any provision hereunder would yield a fractional share,
        such fractional share shall be rounded down to the next whole share if it is less than 0.5 and rounded up to the next whole share if it is 0.5 or more.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(c)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;; font-style: italic;">Not an Employment or Service Agreement</font>.&#160; This Agreement is not an employment agreement, and this Agreement shall not be, and no provision of this Agreement shall be construed
        or interpreted to create any right of Grantee to continue employment with or provide services to the Company or any of its Affiliates.</font></div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;">3</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
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    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(d)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;; font-style: italic;">Notices</font>.&#160; Any notice, instruction, authorization, request or demand required hereunder shall be in writing, and shall be delivered either by personal delivery, by telegram,
        telex, telecopy or similar facsimile means, by certified or registered mail, return receipt requested, or by courier or delivery service, addressed to the Company at the address indicated beneath its signature on the execution page of this
        Agreement, and to Grantee at his/her address indicated on the Company&#8217;s stock records, or at such other address and number as a party shall have previously designated by written notice given to the other party in the manner hereinabove set forth.&#160;
        Notices shall be deemed given when received, if sent by facsimile means (confirmation of such receipt by confirmed facsimile transmission being deemed receipt of communications sent by facsimile means); and when delivered and receipted for (or upon
        the date of attempted delivery where delivery is refused), if hand-delivered, sent by express courier or delivery service, or sent by certified or registered mail, return receipt requested.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(e)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;; font-style: italic;">Amendment and Waiver</font>.&#160; This Agreement may be amended, modified or superseded only by written instrument executed by the Company and Grantee.&#160; Any waiver of the terms or
        conditions hereof shall be made only by a written instrument executed and delivered by the party waiving compliance.&#160; Any waiver granted by the Company shall be effective only if executed and delivered by a duly authorized executive officer of the
        Company other than Grantee.&#160; The failure of any party at any time or times to require performance of any provisions hereof, shall in no manner effect the right to enforce the same.&#160; No waiver by any party of any term or condition, or the breach of
        any term or condition contained in this Agreement in one or more instances shall be deemed to be, or construed as, a further or continuing waiver of any such condition or breach or a waiver of any other condition or the breach of any other term or
        condition.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(f)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;; font-style: italic;">Governing Law and Severability</font>.&#160; This Agreement shall be governed by the internal laws, and not the laws of conflict, of the State of Nevada.&#160; The invalidity of any provision
        of this Agreement shall not affect any other provision of this Agreement, which shall remain in full force and effect.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(g)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;; font-style: italic;">Successors and Assigns</font>.&#160; Subject to the limitations which this Agreement imposes upon transferability of shares of Common Stock, this Agreement shall bind, be enforceable by
        and inure to the benefit of the Company and its successors and assigns, and Grantee, and Grantee&#8217;s permitted assigns and upon death, estate and beneficiaries thereof (whether by will or the laws of descent and distribution), executors,
        administrators, agents, legal and personal representatives.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(h)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;; font-style: italic;">Community Property</font>.&#160; Each spouse individually is bound by, and such spouse&#8217;s interest, if any, in any Shares is subject to, the terms of this Agreement. Nothing in this
        Agreement shall create a community property interest where none otherwise exists.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(i)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;; font-style: italic;">Entire Agreement</font>.&#160; This Agreement together with the Plan supersede any and all other prior understandings and agreements, either oral or in writing, between the parties with
        respect to the subject matter hereof and constitute the sole and only agreements between the parties with respect to the said subject matter. All prior negotiations and agreements between the parties with respect to the subject matter hereof are
        merged into this Agreement. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party or by anyone acting on behalf of any party, which are not embodied
        in this Agreement or the Plan and that any agreement, statement or promise that is not contained in this Agreement or the Plan shall not be valid or binding or of any force or effect.</font></div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;">4</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(j)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;; font-style: italic;">Compliance with Other Laws and Regulations</font>.&#160; This Agreement, the grant of Restricted Shares and issuance of Common Stock shall be subject to all applicable federal and state
        laws, rules, regulations and applicable rules and regulations of any exchanges on which such securities are traded or listed, and Company rules or policies.&#160; Any determination in which connection by the Committee shall be final, binding and
        conclusive on the parties hereto and on any third parties, including any individual or entity.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(k)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt;
          font-family: &quot;Times New Roman&quot;; font-style: italic;">Independent Legal and Tax Advice</font>.&#160; The Grantee has been advised and Grantee hereby acknowledges that he/she has been advised to obtain independent legal and tax advice
        regarding this Agreement, grant of the Restricted Shares and the disposition of such shares, including, without limitation, the election available under Section 83(b) of the Internal Revenue Code.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160; Counterparts. </font>This

        Agreement may be executed in multiple original counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and the same instrument.</font></div>
    <div><br>
    </div>
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            <td style="width: 7%; vertical-align: top;">&#160;</td>
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              <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Suite 300</font></div>
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            <td style="vertical-align: top; width: 33%; border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
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  <div style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">6</font></div>
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