Compensation Model

The common TUS Divisional shareholder compensation system is comprised of three (3) elements:

A.  Urology Practice Retainage calculation

Recorded on a TUS Pod basis. Urology Profit/Retainage is 90% of each physicians' Allocated Net Revenue less Allocated Expenses

1. YTD Net Revenue is allocated based on YTD Production (share of total cash receipts less drug cash receipts)

2. YTD Expense less High Dollar procedure costs are allocated 75% equally and 25% production.

3. High Dollar drug and procedure are allocated based on each physician's actual YTD utilization and defined as

B.  Ancillary Service Retainage calculation

TUS Division will receive ancillary credits for the below services during the reporting period at any TxO facility

Patients that receive infusion treatments

Patients that receive radiation treatments for urologic conditions

CT and MRI scans ordered

Laboratory and Pathology services ordered

TUS Division will allocate infusion and radiation ancillary credits based upon 50% new patients with cancer and 50% prior year participation

TUS Division will allocate CT and MRI scans ordered equally

TUS Division will allocate Laboratory and Pathology services ordered equally

C.  Annual Profitability calculation

10% of the Urology Profit/Retainage will be allocated to each shareholder based on the

weighted average operating leverage of each shareholder’s POD

TUS Division will allocate Laboratory and Pathology services ordered equally

Illustrative Urology Practice Retainage Calculation

Illustrative Urology Annual Profitability Bonus Calculation