2006 LONG-TERM EQUITY COMPENSATION PLAN
 
 
                                                                    
                           PSYCHIATRIC SOLUTIONS, INC.
 
                     2006 LONG-TERM EQUITY COMPENSATION PLAN
 
     The 2006 Long-Term Equity Compensation Plan (the "Plan") of Psychiatric
Solutions, Inc. (the "Company") will be administered by the Compensation
Committee of the Board of Directors (the "Committee"). The Company's executive
officers and certain key employees (together, the "Eligible Employees") will be
eligible to participate in the Plan.
 
1.   Stock Option Grants.
 
     (a)  If the Company's adjusted EPS for the current fiscal year (the
          "Current Year EPS") does not exceed the Company's adjusted EPS for the
          prior fiscal year (the "Prior Year EPS") by at least 20%, no stock
          options will be granted.
 
     (b)  If the Company's Current Year EPS exceeds the Company's Prior Year EPS
          by not less than 20%, and not more than 30%, the Company will grant
          stock options to the Eligible Employees to purchase that number of
          shares of Common Stock which is equal to not less than 2.00%, and not
          more than 3.00%, of the Company's aggregate total of issued and
          outstanding shares of Common Stock as of the grant date, the exact
          number to be determined in the sole discretion of the Committee.
 
     (c)  If the Company's Current Year EPS exceeds the Company's Prior Year EPS
          by more than 30%, the Company will grant stock options to the Eligible
          Employees to purchase that number of shares of Common Stock which is
          equal to 3.00% of the Company's aggregate total of issued and
          outstanding shares of Common Stock as of the grant date.
 
2.   Allocation of Stock Options. In the event stock options are granted under
     the Plan, the Committee shall meet with the Company's Chief Executive
     Officer on or before March 31 of the following fiscal year to determine the
     allocation of the stock options to the Eligible Employees.
 
3.   Vesting and Terms of Stock Options. Any stock options granted pursuant to
     the Plan shall be issued under the Company's Equity Incentive Plan and
     subject to all of the terms and conditions of the Company's Equity
     Incentive Plan. In addition, such stock options shall vest and become
     exercisable over three years, with 25% vesting on the date of grant and 25%
     vesting on the anniversary of the date of grant over the next three years.