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                                                                   EXHIBIT 10.12


                           HORIZON HEALTH CORPORATION
                            BONUS PLAN - FISCAL 2004

James K. Newman:        Shall have a bonus base of one hundred (100%) percent of
                        fiscal 2004 base salary; and shall earn a bonus for
                        fiscal 2004 from zero (0%) percent to one hundred fifty
                        (150%) percent of fiscal 2004 base salary based upon the
                        Company's actual audited fiscal 2004 earnings per share
                        as compared to budgeted fiscal 2004 earnings per share.

Ronald C. Drabik:       Shall have a bonus base of fifty (50%) percent of fiscal
                        2004 base salary; and shall earn a bonus for fiscal 2004
                        from zero (0%) percent to seventy five (75%) percent of
                        fiscal 2004 base salary based upon the Company's actual
                        audited fiscal 2004 earnings per share as compared to
                        budgeted fiscal 2004 earnings per share.

 Donald W. Thayer:      Shall have a bonus base of fifty (50%) percent of fiscal
                        2004 base salary; and shall earn a bonus for fiscal 2004
                        from zero (0%) percent to seventy five (75%) percent of
                        fiscal 2004 base salary based upon the Company's actual
                        audited fiscal 2004 earnings per share as compared to
                        budgeted fiscal 2004 earnings per share.

David K. White, Ph.D.
President-HMHM          Shall have a bonus base of sixty (60%) percent of fiscal
                        2004 base salary; and shall earn a bonus for fiscal 2004
                        from zero (0%) percent to eighty-two and one half
                        (82.5%) percent, based seventy-five (75%) percent upon
                        achieving HMHM operating cash flow targets, and based
                        twenty-five (25%) percent upon actual audited Company
                        fiscal 2004 earnings per share as compared to budgeted
                        fiscal year 2004 earnings per share.


Frank J. Baumann
President - SRM and
ProCare                 One Nurses Shall have a bonus base of sixty (60%)
                        percent of fiscal 2004 base salary; and shall earn a
                        bonus for fiscal 2004 from zero (0%) percent to
                        eighty-two and one half (82.5%) percent, based
                        seventy-five (75%) percent upon achieving SRM and
                        ProCare operating cash flow targets, and based
                        twenty-five (25%) percent upon actual audited Company
                        fiscal 2004 earnings per share as compared to budgeted
                        fiscal year 2004 earnings per share.

Jackie L. James
President - HBS         Shall have a bonus base of sixty (60%) percent of fiscal
                        2004 base salary; and shall earn a bonus for fiscal 2004
                        from zero (0%) percent to eighty-two and one half
                        (82.5%) percent, based seventy-five (75%) percent upon
                        achieving HBS operating cash flow targets, and based
                        twenty-five (25%) percent upon actual audited Company
                        fiscal 2004 earnings per share as compared to budgeted
                        fiscal year 2004 earnings per share.

Bonuses based on earnings per share will be earned on a prorated basis, with
zero (0%) percent of bonus base earned in the event the Company achieves less
than eighty-five (85%) percent of budgeted earnings per share for the fiscal
year, fifty (50%) percent earned at eight-five (85%) percent achievement, and
thereafter graduated up to one hundred fifty (150%) percent in the event the
Company achieves one hundred fifteen (115%) percent or more of budgeted fiscal
2004 earnings per share. Bonus amounts based on subsidiary operating cash flow
targets will be earned on a prorated basis, with zero (0%) percent in the event
eighty (80%) percent, or less, performance is achieved, and thereafter graduated
up to one hundred (100%) percent earned at one hundred (100%) percent
achievement. An additional one third (1/3) of amounts otherwise earned by an
executive whose subsidiary achieves one hundred (100%) percent operating cash
flow budget shall be earned prorata for achieving one hundred (100%) percent to
one hundred twenty (120%) percent of the subsidiary operating cash flow budget.