EXHIBIT 10.26


DESCRIPTION OF COMPENSATION PROGRAM FOR 
NAMED EXECUTIVE OFFICERS FOR 
FISCAL YEAR ENDED MARCH 31, 2007




          On
July 25, 2006, a committee comprised of all of the independent directors of
Quality Systems, Inc. (the “Company”), approved revisions to the compensation
program for the Company’s key personnel, including its named executive
officers, for the fiscal year ended March 31, 2007. On January 29, 2007, a
committee comprised of all the independent directors of the Company approved
further revisions to the compensation program. The compensation program, as
revised, includes cash salary levels and both non-equity and equity incentive
compensation components as described below.


          Cash
salary levels for the Company’s named executive officers were set as follows:


	
 

	
 


	
•

	
Lou
  Silverman – $400,000, effective November 1, 2006 (unchanged from salary level
  that became effective November 1, 2005);


	
 

	
 


	
•

	
Pat Cline –
  increased to $450,000, effective November 1, 2006;


	
 

	
 


	
•

	
Greg Flynn –
  increased to $230,000, effective November 1, 2006; and


	
 

	
 


	
•

	
Paul Holt –
  increased to $230,000, effective July 23, 2006.





          The
non-equity incentive compensation component for named executive officers
provides as follows:


	
 

	
 


	
(i)

	
for Lou
  Silverman, the Company’s President and Chief Executive Officer, cash
  compensation of up to $450,000 may be earned based on meeting certain target
  increases in earnings per share (“EPS”) performance and revenue growth during
  the fiscal year as well as meeting certain operational requirements
  established by the Board of Directors; of the total $450,000 potential cash
  compensation, 40% is allocated to the EPS performance criteria, 40% is
  allocated to the revenue growth criteria and the remaining 20% is
  discretionary and is allocated in part to the operational requirements
  criteria.


	
 

	
 


	
(ii)

	
for Pat
  Cline, the President of the Company’s NextGen Healthcare Information Systems
  Division, cash compensation of up to $500,000 may be earned based on meeting
  certain target increases in EPS performance and revenue growth during the
  fiscal year as well as meeting certain operational requirements established
  by the Board of Directors; of the total $500,000 potential cash compensation,
  40% is allocated to the EPS performance criteria, 40% is allocated to the
  revenue growth criteria and the remaining 20% is discretionary and is
  allocated in part to the operational requirements criteria.











	
 

	
 


	
(iii)

	
for Greg
  Flynn, the Executive Vice President/General Manager of the Company’s QSI
  Division, cash compensation of up to $70,000 may be earned based upon the
  achievement of certain qualitative and quantitative goals related to both QSI
  Division performance and other corporate objectives as approved by the
  Compensation Committee of the Board of Directors and the Board of Directors;
  of the total $70,000 potential cash compensation, payment of up to $50,000 is
  based on achievement of quantitative goals, and payment of the remaining
  amount (up to the $70,000 total) is discretionary based on achievement of
  qualitative goals; and 


	
 

	
 


	
(iv)

	
for Paul
  Holt, the Company’s Chief Financial Officer and Secretary, cash compensation
  of up to $70,000 may be earned based upon the achievement of certain
  qualitative goals as approved by the Compensation Committee and the Board of
  Directors. 





          The
equity incentive component of the compensation program provides that the named
executive officers are eligible to receive an aggregate of up to 160,000
options to purchase the Company’s common stock based on meeting certain target
increases in EPS performance and revenue growth during the fiscal year as
follows: Louis Silverman - 40,000 options; Patrick Cline - 100,000 options;
Greg Flynn - 10,000 options; and Paul Holt - 10,000 options. Of the total
160,000 potential options, 50% are allocated to the EPS performance criteria
and 50% are allocated to the revenue growth criteria. If earned, the options
would be issued pursuant to one of the Company’s shareholder-approved option
plans, have an exercise price equal to the closing price of the Company’s
shares on the Nasdaq Global Select Market (or such other market upon which such
shares then trade) as of the date of grant, a term of five years, vest in four
equal, annual installments commencing one year following the date of grant and
be granted pursuant to the Company’s standard stock option agreement.


          On
May 31, 2007, the Compensation Committee and the independent directors of the
Board authorized the Company to issue the following awards under the equity and
non-equity compensation components, with the cash payments to be made following
the filing of the Company’s Form 10-K for the fiscal year ended March 31, 2007
and the options to be granted on the third trading day following the release of
the Company’s earnings for the fourth quarter of its 2007 fiscal year:


	
 

	
 

	
 


	
 

	
•

	
Lou
  Silverman is to receive cash totaling $228,000, comprising $72,000
  attributable to the Company’s performance under the EPS performance criteria,
  $126,000 attributable to the Company’s performance under the revenue growth
  criteria, and $30,000 attributable to the discretionary component. In
  addition, Mr. Silverman is to receive options to purchase up to 22,000 shares
  of the Company’s common stock.


	
 

	
 

	
 


	
 

	
•

	
Pat Cline is
  to receive cash totaling $320,000, comprising $80,000 attributable to the
  Company’s performance under the EPS performance criteria, $140,000
  attributable to the Company’s performance under the revenue growth criteria,
  and $100,000 attributable to the discretionary component. In addition,





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Mr. Cline
  is to receive options to purchase up to 55,000 shares of the Company’s common
  stock.


	
 

	
 

	
 


	
 

	
•

	
Greg Flynn
  is to receive cash totaling $70,000, comprising payment of $50,000 under the
  quantitative goal component and $20,000 under the discretionary qualitative
  goal component. In addition, Mr. Flynn is to receive options to purchase up
  to 5,500 shares of the Company’s common stock.


	
 

	
 

	
 


	
 

	
•

	
Paul Holt is
  to receive cash totaling $70,000. In addition, Mr. Holt is to receive
  options to purchase up to 5,500 shares of the Company’s common stock.





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