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NATIONAL MEDICAL HEALTH CARD
CORPORATE INCENTIVE PLAN
SUMMARY PLAN DESCRIPTION
FY 2007
  Introduction
    
    
    2Section 1: Award Levels
    
    
    2Section 2: Calculation of Award
    
    
    21. Individual Performance Element
    
    
    32. Net Income Element
    
    
    33. Gross Profit
    
    
    4Section 3: Definitions
    
    
    5Section 4: Eligibility
    
    
    5Section 5: Award Payments
    
    
    6Section 6: General Provisions
    
    
    6
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FY 2007 CORPORATE INCENTIVE PLAN
 Introduction
     Section 1: Award Levels
    Section 2: Calculation of Award
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FY 2007 CORPORATE INCENTIVE PLAN
 Table 1
 Measures
    
    Weight
    
    Threshold
    
    Target
    
    MaximumIndividual Performance
    
    
    30
    %
    
    
    0
    %
    
    
    100
    %
    
    
    120
    %Net Income
    
    
    50
    %
    
    $
    9,957
    
    
    $
    12,447
    
    
    $
    14,936Gross Profit
    
    
    20
    %
    
    $
    77,712
    
    
    $
    97,141
    
    
    $
    116,569
 1. Individual Performance Element
   2. Net Income Element
   Table 2
 Net Income (% of Plan)
    
    Net Income Element AwardThreshold
    
    
    80
    %
    
    
    50
    %Target
    
    
    100
    %
    
    
    100
    %Maximum
    
    
    120
    %
    
    
    150
    %Example
    
    
    110
    %
    
    
    125
    %
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FY 2007 CORPORATE INCENTIVE PLAN
 3. Gross Profit Element
   Table 3
 Gross Profit (% of Plan)
    
    Gross Profit Element AwardThreshold
    
    
    80
    %
    
    
    50
    %Target
    
    
    100
    %
    
    
    100
    %Maximum
    
    
    120
    %
    
    
    150
    %Example
    
    
    90
    %
    
    
    75
    %
 Example of Total Bonus Opportunity
  à
    
    Eligible Earnings $75,000à
    
    Total Target Incentive = 10%à
    
    Individual Performance = 100%à
    
    Net Income = $12,290à
    
    Gross Profit = $116,569
 ElementTarget %
    
    Target $
    
    Award
    
    Award $Individual
Performance
    
    
    30
    %
    
    $
    2,250
    
    
    
    100
    %
    
    $
    2,250Net Income
    
    
    50
    %
    
    $
    3,750
    
    
    
    93.7
    %
    
    $
    3,513.75Gross Profit
    
    
    20
    %
    
    $
    1,500
    
    
    
    150
    %
    
    $
    2,250Total
    
    
    100
    %
    
    $
    7,500
    
    
    
    107
    %
    
    $
    8,013.75
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FY 2007 CORPORATE INCENTIVE PLAN
 Section 3: Definitions
  à
    
    Actively Employed: Period of time an Associate is employed. Does not
include Associates who are on medical leave or workers compensation.à
    
    Bonus Award: The sum of awards earned under the elements of the Plan:
Individual Performance, Net Income and Gross Profit.à
    
    Bonus Target: The percent of Eligible Compensation representing the Bonus
Award for performance equal to Plan (i.e. Individual Performance plus Net Income plus
Gross Profit equal to Plan).à
    
    Determination Date: The date on which your target and business unit is
fixed for calculation of the Bonus Award. The Determination Date is June
1st of the Plan Year. Your bonus will be based on your target bonus
percent, as in effect on June 1st, 2007.à
    
    Net Income: As reported in NMHCs SEC filings, Gross Sales minus taxes,
interest, depreciation, and other expenses excluding special, non-recurring charges.
For purposes of the Plan, Net Income results are reviewed and approved by the
compensation committee of the Board of Directors.à
    
    Eligible Compensation: The following types of earnings, paid during the
Plan Year, are included as eligible compensation: base pay, non-exempt overtime,
holiday, vacation, FTO, and shift differential, as applicable. All other forms of pay
are not considered eligible compensationà
    
    Participant: An Associate who has met the eligibility criteria outlined in
accordance with Section 4.à
    
    Plan:The 2007 Corporate Incentive Plan as outlined in this Summary Plan
Description.à
    
    Plan Year: The fiscal year beginning July 1, 2006 and ending June 30, 2007.
 Section 4: Eligibility
  à
    
    Associates who participate in any sales-based or other specific
incentive compensation plan, orà
    
    Non-exempt Member Relation Associates who participate in the Member
Relation Incentive Plan, orà
    
    Consultants, Contract and Temporary Associates
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FY 2007 CORPORATE INCENTIVE PLAN
     Section 5: Award Payments
     Section 6: General Provisions
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FY 2007 CORPORATE INCENTIVE PLAN
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