Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(e) On July 27, 2012, our board approved a 2012 cash bonus plan for our Chief Executive Officer, Chief Operating Officer and Chief Financial Officer. Under the plan, these executive officers may earn a cash bonus for 2012 (payable early in 2013) of between 50% and 125% of a target amount. The target amounts for the executive officers are between 37.5% and 50.0% of their respective base salaries. The compensation committee has discretion to determine the executive officers' satisfaction of the quantitative (70% of the bonus) and subjective (30% of the bonus) metrics for bonus eligibility. The quantitative metrics include EBITDA (adjusted for matters as the compensation committee determines appropriate), orders booked for our software-as-a-service product offerings and customer retention. The subjective metrics vary for each officer based on organizational responsibility.

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