exv10w25



 






Exhibit 10.25









PURPOSE


Activant Solutions’ Incentive Bonus Plan (“the Plan”) provides incentives to participants to
assist the company in achieving its financial goals.



 PLAN PERIOD



The Plan Period is consistent with the Company’s fiscal year (October 1 — September 30). Each
Plan Period stands alone.




ELIGIBILITY


The Target Incentive Compensation opportunities (“TICs”) and jobs / job levels covered by the
Plan are reviewed and approved by the Chief Executive Officer. Employees in approved jobs /
levels are eligible to participate in the Plan. To become an active participant in the Plan
(“Plan Participant”), candidates must be regular, full-time employees without concurrent
participation in another Company incentive plan, be recommended by their management for
participation, and be approved by the Senior Vice President of Human Resources. Participation,
or changes in participation such as a change in TIC, will take effect with the start of the
fiscal quarter immediately following the associated status change.








Example
1 — Date Participation Begins


Employee receives a promotion effective February 1 and because of the promotion is now in an
eligible job and job level to participate in the Plan. If approved, the earliest date the
employee would become a Plan Participant is April 1 — the beginning of fiscal Q3.






Any participant
who has a change in their plan target (including a reduction or removal from the Plan) with an
effective date after the beginning of a quarter will have that change impact their IB
calculation at the beginning of the next quarter.







Example
2 — Date TIC Change is Effective


Plan Participant has a TIC increase of $2,000 with an effective date of November 1. Plan
calculations will not be affected by the change until the quarter that begins January 1.







FINANCIAL
COMPONENTS


Company Performance Targets:





	 	•	 	Quarterly and annual adjusted EBITDA
	 
	 	 	 	Earnings Before Interest, Taxes, Depreciation, and Amortization as defined by
Activant’s existing bank loan agreements, referred to in this document as “adjusted
EBITDA”.
	 
	 	•	 	Quarterly and annual revenue growth

	 
	 	 	 	Pre-tax income from the sale of goods and services.




QUARTERLY ACHIEVEMENT AWARDS




For fiscal quarters 1 — 3, a Quarterly Achievement Award may be made, at the Company’s
discretion, when minimum performance thresholds for EBITDA and revenue growth have been met. The
payment amount




IB Plan Document — FY 2007 — Corporate




 









 









will capped at 25% of the participant’s Target Annual Incentive for that quarter and will take
year-to-date, as well as quarterly, performance into account.



FINAL PLAN PAYMENT (includes Q4 quarterly award & annual
overachievement, if applicable) 

After the end of the Plan Period, audited annual financial
results are used to determine a participant’s Target Annual Award, including any
“overachievement,” given the company’s actual performance for the fiscal year. This Target Annual
Award is then compared to the cumulative total of Quarterly Achievement Award payments (if any)
made over the Plan Period and if the total of actual year-to-date Quarterly Achievement Award
payments is:





less than the Target Annual Award, Plan Participants will receive the
difference as a Final Plan Payment.




more than the Target Annual Award, no further payments are made and
the Plan is considered closed for the Plan Period.


At its discretion, the Company may choose to split the Final Plan Payment into a Q4 quarterly
payment and an Overachievement Plan Payment. The Overachievement Plan Payment will be computed as
discussed above, however, the additional quarterly payment will be factored into the actual
year-to-date IB payment total for determining the overachievement payment.



Note:
Participants removed from the Plan as of Q4 or earlier are ineligible to receive a Final
Plan Payment.



See page 3, “Calculation Examples” for an illustration of how the Final Plan Payment is
determined.








IMPORTANT NOTES:




EXCEPTIONS TO ANY PLAN PROVISION IN THIS DOCUMENT REQUIRE SPECIFIC APPROVAL BY THE SENIOR VICE

PRESIDENT OF HUMAN RESOURCES.



There is no vested entitlement to any bonus and no allowance will be made for factors beyond the
control of Plan Participants that either adversely or favorably affect the Plan’s performance. Bonus payments are made at the sole
discretion of the Chief Executive Officer (subject to authorization by the Board of Directors or the Compensation Committee of the Board of
Directors). Plan participants are advised not to assume they will receive any payments under the Plan in advance of any such payment; target
awards represent “pay-at-risk” and as such should not be prospectively relied on to meet financial commitments. Incentive bonus plans and
payment terms, including individual participation and eligibility for payment, may be changed at any time, retroactively or
prospectively, with or without prior notice, at the discretion of the Chief Executive Officer and all Company incentive plans require review &
approval by the Chief Executive Officer. No statement, expressed or implied, or any other feature of the Plan affects the
employment-at-will status of Plan Participants.









IB Plan Document — FY 2007 — Corporate




 









 










CALCULATION EXAMPLES








Example
3 — Final Plan Payment Calculation


Participant has a $10,000 Target Annual Incentive and has received a cumulative total of $6,875 in
Quarterly Achievement Awards. Annual company performance resulted in revenue greater than $412.1M
and achievement of 101% of the adjusted EBITDA target. The Final Plan Payment calculation would
be:








Example
4 — Final Plan Payment Calculation, Less Than Full
Year Participation


If Participation began Q2, the Target Annual Award is pro-rated to determine the Final Plan
Payment:














IB Plan Document — FY 2007 — Corporate