EXHIBIT 10.26
**Summary of 2005 Management Incentive Plan for Executive Officers of Applix, Inc.**
     On March 9, 2005, the Compensation Committee (the “Compensation Committee”) of the Board ofDirectors of Applix, Inc. (the “Company”) established a bonus program for fiscal year 2005 for theCompany’s executive officers (the “2005 Bonus Plan”). Bonuses will be determined in part pursuantto a formula based on corporate financial performance goals and determined in part on adiscretionary basis by the Compensation Committee based on achievement of individual goals. The2005 Bonus Plan is subject to adjustment or modification by the Compensation Committee at any time.The following summarizes the bonus arrangement for each of the Company’s executive officers:
**David Mahoney**
     Mr. Mahoney’s target bonus under the 2005 Bonus Plan is $165,000 (or 60% of his base salary),comprised of quarterly target bonuses of $28,875 payable following each quarter based upon theachievement of quarterly corporate financial goals and an annual target bonus of $49,500 payableafter the end of 2005 based upon the achievement of individual goals.
     Quarterly Goals
     Mr. Mahoney’s quarterly bonuses are based on the Company achieving specified targets for eachquarter for revenue (upon which 50% of his quarterly target bonus is based) and operating income(upon which 50% of his quarterly target bonus is based). The Company will pay the portion of thequarterly target bonus tied to revenue if the Company attains at least 88% of the quarterly revenuetarget, with (i) 50% payable if the quarterly target is 88% achieved and an additional 4.1667%payable for each percentage point of achievement above 88% to 100% achievement, (ii) 100% payableif the quarterly target is 100% achieved, (iii) an additional 3% payable for each percentage pointof achievement above 100% to 110%, and (iv) an additional 5% payable for each percentage point ofachievement above 110% to 130% (for a maximum payment of 230% of the bonus target). The Companywill pay the portion of the quarterly target bonus tied to operating income if the Company attainsat least 75% of the quarterly operating income target, with (i) 25% payable if the quarterly targetis 75% achieved and an additional 3% payable for each percentage point of achievement above 75% to100%, (ii) 100% payable if the quarterly target is 100% achieved, (iii) an additional 1.5% payablefor each percentage point of achievement above 100% to 110%, and (iv) an additional 2% for eachpercentage point of achievement above 110% to 120% (for a maximum payment of 135% of the bonustarget).
     Annual Goals
     Mr. Mahoney is eligible to receive a bonus of up to $49,500 after the end of 2005 based on theachievement of individual goals established by the Compensation Committee for 2005. TheCompensation Committee shall determine, in its discretion, the extent to which Mr. Mahoney has metsuch individual goals. In the event of a change in control of the Company, the annual bonus shallbe pro-rated and paid at the time of such change in control.
 

 

**Milton Alpern**
     Mr. Alpern’s target bonus under the 2005 Bonus Plan is $100,000 (or 50% of his base salary),comprised of quarterly target bonuses of $17,500 payable following each quarter based upon theachievement of quarterly corporate financial goals and an annual target bonus of $30,000 payableafter the end of 2005 based upon the achievement of individual goals.
     Quarterly Goals
     Mr. Alpern’s quarterly bonuses are determined in the same manner as Mr. Mahoney’s set forthabove.
     Annual Goals
     Mr. Alpern is eligible to receive a bonus of up to $30,000 after the end of 2005 based on theachievement of individual goals established by Mr. Mahoney for 2005. The Compensation Committeeshall determine, in consultation with Mr. Mahoney, the extent to which Mr. Alpern has met suchindividual goals. In the event of a change in control of the Company, the annual bonus shall bepro-rated and paid at the time of such change in control.
**Michael Morrison**
     Mr. Morrison’s target bonus under the 2005 Bonus Plan is $180,000 (or 100% of his basesalary), comprised of quarterly target bonuses of $40,500 payable following each quarter based uponthe achievement of quarterly corporate financial goals and an annual target bonus of $18,000payable after the end of 2005 based upon the achievement of individual goals.
     Quarterly Goals
     Mr. Morrison’s quarterly bonuses are based on the Company achieving specified targets for eachquarter for revenue (upon which 55% of his quarterly target bonus is based) and operating income(upon which 45% of his quarterly target bonus is based). Mr. Morrison’s quarterly bonuses areotherwise determined in the same manner as Mr. Mahoney’s set forth above.
     Annual Goals
     Mr. Morrison is eligible to receive a bonus of up to $18,000 after the end of 2005 based onthe achievement of individual goals established by Mr. Mahoney for 2005. The Compensation Committeeshall determine, in consultation with Mr. Mahoney, the extent to which Mr. Morrison has met suchindividual goals. In the event of a change in control of the Company, the annual bonus shall bepro-rated and paid at the time of such change in control.
**Craig Cervo**
 

 

     Mr. Cervo’s target bonus under the 2005 Bonus Plan is $60,000 (or 30% of his base salary),comprised of quarterly target bonuses of $12,000 payable following each quarter based upon theachievement of quarterly corporate financial goals and an annual target bonus of $12,000 payableafter the end of 2005 based upon the achievement of individual goals.
     Quarterly Goals
     Mr. Cervo’s quarterly bonuses are based on the Company achieving specified targets for eachquarter for revenue (upon which 50% of his quarterly target bonus is based) and operating income(upon which 50% of his quarterly target bonus is based). The Company will pay the portion of thequarterly target bonus tied to revenue if the Company attains at least 88% of such quarterlyrevenue target, with (i) 50% payable if quarterly target is 88% achieved and an additional 4.1667%payable for each percentage point of achievement above 88% to 100% achievement, (ii) 100% payableif the quarterly target is 100% achieved, and (iii) an additional 2% payable for each percentagepoint of achievement above 100% to 120% (for a maximum payment of 140% of the bonus target). TheCompany will pay the portion of the quarterly target bonus tied to operating income if the Companyattains at least 75% of the quarterly operating income target, with (i) 25% payable if thequarterly target is 75% achieved and an additional 3% payable for each percentage point ofachievement above 75% to 100%, (ii) 100% payable if the quarterly target is 100% achieved, and(iii) an additional 1.5% payable for each percentage point of achievement above 100% to 110% (for amaximum payment of 115% of the bonus target).
     Annual Goals
     Mr. Cervo is eligible to receive a bonus of up to $12,000 after the end of 2005 based on theachievement of individual goals established by Mr. Mahoney for 2005. The Compensation Committeeshall determine, in consultation with Mr. Mahoney, the extent to which Mr. Cervo has met suchindividual goals. In the event of a change in control of the Company, the annual bonus shall bepro-rated and paid at the time of such change in control.