5.	Software Licenses

The Company was previously party to an agreement that provided the Company the right to distribute certain third-party software on a per-user basis up to 35,000,000 licenses over a four-year period for $6.4 million. The arrangement required the Company to pay a per-user license fee for licenses distributed in excess of 35,000,000. The cost was amortized to cost of revenue over a 3.5 year period ended May 2012, based on the greater of actual usage or the straight line method.

In 2011, the Company entered into a new agreement that provides the Company the right to distribute this third-party software on an unlimited basis through May 2016 at a total cost of $10.2 million. To the extent billed license revenue over a four-year period exceeds $460 million, the Company would be required to pay additional fees. The additional cost of $10.2 million is being amortized to cost of revenue over the four-year period beginning in June 2012 (the expiration of the previous agreement), based on the straight line method.

Amortization expense related to these agreements was approximately $0.7 million and $0.4 million for the three months ended March 31, 2013 and 2012, respectively.