Exhibit 10.1



 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered
into effective as of August 31, 2009 (the “Effective Date”), by and between Integral Systems, Inc., a Maryland corporation (the “Company”), and H. Marshal Ward (the “Executive”). 
 NOW, THEREFORE, in consideration of the mutual promises made below, the parties agree as follows: 
  

	1.	Employment, Duties and Acceptance. 

 1.1
Employment. 
 (a) Effective upon the Effective Date, the Company shall employ Executive as its Chief Operating Officer. Executive shall
have such powers, perform such duties and fulfill such responsibilities associated with the legal function of the Company and such additional management duties as may be determined by the Company’s Chief Executive Officer (the “CEO”)
from time to time, including responsibility for guiding and overseeing the operations and growth of the Company’s Commercial, Government and Satellite Communications Systems Groups. Executive shall report to the CEO. Executive accepts such
employment and shall perform his duties faithfully and to the best of his abilities. 
 (b) Executive shall devote substantially all of his
full working time and creative energies to the performance of his duties hereunder and will at all times devote such additional time and efforts as are reasonably sufficient for fulfilling the significant responsibilities entrusted to him. So long
as such activities, in the aggregate, do not interfere with the performance by Executive of his duties hereunder, Executive shall be permitted a reasonable amount of time to: (i) supervise his personal, passive investments; and
(ii) participate (as board member, officer or volunteer) in civic, political and charitable activities. 
 1.2 Place of
Employment. Executive’s principal place of employment shall be in Columbia, Maryland, subject to such travel as may be reasonably required by his employment pursuant to the terms hereof. 
  

	2.	Term of Employment. 

 2.1 Term of Employment.
Executive agrees that the initial term of this Agreement shall be for a period of three (3) years commencing on the Effective Date (as may be extended, the “Term”). At the end of the initial Term or at the end of any twelve
(12) month renewal period (as described in Section 2.2 below), the Term of this Agreement may automatically extend as provided below in Section 2.2. Notwithstanding anything to the contrary contained herein, the Company may terminate
Executive’s employment at any time with or without Cause, subject to the provisions of Section 4 below. 
 2.2 Renewal
Periods. If this Agreement has not been terminated earlier in accordance with the provisions of this Agreement, at the end of the initial Term or any twelve (12) month renewal period, the Term shall be extended automatically for an
additional twelve 







 
(12) month period unless either party provides written notice of non-renewal to the other party at least one hundred eighty (180) days prior to the last
day of the initial Term or any renewal period, as applicable. 
  

	3.	Compensation. 

 3.1 Salary. As compensation
for all services to be rendered pursuant to this Agreement, the Company shall pay to Executive during the Term a salary of $300,000 per annum (the “Base Salary”), which shall be pro-rated for calendar year 2009, less such deductions as
shall be required to be withheld by applicable laws and regulations or as otherwise authorized by Executive. The Base Salary shall accrue from and after the Effective Date, and shall be payable during the Term, in arrears in equal periodic
installments and in accordance with the practices of the Company in effect from time to time for the payment of salaries to employees of the Company, but in any event not less frequently than monthly. Executive’s Base Salary shall be reviewed
at least annually, at the beginning of each fiscal year, and may be increased (but not decreased) based upon the evaluation of Executive’s performance and the compensation policies of the Company in effect at the time of each such review.

 3.2 Additional Compensation. During the Term, Executive shall be entitled to participate, in accordance with the terms thereof
and in a manner substantially similar to other similarly situated executive officers, in any present or future bonus, profit sharing, stock option (whether incentive or non qualified) or other employee compensation or incentive plan adopted by the
Company. Executive’s annual target bonus opportunity shall be 50% of Base Salary (the “Target Bonus”), with the actual bonus (if any) determined and paid to Executive pursuant to the Company’s applicable annual incentive
compensation plan as in effect from time-to-time. 
 3.3 Grant of Stock Options. No later than 30 days after the Effective Date, the
Company shall grant Executive a nonqualified stock option to acquire 50,000 shares of the Company’s common stock (the “Options”), subject to such vesting restrictions and other terms and conditions as set forth by the
Company’s 2008 Stock Incentive Plan and the Company’s standard form of award agreement for options under the Plan (the “Award Agreement”). Further, the Company shall in good faith consider Executive for additional awards of stock
options or other equity awards annually under the Company’s equity incentive plan. 
 Any unvested portion of the Options or any equity
award made to Executive shall immediately vest and become exercisable in full: (i) if a change in control (as defined in the Award Agreement) occurs while Executive is an employee of the Company, to the extent the Options and/or other awards
are not assumed by the acquiror or successor entity (as applicable) in connection with such change in control, or (ii) if the Options and/or other awards are assumed by the acquiror or successor entity (as applicable) in connection with such
change in control and Executive’s employment or services with the Company is terminated by the Company without Cause or by Executive for Good Reason upon or within twelve (12) months following the change in control. 
 3.4 Participation in Executive Officer Benefit Plans. Executive shall be permitted during the Term, if and to the extent eligible, to participate
in any group life, 

  

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hospitalization or disability insurance plan, health program, employee stock purchase plan, 401(k) pension or similar benefit plan of the Company which may
be available to other executive officers of the Company generally on the same terms as such other executive officers. 
 3.5 Expenses.
The Company shall pay or reimburse Executive for all ordinary, necessary and reasonable expenses (including, without limitation, travel, meetings, dues, subscriptions, fees, educational expenses, computer equipment, mobile telephones, professional
insurance, and the like) actually incurred or paid by Executive during the Term in the performance of Executive’s services under this Agreement, upon presentation of expense statements or vouchers or such other supporting information as may be
required by the policies and procedures of the Company in effect from time to time. 
 The Company shall provide Executive with an extended
residence stay of four (4) weeks following the Effective Date in Columbia, Maryland or the surrounding area and a rental car during such four (4) week transition period. In addition, the Company shall reimburse Executive the cost of one
(1) round-trip, coach-class ticket per week from BWI airport or another area airport to Manchester, New Hampshire during the Term. 
 The Company shall reimburse Executive for his reasonable fees and expenses incurred in obtaining tax, legal and accounting advice from outside professionals in connection with the negotiation and drafting of this Employment Agreement, up to
a maximum amount of $10,000 within fourteen (14) days after Executive provides the Company with a copy of any invoices he has received for such services, and in all cases within the “short-term deferral” period set forth in
Section 1.409A-1(b)(4) of the Treasury Regulations. 
 3.6 Withholding. The Company is authorized to withhold from the amount of
any Base Salary and any other things of value paid to or for the benefit of Executive, all sums authorized by Executive or required to be withheld by law, court decree, or executive order, including (but not limited to) such things as income taxes,
employment taxes, and employee contributions to fringe benefit plans sponsored by the Company. 
  

	4.	Termination. 

 4.1 General. The employment of
Executive hereunder shall terminate as provided in Section 2, unless earlier terminated in accordance with the provisions of this Section 4. 
 4.2 Termination Upon Mutual Agreement. The Company and Executive may, by mutual written agreement, terminate this Agreement and/or the employment of Executive at any time. 
 4.3 Death or Disability of Executive. 
 (a) The employment of Executive hereunder shall terminate upon (i) the death of Executive, and (ii) at the option of the Company upon not less than thirty (30) days’ prior written notice to Executive or his personal
representative or guardian, if Executive suffers a “Total Disability” (as defined in Section 4.3(b) below). 
  

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 (b) For purposes of this Agreement, “Total Disability” shall mean (i) if Executive is
subject to a legal decree of incompetency (the date of such decree being deemed the date on which such disability occurred), or (ii) the written determination by a physician selected by the Company that, because of a medically determinable
disease, injury or other physical or mental disability, Executive is unable substantially to perform each of the material duties of Executive required hereby, and that such disability has lasted for the immediately preceding ninety (90) days
and is, as of the date of determination, reasonably expected to last an additional ninety (90) days or longer after the date of determination, in each case based upon medically available reliable information, and the provision of clear and
convincing evidence by the Company of Executive’s inability substantially to perform each material duty hereunder in support of such determination by the physician. 
 (c) Any leave on account of illness or temporary disability which is short of “Total Disability” shall not constitute a breach of this Agreement by Executive and in no event shall any party be entitled to
terminate this Agreement for “Cause” (as defined in Section 4.4 below) due to any such leave. All physicians selected hereunder shall be board-certified in the specialty most closely related to the nature of the disability alleged to
exist. 
 4.4 Termination For Cause/Termination by Executive for Good Reason. 
 (a) The Company may, upon written notice to Executive specifying in reasonable detail the reason therefore (and subject to Executive’s ability to
cure as outlined below), terminate the employment of Executive at any time for “Cause” (as defined below). For purposes of this Agreement, “Cause” means (i) the repeated and material failure of Executive to perform his
material duties under this Agreement, or to follow the Company’s policies and procedures applicable to executive officers of the Company in effect from time to time, after notice and a reasonable opportunity to cure; (ii) willful
malfeasance by Executive in connection with the performance of his duties under this Agreement; (iii) Executive being convicted of, or pleading guilty or nolo contendere to, or being indicted for a felony or other crime involving theft,
fraud or moral turpitude; (iv) fraud or embezzlement against the Company; (v) the failure of Executive to comply with in any material respects any proper and lawful written direction of the CEO or the Board related to the provision of
services to the Company that is not inconsistent with this Agreement, after notice to Executive of such failure and a 30-day opportunity to cure; (vi) or the material violation by Executive of any of the provisions of Section 5 of this
Agreement. 
 (b) Executive may, upon written notice to the Company specifying in reasonable detail the reason therefore, terminate his
employment at any time for “Good Reason” as provided herein. For purposes of this Agreement, “Good Reason” shall mean Executive’s voluntary termination for one of the following reasons, provided that Executive has provided
written notice to the Company of the event that he believes constitutes Good Reason within thirty (30) days after its occurrence, and the Company has not cured such event within thirty (30) days following the receipt of such notice (and
provided further that Executive voluntarily terminates employment no later than sixty (60) days after the Company’s time period for curing such violation has lapsed): (i) a material diminution of the authority, responsibilities, or
position of Executive from those set forth in this Agreement; (ii) a reduction in Executive’s Base Salary or Target Bonus; (iii) a required relocation of Executive’s principal place of business more than 

  

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fifty (50) miles from the applicable location specified in Section 1.2; or (iv) a material breach by the Company of a material term of this
Agreement. 
 4.5 Payments Upon Termination. 
 (a) In the event Executive’s employment is terminated by the Company without Cause during the Term, or if Executive terminates his employment for Good Reason during the Term, then, in addition to the benefits
provided under Section 3.4, the Company shall pay to Executive any Base Salary accrued through the date of termination of his employment and any unpaid bonus from a prior fiscal year (and any other benefits due under the Company’s employee
benefit plans), and, subject to Executive’s execution (and non-revocation) of the Company’s standard release of claims, shall also pay Executive: 
 (1) the Base Salary to which Executive would have been entitled pursuant to Section 3.1 of this Agreement had this Agreement remained in effect and had Executive remained in the employ of the Company for a period
commencing upon the date of such termination and ending on the first anniversary of the date of termination (“Termination Coverage Period”), with such payments occurring on the same schedule used to pay Base Salary to Executive during the
Term; and 
 (2) Executive’s COBRA premiums for Executive and his eligible dependents for the Termination Coverage Period, or the
portion thereof, that Executive or Executive’s dependents are eligible for such COBRA coverage. 
 (b) In the event Executive’s
employment is terminated (i) by the Company for Cause, or (ii) voluntarily by Executive other than for Good Reason, then the Company shall have no duty to make any payments or provide any benefits to Executive pursuant to this Agreement
other than payment of the amount of Executive’s Base Salary, any bonuses or other incentive compensation accrued through the date of termination of his employment and related to a prior fiscal year of the Company and any other benefits
Executive is then due pursuant to the employment benefit plans of the Company. 
 (c) Upon termination of Executive’s employment for
death or due to Total Disability, the Company shall pay to Executive, guardian, personal representative or estate, as the case may be, in addition to any insurance or disability benefits to which Executive may be entitled hereunder and in addition
to the benefits provided under Section 3.4, the Base Salary set forth in Section 4.5(a)(1) above, and all compensation or benefits accrued or vested prior to such termination. 
 (d) Upon termination of Executive’s employment for death, due to Total Disability, without Cause by the Company, or by Executive for Good Reason,
Executive, or Executive’s guardian, personal representative or estate, as the case may be, shall be entitled to a bonus (consistent with the provisions of Section 3.2 of this Agreement) for the fiscal year in which the date of termination
of employment occurs, in an amount equal to the bonus that Executive would have earned for such year had he remained an employee of the Company, with such bonus determined in the same manner as the annual bonus for such fiscal year is determined for
other named executive officers of the Company. Any such bonus shall be payable in the next fiscal 

  

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year at the time at which other similarly situated Company executives receive their bonus payments but in all cases within the “short-term
deferral” period set forth in Section 1.409A-l(b)(4) of the Treasury Regulations. 
 (e) In the event that this Agreement is not
renewed either after the initial Term or after a renewal period, then the Company shall have no duty to make any payments or provide any benefits to Executive pursuant to this Agreement other than (1) payment of the amount of Executive’s
Base Salary, any bonuses accrued through the date of termination of his employment and related to a prior fiscal year, and any other benefits Executive is then due pursuant to the employment benefit plans of the Company, (2) an annual bonus for
the fiscal year in which the non-renewal occurs determined in a manner consistent with that described in Section 4.5(d) above and then prorating such amount for the portion of such fiscal year in which Executive is an employee of or other
service provider to the Company (with such amount payable at the time described in Section 4.5(d)). 
 (f) Notwithstanding any other
provision of this Agreement to the contrary, severance benefits pursuant to this Section 4.5 (i) are not subject to mitigation or offset, (ii) are intended to constitute separate payments for purposes of Section 409A of the
Internal Revenue Code (“Section 409A”), and (iii) are intended to be subject to the “short-term deferral” rule set forth in Section 1.409A-1 (b)(4) of the Treasury Regulations to the maximum extent possible thereunder.
To the extent such severance payments do not satisfy such rule or any other exemption under Section 409A, they are intended to constitute separate payments for purposes of Section 409A to the maximum extent permitted thereunder, with any
such amounts being regarded as subject to the distribution requirements of Section 409A(a)(2)(A) of the Internal Revenue Code, including, without limitation (i) that the payments described in Section 4.5(a)(1) commence following
Executive’s “separation from service” and (ii) the requirement of Section 409A(a)(2)(B)(i) of the Code that payment be delayed until six (6) months after separation from service if Executive is a “specified
employee” with the meaning of the aforesaid section of the Code at the time of such separation from service. 
 4.6 No Disparaging
Comments Upon Termination. 
 Upon termination of this Agreement, the Company will refrain, and will take reasonable efforts to prevent
members of the Board, executive officers and managerial personnel to refrain, from making any disparaging remarks about Executive. Similarly, Executive shall refrain from making any disparaging remarks about the Company or the businesses, services,
products, stockholders, officers, directors or other personnel of the Company or any of its affiliates. 
  

	5.	Certain Covenants of Executive. 

 5.1 Restrictive
Covenants. 
 (a) The parties hereto agree that as used herein “Confidential Information” means all information which becomes
known to Executive as a consequence of his employment by the Company and includes, but is not limited to, information about the Company’s customers, methods of operation, prospective and executed contracts, trade secrets, business contacts,
customer lists, and all technological, business, financial, accounting, statistical and personnel 

  

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information regarding the Company. The parties hereto further agree and stipulate that this Confidential Information was developed by the Company at
considerable expense, that this information is a valuable asset and part of the Company’s goodwill, that this information is vital to the Company’s success and is the sole property of the Company. 
 (b) Executive recognizes and acknowledges that during his employment by the Company, Executive has, or will, become familiar with the Company’s
Confidential Information. 
 (c) Executive recognizes and acknowledges that the Company is engaged in the business of building satellite
ground systems and equipment for command and control, integration and test, data processing and simulation (the “Business”). 
 The
Business is a highly competitive enterprise, so that any unauthorized disclosure or unauthorized use by Executive of the Confidential Information protected under this Agreement, whether during his employment with the Company or after its
termination, would cause immediate, substantial and irreparable injury to the Business and the goodwill of the Company. 
 (d) Executive
agrees that upon termination of his employment with the Company for any reason, whether voluntary or involuntary or with or without Cause, he will surrender to the Company every item and every document which is the Company’s property or will
completely remove from Executive’s personal property such Confidential Information in whatever form (e.g. cell phones, PDA’s, personal computers, etc.). All such documents and Confidential Information are the sole and absolute
property of the Company. At the written request of the Company, Executive shall provide the designated representative of the Company a certificate containing the following statement: “Executive hereby certifies that he has notified the
Company’s designated representative of all Confidential Information residing on any personal property of Executive to which Executive is aware of after due review and inspection and has removed and destroyed (unless otherwise directed in
writing by the Company) all Confidential Information from all personal property of Executive.” Thereafter, in the event that Executive becomes aware of any further Confidential Information on Executive’s personal property, Executive shall
notify the Company in writing and again comply with the immediately preceding sentence. 
 (e) Executive agrees that during his employment
and following the termination of that employment for any reason, whether voluntary or involuntary or with or without Cause, he will not, on his own behalf or as a partner, officer, director, employee, agent, or consultant of any other person or
entity, directly or indirectly, disclose the Company’s Confidential Information to any person or entity other than agents of the Company, and he will not use or aid others in obtaining or using any such Confidential Information.
Executive’s obligations under this Section 5.1(e) shall not be deemed violated in the event that (i) Executive discloses any Confidential Information pursuant to order of a court of competent jurisdiction, provided Executive has
notified the Company of such potential legal order and provided the Company with the opportunity to challenge or limit the scope of the disclosure, or (ii) the information becomes generally available from a source other than the Company, any of
its affiliates, or any of their employees when such source is not legally prohibited, to the best of Executive’s knowledge, from making such information available. 
  


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 (f) All inventions, prototypes, discoveries, improvements, and innovations (“Inventions”) and
all works of original authorship or images that are fixed in any tangible medium of expression and all copies thereof (“Works”) which are designed, created or developed by Executive, solely or in conjunction with others, in the course of
performance of Executive’s duties which relate to the Business, shall be made or conceived for the exclusive benefit of and shall be the exclusive property of the Company. Executive shall immediately notify the Company upon the design, creation
or development of all Inventions and Works. At any time thereafter, Executive, at the request and expense of the Company, shall execute and deliver to the Company all documents or instruments which may be necessary to secure or perfect the
Company’s title to or interest in the Inventions and Works, including but not limited to applications for letters of patent, and extensions, continuations or reissues thereof, applications for copyrights and documents or instruments of
assignment or transfer. All Works are agreed and stipulated to be “works made for hire,” as that term is used and understood within the Copyright Act of 1976, as amended or any successor statute. To the extent any Works are not deemed to
be works made for hire as defined above, and to the extent that title to or ownership of any Invention or Work and all other rights therein are not otherwise vested exclusively in the Company, Executive shall, without further consideration but at
the expense of the Company, assign and transfer to the Company Executive’s entire right, title and interest (including copyrights and patents) in or to those Inventions and Works. 
 (g) Executive agrees that during his employment with the Company and for a period commencing on the termination of such employment and ending twelve
(12) months thereafter, he will not, on his own behalf or as a partner, officer, director, employee, agent, or consultant of any other person or entity, directly or indirectly, engage or attempt to engage in a business which competes against
the Business of the Company in any geographic area in which the Company engages in the Business. This subsection shall not be construed as precluding Executive from working as an employee or consultant for a separate business unit of a competitor of
the Company, if the separate business unit is not in competition with the Business. 
 (h) Executive agrees that during his employment and
for a period of twenty-four (24) months after the termination of such employment, whether voluntary or involuntary or with or without Cause, he will not, on his own behalf or as a partner, officer, director, employee, agent, or consultant of
any other person or entity, directly or indirectly, solicit or induce (or attempt to solicit or induce) any employees of the Company to leave their employment with the Company and/or consider employment with any other person or entity. 

5.2 Rights and Remedies Upon Breach. If Executive breaches, or threatens, either in writing or as evidenced by a demonstrable course of
conduct, to commit a breach of, any of the provisions of Section 5.1 (the “Restrictive Covenants”), the Company shall, in addition to its right immediately to terminate this Agreement, have the right and remedy (which right and remedy
shall be independent of others and severally enforceable, and which shall be in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in equity) to have the Restrictive Covenants specifically enforced
by any court having equity jurisdiction, it being acknowledged and agreed that any such breach or threatened breach could cause irreparable injury to the Company or its affiliates and that money damages may not provide adequate remedy to the
Company. 
  

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 5.3 Covenants Currently Binding Executive. Executive warrants that his employment by the Company,
and his execution, delivery and performance of this Agreement, will not (a) violate any non-disclosure agreements, covenants against competition, or other restrictive covenants made by Executive to or for the benefit of any previous employer or
partner, or (b) violate or constitute a breach or default under, any statute, law, judgment, order, decree, writ, injunction, deed, instrument, contract, lease, license or permit to which Executive is a party or by which Executive is bound.

 5.4 Litigation. There is no litigation, proceeding or investigation of any nature (either civil or criminal) which is pending or,
to the best of Executive’s knowledge, threatened against or affecting Executive or which would adversely affect his ability to substantially perform the duties herein. 
 5.5 Review. Executive has received or been given the opportunity to review the provisions of this Agreement, and the meaning and effect of each
provision, with independent legal counsel of Executive’s choosing. 
 5.6 Severability of Covenants. Executive acknowledges and
agrees that the Restrictive Covenants are reasonable and valid in geographical and temporal scope and in all respects. If any court determines that any of the Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of
the Restrictive Covenants shall not thereby be affected and shall be given full effect, without regard to the invalid portions. 
 5.7
Blue-Penciling. If any court determines that any of the Restrictive Covenants, or any part thereof, is unenforceable because of the duration or geographic scope of such provision, such court shall have the power to reduce the duration or scope
of such provision, as the case may be, and, in its reduced form, such provision shall then be enforceable and shall be enforced. If any such court declines to so revise such covenant, the parties agree to negotiate in good faith a modification that
will make such duration or scope enforceable. 
  

	6.	Dispute Resolution. 

 6.1 Costs of Arbitration.
If either party brings an arbitration proceeding to enforce its rights under this Agreement, each party shall be responsible for the payment of their own fees and expenses incurred by such party in preparing for and in trying the case,
including, but not limited to, investigative costs, expert witness fees and reasonable attorneys’ fees. In addition, each party shall be responsible for one-half of the administrative costs of the arbitration, including the filing fees to the
American Arbitration Association and the fees charged by the arbitrator. 
 6.2 No Jury Trial. NEITHER PARTY SHALL ELECT A
TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY CONNECTED WITH A BREACH OF THIS AGREEMENT. 
 6.3 Personal Jurisdiction. Both parties agree to submit to the jurisdiction and venue of the state courts in the State of Maryland as to matters involving enforcement of this Agreement including any award under an arbitration
proceeding. 
  

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 6.4 Arbitration. SUBJECT TO THE COMPANY’S RIGHT TO SEEK INJUNCTIVE RELIEF AS SPECIFIED IN
THIS AGREEMENT, ANY DISPUTE BETWEEN THE PARTIES HERETO ARISING UNDER OR RELATING TO THIS AGREEMENT (INCLUDING, BUT NOT LIMITED TO, THE AMOUNT OF DAMAGES, THE NATURE OF THE EXECUTIVE’S TERMINATION OR THE CALCULATION OF ANY BONUS OR OTHER AMOUNT
OR BENEFIT DUE) SHALL BE RESOLVED BEFORE A SINGLE ARBITRATOR IN ACCORDANCE WITH THE PROCEDURES OF THE AMERICAN ARBITRATION ASSOCIATION FOR THE RESOLUTION OF EMPLOYMENT DISPUTES. ANY RESULTING HEARING SHALL BE HELD IN COLUMBIA, MARYLAND. THE
RESOLUTION OF ANY DISPUTE ACHIEVED THROUGH SUCH ARBITRATION SHALL BE BINDING AND ENFORCEABLE BY A COURT OF COMPETENT JURISDICTION. 
  

	7.	Other Provisions. 

 7.1 Notices. Any notice or other
communication required or which may be given hereunder shall be in writing and shall be delivered personally, telegraphed, telexed, sent by facsimile transmission or sent by certified, registered or express mail, postage paid, and shall be deemed
given when so delivered personally, telegraphed, telexed or sent by facsimile transmission or, if mailed, four days after the date of mailing, as follows: 
  

	 	(i)	if to the Company, to: 

 Integral Systems, Inc.

 6721 Columbia Gateway Drive 
 Columbia, MD 21046 
 Fax: 410-312-2705 
 Attention: General Counsel 
 with copies to: 
 Gibson, Dunn & Crutcher LLP 
 1050
Connecticut Avenue, NW 
 Washington, DC 20036 
 Fax: (202) 467-0539 
 Attention: Howard B. Adler, Esq. 
  

	 	(ii)	if to Executive, to: 

 H. Marshal Ward 
 41 Barrington Drive 
 Bedford, NH 03110

 Any party may by notice given in accordance with this Section to the other party designate another address or person for receipt of
notices hereunder. 
 7.2 Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior agreements and understandings, written or oral, with respect thereto, including without limitation any 

  

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severance benefits as described in the Company’s employment manual as in effect from time to time. 
 7.3 Waivers and Amendments. This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms and conditions
hereof may be waived, only by a written instrument signed by Executive and a duly authorized officer of the Company (each, in such capacity, a party) or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in
exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder, nor any single or partial exercise of any right, power or privilege
hereunder, preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder. 
 7.4
Governing Law. This Agreement has been negotiated and is to be performed in the State of Maryland, and shall be governed and construed in accordance with the laws of the State of Maryland applicable to agreements made and to be performed
entirely within such State. 
 7.5 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same instrument. 
 7.6 Confidentiality. Neither party shall
disclose the contents of this Agreement or of any other agreement they have simultaneously entered into to any person, firm or entity, except the agents or representatives of the parties, or except as required by law. 
 7.7 Word Forms. Whenever used herein, the singular shall include the plural and the plural shall include the singular. The use of any gender or
tense shall include all genders and tenses. 
 7.8 Headings. The Section headings have been included for convenience only, are not
part of this Agreement, and are not to be used to interpret any provision hereof. 
 7.9 Binding Effect and Benefit. This Agreement
shall be binding upon and inure to the benefit of the parties, their successors, heirs, personal representatives and other legal representatives. This Agreement may be assigned by the Company to any entity which buys substantially all of the
Company’s assets. However, Executive may not assign this Agreement without the prior written consent of the Company. 
 7.10
Separability. The covenants contained in this Agreement are separable, and if any court of competent jurisdiction declares any of them to be invalid or unenforceable, that declaration of invalidity or unenforceability shall not affect the
validity or enforceability of any of the other covenants, each of which shall remain in full force and effect. 
 7.11 Insurance and
Indemnification. The Company agrees to indemnify and hold the Executive harmless (including the advancement of fees and expenses) to the fullest extent permitted by law and/or under the bylaws and charter of the Company against and in respect of
any and all actions, suits proceedings, claims, demands, judgments, costs, expenses (including 

  

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reasonable attorneys fees), losses, penalties, and damages resulting from Executive’s performance of his duties and obligations with the Company. In
addition, the Company agrees to cause any insurance policy it maintains to provide for the indemnification of officers and directors to cover Executive. 
 7.12 Survival. Any provision of this Agreement that must survive termination of this Agreement in order to effectuate the intent of the parties, including the provisions regarding post-termination payments
under Section 4 and the covenants under Section 5 shall survive the expiration of this Agreement. 
 7.13 Section 409A.
Any reimbursements or in-kind benefits provided under this Agreement that are not exempt from Section 409A shall comply with the following rules: (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided,
during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (ii) the reimbursement of an eligible expense shall be made within the “short-term
deferral” period set forth in Section 1.409A-l(b)(4) of the Treasury Regulations, and if not so made, shall be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and
(iii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit. 
 IN WITNESS
WHEREOF, the parties, intending to be legally bound, have executed this Agreement or caused it to be executed and attested by their duly authorized officers as a document under seal on the day and year first above written. 
  

			
	INTEGRAL SYSTEMS, INC.
		
	By:	 	 /s/ R. Miller Adams

	Name:	 	R. Miller Adams
	Title:	 	General Counsel and Executive Vice President
	
	EXECUTIVE:
		
	By:	 	 /s/ H. Marshal Ward

		 	H. Marshal Ward


  

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