Document:

Loan and Security Agreement (EX-IM Loan Facility)

 Exhibit 10.2 
 LOAN AND SECURITY AGREEMENT (EX-IM LOAN FACILITY) 
 THIS LOAN AND SECURITY AGREEMENT (EX-IM LOAN
FACILITY) (“EX-IM AGREEMENT”) dated as of the Closing Date, between SILICON VALLEY BANK (“Bank”), California corporation, and MOTIVE, INC., a Delaware corporation (“Borrower”), provides the
terms on which Bank will lend to Borrower and Borrower will repay Bank. The parties agree as follows: 
  

	 	1.	ACCOUNTING AND OTHER TERMS 

 Accounting terms
not defined in this EX-IM Agreement will be construed following GAAP, Calculations and determinations must be made following GAAP. The term “financial statements” includes the notes and schedules thereto. The terms “including”
and “includes” always mean “including (or includes) without limitation” in this or any Loan Document. This EX-IM Agreement shall be construed to impart upon Bank a duty to act reasonably at all times. 
  

	 	2.	LOAN AND TERMS OF PAYMENT 

  

	 	2.1	Promise to Pay. 

 Borrower will pay Bank the unpaid
principal amount of all EX-IM Advances and interest on the unpaid principal amount of the EX-IM Advances as and when due in accordance with this EX-IM Agreement. 
  

	 	2.1.1	EX-IM Advances. 

 (a) Bank will make EX-IM Advances
to Borrower not exceeding (i) the lesser of (x) the EX-IM Committed Line or (y) the Foreign Borrowing Base, minus (ii) the outstanding principal balance of any EX-IM Advances; provided, however, and notwithstanding any other term
or provision of this EX-IM Agreement, the aggregate amount of outstanding EX-IM Advances hereunder together with the aggregate amount of Advances outstanding under the Domestic Loan Agreement shall not in any event exceed $8,000,000 jointly. Amounts
borrowed under this Section may be repaid and reborrowed during the term of this EX-IM Agreement. 
 (b) To obtain an EX-IM Advance, Borrower
must notify Bank by facsimile or telephone by 12:00 p.m. Pacific time on the Business Day the EX-IM Advance is to be made. Borrower must promptly confirm the notification by delivering to Bank a completed Transaction Report attached as
Exhibit B and submit Export Orders in connection with such EX-IM Advance. Bank will credit EX-IM Advances to Borrower’s deposit account at Bank. Bank may make Credit Extensions under this EX-IM Agreement based on instructions from a
Responsible Officer or his or her designee or without instructions if the Credit Extensions are necessary to meet Obligations which have become due. Bank may rely on any telephone notice given by a person whom Bank believes is a Responsible Officer
or designee. Borrower will indemnify Bank for any loss suffered by Bank from that reliance. 
 (c) The EX-IM Committed Line terminates on the
EX-IM Maturity Date, when all EX-IM Advances and other amounts due under this EX-IM Agreement are immediately payable. 
  

	 	2.2	Overadvances. 

 If the aggregate outstanding
principal amount of EX-IM Advances made under Section 2.1.1 exceed the lesser of either (i) the EX-IM Committed Line or (ii) the Foreign Borrowing Base, Borrower must immediately pay Bank the excess. 
  

	 	2.3	Interest Rate, Payments. 

 (a) Interest Rate. EX-IM
Advances accrue interest on the outstanding principal balance at a floating per annum rate equal to the greater of one quarter of one percent (0.25%) above the Prime Rate or 6.25%, which interest shall be payable monthly. Immediately upon the
occurrence and during the continuance of an Event of Default, Obligations accrue interest at two percent (2%) above the rate effective immediately before the Event of Default. The interest rate increases or decreases when the Prime Rate
changes. Interest is computed on a 360 day year for the actual number of days elapsed. 
  

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 (b) Payments. Interest due on the EX-IM Committed
Line is payable on the first (1st) day of each month. Bank may debit any of Borrower’s deposit accounts including Account Number
3300444628 for principal and interest payments or any amounts Borrower owes Bank under this Agreement. Bank will notify Borrower when it debits Borrower’s accounts. These debits are not a set-off. Payments received after 12:00 noon Pacific time
are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment is due the next Business Day and additional fees or interest accrues. 
  

	 	2.4	Fees. 

 Borrower will pay: 
 (a) Bank Expenses. A facility fee of $40,000 which shall be nonrefundable, and all Bank Expenses (including reasonable attorneys’ fees and expenses)
invoiced to Borrower at least one (1) Business Day after the Closing Date, and within ten (10) Business Days after demand therefor, all Bank Expenses incurred through and after the date of this EX-IM Agreement (including reasonable
attorneys’ fees and expenses); and 
 (b) EX-IM Bank Expenses. On the Closing Date, EX-IM Bank Expenses incurred through the date
hereof. 
  

	 	2.5	Use of Proceeds. 

 Borrower will use the proceeds of
the EX-IM Advances only for the purposes specified in the EX-IM Borrower Agreement. Borrower will not use the proceeds of the EX-IM Advances for any purpose prohibited by the EX-IM Borrower Agreement. 
  

	 	2.6	EX-IM Guarantee. 

 To facilitate the financing of
EX-IM Eligible Foreign Accounts, the EX-IM Bank has agreed to guarantee the EX-IM Advances made under this EX-IM Agreement, pursuant to a Master Guarantee Agreement, Loan Authorization Agreement and (to the extent applicable) Delegated Authority
Letter Agreement (collectively, the “EX-IM Guarantee”). If, at any time after the EX-IM Guarantee has been entered into by Bank, for any reason other than due to any action or inaction of Borrower under the EX-IM Guarantee,
(a) the EX-IM Guarantee shall cease to be in full force and effect, or (b) if the EX-IM Bank declares the EX-IM Guarantee void or revokes any obligations thereunder or denies liability thereunder, and any Overadvance results from either of
the foregoing, Bank shall provide notice of such Overadvance to Borrower, and Borrower shall immediately pay the amount of the excess to Bank. If, at any time after the EX-IM Guarantee has been entered into by Bank, for any reason other than the one
described in the foregoing sentence, (x) the EX-IM Guarantee shall cease to be in full force and effect, or (y) the EX-IM Bank declares the EX-IM Guarantee void or revokes any obligations thereunder or denies liability thereunder, any such
event shall constitute an Event of Default under this EX-IM Agreement. Nothing in any confidentiality agreement in this EX-IM Agreement or in any other agreement shall restrict Bank’s right to make disclosures and provide information to the
EX-IM Bank in connection with the EX-IM Guarantee. 
  

	 	2.7	EX-IM Borrower Agreement. 

 Borrower shall execute
and deliver a Borrower Agreement, in the form specified by the EX-IM Bank (attached hereto as Annex A), in favor of Bank and the EX-IM Bank, together with an amendment thereto approved by the EX-IM Bank to conform certain terms of such
Borrower Agreement to the terms of this EX-IM Agreement (as amended, the “EX-IM Borrower Agreement”). When the EX-IM Borrower Agreement is entered into by Borrower and the EX-IM Bank and delivered to Bank, this EX-IM Agreement shall
be subject to all of the terms and conditions of the EX-IM Borrower Agreement, all of which are hereby incorporated herein by this reference. From and after the time Borrower and the EX-IM Bank have entered into the EX-IM Borrower Agreement and
delivered the same to Bank, Borrower expressly agrees to perform all of the obligations and comply with all of the affirmative 

  

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and negative covenants and all other terms and conditions set forth in the EX-IM Borrower Agreement as though the same were expressly set forth herein. In
the event of any conflict between the terms of the EX-IM Borrower Agreement (if then in effect) and the other terms of this EX-IM Agreement, whichever terms are more restrictive shall apply. Borrower acknowledges and agrees that it has received a
copy of the Loan Authorization Agreement which is referred to in the EX-IM Borrower Agreement. If the EX-IM Borrower Agreement is entered into by Borrower and the EX-IM Bank and delivered to Bank, Borrower agrees to be bound by the terms of the Loan
Authorization Agreement, including, without limitation, by any additions or revisions made prior to its execution on behalf of EX-IM Bank. Upon the execution of the Loan Authorization Agreement by EX-IM Bank and Bank, it shall become an attachment
to the EX-IM Borrower Agreement. Borrower shall reimburse Bank for all fees and all out of pocket costs and expenses incurred by Bank with respect to the EX-IM Guaranty and the EX-IM Borrower Agreement, including without limitation all facility fees
and usage fees, and Bank is authorized to debit any of Borrower’s deposit accounts with Bank for such fees, costs and expenses when paid by Bank. 
  

	 	3.	CONDITIONS OF LOANS 

  

	 	3.1	Conditions Precedent to Initial EX-IM Advance. 

 Bank’s obligation to make the initial EX-IM Advance is subject to the condition precedent that it receives the agreements, documents and fees it requires. 
  

	 	3.2	Conditions Precedent to all EX-IM Advances. 

 Bank’s obligations to make each EX-IM Advance, including the initial EX-IM Advance, is subject to the following: 
 (a) timely
receipt of any export purchase order and an EX-IM Borrowing Base Certificate relating to the request; 
 (b) receipt of a Transaction Report;

 (c) the representations and warranties in Section 5 must be true in all material respects on the date of the Transaction Report and
on the effective date of each EX-IM Advance (or, if stated to have been made solely as of an earlier date, were true in all material respects as of such date) and no Event of Default shall have occurred and be continuing, or result from the EX-IM
Advance. Each EX-IM Advance is Borrower’s representation and warranty on that date that the representations and warranties of Section 5 remain true in all material respects; and 
 (d) the EX-IM Guarantee will be in full force and effect. 
  

	 	4.	CREATION OF SECURITY INTEREST 

  

	 	4.1	Grant of Security Interest. 

 Borrower grants Bank a
continuing security interest in all presently existing and later acquired Collateral to secure all Obligations and performance of each of Borrower’s duties under the Loan Documents. Except for Permitted Liens, any security interest will be a
first priority security interest in the Collateral. Bank may place a “hold” on any deposit account pledged as Collateral if an Event of Default has occurred and is continuing. 
  

	 	4.2	Authorization to File. 

 Borrower authorizes Bank to
file financing statements without notice to Borrower, with all appropriate jurisdictions, as Bank deems appropriate, in order to perfect or protect Bank’s interest in the Collateral. 
  

	 	5.	REPRESENTATIONS AND WARRANTIES 

 Borrower
represents and warrants as follows: 
  

	 	5.1	Domestic Loan Documents. 

 The representations and
warranties contained in the Domestic Loan Documents, which are incorporated into this EX-IM Agreement, are true and correct. 
  

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	 	5.2	Accounts Receivable. 

 (a) For each Account
Receivable with respect to which EX-IM Advances are requested, on the date each EX-IM Advance is requested and made, such Account Receivable shall meet the Minimum EX-IM Foreign Eligibility Requirements, as the case may be, set forth in
Section 13.1 below. 
 (b) All statements made and all unpaid balances appearing in all invoices, instruments and other documents
evidencing the Accounts Receivable are and shall be true and correct and all such invoices, instruments and other documents, and all of Borrower’s Books are genuine and in all respects what they purport to be. All sales and other transactions
underlying or giving rise to each Account Receivable shall comply in all material respects with all applicable laws and governmental rules and regulations. Borrower has no knowledge of any actual or imminent Insolvency Proceeding of any Account
Debtor whose accounts are an EX-IM Eligible Account in any EX-IM Borrowing Base Certificate. To the best of Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to all Accounts Receivable
are genuine, and all such documents, instruments and agreements are legally enforceable in accordance with their terms. 
  

	 	6.	AFFIRMATIVE COVENANTS 

 Borrower will do all
of the following: 
  

	 	6.1	Domestic Loan Documents. 

 Borrower will comply with
all the provisions of the Domestic Loan Documents. 
  

	 	6.2	EX-IM Insurance. 

 If required by Bank, Borrower
will obtain, and pay when due all premiums with respect to, and maintain uninterrupted foreign credit insurance. In addition, Borrower will execute in favor of Bank an assignment of proceeds of any insurance policy obtained by Borrower and issued by
EX-IM Bank insuring against comprehensive commercial and political risk (the “EX-IM Bank Policy”). The insurance proceeds from the EX-IM Bank Policy assigned or paid to Bank will be applied to the balance outstanding under this EX-IM
Agreement. Borrower will immediately notify Bank and EX-IM Bank in writing upon submission of any claim under the EX-IM Bank Policy. Then Bank will not be obligated to make any further Credit Extensions to Borrower without prior approval from EX-IM
Bank. 
  

	 	6.3	Borrower Agreement. 

 Borrower will comply with all
terms of the EX-IM Borrower Agreement. If any provision of the EX-IM Borrower Agreement conflicts with any provision contained in this EX-IM Agreement, the more strict provision, with respect to the Borrower, will control. 
  

	 	6.4	Reporting Requirements. 

 Borrower shall deliver all
reports, certificates and other documents to Bank as provided in the EX-IM Borrower Agreement, including, without limitation, an EX-IM Borrowing Base Certificate on a monthly basis as described on Exhibit C hereof, purchase orders and any
other information that Bank and EX-IM Bank may reasonably request. In addition, Borrower shall comply with the reporting requirements set forth in the Domestic Loan Documents. 
  

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	 	6.5	Further Assurances. 

 Borrower will execute any
further instruments and take further action as Bank requests to perfect or continue Bank’s security interest in the Collateral or to effect the purposes of this EX-IM Agreement. 
  

	 	7.	NEGATIVE COVENANTS 

 Borrower will not do any
of the following: 
  

	 	7.1	Domestic Loan Documents. 

 Violate or fail to comply
with the Domestic Loan Documents. 
  

	 	7.2	EX-IM Borrower Agreement. 

 Violate or fail to
comply with any provision of the EX-IM Borrower Agreement. 
  

	 	7.3	EX-IM Agreement. 

 Take an action, or permit any
action to be taken, that causes, or could be expected to cause, the EX-IM Guarantee to not be in full force and effect. 
  

	 	8.	EVENTS OF DEFAULT 

 Any one of the following
is an Event of Default: 
  

	 	8.1	Payment Default. 

 If Borrower fails to pay any of
the Obligations within three (3) Business Days after their due date. During the additional period the failure to cure the default is not an Event of Default (but no Credit Extension will be made during the cure period); 
  

	 	8.2	Covenant Default. 

 If Borrower violates any
covenant in this EX-IM Agreement or in any of the Domestic Loan Documents or the EX-IM Borrower Agreement and such violation continues for fifteen (15) days after Borrower’s receipt of notice of such violation. 
 If an Event of Default occurs under this EX-IM Agreement or the Domestic Loan Documents. 
  

	 	8.3	EX-IM Guarantee. 

 If the EX-IM Guarantee ceases for
any reason to be in full force and effect, or if the EX-IM Bank declares the EX-IM Guarantee void or revokes any obligations under the EX-IM Guarantee. 
  

	 	9.	BANK’S RIGHTS AND REMEDIES 

  

	 	9.1	Rights and Remedies. 

 When an Event of Default
occurs and continues Bank may, without notice or demand, do any or all of the following: 
 (a) Declare all Obligations immediately due and
payable (but if an Event of Default described in Section 8.5 of the Domestic Loan Agreement occurs all Obligations are immediately due and payable without any action by Bank); 
  

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 (b) Stop advancing money or extending credit for Borrower’s benefit under this EX-IM Agreement or
under any other agreement between Borrower and Bank; 
 (c) Settle or adjust disputes and claims directly with account debtors for amounts,
on terms and in any order that Bank considers advisable; 
 (d) Make any payments and do any acts it considers necessary or reasonable to
protect its security interest in the Collateral. Borrower will assemble the Collateral if Bank requires and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain possession of any part of
the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its premises, without charge,
to exercise any of Bank’s rights or remedies under this Section 9.1; 
 (e) Apply to the Obligations any (i) balances and
deposits of Borrower it holds, or (ii) any amount held by Bank owing to or for the credit or the account of Borrower; 
 (f) Ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral; and 
 (g) Dispose of the
Collateral according to the Code. 
  

	 	9.2	Power of Attorney. 

 Effective only when an Event of
Default occurs and continues, Borrower irrevocably appoints Bank as its lawful attorney to: (i) endorse Borrower’s name on any checks or other forms of payment or security; (ii) sign Borrower’s name on any invoice or bill of
lading for any Account or drafts against account debtors, (iii) make, settle, and adjust all claims under Borrower’s insurance policies; (iv) settle and adjust disputes and claims about the Accounts directly with account debtors, for
amounts and on terms Bank determines reasonable; and (v) transfer the Collateral into the name of Bank or a third party as the Code permits. Bank may exercise the power of attorney to sign Borrower’s name on any documents necessary to
perfect or continue the perfection of any security interest regardless of whether an Event of Default has occurred. Bank’s appointment as Borrower’s attorney in fact, and all of Bank’s rights and powers, coupled with an interest, are
irrevocable until all Obligations have been fully repaid and performed and Bank’s obligation to provide EX-IM Advances terminates. 
  

	 	9.3	Accounts Collection. 

 When an Event of Default
occurs and continues, Bank may notify any Person owing Borrower money of Bank’s security interest in the funds and verify the amount of the Account, and Borrower must collect all payments received from such Persons in trust for Bank and, if
requested by Bank, immediately deliver the payments to Bank in the form received from the account debtor, with proper endorsements for deposit. 
  

	 	9.4	Bank Expenses. 

 If Borrower fails to pay any amount
or furnish any required proof of payment to third persons Bank may make all or part of the payment or obtain insurance policies required in Section 6.4 of the Domestic Loan Agreement, and take any action under the policies Bank deems prudent.
Any amounts paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then applicable rate and secured by the Collateral. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s
waiver of any Event of Default. 
  

	 	9.5	Bank’s Liability for Collateral. 

 If Bank
complies with reasonable banking practices it is not liable for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any
carrier, warehouseman, bailee, or other person. Borrower bears all risk of loss, damage or destruction of the Collateral. 
  

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	 	9.6	Remedies Cumulative. 

 Bank’s rights and
remedies under this EX-IM Agreement, the Loan Documents, and all other agreements are cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity. Bank’s exercise of one right or remedy is not an election, and
Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s delay is not a waiver, election, or acquiescence. No waiver is effective unless signed by Bank and then is only effective for the specific instance and purpose for
which it was given. 
  

	 	9.7	Demand Waiver. 

 Borrower waives demand, notice of
default or dishonor, notice of payment and nonpayment, notice of any default (except as otherwise specified herein), nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper,
and guarantees held by Bank on which Borrower is liable. 
  

	 	9.8	EX-IM Direction. 

 Upon the occurrence of an Event
of Default, EX-IM Bank shall have right to (i) direct Bank to exercise the remedies specified in Section 9.1 and (ii) request that Bank accelerate the maturity of any other loans to Borrower. 
  

	 	9.9	EX-IM Notification. 

 Bank has the right to
immediately notify EX-IM Bank in writing if it has knowledge of any of the following events: (1) any failure to pay any amount due under this EX-IM Agreement; (2) the Foreign Borrowing Base is less than the sum of the outstanding Credit
Extensions; (3) any failure to pay when due any amount payable to Bank under any Loan Documents owing by Borrower to Bank; (4) the filing of an action for debtor’s relief by, against or on behalf of Borrower; (5) any threatened
or pending material litigation against Borrower, or any material dispute involving Borrower. 
 If Bank sends a notice to EX-IM Bank, Bank
has the right to send EX-IM Bank a written report on the status of events covered by the notice every 30 days after the date of the original notification, until Bank files a claim with EX-IM Bank or the defaults have been cured (but no EX-IM
Advances may be required during the cure period unless EX-IM Bank gives its written approval). If directed by EX-IM Bank, Bank will have the right to exercise any rights it may have against the Borrower to demand the immediate repayment of all
amount outstanding under the EX-IM Loan Documents. 
  

	 	10.	NOTICES 

 All notices or demands by any party
about this EX-IM Agreement or any other related agreement must be in writing and be personally delivered or sent by an overnight delivery service, by certified mail, postage prepaid, return receipt requested, or by telefacsimile to the addresses set
forth below. A Party may change its notice address by giving the other Party written notice. 
  

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	If to Borrower:	  	MOTIVE, INC.
		  	12515 Research Blvd., Bldg. 5
		  	Austin, TX 78759
		  	Attn: Mike Fitzpatrick
		  	Fax: 512.339.9040
		  	Email: mikef@motive.com
		
	If to Bank:	  	Silicon Valley Bank
		  	7000 North Mopac, Suite 360
		  	Austin, Texas 78731
		  	Attn: Phillip A. Wright
		  	Fax: 512.794.0853
		  	Email: pwright@svb.com

  

	 	11.	CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER 

 California law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County, California for any action or
claim arising out of the Loan Documents; provided, however, that nothing in this EX-IM Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or
any other security for the Obligations, or to enforce a judgment or other court order in favor of Bank. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby
waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby
waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the
address set forth in Section 10 of this EX-IM Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, proper
postage prepaid. 
 TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS EX-IM AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO
ENTER INTO THIS EX-IM AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 
 WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’
AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them arising at any time
shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance with California Code of Civil
Procedure Section 638 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California; and the parties hereby submit
to the jurisdiction of such court. The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the
power, among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and
confidential and all records relating thereto shall be permanently sealed. If during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference
procedures, then such party may apply to the Santa Clara County, California Superior Court for such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence
applicable to judicial proceedings. The parties shall be entitled to discovery which shall be conducted in the same manner as it would be before a court 

  

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under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and order
applicable to judicial proceedings in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall
report a statement of decision thereon pursuant to the California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain
provisional remedies. The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph. 
  

	 	12.	GENERAL PROVISIONS 

  

	 	12.1	Successors and Assigns. 

 This EX-IM Agreement binds
and is for the benefit of the successors and permitted assigns of each party. Borrower may not assign this EX-IM Agreement or any rights under it without Bank’s prior written consent which may be granted or withheld in Bank’s discretion.
Bank has the right, without the consent of or notice to Borrower, to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights and benefits under this EX-IM Agreement.
Notwithstanding the foregoing, prior to the occurrence of an Event of Default, Bank shall not assign any interest in the EX-IM Loan Documents to an operating company which is a direct competitor of Borrower. 
  

	 	12.2	Indemnification. 

 Borrower will indemnify, defend
and hold harmless Bank and its officers, employees, and agents against: (a) all obligations, demands, claims, and liabilities asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all
losses or Bank Expenses incurred, or paid by Bank from, following, or consequential to transactions between Bank and Borrower (including reasonable attorneys fees and expenses), except for losses caused by Bank’s or any of its officers’,
employees’, or agents’ gross negligence or willful misconduct. 
  

	 	12.3	Time of Essence. 

 Time is of the essence for the
performance of all obligations in this EX-IM Agreement. 
  

	 	12.4	Severability of Provision. 

 Each provision of this
EX-IM Agreement is severable from every other provision in determining the enforceability of any provision. 
  

	 	12.5	Amendments in Writing, Integration. 

 All amendments
to this EX-IM Agreement must be in writing. This EX-IM Agreement represents the entire agreement about this subject matter, and supersedes prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and
negotiations between the parties about the subject matter of this EX-IM Agreement merge into this EX-IM Agreement and the Loan Documents. 
  

	 	12.6	Counterparts. 

 This EX-IM Agreement may be executed
in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, are an original, and all taken together, constitute one Agreement. 
  

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	 	12.7	Survival. 

 All covenants, representations and
warranties made in this EX-IM Agreement continue in full force while any Obligations remain outstanding. The obligations of Borrower in Section 12.2 to indemnify Bank will survive until all statutes of limitations for actions that may be
brought against Bank have run. 
  

	 	12.8	Confidentiality. 

 In handling any confidential
information, Bank will exercise the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made (i) to Bank’s subsidiaries or affiliates in connection with their business with
Borrower that have agreed to keep such information confidential on the same basis as Bank, (ii) to prospective transferees or purchasers of any interest in the Loans that have agreed to keep such information confidential on the same basis as
Bank, (iii) as required by law, regulation, subpoena, or other order, (iv) as required in connection with Bank’s examination or audit and (v) as Bank considers appropriate exercising remedies under this EX-IM Agreement.
Confidential information does not include information that either: (a) is in the public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public domain after disclosure to Bank; or (b) is disclosed to Bank
by a third party, if Bank does not know that the third party is prohibited from disclosing the information. 
  

	 	12.9	EX-IM Borrower Agreement; Cross-Collateralization; Cross-Default; Conflicts. 

 This EX-IM Agreement, the Domestic Loan Agreement and the EX-IM Borrower Agreement shall continue in full force and effect until all Obligations have been paid in full, and all rights and remedies under this EX-IM
Agreement, the Domestic Loan Agreement and the EX-IM Borrower Agreement are cumulative. Without limiting the generality of the foregoing, all “Collateral” as defined in this EX-IM Agreement, the Domestic Loan Agreement and as
defined in the EX-IM Borrower Agreement shall secure all EX-IM Advances and all interest thereon, and all other Obligations. Any Event of Default under this EX-IM Agreement shall also constitute an Event of Default under the EX-IM Borrower Agreement
and the Domestic Loan Agreement; any Event of Default under the Domestic Loan Agreement shall also constitute an Event of Default under the EX-IM Borrower Agreement and this EX-IM Agreement; and any Event of Default under the EX-IM Borrower
Agreement shall also constitute an Event of Default under this EX-IM Agreement and the Domestic Loan Agreement. In the event Bank assigns its rights under this EX-IM Agreement, the Domestic Loan Agreement, or the EX-IM Borrower Agreement and/or
under any note evidencing EX-IM Advances, to any third party, including, without limitation, the EX-IM Bank, whether before or after the occurrence of any Event of Default, Bank shall have the right (but not any obligation), in its sole discretion,
to allocate and apportion Collateral to the EX-IM Borrower Agreement, the Domestic Loan Agreement and/or note assigned and to specify the priorities of the respective security interests in such Collateral between itself and the assignee, all without
notice to or consent of the Borrower. Should any term of this EX-IM Agreement conflict with any term of the Domestic Loan Agreement or the EX-IM Borrower Agreement, the more restrictive term in such agreements shall govern Borrower. 
  

	 	13.	DEFINITIONS 

  

	 	13.1	Definitions. 

 Except as otherwise defined, terms
that are capitalized in this EX-IM Agreement will have the same meaning assigned in the Domestic Loan Documents and/or the EX-IM Borrower Agreement, as applicable. In this EX-IM Agreement: 
 “Closing Date” is the date Bank executes this EX-IM Agreement as indicated on the signature page hereof. 
 “Collateral” is the property described on Exhibit A. 
 “Credit Extension” is any EX-IM Advance, or any other extension of credit by Bank for Borrower’s benefit under this EX-IM
Agreement. 
  

 10 

 “Domestic Loan Agreement” means that certain Loan and Security Agreement of even date
herewith, between Borrower and Bank. 
 “Domestic Loan Documents” the Domestic Loan Agreement, any note or notes executed by
Borrower in connection therewith or any other agreement entered into in connection with the Domestic Loan Agreement, between Borrower and Bank. 
 “EX-IM Advance” or “EX-IM Advances” is a loan advance (or advances) under the EX-IM Committed Line. 
 “EX-IM Bank” is the Export-Import Bank of the United States. 
 “EX-IM Bank Expenses” are all
reasonable audit fees and expenses; reasonable costs or expenses (including reasonable attorneys’ fees and expenses) for preparing, negotiating, administering, defending and enforcing the EX-IM Loan Documents (including appeals or Insolvency
Proceedings) and the fees that the Bank pays to the EX-IM Bank in consideration of the issuance of the EX-IM Guarantee. 
 “EX-IM
Borrower Agreement” is defined in Section 2.7. 
 “EX-IM Committed Line” is an EX-IM Advance or EX-IM Advances
of up to Eight Million Dollars ($8,000,000). 
 “EX-IM Eligible Foreign Accounts” means Accounts Receivable arising in the
ordinary course of Borrower’s business from Non-U.S. Account Debtors and that meet all Borrower’s representations and warranties in Section 5.2 and conform in all respects to the EX-IM Borrower Agreement, and either (a) are
guaranteed by EX-IM Bank, less any deductible; (b) are supported by letter(s) of credit acceptable to Bank; (c) are owing from an Account Debtor whose principal place of business is located in Canada (provided that Bank has perfected its
security interest in such Account to Bank’s satisfaction), or (d) that Bank approves in writing. The following are the minimum requirements (the “Minimum EX-IM Foreign Eligibility Requirements”) for an Account to be an
EX-IM Eligible Foreign Account. The Accounts Receivable must not be an Account: 
 (a) that does not arise from the sale of Items in the
ordinary course of the Borrower’s business; 
 (b) that is not subject to a valid, perfected, and enforceable first priority security
interest in favor of the Bank; 
 (c) as to which any covenant, representation or warranty contained in the Loan Documents relating to such
Account has been breached; 
 (d) that is not owned by the Borrower or is subject to any right, claim, or interest of another party other
than the Lien in favor of the Bank; 
 (e) with respect to which an invoice has not been sent; 
 (f) generated by the sale or provision of defense articles or services, subject to exceptions approved in writing by Ex-Im Bank; 
 (g) that is due and payable from a military Buyer, subject to exceptions approved in writing by Ex-Im Bank; 
 (h) that is due and payable from a foreign Buyer located in a country with which Ex- Im Bank is legally prohibited from doing business as set forth in
the current Country Limitation Schedule. (Note: If the Borrower has knowledge that an export to a country in which Ex-Im Bank may do business, as set forth in the current Country Limitation Schedule, will be re-exported to a country with which Ex-Im
Bank is legally prohibited from doing business, the corresponding Accounts Receivable (or a pro-rata portion thereof) are not eligible for inclusion in the Export-Related Borrowing Base.); 
  

 11 

 (i) that does not comply with the requirements of the Country Limitation Schedule; 
 (j) that by its original terms is due and payable more than ninety (90) days from the date of invoice (“EX-IM Foreign Eligibility
Period”); 
 (k) have credit balances over sixty (60) days from due date; 
 (l) that is not paid within sixty (60) calendar days from its original due date unless insured through Ex-Im Bank (or other acceptable) export
credit insurance for comprehensive commercial and political risk, in which case ninety (90) calendar days shall apply; 
 (m) that
arises from a sale of goods to or performance of services for an employee, stockholder, or subsidiary of the Borrower, intra-company Accounts Receivable or any Account from a stockholder, any person or entity with a controlling interest in the
Borrower or which shares common controlling ownership with the Borrower; 
 (n) that is backed by a letter of credit where the Items covered
by the subject letter of credit have not yet been shipped, or where the covered services have not yet provided; 
 (o) that the Bank or Ex-Im
Bank, in its reasonable judgment, deem uncollectible or unacceptable; this category includes, but is not limited to, finance charges or late charges imposed on the foreign Buyer by the Borrower as a result of the foreign Buyer’s past due
status; 
 (p) that does not comply with the terms of sale as set forth by Ex-Im Bank; 
 (q) that is due and payable from an Buyer who becomes unable to pay its debts or whose ability to pay its debts becomes questionable; 
 (r) that arises from a bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment, or any other repurchase or return basis or is
evidenced by chattel paper; 
 (s) for which the Items giving rise to such Accounts Receivable have not been shipped to the Buyer or when the
Items are services, such services have not been performed or when the Export Order specifies a timing for invoicing the Items other than shipment or performance and the Items have not been invoiced in accordance with such terms of the Export Order,
or the Accounts Receivable do not otherwise represent a final sale; 
 (t) that is subject to any offset, deduction, defense, dispute, or
counterclaim, to the extent of such offset, deduction, defense, dispute, or counterclaim, or the Buyer is also a creditor or supplier of the Borrower, or the Account is contingent in any respect or for any reason; 
 (u) for which the Borrower has made any agreement with the Buyer for any deduction therefrom, except for discounts or allowances made in the ordinary
course of business for prompt payment; 
 (v) for which any of the Items giving rise to such Account having been returned, rejected, or
repossessed; 
 (w) that arises from the sale of Items that do not meet 50% U.S. Content requirements; 
 (x) that is deemed to be ineligible by Ex-Im Bank. 
 Bank reserves the right at any time after the Closing Date to adjust the Minimum EX-IM Foreign Eligibility Requirements in its good faith business judgment and establish new criteria to determine the foregoing. 
 “EX-IM Foreign Eligibility Period” is defined in the term “Eligible Foreign Accounts.” 
  

 12 

 “EX-IM Guarantee” is that certain Master Guarantee Agreement or other agreement, as
amended from time to time, the terms of which are incorporated into this EX-IM Agreement. 
 “EX-IM Loan Documents” means
that certain Export-Import Bank Loan and Security Agreement (“EX-IM Loan Agreement”), any note or notes executed by Borrower in connection therewith or any other agreement entered into in connection with this EX-IM Loan Agreement, pursuant
to which EX-IM Bank guarantees Borrower’s obligations under this EX-IM Agreement. 
 “EX-IM Maturity Date” is
July 6, 2009. 
 “Export Order” is a written export order or contract for the purchase by the buyer from the Borrower
of any finished goods or services which are intended for export. 
 “Foreign Borrowing Base” means the lesser of
(a) Eight Million Dollars ($8,000,000) or (b) ninety percent (90%) of EX-IM Eligible Foreign Accounts as determined by Bank from Borrower’s most recent Transaction Report; provided, however, Accounts that are billed in currencies
other than in U.S. Dollars shall be permitted (“Non-US Dollar Accounts”) as EX-IM Eligible Foreign Accounts provided the foreign exchange risk is hedged, in all other cases Non-US Dollar Accounts shall be subject to a seventy percent
(70%) calculation; provided further, however, that Bank may decrease the foregoing percentages in its good faith business judgment based on events, conditions, contingencies, or risks which, as determined by Bank, in connection with the results
of an audit in accordance with this EX-IM Agreement, may adversely affect Collateral. 
 “Loan Documents” are, collectively,
this EX-IM Agreement, the Domestic Loan Documents, any note, or notes or guaranties executed by Borrower or Guarantor in connection with this EX-IM Agreement or the Domestic Loan Documents, and any other present or future agreement between Borrower
and/or for the benefit of Bank in connection with this EX-IM Agreement or the Domestic Loan Documents, all as amended, extended or restated. 
 “Minimum Foreign Eligibility Requirements” is defined in the term “Eligible Foreign Accounts.” 
 “Obligations” are debts, principal, interest, Bank Expenses and other amounts Borrower owes Bank now or later, including letters of credit and exchange contracts and including interest accruing after Insolvency Proceedings
begin, in each case that arise under the Loan Documents. 
 “Schedule” is any attached schedule of exceptions. 

“Transaction Report” is that certain report of transactions and schedule of collections in the form attached hereto as Exhibit
B. 
  

 13 

 IN WITNESS WHEREOF, the parties hereto have caused this EX-IM Agreement to be executed as of the
Closing Date. 
  

			
	BORROWER:
	
	MOTIVE, INC.
		
	By:	 	 /s/ Mike Fitzpatrick

	Title:	 	 Chief Financial Officer

	
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	 /s/ Phillip A. Wright

	Title:	 	 Relationship Manager

	
	Closing Date: July 7, 2008

 [Signature page to Ex-Im Loan and Security Agreement] 

 EXHIBIT A 
 The Collateral consists of all of Borrower’s right, title and interest in and to the following: 
 All
goods, Accounts (including health-care Accounts), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles, commercial tort claims, documents, instruments (including
any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property,
supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and 
 All Borrower’s Books
relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of
any or all of the foregoing. 
 Notwithstanding the foregoing, the Collateral shall not be deemed to include (i) more than 66% of the
total combined voting power of all classes of stock entitled to vote the shares of capital stock of any Subsidiary of Borrower not incorporated or organized under the laws of one of the States or jurisdictions of the United States; (ii) any
permit or license issued by a Governmental Authority to Borrower or any agreement to which Borrower is a party, in each case, only to the extent and for so long as the terms of such permit, license or agreement or any law applicable thereto, validly
prohibit the creation by Borrower of a security interest in such permit, license or agreement in favor of Bank (after giving effect to Sections 9-406(d), 9-407(a), 9-408(a) or 9-409 of the Code (or any successor provision or provisions) or any other
applicable law (including the United States Bankruptcy Code) or principles of equity); and (iii) motor vehicles the perfection of a security interest in which is excluded from the Code in the relevant jurisdiction. 
 [Exhibit A to Ex-Im Loan and Security Agreement]Exhibit 10.1

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered
into on the 9th of July, 2008, to be effective on and as of the 9th of July, 2008 (the “Effective Date”), by and between Integral Systems, Inc., a Maryland corporation (the “Company”), and John B. Higginbotham (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 Executive Officer. Executive shall have such powers, perform such duties and fulfill such responsibilities as may be determined by the Board of Directors of the Company (the “Board”)
from time to time consistent with his position as Chief Executive Officer of the Company. Executive shall report to the Chairman of the Board. 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: (i) Executive shall be permitted a reasonable amount of time to supervise his personal, passive investments; (ii) Executive shall be permitted a reasonable amount of time to participate (as
board member, officer or volunteer) in civic, political and charitable activities; and (iii) Executive shall be permitted to serve on the board of directors of Protostar and the Space Foundation (director emeritus). 
 (c) During the Term of Executive’s employment, the Company shall cause Executive to be nominated for a position as a member of the Board.

 1.2 Place of Employment. Executive’s principal place of employment shall be in Columbia, Maryland (or, prior to early 2009,
Lanham, 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 $360,000 per annum (the “Base Salary”), which shall be pro-rated for calendar year 2008, 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 75% of Base Salary (the “Target Bonus”), with the actual bonus (if any) determined pursuant to the Company’s applicable annual incentive compensation plan as in effect
from time-to-time, with a potential actual bonus of up to 150% of Base Salary for performance as determined pursuant to the applicable annual incentive compensation plan. The annual bonus performance goals shall be established in the first ninety
(90) days of each fiscal year of the Company by the Board in agreement with Executive. For the 2008 fiscal year (which began on October 1, 2007), the Company and Executive shall agree on reasonable bonus performance goals by no later than
sixty (60) days after the Effective Date, and the annual target bonus opportunity for the 2008 fiscal year shall be 75% of the Base Salary earned by Executive during such fiscal year, with a potential actual bonus of up to 150% of Base Salary
earned by Executive during such fiscal year for performance as determined pursuant to the applicable arrangement. Any annual bonus shall be paid to Executive no later than two and one-half months following the end of the fiscal year to which it
relates. 
 3.3 Sign-On Bonus. The Company shall pay Executive a one-time sign-on bonus of $75,000, payable with Executive’s
first paycheck from the Company. 
 3.4 Grant of Stock Options. No later than 30 days after the Effective Date, the Company shall
grant Executive a nonqualified stock option to acquire two hundred seventy five thousand (275,000) shares of the Company’s common stock, subject to such vesting restrictions and other terms and conditions as set forth by the Company’s
2008 

  

 2 

 
Stock Incentive Plan and the Company’s standard form of award agreement for options under the Plan, a copy of which has been made available to Executive
prior to the Effective Date (the “Award Agreement”). Further, the Company shall in good faith consider Executive for an additional award of stock options under the Company’s equity incentive plan on each anniversary of the Effective
Date, consistent with the Company’s overall equity plan, with a target option award covering at least 50,000 shares per year (subject to adjustment based on corporate events occurring after the Effective Date pursuant to the terms of the 2008
Stock Incentive Plan). 
 The initial stock option award and all future options (“Options”) granted to the Employee shall vest in
the following manner: 
 (a) Vesting shall occur with respect to 25% of the Options on each of the first, second, third and fourth
anniversaries of the date of grant (the Effective Date for the 275,000 Options initially granted pursuant to this Section 3.4), subject to Executive’s continued employment with, or provision of services to, the Company through each
applicable vesting date; provided, however, that any future Options may vest on a different schedule that results in vesting at least as quickly as under such schedule. 
 (b) 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 or service provider of the Company, (ii) if Executive’s employment or services with the Company are terminated by the Company without Cause, by Executive for Good Reason, or due to Executive’s death or Total
Disability, and, (iii) in the event of non-renewal of the initial Term. 
 The Company shall use its best efforts to register the shares
of stock subject to any stock options or other equity awards made to Executive pursuant to an effective registration statement under the Securities Act of 1933, as amended (“Securities Act”) so that Executive may freely trade such shares
on the public markets at such time as the options are exercised or the shares are issued to Executive. 
 3.5 Change in Control Bonus.
If a change in control (as defined in the Award Agreement) occurs before the 18-month anniversary of the Effective Date and while Executive is an employee or other service provider to the Company (or Executive was terminated without Cause or
resigned for Good Reason prior to the change in control occurring), the Company shall pay Executive a cash bonus of the following amount upon the occurrence of such change in control: 
  

 3 

			
	 Price Per Share of Common Stock
 Received by Shareholders in
 Connection with the Change in
 Control (Adjusted for Post-Effective
 Date
Corporate Events in the Same
 Manner As Awards Granted Under the
 2008 Stock Incentive Plan)
	  	 Change in Control Bonus

	 $40 or less
	  	$630,000
	 $41
	  	$355,000
	 $42
	  	$80,000
	 $42.30 or above
	  	$0

 For stock prices between those set forth in the chart above, the change in control bonus shall be
determined by interpolation. In addition, the price per share of common stock received by shareholders in connection with the Change in Control shall be determined without regard to any amounts placed in escrow, earn-outs, holdbacks or similar
amounts. 
 3.6 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, hospitalization or disability insurance plan, health program, 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. 
 3.7 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 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 $15,000, within fourteen (14) days after Executive provides the Company with a copy of any invoices he has received for such services. 
 3.8 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 

	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). 
 (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 

  

 5 

 
the Board of the Company 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 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 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. 
  

 6 

 (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 at the time at which other similarly situated Company executives receive their bonus payments. 
 (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, to the extent of payments made from the date of termination of Executive’s employment through March 15 of the
calendar year following such termination, are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury regulations and thus are payable pursuant to the “short-term deferral” rule set
forth in Section 1.409A-1(b)(4) of the Treasury Regulations. To the extent such severance payments are made following said March 15, they are intended to constitute separate payments for purposes of Section 1.409A-1(b)(9)(iii) of
the Treasury Regulations to the maximum extent permitted by said provision, with any excess amount being regarded as subject to the distribution requirements of Section 409A(a)(2)(A) of the Internal Revenue Code, including, without limitation,
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 

  

 7 

 
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 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 

  

 8 

 
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. 
 (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. 
  

 9 

 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. 
 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 

  

 10 

 
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. 
 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.

 5000 Philadelphia Way 
 Lanham, Maryland 
 Fax: 301-731-3183 
 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. 
  

 11 

	 	(ii)	if to Executive, to: 

 John B. Higginbotham 
 102 Jefferson Run Road 
 Great Falls, VA
22066 
 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 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 “Golden Parachute” Gross-Up. Notwithstanding anything to the contrary in this Agreement, in the event that the payments or other benefits (collectively, the “Payments”) provided for in this Agreement and
otherwise to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 7.4, would be subject to the excise tax imposed by Section 4999 of the Code or
any interest or penalties with respect to such excise tax (such excise tax, together with any such interest or penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Company shall pay to Executive an additional
payment (a “Gross-up Payment”) in an amount such that after payment by Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including any income taxes and Excise Taxes imposed on any Gross-up
Payment, Executive retains an amount of the Gross-up Payment (taking into account any similar gross-up payments to Executive under any stock incentive or other benefit plan or program of the Company) equal to the Excise Tax imposed upon the
Payments. The Company and Executive shall make an initial determination as to whether a Gross-up Payment is required and the amount of any such Gross-up Payment. Executive shall notify the Company in writing of any claim by the Internal Revenue
Service which, if successful, would require the Company to make a Gross-up Payment (or a Gross-up Payment in excess of that, if any, initially determined by the Company and Executive) within ten (10) business days after the receipt of such
claim. The Company shall notify Executive in writing at least ten (10) business days prior to the due date of any response required with respect to such claim if it plans to contest the claim. If the Company decides to contest such claim,
Executive shall 

  

 12 

 
cooperate fully with the Company in such action; provided, however, the Company shall bear and pay directly or indirectly all costs and expenses (including
additional interest and penalties) incurred in connection with such action and shall indemnify and hold Executive harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and penalties with respect thereto, imposed as a
result of the Company’s action. If, as a result of the Company’s action with respect to a claim, Executive receives a refund of any amount paid by the Company with respect to such claim, Executive shall promptly pay such refund to the
Company. If the Company fails to timely notify Executive whether it will contest such claim or the Company determines not to contest such claim, then the Company shall immediately pay to Executive the portion of such claim, if any, which it has not
previously paid to Executive. Any Gross-up Payment hereunder shall in all events be paid to Executive by the date on which Executive is required to remit any portion of the Excise Tax to the applicable tax authority. 
 7.5 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. 
 7.6
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. 
 7.7 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. 
 7.8 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. 
 7.9 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. 
 7.10 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. 
 7.11 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. 
 7.12 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 

  

 13 

 
any and all actions, suits proceedings, claims, demands, judgments, costs, expenses (including 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.

 7.13 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. 
 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/ Paul G. Casner Jr.
		 	Name: Paul G. Casner Jr.
		 	Title: Director
	
	EXECUTIVE:
		
	By:	 	/s/ John B. Higginbotham
		 	John B. Higginbotham

  

 14

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