Document:

<PAGE>

                                                                   Exhibit 10.23

                                 VAIL RESORTS

                          DEFERRED COMPENSATION PLAN

                                      31
<PAGE>

                                 VAIL RESORTS
                          DEFERRED COMPENSATION PLAN

                               Table of Contents

<TABLE>
<CAPTION>
Section                                                                    Page
<S>                                                                        <C>
ARTICLE 1    Definitions.................................................    1
  1.1        Account.....................................................    1
  1.2        Administrator...............................................    1
  1.3        Beneficiary.................................................    1
  1.4        Board.......................................................    1
  1.5        Bonus.......................................................    1
  1.6        Code........................................................    1
  1.7        Compensation................................................    1
  1.8        Deferrals...................................................    2
  1.9        Deferral Election...........................................    2
  1.10       Disability..................................................    2
  1.11       Discretionary Contribution..................................    2
  1.12       Effective Date..............................................    2
  1.13       Eligible Employee...........................................    2
  1.14       Employee....................................................    2
  1.15       Employer....................................................    2
  1.16       Enrollment Period...........................................    2
  1.17       Investment Fund or Funds....................................    2
  1.18       Matching Contribution.......................................    3
  1.19       Participant.................................................    3
  1.20       Plan........................................................    3
  1.21       Plan Year...................................................    3
  1.22       Retirement..................................................    3
  1.23       Salary......................................................    3
  1.24       Trust.......................................................    3
  1.25       Trustee.....................................................    3
  1.26       Years of Service............................................    3

ARTICLE 2    Participation...............................................    4
  2.1        Designation as Eligible Employee............................    4
  2.2        Commencement of Participation...............................    4
  2.3        Loss of Eligible Employee Status ...........................    4

ARTICLE 3    Contributions...............................................    5
  3.1        Deferrals...................................................    5
  3.2        Matching Contribution.......................................    6
  3.3        Discretionary Contribution..................................    6
  3.4        Time of Contributions.......................................    6
  3.5        Form of Contributions.......................................    7
</TABLE>

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<TABLE>
<CAPTION>
Section                                                                    Page
<S>                                                                        <C>
ARTICLE 4    Vesting.....................................................   7
  4.1        Vesting of Deferrals........................................   7
  4.2        Vesting of Matching and Discretionary Contributions.........   7
  4.3        Vesting in Event of Change of Control.......................   7
  4.4        Amounts Not Vested..........................................   7

ARTICLE 5    Accounts....................................................   8
  5.1        Accounts....................................................   8
  5.2        Investments, Gains and Losses...............................   9
  5.3        Forfeitures.................................................   9

ARTICLE 6    Distributions...............................................   9
  6.1        Distribution Election.......................................   9
  6.2        Payment Options.............................................  10
  6.3        Commencement of Payment upon Termination Employment.........  11
  6.4        Commencement of Payment upon Death or Disability ...........  12
  6.5        Minimum Distribution........................................  12
  6.6        Financial Hardship..........................................  13
  6.7        Early Distribution and Penalty..............................  14

ARTICLE 7    Beneficiaries...............................................  14
  7.1        Beneficiaries...............................................  14
  7.2        Lost Beneficiary............................................  14

ARTICLE 8    Funding.....................................................  15
  8.1        Prohibition Against Funding.................................  15
  8.2        Deposits in Trust...........................................  15
  8.3        Indemnification of Trustee..................................  15
  8.4        Withholding of Employee Contributions.......................  16

ARTICLE 9    Claims Administration.......................................  16
  9.1        General.....................................................  16
  9.2        Claim Review................................................  16
  9.3        Right of Appeal.............................................  16
  9.4        Review of Appeal............................................  17
  9.5        Designation.................................................  17
  9.6        Arbitration.................................................  17

ARTICLE 10   General Provisions..........................................  18
 10.1        Administrator...............................................  18
 10.2        No Assignment...............................................  19
 10.3        No Employment Rights........................................  19
 10.4        Incompetence................................................  19
 10.5        Identity....................................................  19
 10.6        Other Benefits..............................................  19
 10.7        No Liability................................................  20
</TABLE>

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<TABLE>
<CAPTION>
Section                                                                    Page
<S>                                                                        <C>
  10.8       Expenses....................................................   20
  10.9       Insolvency..................................................   20
  10.10      Amendment and Termination...................................   20
  10.11      Employer Determinations.....................................   20
  10.12      Construction................................................   21
  10.13      Governing Law...............................................   21
  10.14      Severability................................................   21
  10.15      Headings....................................................   21
  10.16      Terms.......................................................   21
</TABLE>

                                      34
<PAGE>

                                 VAIL RESORTS
                          DEFERRED COMPENSATION PLAN

      The Vail Corporation, d/b/a Vail Associates, Inc. a Colorado corporation
(the "Employer"), hereby adopts the Vail Resorts Deferred Compensation Plan (the
"Plan") for the benefit of a select group of management or highly compensated
employees. This Plan is an unfunded arrangement and is intended to be exempt
from the participation, vesting, funding, and fiduciary requirements set forth
in Title I of the Employee Retirement Income Security Act of 1974, as amended.
This Plan is effective October 1, 2000.
                       --------------

                                   ARTICLE 1
                                  Definitions

1.1   Account. The bookkeeping account established for each Participant as
      provided in Section 5.1 hereof.

1.2   Administrator. Shall be a Committee consisting of those individuals
      appointed from time to time by the Executive Committee of the Board of
      Directors of Vail Resorts, Inc.

1.3   Beneficiary. The person, persons, trust or other entity a Participant
      designates by written revocable designation filed with the Administrator
      to receive payments in event of his or her death.

1.4   Board. The Executive Committee of the Board of Directors of Vail Resorts,
      Inc.

1.5   Bonus. Compensation which is designated as such by the Employer and which
      relates to services performed during an incentive period by an Eligible
      Employee in addition to his or her Salary, including any pretax elective
      deferrals from said Bonus to any Employer sponsored plan that includes
      amounts deferred under a Deferral Election or a qualified cash or deferred
      arrangement under Code Section 401(k) or cafeteria plan under Code Section
      125.

1.6   Code.  The Internal Revenue Code of 1986, as amended.

1.7   Compensation. The Participant's earned income, including Salary, Bonus and
      other remuneration from the Employer.

1.8   Deferrals. The portion of Compensation that a Participant elects to defer
      in accordance with Section 3.1 hereof.

1.9   Deferral Election. The separate written agreement, submitted to the
      Administrator, by which an Eligible Employee agrees to participate in the
      Plan and make Deferrals thereto. The Deferral Election will specify the
      amount of Compensation that a Participant chooses to defer.

1.10  Disability. Any medically determinable physical or mental disorder that
      renders a Participant incapable of continuing in the employment of the
      Employer in his or her regular duties of employment, as determined by the
      Administrator in its sole discretion.

1.11  Discretionary Contribution. An Employer Contribution as described in
      Section 3.3 hereof.

1.12  Effective Date.  October 1, 2000.

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<PAGE>

1.13  Eligible Employee. Each Employee designated by the Administrator pursuant
      to Section 2.1 as eligible to participate in the Plan.

1.14  Employee.  Any person employed by the Employer.

1.15  Employer. The Vail Corporation, d/b/a Vail Associates, Inc. and its
      subsidiaries.

1.16  Enrollment Period

      a.  For individuals who are Eligible Employees prior to the commencement
          of a given Plan Year, Enrollment Period means the period set by the
          Administrator, which ends prior to the first day of a Plan Year.

      b.  With respect to an Eligible Employee designated as such by the Company
          effective as of any day after the first day of a Plan Year, Enrollment
          Period means the period beginning with the date of his/her designation
          as an Eligible Employee, and ending prior to the first day such
          Eligible Employee's participation in the Plan commences.

1.17  Investment Fund or Funds. Each investment(s), which serves as a means to
      measure value, increases or decreases with respect to a Participant's
      Accounts.

1.18  Matching Contribution. An Employer contribution as described in Section
      3.2 hereof.

1.19  Participant. An Eligible Employee who is a Participant as provided in
      Article 2.

1.20  Plan. Vail Resorts Deferred Compensation Plan.

1.21  Plan Year. October 1 through December 31, 2000 for the first Plan Year;
      January 1 through December 31 for each subsequent Plan Year.

1.22  Retirement. Retirement means the termination of the Participant's
      employment or contract with the Employer for any reason other than death
      or disability on or after age 60.

1.23  Salary. An Eligible Employee's base salary rate or rates in effect at any
      time during a Plan Year, including any pretax elective deferrals from said
      Salary to any Employer sponsored plan that includes amounts deferred under
      a Deferral Election or a qualified cash or deferred arrangement under Code
      Section 401(k) or cafeteria plan under Code Section 125.

1.24  Trust. The agreement between the Employer and the Trustee under which the
      assets of the Plan are held, administered and managed, which shall conform
      to the terms of Rev. Proc. 92-64.

1.25  Trustee. Wells Fargo Bank, N.A., or such other successor that shall become
      trustee pursuant to the terms of the Plan.

1.26  Years of Service. A Participant's "Years of Service" shall be measured by
      the total number of full twelve (12) month periods that an individual has
      been an Employee.

                                      36
<PAGE>

                                   ARTICLE 2
                                 Participation

2.1   Designation as Eligible Employee. The Administrator shall from time to
      time specify one or more persons from a select group of management or
      highly compensated employees as Eligible Employees. Such specification
      shall be in writing, with a copy delivered to the Employer and the person
      designated as eligible, and shall set the date as of when the person
      becomes eligible.

      For the October 1, 2000 - December 31, 2000 Plan Year, and for subsequent
      Plan Years until the Administrator otherwise directs, an Eligible Employee
      shall mean each Employee:

      (a)  who is designated as such by the Administrator; and,

      (b)  has a Salary Grade Level of 30 and above; and,

      (c)  earns at least $120,000 or more.

      An individual's designation as an Eligible Employee may be revoked at any
      time upon written notice of the Administrator to such individual.

2.2   Commencement of Participation. Each Eligible Employee shall become a
      Participant at the earlier of the first day of the Plan Year or the date
      on which his or her Deferral Election first becomes effective.

2.3   Loss of Eligible Employee Status.

      (a)  A Participant who is no longer an Eligible Employee shall not be
           permitted to submit a Deferral Election and all Deferrals for such
           Participant shall cease immediately upon the determination that the
           Participant is no longer considered an Eligible Employee.

      (b)  Amounts credited to the Account of a Participant described in
           subsection (a) shall continue to be held, pursuant to the terms of
           the Plan and shall be distributed as provided in Article 6.

      (c)  A Participant who is no longer an Eligible Employee shall continue to
           receive quarterly statements, and shall retain the right to make
           changes in investment selection according to Section 5.2.

                                   ARTICLE 3
                                 Contributions

3.1   Deferrals.

      (a)  On an annual basis, each Participant may authorize the Employer to
           reduce his/her future Compensation by a percentage not to exceed an
           amount allowed for the Plan Year as established by the Employer, and
           to have a corresponding amount credited to his/her Accounts, in
           accordance with Article 5, by filing a Deferral Agreement with the
           Administrator during his/her initial Enrollment Period or any
           subsequent Enrollment Period preceding the Plan Year during which
           such Compensation will be earned.

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      (b)  Each Eligible Employee shall deliver an annual Deferral Election to
           the Employer before any Deferrals can become effective. Such Deferral
           Election shall be void with respect to any Deferral unless submitted
           before the beginning of the Plan Year during which the amount to be
           deferred will be earned; provided, however, that in the year in which
           the Plan is first adopted or an Employee is first eligible to
           participate, such Deferral Election shall be filed within thirty (30)
           days of the date on which the Plan is adopted or within sixty (60)
           days of the date on which an Employee is first eligible to
           participate, respectively, with respect to Compensation earned during
           the remainder of the calendar year.

      (c)  The Deferral Election shall, subject to the limitation set forth in
           Section 3.1(a) hereof, designate the amount of Compensation deferred
           by each Participant, the beneficiary or beneficiaries of the
           Participant and such other items as the Administrator may prescribe.
           Such Deferral Elections shall remain effective for the Plan Year.

      (d)  The minimum amount of Compensation that may be deferred each Plan
           Year is one thousand dollars ($1,000).

      (e)  The maximum amount of Compensation that may be deferred each Plan
           Year is ninety-five percent (95%) of the Participant's Salary and
           ninety-five percent (95%) of the Participant's Bonus.

3.2   Matching Contribution. At its sole and absolute discretion, the Board may
      elect to make a Matching Contribution to the Accounts of some or all of
      the Participants. The amount of the Matching Contribution, if any, shall
      be determined by the Board annually and communicated to all Eligible
      Employees. Such Matching Contribution shall be allocated to the
      Participant's Accounts at such Participant's election made in accordance
      with Section 5.1.

3.3   Discretionary Contribution. At its sole and absolute discretion, the Board
      may elect to make a Discretionary Contribution to the Account of some or
      all of the Participants. Nothing in this Plan, however, shall obligate the
      Board to make Discretionary Contributions for the benefit of Plan
      Participants in any Plan Year, nor to make identical Discretionary
      Contributions for the benefit of Plan Participants in any Plan Year. The
      Board expressly reserves the right to make Discretionary Contributions to
      such Plan Participants in such amount or such proportions as it deems
      warranted or appropriate; provided, however, the Board shall not
      discriminate against any Plan Participant in making Contributions under
      this provision on the basis of such Participant's race, nationality,
      religion, gender, marital status or disability. Discretionary
      Contributions shall be allocated to the Participant's Accounts at such
      Participant's election made in accordance with Section 5.1. Nothing in
      this Plan or any other agreement or document shall represent or be
      construed to represent an obligation or promise of the Board to make
      Discretionary Contributions on behalf of a Participant at any time.

3.4   Time of Contributions.

      (a)  Deferrals shall be transferred to the Trust as soon as
           administratively feasible following the end of each payroll period.
           The Employer shall also transmit at that time any necessary
           instructions regarding the allocation of such amounts among the
           Accounts of Participants.

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<PAGE>

      (b)  Matching Contributions and Discretionary Contributions shall be
           transferred to the Trust at such time as the Employer shall
           determine. The Employer shall also transmit at that time any
           necessary instructions regarding the allocation of such amounts among
           the Accounts of Participants.

3.5   Form of Contributions. All Deferrals, Matching Contributions and
      Discretionary Contributions to the Trust shall be made in the form of cash
      or cash equivalents of US currency.

                                   ARTICLE 4
                                    Vesting

4.1   Vesting of Deferrals. A Participant shall have a vested right to the
      portion of his or her Account attributable to Deferrals and any earnings
      on the investment of such Deferrals.

4.2   Vesting of Matching and Discretionary Contributions. Upon completion of 1
      Year of Service, a Participant shall have a 25% vested right to the
      portion of his or her account attributable to Matching Contributions and
      any earning thereon; upon completion of 2 Years of Service, a 50% vested
      right; 3 Years of Service, a 75% vested right; 4 Years of Service a 100%
      vested right. Discretionary Contributions shall vest as determined by the
      Board. The Board may direct the Administrator to accelerate the vesting on
      the matching and or discretionary contributions at any time.

4.3   Vesting in the Event of Disability or Death. In the event of a termination
      based on a Disability, as defined herein, the Participant shall be
      considered 100% vested in their Deferrals and any Matching Contributions
      (not Discretionary Contributions, unless the Administrator is otherwise
      directed by the Board) credited to the Participant's Account as of the
      effective date of termination. In the event of the Participant's death
      while employed, the Participant shall be considered 100% vested in their
      Deferrals and any Matching Contributions (not Discretionary Contributions,
      unless the Administrator is otherwise directed by the Board) credited to
      the Participant's Account as of the date of Participant's death.

4.4   Amounts Not Vested. Any amounts credited to a Participant's Account that
      are not vested at the time of his or her termination of employment with
      the Employer shall be forfeited.

                                   ARTICLE 5
                                   Accounts

5.1   Accounts. The Administrator shall establish and maintain a bookkeeping
      account in the name of each Participant. The Administrator shall also
      establish subaccounts, as provided in subsection (a), (b), and/or (c),
      below, as elected by the Participant pursuant to Article 3.

      (a)  A Retirement Account shall be established for each Participant. His
           or her Retirement Account shall be credited with Deferrals (as
           specified in the Participant's Deferral Election) and the
           Participant's allocable share of any earnings or losses on the
           foregoing. Each Participant's Account shall be reduced by any
           distributions made plus any federal, state and/or local tax
           withholding and any social security withholding tax as may be
           required by law.

      (b)  A Participant may elect to establish one or more Education Accounts
           in the name of a "Student" at the time of his or her Deferral. For
           purposes of this Article, Student shall mean an individual who has
           not yet attained the age of thirteen (13) at the time the account is
           initially established. Each

                                      39
<PAGE>

           Participant's Education Account shall be credited with Deferrals (as
           specified in the Participant's Deferral Election) and the
           Participant's allocable share of any earnings or losses on the
           foregoing. Each Participant's Account shall be reduced by any
           distributions made plus any federal, state and/or local tax
           withholding and any social security withholding tax as may be
           required by law.

      (c)  A Participant may elect to establish one or more Personal Goals
           Accounts by designating a year of payout at the time the account is
           initially established. The minimum initial deferral period for
           Personal Goals subaccounts shall be five (5) years. Each
           Participant's Personal Goals Account shall be credited with Deferrals
           (as specified in the Participant's Deferral Election) and the
           Participant's allocable share of any earnings or losses on the
           foregoing. Each Participant's Account shall be reduced by any
           distributions made plus any federal, state and/or local tax
           withholding and any social security withholding tax as may be
           required by law.

      (d)  The maximum number of Education Sub-Accounts will be four (4) and the
           maximum number of Personal Goals Sub-Accounts will be five (5). The
           maximum number of Education and/or Personal Goals Sub-Accounts that a
           Participant may have at one time will be nine (9).

5.2   Investments, Gains and Losses.

      (a)  Trust assets shall be invested by the Trustee in accordance with
           written directions from the Employer. Such directions shall provide
           Trustee with the investment discretion to invest the above-referenced
           amounts within broad guidelines established by Trustee and Employer
           as set forth therein.

      (b)  The Administrator shall adjust the amounts credited to each
           Participant's Account to reflect Deferrals, investment experience,
           distributions and any other appropriate adjustments. Such adjustments
           shall be made as frequently as is administratively feasible.

      (c)  A Participant may direct that his or her Retirement Account,
           Education Account and or Personal Goals Account established pursuant
           to Section 5.1 may be valued as if they were invested in one or more
           Investment Funds in multiples of one percent (1%) of the balance in
           an Account. A Participant may change his or her selection of
           Investment Funds no more than six (6) times each Plan Year. An
           election shall be effective as soon as administratively feasible
           following the date of the change as indicated in writing by the
           Participant.

5.3   Forfeitures. Any forfeitures from a Participant's Account shall continue
      to be held in the Trust, and shall be used to reduce the Employer's future
      Matching and Discretionary Contributions under the Plan. If no such
      further contributions will be made, then such forfeitures shall be
      returned to the Employer.

                                      40
<PAGE>

                                   ARTICLE 6
                                 Distributions

6.1  Distribution Election. Each Participant shall designate on his or her
     Deferral Election the timing of his or her distribution by indicating the
     type of account as described under Section 5.1. A Participant may not
     modify, alter, amend or revoke such designation for a Plan Year after such
     Plan year begins. Further, amounts in one Account cannot be transferred to
     another Account. Each Participant shall also designate the manner in which
     Retirement Account payments shall be made from the choices available under
     Section 6.2 (a) hereof.

6.2  Payment Options.

     (a)  Retirement Account payments shall commence as soon as administratively
          feasible immediately after the Participant's Retirement. The
          Participant may elect any one of the following forms of payment so
          long as the election is made in writing, delivered to the
          Administrator at least one year prior to the year in which the
          Participant's benefit becomes payable.

          (i)    The normal form of payment of benefits hereunder, and the form
                 of payments to be used if no other election is made, shall be a
                 single lump-sum distribution of the value of the Participant's
                 Retirement Account.

          (ii)   A Participant entitled to a benefit hereunder may elect to
                 receive his/her Retirement Account in substantially equal
                 annual installments over a period not to exceed ten (10) years.

                 The amount of the substantially equal payments described above
                 shall be determined by multiplying the Participant's Retirement
                 Account by a fraction, the denominator of which in the first
                 year of payment equals the number of years over which benefits
                 are to be paid, and the numerator of which is one (1).

                 The amounts of the payments for each succeeding year shall be
                 determined by multiplying the Participant's Retirement Account
                 as of the applicable anniversary of the Participant's
                 Retirement Date by a fraction, the denominator of which equals
                 the number of remaining years over which benefits are to be
                 paid, and the numerator of which is one (1).

          (iii)  A Participant entitled to a benefit hereunder may elect to
                 defer commencement of any distribution of his/her Retirement
                 Account for a period not to exceed three (3) years after
                 retirement. Amounts credited to the Retirement Account of a
                 Participant in this subsection shall continue to be held
                 pursuant to the terms and conditions of this Plan.

                                      41
<PAGE>

     (b)  Education Account payouts shall be paid in four annual installments on
          July 1 (or as soon as administratively feasible) of the calendar year
          in which the Student reaches age eighteen (18) and the three (3)
          anniversaries thereof in the following amounts:

                    Year 1                    25% of the account balance
                    Year 2                    33% of the account balance
                    Year 3                    50% of the account balance
                    Year 4                    100% of the account balance

     (c)  Personal Goals Account payouts shall be paid in one lump sum payment
          on January 1 (or as soon as administratively feasible) of the calendar
          year selected by the Participant on his or her Deferral Election.

6.3  Commencement of Payment upon Termination of Employment. Upon the
     termination of Participant's employment with the Employer for any reason
     other than death or Disability, the terminated Participant shall be
     entitled to the following applicable account management procedures:

     (a)  Retirement Account Credits

          (i)   if the Participant's Retirement Account has a credited balance
                equal to, or greater than, $10,000 on the effective date of
                termination, such credited balance shall be distributed to the
                Participant pursuant to the method selected by the Participant
                on his or her Deferral Agreement; or

          (ii)  if Participant's Retirement Account has a credited balance less
                than $10,000, on the effective date of termination, the
                Participant's credited amount will be distributed in a lump sum
                to the Participant as soon as administratively feasible.

     (b)  Education Account Credits

          (i)   if the Participant's Education Account(s) has a credited balance
                equal to, or greater than, $4,000 on the effective date of
                termination, such credited balance shall be distributed to the
                Participant pursuant to the method selected by the Participant
                on his or her Deferral Agreement; or

          (ii)  if Participant's Education Account(s) has a credited balance
                less than $4,000, on the effective date of termination, the
                Participant's credited amount will be distributed in a lump sum
                to the Participant as soon as administratively feasible.

     (c)  Personal Goals Account

          (i)   if the Participant's Personal Goals Account(s) has a credited
                balance equal to, or greater than, $10,000 on the effective date
                of termination, such credited balance shall be distributed to
                the Participant pursuant to the method selected by the
                Participant on his or her Deferral Agreement; or

                                      42
<PAGE>

          (ii)  if Participant's Personal Goals Account(s) has a credited
                balance less than $10,000, on the effective date of termination,
                the Participant's credited amount will be distributed in a lump
                sum to the Participant as soon as administratively feasible.

6.4  Commencement of Payment upon Death or Disability.

     (a)  Upon the death of a Participant, all amounts credited to his or her
          Account(s) shall be paid, as soon as administratively feasible, to his
          or her Beneficiary or Beneficiaries, as determined under Article 7
          hereof, in a lump sum.

     (b)  Upon the Disability of a Participant, all amounts credited to his or
          her Account(s) shall be paid to the Participant, in a lump-sum
          payment, as soon as administratively feasible.

6.5  Minimum Distribution.

     (a)  Notwithstanding any provision to the contrary, if the vested balance
          of a Participant's Account at the time of a termination due to
          Retirement is less than $10,000, then the Participant shall be paid
          his or her benefits as a single lump sum as soon as administratively
          feasible following said termination.

     (b)  Notwithstanding any provision to the contrary, if the balance of a
          Participant's Education Account(s) at the time benefit payments are to
          commence is less than $4,000, then the Participant shall be paid such
          Education Account(s) benefits as a single lump sum as soon as
          administratively feasible following said commencement date.

6.6  Financial Hardship. The Administrator may permit an early distribution of
     part or all of any deferred amounts; provided, however, that such
     distribution shall be made only if the Administrator, in its sole
     discretion, determines that the Participant has experienced an unforeseen
     emergency that is caused by an event beyond the control of the Participant
     and that would result in severe financial hardship to the Participant if
     early distribution were not permitted. Any distribution pursuant to this
     subsection is limited to the amount necessary to meet the hardship.

6.7  Early Distribution and Penalty. A Participant may elect to receive a
     distribution of up to ninety percent (90%) of the vested amounts in his or
     her Account on a date prior to that established under the Plan. If such an
     early distribution is requested, the Plan Administrator shall deduct from
     the Participant's account an additional ten percent (10%) of the vested
     amount withdrawn. This additional amount withdrawn by the Plan
     Administrator shall be considered an early distribution penalty, and shall
     be treated as forfeited by the participant. Participants who receive Early
     Distributions shall lose their status as Eligible Employees and will be
     barred from further participation in the Plan until a minimum of twelve
     (12) months have passed

                                   ARTICLE 7
                                 Beneficiaries

7.1  Beneficiaries. Each Participant may from time to time designate one or more
     persons (who may be any one or more members of such person's family or
     other persons, administrators, trusts, foundations or other entities) as
     his or her Beneficiary under the Plan. Such designation shall be made on a
     form prescribed by the Administrator. Each Participant may at any time and
     from time to time, change any previous

                                      43
<PAGE>

     Beneficiary designation, without notice to or consent of any previously
     designated Beneficiary, by amending his or her previous designation on a
     form prescribed by the Administrator. If no person shall be designated by
     the Participant as a Beneficiary, or if the designated Beneficiary shall
     not survive the Participant, payment of his/her interest shall be made to
     the Participant's estate. If more than one person is the beneficiary of a
     deceased Participant, each such person shall receive a pro rata share of
     any death benefit payable unless otherwise designated on the applicable
     form.

7.2  Lost Beneficiary.

     (a)  All Participants and Beneficiaries shall have the obligation to keep
          the Administrator informed of their current address until such time as
          all benefits due have been paid.

     (b)  If a Participant or Beneficiary cannot be located by the Administrator
          exercising due diligence, then, in its sole discretion, the
          Administrator may presume that the Participant or beneficiary is
          deceased for purposes of the Plan and all unpaid amounts (net of due
          diligence expenses) owed to the Participant or beneficiary shall be
          paid accordingly or, if a Beneficiary cannot be so located, then such
          amounts may be forfeited. Any such presumption of death shall be
          final, conclusive and binding on all parties. Notwithstanding the
          foregoing, if any such Beneficiary is located within five years from
          the date of any such forfeiture, such Beneficiary shall be entitled to
          receive the amount previously forfeited.

                                   ARTICLE 8
                                    Funding

8.1  Prohibition Against Funding. Should any investment be acquired in
     connection with the liabilities assumed under this Plan, it is expressly
     understood and agreed that the Participants and Beneficiaries shall not
     have any right with respect to, or claim against, such assets nor shall any
     such purchase be construed to create a trust of any kind or a fiduciary
     relationship between the Employer and the Participants, their Beneficiaries
     or any other person. Any such assets shall be and remain a part of the
     general, unpledged, unrestricted assets of the Employer, subject to the
     claims of its general creditors. It is the express intention of the parties
     hereto that this arrangement shall be unfunded for tax purposes and for
     purposes of Title I of the Employee Retirement Income Security Act of 1974,
     as amended. Each Participant and beneficiary shall be required to look to
     the provisions of this Plan and to the Employer itself for enforcement of
     any and all benefits due under this Plan, and to the extent any such person
     acquires a right to receive payment under this Plan, such right shall be no
     greater than the right of any unsecured general creditor of the Employer.
     The Employer or the Trust shall be designated the owner and beneficiary of
     any investment acquired in connection with its obligation under this Plan.

8.2  Deposits in Trust. Notwithstanding paragraph 8.1, or any other provision of
     this Plan to the contrary, the Employer may deposit into the Trust any
     amounts it deems appropriate to pay the benefits under this Plan. The
     amounts so deposited may include all contributions made pursuant to a
     Deferral Election by a Participant.

                                      44
<PAGE>

8.3  Indemnification of Trustee.

     (a)  The Trustee shall not be liable for the making, retention, or sale of
          any investment or reinvestment made by it, as herein provided, nor for
          any loss to, or diminution of, the Trust assets, unless due to its own
          negligence, willful misconduct or lack of good faith.

     (b)  Such Trustee shall be indemnified and saved harmless by the Employer
          from and against all personal liability to which it may be subject by
          reason of any act done or omitted to be done in its official capacity
          as Trustee in good faith in the administration of the Plan and Trust,
          including all expenses reasonably incurred in its defense in the event
          the Employer fails to provide such defense upon the request of the
          Trustee. The Trustee is relieved of all responsibility in connection
          with its duties hereunder to the fullest extent permitted by law,
          short of breach of duty to the beneficiaries.

8.4  Withholding of Employee Contributions. The Administrator is authorized to
     make any and all necessary arrangements with the Employer in order to
     withhold the Participant's Deferrals under Section 3.1 hereof from his or
     her Compensation. The Administrator shall determine the amount and timing
     of such withholding.

                                   ARTICLE 9
                             Claims Administration

9.1  General. If a Participant, Beneficiary or his/her representative is denied
     all or a portion of an expected Plan benefit for any reason and the
     Participant, Beneficiary or his/her representative desires to dispute the
     decision of the Administrator, he/she must file a written notification of
     his/her claim with the Administrator.

9.2  Claim Review. Upon receipt of any written claim for benefits, the
     Administrator shall be notified and shall give due consideration to the
     claim presented. If the claim is denied to any extent by the Administrator,
     the Administrator shall furnish the claimant with a written notice setting
     forth (in a manner calculated to be understood by the claimant):

     (a)  the specific reason or reasons for denial of the claim;

     (b)  a specific reference to the Plan provisions on which the denial is
          based;

     (c)  a description of any additional material or information necessary for
          the claimant to perfect the claim and an explanation of why such
          material or information is necessary; and

     (d)  an explanation of the provisions of this Article.

9.3  Right of Appeal. A claimant who has a claim denied under Section 9.2 may
     appeal to the Administrator for reconsideration of that claim. A request
     for reconsideration under this section must be filed by written notice
     within sixty (60) days after receipt by the claimant of the notice of
     denial under Section 9.2.

9.4  Review of Appeal. Upon receipt of an appeal the Administrator shall
     promptly take action to give due consideration to the appeal. Such
     consideration may include a hearing of the parties involved, if the
     Administrator feels such a hearing is necessary. In preparing for this
     appeal the claimant shall be given the right to review pertinent documents
     and the right to submit in writing a statement of issues and comments.

                                      45
<PAGE>

     After consideration of the merits of the appeal the Administrator shall
     issue a written decision which shall be binding on all parties subject to
     Section 9.6 below. The decision shall be written in a manner calculated to
     be understood by the claimant and shall specifically state its reasons and
     pertinent Plan provisions on which it relies. The Administrator's decision
     shall be issued within sixty (60) days after the appeal is filed, except
     that if a hearing is held the decision may be issued within one hundred
     twenty (120) days after the appeal is filed.

9.5  Designation. The Administrator may designate any other person of its
     choosing to make any determination otherwise required under this Article.

9.6  Arbitration. A claimant whose appeal has been denied under section 9.4
     shall have the right to submit said claim to final and binding arbitration,
     in accordance with the rules for contractual disputes, by a single
     arbitrator of the Judicial Arbiter Group ("JAG"), in Denver, Colorado, and
     judgment on the award rendered may be entered in any court having
     jurisdiction. The arbiter shall not, however, have the power to direct
     equitable relief. Any such request for arbitration must be filed by written
     demand to the Administrator within sixty (60) days after receipt of the
     decision of the regarding the appeal. The costs and expenses of
     arbitration, including the fees of JAG, shall be borne by the non-
     prevailing party. The prevailing party shall also recover, as expenses, all
     reasonable attorneys' fees incurred by it in connection with the
     arbitration and any appeals therefrom.

                                  ARTICLE 10
                              General Provisions

10.1 Administrator.

     (a)  The committee constituting the Administrator shall elect a chairman
          and shall adopt such rules as it deems desirable for the conduct of
          its affairs and for the administration of the Plan. It may appoint
          agents (who need not be members of the committee) to whom it may
          delegate such powers as it deems appropriate, except that any dispute
          shall be determined by the committee. The committee may make its
          determinations with or without meetings. It may authorize one or more
          of its members or agents to sign instructions, notices and
          determinations on its behalf. The action of a majority of the
          committee shall constitute the action of the Administrator.

     (b)  The Administrator is expressly empowered to limit the amount of
          compensation that may be deferred; to deposit amounts into trust in
          accordance with Section 8.2 hereof; to interpret the Plan, and to
          determine all questions arising in the administration, interpretation
          and application of the Plan; to employ actuaries, accountants,
          counsel, and other persons it deems necessary in connection with the
          administration of the Plan; to request any information from the
          Employer it deems necessary to determine whether the Employer would be
          considered insolvent or subject to a proceeding in bankruptcy; and to
          take all other necessary and proper actions to fulfill its duties as
          Administrator.

     (c)  The Administrator shall not be liable for any actions by it hereunder,
          unless due to its own negligence, willful misconduct or lack of good
          faith.

                                      46
<PAGE>

     (d)  The Administrator shall be indemnified and saved harmless by the
          Employer from and against all personal liability to which it may be
          subject by reason of any act done or omitted to be done in its
          official capacity as Administrator in good faith in the administration
          of the Plan and Trust, including all expenses reasonably incurred in
          its defense in the event the Employer fails to provide such defense
          upon the request of the Administrator. The Administrator is relieved
          of all responsibility in connection with its duties hereunder to the
          fullest extent permitted by law, short of breach of duty to the
          beneficiaries.

10.2 No Assignment. No benefit under the Plan shall be subject in any manner to
     anticipation, alienation, sale, transfer, assignment, pledge encumbrance or
     charge, and any such action shall be void for all purposes of the Plan. No
     benefit shall in any manner be subject to the debts, contracts,
     liabilities, engagements or torts of any person, nor shall it be subject to
     attachments or other legal process for or against any person, except to
     such extent as may be required by law.

10.3 No Employment Rights. Participation in this Plan shall not be construed to
     confer upon any Participant the legal right to be retained in the employ of
     the Employer, or give a Participant or beneficiary, or any other person,
     any right to any payment whatsoever, except to the extent of the benefits
     provided for hereunder. Each Participant shall remain subject to discharge
     to the same extent as if this Plan had never been adopted.

10.4 Incompetence. If the Administrator determines that any person to whom a
     benefit is payable under this Plan is incompetent by reason of physical or
     mental disability, the Administrator shall have the power to cause the
     payments becoming due to such person to be made to another individual for
     the Participant's benefit without responsibility of the Administrator or
     the Employer to see to the application of such payments. Any payment made
     pursuant to such power shall, as to such payment, operate as a complete
     discharge of the Employer, the Administrator and the Trustee.

10.5 Identity. If, at any time, any doubt exists as to the identity of any
     person entitled to any payment hereunder or the amount or time of such
     payment, the Administrator shall be entitled to hold such sum until such
     identity or amount or time is determined or until an order of a court of
     competent jurisdiction is obtained. The Administrator shall also be
     entitled to pay such sum into court in accordance with the appropriate
     rules of law. Any expenses incurred by the Employer, Administrator, and
     Trust incident to such proceeding or litigation shall be charged against
     the Account of the affected Participant.

10.6 Other Benefits. The benefits of each Participant or beneficiary hereunder
     shall be in addition to any benefits paid or payable to or on account of
     the Participant or beneficiary under any other pension, disability, annuity
     or retirement plan or policy whatsoever.

                                      47
<PAGE>

10.7  No Liability. No liability shall attach to or be incurred by any manager
      of the Employer, Trustee or any Administrator under or by reason of the
      terms, conditions and provisions contained in this Plan, or for the acts
      or decisions taken or made thereunder or in connection therewith; and as a
      condition precedent to the establishment of this Plan or the receipt of
      benefits thereunder, or both, such liability, if any, is expressly waived
      and released by each Participant and by any and all persons claiming under
      or through any Participant or any other person. Such waiver and release
      shall be conclusively evidenced by any act or participation in or the
      acceptance of benefits or the making of any election under this Plan.

10.8  Expenses. All expenses incurred in the administration of the Plan, whether
      incurred by the Employer or the Plan, shall be paid by the Employer.

10.9  Insolvency. Should the Employer be considered insolvent (as defined by the
      Trust), the Employer, through its Board and chief executive officer, shall
      give immediate written notice of such to the Administrator of the Plan and
      the Trustee. Upon receipt of such notice, the Administrator or Trustee
      shall cease to make any payments to Participants who were Employees of the
      Employer or their beneficiaries and shall hold any and all assets
      attributable to the Employer for the benefit of the general creditors of
      the Employer.

10.10 Amendment and Termination.

      (a) Except as otherwise provided in this section, the Employer shall have
          the sole authority to modify, amend or terminate this Plan; provided,
          however, that any modification or termination of this Plan shall not
          reduce, without the consent of a Participant, a Participant's right to
          any amounts already credited to his or her Account, or lengthen the
          time period for a payout from an established Account, on the day
          before the effective date of such modification or termination.
          Following such termination, payment of such credited amounts may be
          made in a single sum payment if the Employer so designates. Any such
          decision to pay in a single sum shall apply to all Participants.

      (b) Any funds remaining in the Trust after termination of the Plan and
          satisfaction of all liabilities to Participants and others, shall be
          returned to the Employer.

10.11 Employer Determinations. Any determinations, actions or decisions of the
      Employer (including but not limited to, Plan amendments and Plan
      termination) shall be made by the Board in accordance with its established
      procedures or by such other individuals, groups or organizations that have
      been properly delegated by the Board to make such determination or
      decision.

10.12 Construction. All questions of interpretation, construction or application
      arising under or concerning the terms of this Plan shall be decided by the
      Administrator, in its sole and final discretion, whose decision shall be
      final, binding and conclusive upon all persons.

10.13 Governing Law. This Plan shall be governed by, construed and administered
      in accordance with the applicable laws of the State of Colorado.

10.14 Severability. Should any provision of the Plan or any regulations adopted
      thereunder be deemed or held to be unlawful or invalid for any reason,
      such fact shall not adversely affect the other provisions or regulations
      unless such invalidity shall render impossible or impractical the
      functioning of the Plan and, in such case, the appropriate parties shall
      immediately adopt a new provision or regulation to take the place of the
      one held illegal or invalid.

                                      48
<PAGE>

10.15 Headings. The Article headings contained herein are inserted only as a
      matter of convenience and for reference and in no way define, limit,
      enlarge or describe the scope or intent of this Plan nor in any way shall
      they affect this Plan or the construction of any provision thereof.

10.16 Terms. Capitalized terms shall have meanings as defined herein. Singular
      nouns shall be read as plural, masculine pronouns shall be read as
      feminine, and vice versa, as appropriate.

                                      49
<PAGE>

      IN WITNESS WHEREOF, THE VAIL CORPORATION, D/B/A VAIL ASSOCIATES, INC. has
caused this instrument to be executed by its duly authorized officer, effective
as of this 28th day of September 2000.

                                         THE VAIL CORPORATION
                                       D/B/A VAIL ASSOCIATES, INC.

                                By:          /S/ ANDREW DALY
                                      --------------------------------
                                Title:           President
                                      --------------------------------

ATTEST:

By:    _______________________

Title: _______________________

                                      50<PAGE>

                                                                     Exhibit 4.3

                        SHAREHOLDER AFFILIATE AGREEMENT

                                August 31, 2000

SAT Corporation
1151 Sonora Court
Sunnyvale, CA 94086
Attn:

Integral Systems, Inc.
5000 Philadelphia Way
Lanham, Maryland  20706

     Re:  Affiliate Agreement

Ladies and Gentlemen:

     The undersigned is a shareholder of SAT Corporation (the "Shareholder"), a
California corporation (the "Company"), and will become a shareholder of
Integral Systems, Inc., a Maryland corporation ("Acquiror"), pursuant to the
transactions described in the Agreement and Plan of Reorganization, dated as of
August 31, 2000 (the "Merger Agreement"), by and among the Company, Acquiror,
ISI Acquisition Corporation, a California corporation and a wholly owned
subsidiary of the Company, and the Shareholder.  Under the terms of the Merger
Agreement, the Shareholder will exchange his shares of common stock of the
Company (the "Company Common Stock") for shares of common stock of the Acquiror,
par value $.01 per share (the "Acquiror Common Stock").  This Affiliate
Agreement represents an agreement by and among the undersigned, the Company and
Acquiror regarding certain rights and obligations of the undersigned in
connection with the (i) shares of Company Common Stock beneficially owned by the
undersigned and (ii) shares of Acquiror Common Stock for which such shares of
Company Common Stock are to be exchanged as a result of the transactions
described in the Merger Agreement (the "Exchange").

     In consideration of the Exchange and the mutual covenants contained herein,
the undersigned and Acquiror hereby agree as follows:

     1.  Affiliate Status.  The undersigned understands and agrees that as to
         -----------------
the Company he or she may be deemed to be an "affiliate" as that term is used in
SEC Accounting Series Release Nos. 130 and 135 of the rules and regulations of
the Securities and Exchange Commission ("SEC") under the Securities Act of 1933,
as amended (the "1933 Act"), and the undersigned anticipates that the
undersigned will be such an "affiliate" at the time of the Exchange.
<PAGE>

     2.  Restriction on Disposition.
         ---------------------------

         (a) The undersigned agrees that during the Pooling Period (as defined
below) he or she will not sell, transfer, or otherwise dispose of his or her
interests in, or reduce his or her risk relative to, any of the (i) shares of
Company Common Stock over which the undersigned has or shares voting or
dispositive power with respect thereto or (ii) shares of Acquiror Common Stock
into which such shares of Company Common Stock are converted upon consummation
of the Exchange or upon the exercise of any options to purchase Acquiror Common
Stock.  Notwithstanding the foregoing, the undersigned may sell, transfer or
otherwise dispose of his or her interests in, or reduce his or her risk relative
with respect to a de minimis (such amount to be determined in accordance with
accounting rules, regulations, interpretations and bulletins of the SEC) number
of (i) shares of Company Common Stock over which the undersigned has or shares
voting or dispositive power with respect there to or (ii) shares of Acquiror
Common Stock into which such shares of Company Common Stock are converted upon
consummation of the Exchange or upon the exercise of any options to purchase
Acquiror Common Stock (any such transfer, a "De Minimis Transfer"), provided,
however, that any De Minimis Transfer shall be subject to the prior written
consent and approval of Acquiror and Acquiror shall be entitled to withhold such
consent and approval if the Acquiror reasonably believes (based upon
consultation with Acquiror's independent public accountants) that such De
Minimis Transfer (along with any other De Minimis Transfers by the undersigned
or any other "affiliate" of the Company or the Acquiror) would prevent
accounting for the Exchange as a "pooling of interests".

         (b)  For purposes of this Affiliate Agreement, "Pooling Period" shall
mean the period commencing thirty (30) days prior to the Effective Time (as
defined in the Merger Agreement) and ending on the date of publication by
Acquiror of its results of post-Exchange operations for the period which
includes at least thirty (30) days of post-Exchange combined operations of
Acquiror and the Company whether by issuance of a quarterly earnings report on
Form 10-K, 10-Q, 8-K or other public issuance (such as a press release) that
includes such information.  The undersigned understands that reducing his or her
risk relative to such shares of Company Common Stock or Acquiror Common Stock
includes, but is not limited to, using such shares to secure a loan, purchasing
a put option to sell such shares or otherwise entering into a put agreement with
respect to such shares.

     3.  Covenants and Warranties of Undersigned.  The undersigned represents,
         ----------------------------------------
warrants and agrees that:

         (a) The Acquiror Common Stock received by the undersigned as a result
of the Exchange will be taken for the undersigned's own account and not for
others, directly or indirectly, in whole or in part; and

         (b) Within thirty (30) days of execution hereof, the undersigned will,
and will cause each of the other parties whose shares are deemed to be
beneficially owned by the undersigned pursuant to Section 7 hereof to, have all
of the Company

                                       2
<PAGE>

Common Stock beneficially owned by the undersigned registered in the name of the
undersigned or such parties as applicable, prior to the effective date of the
Exchange and not in the name of any bank, broker dealer, nominee or
clearinghouse.

     4.  Restrictions on Transfer.  The undersigned understands and agrees that
         -------------------------
stop transfer instructions with respect to the shares of Acquiror Common Stock
received by the undersigned pursuant to the Exchange will be given to the
Acquiror's transfer agent and that there will be placed on the certificates for
such shares, or shares issued in substitution thereof, a legend stating
substantially as follows:

         "The shares represented by this certificate were issued pursuant to a
     business combination which is accounted for as a "pooling of interests" and
     may not be sold, nor may the owner thereof reduce his risks relative
     thereto in any way, until such time as Integral Systems, Inc. ("Acquiror")
     has published the financial results covering at least 30 days of combined
     operations after the effective date of the merger through which the
     business combination was effected (except for such sales to the extent
     permitted pursuant to a limited de minimis transfer exception under the
     accounting rules, regulations, interpretations and bulletins of the SEC).
     In addition, the shares represented by this certificate may not be sold,
     transferred or otherwise disposed of except or unless (1) covered by an
     effective registration statement under the Securities Act of 1933, as
     amended, (2) in accordance with  Rule 144 of the Rules and Regulations of
     such Act, or (3) in accordance with a legal opinion satisfactory to counsel
     for Acquiror that such sale or transfer is otherwise exempt from the
     registration requirements of such Act."

     Such legend will also be placed on any certificate representing Acquiror
securities issued subsequent to the original issuance of the Acquiror Common
Stock pursuant to the Exchange as a result of any stock dividend, stock split,
or other recapitalization as long as the Acquiror Common Stock issued to the
undersigned pursuant to the Exchange has not been transferred in such manner to
justify the removal of the legend therefrom.  Upon the request of the
undersigned, Acquiror shall cause the certificates representing the shares of
Acquiror Common Stock issued to the undersigned in connection with the Exchange
to be reissued free of any legend relating to restrictions on transfer by virtue
of ASR 130 and 135 promptly after the requirements of ASR 130 and 135 have been
met upon receipt of an opinion of counsel reasonably acceptable to Acquiror to
the effect that such legend may be removed (the Acquiror may waive, in the
Acquiror's sole and absolute discretion, the Acquiror's right to receive such
opinion).  In addition, if the provisions of Rule 144 are amended to eliminate
restrictions applicable to the Acquiror Common Stock received by the undersigned
pursuant to the Exchange, Acquiror, upon the request of the undersigned, will
cause the certificates representing the shares of Acquiror Common Stock issued
to the undersigned in connection with the Exchange to be reissued free of any
legend relating to the restrictions set forth in Rule 144, or upon receipt by
Acquiror of an opinion of counsel reasonably acceptable to Acquiror to the
effect that such legend is not required under the 1933 Act and may be removed.

                                       3
<PAGE>

     5.  Certain Understandings and Acknowledgments.  The undersigned
         -------------------------------------------
acknowledges and understands that the representations, warranties and covenants
of the undersigned set forth herein will be relied upon by Acquiror and the
Company and their respective affiliates, counsel and accounting firms, and that
substantial losses and damages may be incurred by these persons if such
representations, warranties or covenants are breached.  The undersigned has
carefully read the Merger Agreement and this Affiliate Agreement and discussed
their requirements and impact upon the undersigned's ability to sell, transfer,
or otherwise dispose of, or reduce his risks relative to, the shares of Acquiror
Common Stock to be received by the undersigned, to the extent the undersigned
believes necessary, with his or her counsel or counsel for the Company.

     6.  Acknowledgments.  The undersigned recognizes and agrees that the
         ----------------
foregoing provisions also may apply to (i) the undersigned's spouse, if that
spouse has the same home as the undersigned, (ii) any relative of the
undersigned who has the same home as the undersigned, (iii) any trust or estate
in which the undersigned, such spouse, and any such relative collectively own at
least a 10% beneficial interest or of which any of the foregoing serves as
trustee, executor, or in any similar capacity, and (iv) any corporation or other
organization in which the undersigned, such spouse, and any such relative
collectively own at least 10% of any class of equity securities or of the equity
interest.

     7.  Termination.  This Affiliate Agreement shall be terminated and shall be
         ------------
of no further force and effect upon the termination of the Merger Agreement.

     8.  Miscellaneous.  This Affiliate Agreement is the complete agreement
         --------------
between the Company, Acquiror and the undersigned concerning the subject matter
hereof.  Nothing set forth herein, however, shall be construed to limit in any
way any of the undersigned's other rights incident to ownership of shares of
Company Common Stock or Acquiror Common Stock.  Any notice required to be sent
to any party hereunder shall be sent by registered or certified mail, return
receipt requested, using the addresses set forth herein or such other address as
shall be furnished in writing by the parties.  This Affiliate Agreement shall be
governed by and construed in accordance with the laws of the State of Maryland
without regard to the principles of conflicts of law.

                                       4
<PAGE>

     This Affiliate Agreement is effective as of the 31st day of August, 2000.

                         Very truly yours,

                         /s/ Herbert Pardula
                         ---------------------
                         Signature
                         Name:         Herbert Pardula
                         Address:      c/o SAT Corporation
                                       1151 Sonora Court
                                       Sunnyvale, CA 94086

AGREED TO AND ACCEPTED effective as of
August 31, 2000

SAT CORPORATION

By:     /s/ Herbert Pardula
       ---------------------------
Name:  Herbert Pardula
Title: President

INTEGRAL SYSTEMS, INC.

By:    /s/ Steven R. Chamberlain
       ---------------------------
Name:  Steven R. Chamberlain
Title: Chief Executive Officer

SPOUSAL CONSENT TO SHAREHOLDER AFFILIATE AGREEMENT

I, Nancy Jane Pardula, am the spouse of Herbert Perdula, identified in the
foregoing Shareholder Affiliate Agreement as the Shareholder. I have read the
Agreement and know its contents and provisions. I am aware that my spouse, as a
party to the Agreement, has agreed to sell all of our shares, including my
community property interest therein, on the occurrence of certain events and on
the terms and conditions set forth in the Agreement. I hereby consent to and
approve the terms, conditions and provisions of the Agreement, and I agree that
shares identified in the Agreement as my spouse's shares, including my community
property interest therein, shall be subject to the Agreement.  I agree that I
will not sell, transfer, convey, assign, bequeath or otherwise dispose of any
interest which I may have in the shares, except in accordance with the terms of
the Agreement. By this consent, however, I do not waive my rights under
California law, vis-

                                       5
<PAGE>

a-vis Herbert Perdula, to my community property interest in such shares or the
proceeds therefrom.

                            /s/ Nancy Pardula
                            ---------------------------
                            Shareholder's Spouse

                                       6

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