Document:

Exhibit 10.1

 Exhibit 10.1 

AGREEMENT 

THIS AGREEMENT (“Agreement”), dated as of October 8, 2010, is made by and among Integral Systems, Inc., a Maryland
corporation (the “Company”), and the entities and natural persons listed on Schedule A hereto and their affiliates (collectively, the “Vintage Group”) (each of the Company and the Vintage Group, a
“Party” to this Agreement, and collectively, the “Parties”). 
 WHEREAS, the Vintage Group may
be deemed to beneficially own shares of common stock of the Company (the “Common Stock”) totaling, in the aggregate, 1,750,000 shares, or approximately 9.9%, of the Common Stock issued and outstanding on the date hereof; and

 WHEREAS, the Company and the Vintage Group have agreed that it is in their mutual interests to enter into this Agreement.

 NOW, THEREFORE, in consideration of and in reliance upon the covenants and agreements contained herein, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows: 

1. Representations and Warranties of the Vintage Group. The Vintage Group represents and warrants to the Company that
(a) this Agreement has been duly authorized, executed and delivered by each member of the Vintage Group identified on Schedule A hereto, and is a valid and binding obligation of the Vintage Group, enforceable against the Vintage Group in
accordance with its terms; (b) neither the execution of this Agreement nor the consummation of any of the transactions contemplated hereby nor the fulfillment of the terms hereof, in each case in accordance with the terms hereof, will conflict
with, result in a breach or violation of any of the organizational documents of the Vintage Group as currently in effect, or the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement,
obligation, condition, covenant or instrument to which any member of the Vintage Group is a party or bound or to which its property or assets is subject; and (c) as of the date of this Agreement, the Vintage Group may be deemed to beneficially
own in the aggregate 1,750,000 shares of Common Stock. 
 2. Representations and Warranties of the Company. The
Company hereby represents and warrants to the Vintage Group that (a) this Agreement has been duly authorized, executed and delivered by the Company, and is a valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms; (b) neither the execution of this Agreement nor the consummation of any of the transactions contemplated hereby nor the fulfillment of the terms hereof, in each case in accordance with the terms hereof, will conflict
with, result in a breach or violation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any of its subsidiaries pursuant to any law, any order of any court or other agency of government, the Articles of
Restatement of the Company dated May 7, 1999, as supplemented by Articles Supplementary of the Company dated March 13, 2006, as supplemented by Articles Supplementary of the Company dated February 12, 2007, as amended by the Articles
of Amendment dated February 26, 2009 and effective April 29, 2009, and as 

 
supplemented by the Articles Supplementary of the Company, dated August 13, 2010 (collectively, the “Charter”), the Company’s Amended and Restated Bylaws, as amended
(the “Bylaws”), or the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which the Company is a party or bound or to
which its property or assets is subject (collectively, the “Company Contracts”); and (c) attached as Exhibit B is a true, correct and complete copy of the resolutions adopted by the Board to effect the increase in the number of
directors and the director appointments contemplated by Section 3, and such resolutions have not been amended, annulled, rescinded or revoked and remain in full force and effect. 

3. Directorships.  

(a) Effective on October 8, 2010, (i) the number of members of the board of directors of the Company (the
“Board”) shall be increased by two (2) directors, (ii) one (1) current Class I Director will be re-assigned to Class II and thereupon, there shall be two (2) vacancies on the Board for Class I Directors and
(iii) the New Appointees (as defined below) shall be appointed to fill such two (2) vacancies on the Board as Class I Directors. The Nominating Committee of the Board (the “Nominating Committee”) has, in good faith,
reviewed and approved the credentials of Brian Kahn and Mel Keating (the “New Appointees”) in the exercise of their duties as directors of the Company, concluded that each of the New Appointees has business experience in such areas
as would reasonably be expected to enhance the Board, and determined, consistent with the Company’s guidelines relating to director qualifications and Board composition, subject to the terms of this Agreement, to recommend the appointment of,
and the Board has determined to appoint, the New Appointees to the Board. 
 (b) The Company further agrees to: 

(i) take all actions necessary and appropriate to reduce the size of the Board to nine (9), effective immediately prior to the annual
meeting of the Company’s stockholders in 2011 (the “2011 Meeting”), and obtain the resignation of two (2) directors of the Company other than the New Appointees, effective no later than immediately prior to the 2011
Meeting; 
 (ii) take all actions necessary and appropriate to nominate the New Appointees (or any replacement therefore
nominated in accordance with Section 3(c)) for election as directors of the Company at the 2011 Meeting; 
 (iii) take all
actions necessary and appropriate to recommend, and reflect such recommendation in the Company’s definitive proxy statement in connection with the 2011 Meeting, that the stockholders of the Company vote to elect the New Appointees (or any
replacement nominated or appointed in accordance with Section 3(c)) as directors of the Company at the 2011 Meeting; 

(iv) take all actions necessary and appropriate to call and convene the 2011 Meeting no later than February 28, 2011; 

(v) use all efforts consistent with the efforts used by the Company to obtain proxies for the other candidates nominated by the Board to
obtain proxies in favor of the election of the New Appointees (or any replacement nominated or appointed in accordance with Section 3(c)) at the 2011 Meeting; 

 

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 (vi) take all actions necessary and appropriate to call and convene the 2012 annual meeting
of the Company’s stockholders (the “2012 Meeting”) no later than February 29, 2012; 
 (vii) take all
actions necessary and appropriate to not call and convene any other annual or special meeting of stockholders for the election of directors, other than the 2011 Meeting and the 2012 Meeting, prior to February 29, 2012; 

(viii) use all reasonable efforts to ensure that, at all times from the execution of this Agreement until immediately prior to the 2012
Meeting (the “Term”) that either of the New Appointees (or any replacement nominated or appointed pursuant to Section 3(c)), remains in office, at least one such nominee shall have the right, subject to compliance with
applicable Securities and Exchange Commission (the “SEC”) and NASDAQ corporate governance rules, to serve on each of the committees and sub-committees of the Board (or any substitutes therefor), including any committees and
sub-committees of the Board (or any substitutes therefor) created after the date hereof; 
 (ix) use all reasonable efforts to
ensure that, at all times during the Term prior to the 2011 Meeting, the Board shall consist of no greater than eleven (11) members; and 

(x) use all reasonable efforts to ensure that, at all times following the 2011 Meeting and through the 2012 Meeting, the Board shall
consist of no greater than nine (9) members (two (2) of whom shall be the New Appointees (or any replacement nominated or appointed pursuant to Section 3(c)). 

(c) The Company agrees that, through the 2012 Meeting, so long as the Vintage Group’s beneficial ownership of the outstanding Common
Stock is greater than 5% of the Common Stock outstanding at such time, if a New Appointee resigns or is otherwise unable to serve as a director or is removed for cause as a director, the Vintage Group shall have the right to submit the name of a
replacement (the “Replacement”) to the Company for its reasonable approval to serve as director. If the proposed Replacement is not approved by the Nominating Committee and recommended by the Board, the Vintage Group shall have the
right to submit another proposed Replacement to the Nominating Committee for its reasonable approval. The Vintage Group shall have the right to continue submitting the name of a proposed Replacement to the Nominating Committee for its reasonable
approval until the Nominating Committee approves and the Board recommends that such Replacement may serve as director, whereupon such person shall be appointed as the Replacement, as the case may be. In addition, so long as the Vintage Group’s
beneficial ownership of the outstanding Common Stock is greater than 5% of the Common Stock outstanding at such time, the Company agrees that it will take no action to remove either of the New Appointees (including without limitation recommending to
the Company’s stockholders removal of either of the New Appointees), other than for cause (as such term is used in the Maryland General Corporation Law), until the Company’s 2014 annual meeting of stockholders. 

(d) Each of the New Appointees, upon election to the Board, will be governed by the same protections and obligations regarding
confidentiality, conflicts of interests, directors’ duties, trading and disclosure policies and other governance guidelines, and shall have the same rights and benefits, including without limitation with respect to insurance, indemnification,
compensation and fees, as are generally applicable to any non-employee directors of the Company. 
  

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 (e) The Vintage Group agrees to support the nominees for director presented by the Board for
election at the 2011 Meeting (which shall include the New Appointees). At the 2011 Meeting, the Vintage Group shall cause all voting securities of the Company beneficially owned or owned of record by each member of the Vintage Group to be present at
such meeting for purposes of establishing a quorum and to be voted (either in person or by directing that any proxy granted with respect to such meeting be voted) in accordance with the recommendation of the Board with respect to (i) the
election of directors (provided that the New Appointees constitute two (2) of the three (3) directors nominated and the other nominee is an existing member of the Board), (ii) ratification of the Company’s current auditors and
(iii) say-on-pay proposals (provided that compensation for the Company’s executives included therein is consistent with practices in effect as of the date hereof). No later than five (5) business days prior to such meeting of
stockholders, the Vintage Group shall vote in accordance with this Section 3(e) and shall not revoke or change any such vote. 

(f) Nothing in this Section 3 shall prevent the members of the Board from discharging their duties as directors of the Company.

 4. Certain Activities During the Term. The Vintage Group agrees that, during the Term, unless approved by a
majority of the entire Board, neither any member of the Vintage Group nor any of its associates (as defined under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) will (and the Vintage Group and their associates
will not assist, encourage or participate with others to), directly or indirectly: 
 (a) acquire, agree to acquire, publicly
announce an intention to acquire, publicly offer, publicly seek or publicly propose to acquire, or agree to acquire, by purchase, gift, tender or exchange offer, or otherwise, beneficial or record ownership of any shares of Common Stock or any other
securities or Derivative Securities (as hereinafter defined) of the Company, including any rights, warrants, options or other securities convertible into or exchangeable for shares of Common Stock or any other securities of the Company from the
Company or third parties, except as a result of a stock split, stock dividend or other pro rata distribution made by the Company to its stockholders and in which any member of the Vintage Group participates solely in its capacity as a stockholder;
provided, however, that the Vintage Group may increase (or publicly propose to increase) its ownership interest (whether owned beneficially or of record) in the Company to up to 25% of the then-outstanding Common Stock (including the
amounts that may be deemed to be owned, whether beneficially or of record, by the Vintage Group as of the date hereof) in open market purchases, private purchases, block trades or any other manner other than a tender or exchange offer (and, subject
to the continuing satisfaction of the conditions set forth in the last paragraph of this Section 4 and assuming that neither the Vintage Group nor any member thereof is an interested stockholder (as defined in the Maryland Business Combination
Act) of the Company on the date hereof, the Maryland Business Combination Act (and, if it becomes applicable to the Company, the Maryland Control Share Acquisition Act) shall not apply to the Vintage Group up to such amount, if acquired during the
Term); any shares of Common Stock owned beneficially or of record by the Vintage Group in excess of 20% of the then-outstanding Common Stock of the Company during the Term and as of the end of the Term are referred to in this Agreement as the
“Neutral Shares”; 
  

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 (b) form, join or in any way participate in a “group” within the meaning of
Section 13(d)(3) of the Exchange Act with respect to the Common Stock or any other securities or Derivative Securities of the Company or otherwise act in concert with any person in respect of any such securities; 

(c) arrange, or in any way participate in, any financing for the purchase by any person of shares of Common Stock or any other securities
or assets or businesses of the Company or any of its affiliates; 
 (d) publicly propose or seek to propose to the Company or
any third party any extraordinary corporate transaction involving the Company or any of its affiliates, including a merger, reorganization, recapitalization, extraordinary dividend, liquidation, sale or transfer of assets other than in the ordinary
course of the Company’s business (it being understood that this clause (d) shall not address acquisitions of securities that are the subject of clause (a) above); 

(e) publicly propose or seek to publicly propose to the Company or any third party the acquisition or purchase by any member of the
Vintage Group of all or any portion of the assets of the Company (it being understood that this clause (e) shall not address acquisitions of securities that are the subject of clause (a) above); 

(f) (i) solicit proxies for the voting of any voting or other securities of the Company or otherwise become a
“participant,” directly or indirectly, in any “solicitation” of “proxies” to vote, or become a “participant” in any “election contest” involving the Company or its securities (all terms used herein
having the meanings assigned them in Regulation 14A under the Exchange Act), (ii) call or seek to call, directly or indirectly, any special meeting of stockholders of the Company for any reason whatsoever, (iii) seek, request, or take
any action to obtain or retain, directly or indirectly, any list of holders of any voting or other securities of the Company, (iv) publicly make any recommendation with respect to the voting of any securities of the Company or (v) make any
recommendation to any other stockholder of the Company to vote contrary to the recommendation of the Board on any matter presented to the Company’s stockholders for their vote. 

(g) publicly seek any change in the composition of the Board of the Company, including any plans or proposals to change the number or
term of directors or to fill any vacancies on the board of directors; 
 (h) publicly propose that the Common Stock become
eligible for termination of registration pursuant to Section 12(g)(4) of the Exchange Act; 
 (i) make a public request
that the prohibitions set forth in this Agreement be waived or that the Company take any action that would permit the Vintage Group or its associates to take any of the actions prohibited by this Agreement, or otherwise make any public statement
relating to the Vintage Group’s willingness to pursue any such prohibited action conditioned upon waiver of this Agreement; 

(j) make or issue or cause to be made or issued any public disclosure, public announcement or public statement to any third party
(including without limitation the filing of any document or report with the Securities and Exchange Commission or any public filing with any other governmental agency or any disclosure to any journalist or member of the media) concerning the Board
or the management of the Company, which disparages, criticizes or in any other way reflects adversely or detrimentally upon the Board or the management of the Company; 
  

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 (k) make or issue or cause to be made or issued any disclosure, announcement or statement,
whether publicly or privately, to any third party (including without limitation any securities analyst) concerning the Board or the management of the Company, (i) that is materially misleading, or omits to states a material fact necessary in
order to make the statement, in light of the circumstances in which such statement is made, not misleading, or (ii) with the intent or purpose of defaming or disparaging the Board or the management of the Company; or 

(l) initiate, solicit, assist, facilitate, finance, or encourage or otherwise participate in the taking of any of the foregoing actions
by any third party or enter into any discussions, negotiations, arrangements or understandings with any third party with respect to any of the foregoing actions. 

Notwithstanding the foregoing, nothing in this Section 4 shall prevent: (i) the New Appointees from discharging their duties as
directors of the Company; (ii) the Vintage Group from taking any actions necessary to comply with the advance notice provisions of the bylaws of the Company with respect to nomination of directors or submission of proposals for the 2012
Meeting; or (iii) the Vintage Group from soliciting proxies for the 2012 Meeting beginning on the date that is sixty (60) days before the date on which the 2012 Meeting is scheduled to be held. 

For the purposes of this Agreement, “Derivative Securities” means any rights, options or other securities convertible
into or exercisable or exchangeable for securities or indebtedness or any obligations measured by the price or value of any securities, bank debt or other obligations of the Company, including without limitation any swaps or other derivative
arrangements. 
 For purposes of the Maryland Business Combination Act and the Maryland Control Share Acquisition Act (should it
be applicable to the Company), the approval of the increase by the Vintage Group of its ownership interest in the Company of up to 25% of the outstanding Common Stock of the Company (including the amounts that may be deemed to be beneficially owned
by the Vintage Group as of the date hereof) is conditioned upon and subject to: (i) the Vintage Group or any member thereof, at no time during the Term, owning, beneficially (as defined in the Maryland Business Combination Act) or of record,
more than 25% of the outstanding Common Stock of the Company; (ii) the Vintage Group complying in all material respects with all terms and conditions of this Agreement; and (iii) no material breach, default or violation by Vintage Group of
any of the terms or conditions of this Agreement having occurred. It is the intention of the Company that as permitted by Section 3-601(j)(4) of the Maryland General Corporation Law, the approval by the Board of the increase by Vintage Group of
its ownership interest in the Company to up to 25% of the outstanding Common Stock shall be subject to compliance by the Vintage Group with the conditions set forth in the immediately preceding sentence. 

5. Certain Other Activities. The Vintage Group agrees that: 

(a) at the 2012 Meeting, and thereafter for so long as any New Appointee or any other designee of the Vintage Group serves as a director
of the Company (unless otherwise 
  

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approved by a majority of the entire Board), the Neutral Shares shall, at the Vintage Group’s election, solely with respect to the election of directors, ratification of auditors and
say-on-pay proposals (provided that compensation for the Company’s executives included therein is consistent with practices in effect as of the date hereof), either (i) not be voted or (ii) be voted in accordance with the
recommendation of the Board; and 
 (b) for so long as any New Appointee or any designee of the Vintage Group serves as a
director of the Company, the Vintage Group shall not, without the prior written approval of a majority of the Independent Directors (as hereinafter defined) then serving on the Board, seek or offer to (i) acquire, beneficially or of record,
securities of the Company representing 50% or more of the voting power of the then-outstanding securities of the Company, whether by purchase, tender or exchange offer, merger, consolidation or otherwise or (ii) acquire, directly or indirectly,
all or substantially all of the assets of the Company. 
 For purposes of this Agreement, an “Independent
Director” shall be a director who (i) is not a New Appointee, a designee of the Vintage Group or otherwise affiliated with the Vintage Group, (ii) does not have a conflict of interest with respect to the proposed transaction and
is not in any way interested in the proposed transaction and (iii) meets the qualifications for independence under NASDAQ Rule 5605 or any successor rule. 

6. Rights Plan. The Company agrees that, during the Term, it will not implement a shareholder rights plan (also know as a
“poison pill”) or other similar defensive device that is inconsistent with, or more restrictive with respect to the Vintage Group than, the provisions of Section 4, including, without limitation, the ability of the Vintage Group to
acquire up to 25% of the then-outstanding Common Stock. 
 7. Expenses. Each Party shall bear all fees and
expenses incurred by such Party in connection with this Agreement and the circumstances giving rise hereto, and neither Party shall seek or be entitled to reimbursement of any such fees and expenses from the other Party. 

8. Public Announcement. The Company and the Vintage Group shall promptly disclose the existence of this Agreement after its
execution pursuant to a joint press release that is mutually acceptable to the parties, including a description of the material terms of this Agreement. Subject to applicable law, none of the Parties shall disclose the existence of this Agreement
until the joint press release is issued. 
 9. Nonpublic Information.  

In connection with discussions between the Vintage Group and their representatives and the Company and its representatives, or otherwise
during the Term, the Vintage Group or their representatives have obtained, and may in the future obtain, information about the Company or its securities that is confidential. Each member of the Vintage Group agrees to treat confidentially any such
information pursuant to the terms of the Confidentiality Agreement, dated as of September 23, 2010, between the Company and Vintage Capital Management, LLC. 

10. Remedies. 

(a) Each of the Parties acknowledges and agrees that a breach or threatened breach by any Party may give rise to irreparable injury
inadequately compensable in damages, and accordingly each Party shall be entitled to injunctive relief to prevent a breach of the provisions hereof and to enforce specifically the terms and provisions hereof in any state or federal court having
jurisdiction, in addition to any other remedy to which such aggrieved Party may be entitled to at law or in equity. 
  

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 (b) In the event that a Party institutes any legal action to enforce such Party’s
rights under, or recover damages for breach of, this Agreement, the prevailing Party or Parties in such action shall be entitled to recover from the other Party or Parties all costs and expenses, including but not limited to reasonable
attorneys’ fees, court costs, witness’ fees, disbursements and any other expenses of litigation or negotiation incurred by such prevailing Party or Parties. 

(c) In the event that the Company (on the one hand) or any member of the Vintage Group (on the other hand) materially breaches its
obligations hereunder, and such breach, to the extent curable, is not cured within ten (10) days of receiving written notice thereof from the non-breaching Party, then the obligations, and restrictions imposed, under this Agreement on the
non-breaching Party shall terminate. 
 11. Notices. Any notice or other communication required or
permitted to be given under this Agreement will be sufficient if it is in writing, sent to the applicable address set forth below (or as otherwise specified by a Party by notice to the other Parties in accordance with this Section 11) and
delivered personally, mailed by certified or registered first-class mail or sent by recognized overnight courier, postage prepaid, and will be deemed given (a) when so delivered personally, (b) if mailed by certified or registered
first-class mail, three (3) business days after the date of mailing, or (c) if sent by recognized overnight courier, one (1) day after the date of sending. 

If to the Company: 
 Integral
Systems, Inc. 
 6721 Columbia Gateway Drive 

Columbia, Maryland 21046 

Attention: R. Miller Adams 

Telephone: (443) 539-5016 

Facsimile: (410) 312-2980 

with a copy (which shall not constitute notice) to: 

Gibson, Dunn & Crutcher LLP 

1050 Connecticut Ave., NW 

Washington, DC 20036 

Attention: Howard B. Adler 

Telephone: (202) 955-8589 

Facsimile: (202) 530-9526 

If to the Vintage Group: 

Vintage Partners, L.P. 

5506 Worsham Court 

Windermere, Florida 34786 

Attention: Brian Kahn 

Telephone: (407) 909-8015 

Facsimile: (208) 728-8007 
  

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 with a copy (which shall not constitute notice) to each of: 

Wilson Sonsini Goodrich & Rosati 

Professional Corporation 

650 Page Mill Road 

Palo Alto, California 94304 

Attention: Bradley L. Finkelstein 

Telephone: (650) 493-9300 

Facsimile: (650) 493-6811 

DLA Piper LLP 

6225 Smith Avenue 

Baltimore, Maryland 21209 

Attention: Robert “Jay” Smith, Jr. 

Telephone: (410) 580-4266

Facsimile: (410) 580-3266 

12. Entire Agreement. This Agreement constitutes the entire agreement between the Parties pertaining to the subject
matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions of the Parties in connection with the subject matter hereof. 

13. Counterparts; Facsimile. This Agreement may be executed in any number of counterparts and by the Parties in
separate counterparts, and signature pages may be delivered by facsimile, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

14. Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise
affect the meaning hereof. 
 15. Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Maryland, without regard to choice of law principles that would compel the application of the laws of any other jurisdiction. 

16. Severability. In the event one or more of the provisions of this Agreement should, for any reason, be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision
had never been contained herein. 
 17. Successors and Assigns. This Agreement shall not be assignable by
any of the Parties. This Agreement, however, shall be binding on successors of the Parties. 
 18. Amendments.
This Agreement may not be modified, amended, altered or supplemented except upon the execution and delivery of a written agreement executed by all of the Parties. 

19. Further Action. Each Party agrees to execute such additional reasonable documents, and to do and perform such
reasonable acts and things necessary or proper to effectuate or further evidence the terms and provisions of this Agreement. 
  

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 [Signatures are on the following page.] 

 

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 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first
above written. 
  

			
	INTEGRAL SYSTEMS, INC.
		
	By:	 	 /s/ Paul G. Casner, Jr.

		 	Name: Paul G. Casner, Jr.
		 	Title: Chief Executive Officer and President

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first
above written. 
  

			
	BRIAN R. KAHN
		
	By:	 	 /s/ Brian R. Kahn

	
	VINTAGE PARTNERS GP, LLC
		
	By:	 	 /s/ Brian R. Kahn

		 	Name: Brian R. Kahn
		 	Title: Manager
	
	VINTAGE PARTNERS, L.P.
		
	By:	 	Vintage Partners GP, LLC, its General Partner
		
	By:	 	 /s/ Brian R. Kahn

		 	Name: Brian R. Kahn
		 	Title: Manager
	
	VINTAGE CAPITAL MANAGEMENT, LLC
		
	By:	 	 /s/ Brian R. Kahn

		 	Name: Brian R. Kahn
		 	Title: Managing Member

 Schedule A 

The Vintage Group 

Vintage Partners, L.P. 
 Vintage Partners GP,
LLC 
 Vintage Capital Management, LLC 

Brian R. KahnTermination Agreement

 Exhibit 10.1 

TERMINATION AGREEMENT 

THIS TERMINATION AGREEMENT (the “Agreement”), entered into as of October 6, 2010, by and between K. PAUL
SINGH (the “Executive”) and PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED and PRIMUS TELECOMMUNICATIONS, INC., both Delaware corporations (together, the “Company”) 

RECITALS: 

A. Executive has been employed by the Company as President and Chief Executive Officer; 

B. The parties wish to provide for termination of Executive’s employment with the Company on mutually satisfactory terms with such
termination to be effective on August 31, 2010 (the “Termination Date”); 
 C. Executive and the Company
and its subsidiary, Primus Telecommunications, Inc., are parties to an Executive Employment Agreement dated April 26, 2007 (the “Employment Agreement”); and 

D. Executive and the Company wish to memorialize the terms for Executive’s termination of employment and set forth their
understandings on certain related matters. 
 Now, therefore, in consideration of the mutual covenants herein contained, the
parties hereto, intending to be legally bound, hereby agree as follows: 
 1. Termination Date. Executive agrees that his
employment with the Company terminated effective as of the Termination Date, and Executive and the Company agree that such termination shall be deemed to be without “Cause” (as defined under the Employment Agreement. 

2. Payments to Executive. Provided that Executive executes the release of claims described in Section 3 of this Agreement and
attached hereto as Exhibit A (the “Release Agreement”) and the Release Agreement is not revoked and becomes irrevocable, the Company shall make the following payments and provide the following additional compensation to Executive.

 (a) On March 1, 2011, the Company shall pay to Executive, subject to Section 2(f) of this Agreement, $3,410,000, in
a single lump sum, without interest. 
 (b) Upon the date on which the Release Agreement becomes irrevocable, the Company shall
pay to Executive, subject to Section 2(f) of this Agreement: (i) $19,737.00 to reimburse Executive for medical and financial planning expenses incurred in 2009 and 2010 (but before September 1, 2010); (ii) $829.92 to reimburse
Executive for business expenses submitted to the Company; and (iii) $41,442.69, which represents the value of Executive’s accrued but unused vacation as of the Termination Date. 

 (c) Restricted Stock Units. The Company and Executive hereby stipulate and agree that
114,928 Management Restricted Stock Units (“RSUs”) granted under the Restricted Stock Unit Agreement dated July 2, 2009 (the “RSU Agreement”) are vested and have been exchanged for common stock. In addition, if the Company
equals or exceeds ninety percent (90%) of the Adjusted EBITDA Target for 2010 as set forth in the RSU Agreement, and as hereinafter modified, 76,619 additional RSUs will become vested. The remaining 38,309 unvested or contingent RSUs are hereby
forfeited and terminated. Any additional vested RSUs will be settled on a one for one basis at the time provided in Section 3 of the RSU Agreement. Notwithstanding the provisions of Section 9(c) of this Agreement, the vested RSUs will
remain subject to the terms of the RSU Agreement and the Company’s Management Compensation Plan. Notwithstanding the foregoing, however, for purposes of determining whether the Adjusted EBITDA Target has been satisfied, but solely for purposes
of this Agreement, EBITDA shall be determined (i) without giving effect to any inorganic corporate events occurring after the Termination Date, and (ii) without regard to the payments made to Executive pursuant to Section 2(a) of this
Agreement. 
 (d) Timed-Vested Non-Qualified Stock Options. The Company and Executive hereby stipulate and agree that
88,272 of the shares of Common Stock issuable under the Non-Qualified Stock Option Agreement dated July 1, 2009 (the “Option Agreement”), are fully vested and exercisable in accordance with the terms of the Option Agreement and the
Plan. The remaining 88,272 of such stock options under the Option Agreement are hereby forfeited and terminated. Notwithstanding the provisions of Section 9(c) of this Agreement, the vested Option shall remain subject to the terms of the Option
Agreement and the Company’s Management Compensation Plan. 
 (e) Performance-Vested Non-Qualified Stock Option. The
Company and the Executive hereby stipulate and agree that 28,732 of the shares of Common Stock issuable under the performance based Non-Qualified Stock Option Agreement dated July 1, 2009 (the “Performance Option Agreement”), are
fully vested and exercisable in accordance with the terms of the Performance Option Agreement. In addition, if the Company equals or exceeds one hundred fifteen percent (115%) of the Adjusted EBITDA Target for 2010 as set forth in the
Performance Option Agreement, and as hereinafter modified, options on 19,155 additional shares will become vested. The options on the remaining 9,577 shares are hereby forfeited and terminated. Notwithstanding the provisions of Section 9(c) of
this Agreement, the vested options will remain subject to the terms of the Performance Option Agreement and the Company’s Management Compensation Plan. Notwithstanding the foregoing, however, for purposes of determining whether the Adjusted
EBITDA Target has been satisfied, but solely for purposes of this Agreement, EBITDA shall be determined (i) without giving effect to any inorganic corporate events occurring after the Termination Date, and (ii) without regard to the
payments made to Executive pursuant to Section 2(a) of this Agreement. 
 (f) Withholding. All compensation and
other compensatory benefits provided to Executive pursuant to this Agreement shall be reduced by all amounts required or authorized to be withheld by the Company by applicable federal, state and local law. 

(g) No Additional Benefits. Executive acknowledges and agrees that the payments and other benefits provided for in this Agreement
represent the only compensation and 
  

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benefits to which Executive is entitled and Executive is not entitled to any other compensation, remuneration, benefits or entitlements, whether pursuant to the Employment Agreement, Restricted
Stock Unit Agreement, Option Agreement or Performance Option Agreement or otherwise, excluding any accrued benefits the Executive may have under the Company’s 401(k) plan. 

3. Release. In consideration of the payments and mutual promises contained herein, Executive and the Company hereby execute the
Release Agreement attached hereto as Exhibit A. 
 4. Resignation from Board of Directors. Executive hereby
resigns, effective immediately, from all director and officer positions he holds with the Company and any of its affiliates and from which he has not previously resigned. 

5. Restrictive Covenants. Notwithstanding the provisions of Section 9(c) of this Agreement, Executive hereby reaffirms and
agrees that all of the terms, restrictions and covenants of Executive set forth in Sections 2.5, 2.6 and 2.7 of the Employment Agreement shall remain in full force and effect in accordance with their terms, without waiver, amendment, or release,
provided, however, that nothing in Section 2.6 of the Employment Agreement shall be deemed to restrict Executive from any engaging in any of the following activities, subject to the provisions of Sections 2.5 and 2.7 of the
Employment Agreement, at any time: 
 (a) Engaging or investing in the non-wholesale telecommunications business in countries
other than the United States, Canada and Australia or Brazil; or 
 (b) Providing restructuring or business advisory services.

 6. Return of Company Property. Executive acknowledges that all files, records, documents, computer disks, drawings,
specifications, equipment, keys, credit cards and other property of the Company, including copies thereof, have been returned to the Company. 

7. Cooperation in Litigation. The Executive agrees to reasonably cooperate with and assist the Company in the prosecution or
defense of any claims arising out of or related to any matters with which the Executive was involved during his employment with the Company (including, without limitation, attendance at out-of-town proceedings for which the Company may require
travel). The Company and Executive shall cooperate in determining mutually acceptable times and locations for Executive to provide such cooperation. The Company agrees to directly pay or reimburse the Executive for the actual expenses incurred by
the Executive (including reasonable travel expenses) as a result of his providing such cooperation pursuant to this provision. 

8. Non-Disparagement. Executive and the Company agree that he/it shall not take any actions or make any verbal or written
statements to the public, or to the Company’s employees and customers, that disparage the Executive, the Company, its affiliates, officers and directors. 
  

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 9. Miscellaneous Provisions. 

(a) Waiver. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is
agreed to in writing and signed by Executive and by an authorized officer of the Company. No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver
of any other condition or provision or of the same condition or provision at another time. 
 (b) Non-Reliance. Executive
acknowledges and agrees that in signing this Agreement, he does not rely and has not relied on any representation or statement by the Company or by its directors, officers, agents, representatives or attorneys with regard to the subject matter,
basis or effect of this Agreement. 
 (c) Whole Agreement. No agreements, representations or understandings (whether oral
or written and whether express or implied) which are not expressly set forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof. Effective as of the date hereof, this Agreement supersedes any
prior employment agreement or other Agreement between the Company, any of its subsidiary or parent entities and Executive. 

(d) No Admission of Wrongdoing. This Agreement is not an admission by the Company or Executive of any liability or wrongdoing.

 (e) Choice of Law. This Agreement shall be deemed a contract made under, and for all purposes the validity,
interpretation, construction and performance of this Agreement shall be governed by, the laws of the Commonwealth of Virginia, without reference to principles of conflicts of laws, except to the extent superseded by applicable federal law.

 (f) No Assignment. The rights of any person to payments or benefits under this Agreement shall not be made subject to
option or assignment, either by voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process, and any action in violation of this Subsection
(f) shall be void. 
 (g) Successors and Assigns. This Agreement will be binding upon and inure to the benefit of
the Executive and his beneficiaries, heirs, executors, successors and assigns; and the Company, its affiliates, subsidiaries, successors and assigns. 

(h) Confidentiality of Agreement. Executive agrees to keep strictly confidential the existence and terms of this Agreement and to
not disclose them to any person or entity, other than to Executive’s immediate family, attorney, financial advisor, or except through confidential due diligence investigations or as required by law or except with respect to matters that have
been publicly disclosed by the Company in filings with the Securities and Exchange Commission or otherwise publicly disclosed by the Company. 
  

 - 4 - 

 (i) Section 409A. This Agreement is intended to comply with the requirements of
Section 409A of the Internal Revenue Code of 1986, as amended, and shall be interpreted accordingly. 
 (j)
Attorneys’ Fees. The Company agrees to reimburse Executive for reasonable attorneys’ fees incurred by him in connection with this Agreement, such fees not to exceed $20,000. 

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized
representative, as of the day and year first above written. 
  

									
	 PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
	 	
					
	By	 	  
	 		 	Date:	 	  

	Title:	 	  
	 		 		 	
			
	K. PAUL SINGH	 		 	
				
	  
	 		 	Date:	 	  

  

 - 5 - 

 EXHIBIT A 

RELEASE AGREEMENT 
 This
Release Agreement (the “Release Agreement”) is made this      day of                 , 2010, by and between K. PAUL SINGH
(the “Executive”) and PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED and PRIMUS TELECOMMUNICATIONS, INC., both Delaware corporations (together, the “Company”) 

Recitals: 

Executive and the Company are parties to a Termination Agreement dated
            , 2010 (the “Termination Agreement”) pursuant to which Executive is entitled to certain payments and benefits pursuant to the Termination Agreement in
consideration for granting a release of claims to the Company and the parties wish to state the terms of such release in this Release Agreement. 

Now therefore, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Executive and the
Company hereby agree as follows: 
 1. Executive Release of Claims. In consideration for Executive’s right to
receive the payments and benefits in the amount, manner and time of payment described in Section 2(a) of the Termination Agreement, Executive hereby agrees to the following release of claims (the “Executive Release”): 

(a) Release by Executive. Executive, for himself and his heirs, executors and administrators, voluntarily, knowingly and willingly
agrees to release the Company, together with its direct and indirect parents, subsidiaries, affiliates, predecessors and successors and assigns, past and present directors, managers, officers, executives, agents, clients, accountants, attorneys, and
servants (collectively, the “Company Releasees”) from any and all claims, charges, complaints, promises, agreements, controversies, liens, demands, causes of action, obligations, damages, expenses (including attorneys’ fees and costs)
and liabilities of any nature whatsoever (“Executive Claims”), known or unknown, suspected or unsuspected, which Executive, or his heirs, executors or administrators ever had, now have, or may hereafter claim to have
against any of the Company Releasees arising out of or relating to: (i) any matter, cause or thing whatsoever arising from the beginning of time to the date of this Executive Release, (ii) Executive’s employment relationship with the
Company or any of the Company Releasees or the separations thereof including, but not limited to, any such rights or claims arising under any statute or regulation including the Age Discrimination in Employment Act of 1967, Title VII of the Civil
Rights Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, the Employee Retirement Income Security Act of 1974, the Delaware Equal Accommodations Law, the Virginia Human
Rights Act, each as 

 
amended, or any other federal, state or local law, regulation, ordinance or common law, or (iii) any policy, agreement, understanding or promise, written or oral, formal or informal, between
Executive on the one hand and the Company or any of the Company Releasees on the other hand, provided, however, that notwithstanding the foregoing, nothing contained in this Executive Release shall in any way terminate, modify or
release (1) Executive’s right to enforce the terms of this Release Agreement and the Termination Agreement, (2) the rights, if any, that the Executive may have, from and after the date the Executive Release is executed, under the
Company’s Primary Directors & Officers Liability Policy, the Excess Directors & Officers Liability Policy, the Run-Off Endorsement or any other applicable D&O policy, provided that the foregoing shall not preclude the
amendment or termination of such policies from time to time in accordance with their respective terms, provided any such amendment or termination applies equally to all former directors and officers of the Company and (3) any rights Executive
may have to advancement or indemnification under the articles of incorporation or bylaws of the Company or any of its affiliates or under applicable law (collectively, the “Executive Excluded Claims”). Executive acknowledges that the
amounts referred to in Section 2 of the Termination Agreement are in lieu of and in full satisfaction of any amounts that might otherwise be payable under any contract, agreement (oral or written), plan, policy or practice, past or present, of
the Company or any of the Company Releasees. 
 (b) Representations of Executive. Executive hereby makes the following
representations and acknowledgements: 
 (i) Executive understands and agrees that, except for the Executive
Excluded Claims, he has knowingly relinquished, waived and forever released any and all rights to any personal recovery in any action or proceeding that may be commenced on Executive’s behalf arising out of the Executive Claims that are
released under the Executive Release, including, without limitation, Executive Claims for back pay, front pay, liquidated damages, compensatory damages, general damages, special damages, punitive damages, exemplary damages, costs, expenses and
attorneys’ fees. 
 (ii) Executive represents that he has no claims, complaints, charges or lawsuits pending
against the Company or any of the Company Releasees. 
 (iii) Executive acknowledges and agrees that he has
had a sufficient period of time of up to 21 days within which to review the Termination Agreement and this Executive Release, including, without limitation, with Executive’s attorney, and that Executive has done so to the extent
desired. 
 (iv) Executive understands and agrees that the severance and benefits set forth in
Section 2 of the Termination Agreement are the only consideration for the Executive’s signing the Executive Release and no promise or inducement has been offered or made to induce the Executive to sign the Executive Release, except as
expressly set forth therein. 
  

 - ii - 

 (v) Executive understands and agrees that the Executive Release shall
not become effective until the 8th day after the Executive signs this Executive Release and the Executive may at any time before the effective date revoke the Executive Release by hand delivering or sending via overnight mail a written notice of
revocation to the Company: Primus Telecommunications Group, Incorporated, 7901 Jones Branch Drive, Suite 900, McLean, VA 22102, Attention: General Counsel. If Executive elects to revoke the Executive Release as provided above, this Release Agreement
and the Termination Agreement shall automatically terminate without liability or obligation to either party. 
 2.
Choice of Law. This Agreement shall be deemed a contract made under, and for all purposes the validity, interpretation, construction and performance of this Agreement shall be governed by, the laws of the Commonwealth of Virginia, without
reference to principles of conflicts of laws, except to the extent superseded by applicable federal law. 
 3. Successors and
Assigns. This Agreement will be binding upon and inure to the benefit of the Company Releases and their successors and assigns. 
 IN
WITNESS WHEREOF, each of the parties has executed this Release Agreement, in the case of the Company by its duly authorized representative, as of the day and year first above written. 

 

									
	PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED	 	
					
	By	 	  
	 		 	Date:	 	  

	Title:	 	  
	 		 		 	
				
	K. PAUL SINGH	 		 		 	
				
	  
	 		 	Date:	 	  

  

 - iii -

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