Document:

Consent and Amendment No.1

 Exhibit 10.2 
 CONSENT AND AMENDMENT NO. 1 TO THIRD AMENDED 
 AND RESTATED LOAN AND SECURITY AGREEMENT

 This CONSENT AND AMENDMENT NO. 1 TO THIRD AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”)
dated as of January 30, 2007 is by and among Remy International, Inc., a Delaware corporation (“Parent”), the following Subsidiaries of Parent: Remy Inc., a Delaware corporation, Remy Sales, Inc., a Delaware corporation,
Franklin Power Products, Inc., an Indiana corporation, HSG I, Inc, a Delaware corporation, HSG II, Inc., a Delaware corporation, International Fuel Systems, Inc., an Indiana corporation, M. & M. Knopf Auto Parts, L.L.C., a Delaware
limited liability company, Nabco, Inc., a Michigan corporation, Powrbilt Products, Inc., a Texas corporation, Remy Logistics, L.L.C., a Delaware limited liability company, Remy Reman, L.L.C., a Delaware limited liability company, Western Reman
Industrial, LLC, a Delaware limited liability company (“Western Reman”), World Wide Automotive, L.L.C., a Virginia limited liability company, Unit Parts Company, a Delaware corporation (each individually, together with the Parent, a
“Borrower” and collectively, the “Borrowers”), Wachovia Capital Finance Corporation (Central), an Illinois corporation, as administrative agent for the Revolving Lenders and as US Collateral Agent for the Lenders
(“Agent”), and the financial institutions designated as Lenders on the signature pages hereto (each individually, a “Lender” and collectively, the “Lenders”). Capitalized terms used and not defined
herein shall have the meanings assigned to them in the Loan Agreement (described below). 
 R E C I T A L S: 
 WHEREAS, Borrowers, the Agent Parties and the Lenders have entered into that certain Third Amended and Restated Loan and Security Agreement dated as of
December 27, 2005 (the “Loan Agreement”); 
 WHEREAS, Borrowers have requested that Agent, Required Lenders and
Required Term Lenders consent and agree to certain amendments to the Loan Agreement as set forth herein to allow the Borrowers to sell substantially all the assets of Franklin Power Products, Inc. and International Fuel Systems, Inc. and to sell
certain inventory, machinery, equipment and other assets of Remy Reman, L.L.C. and as relating to Borrowers’ starter and alternator remanufacturing business in connection with a Remanufacturing and Supply Agreement being entered into by Parent
with Caterpillar, Inc.; and 
 WHEREAS, Agent, Required Lenders and Required Term Lenders are willing to consent and agree to such amendments
upon the terms and conditions contained herein, including without limitation the requirement that asset sale proceeds be used to repay certain indebtedness secured by the assets that are the subject of the sales. 

 NOW, THEREFORE, in consideration of the premises contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 Section 1
Amendments to the Loan Agreement. Immediately upon the satisfaction of each of the conditions precedent set forth in Section 2 below, the Loan Agreement is hereby amended as follows: 
 (a) Section 1 of the Loan Agreement is hereby amended by adding the following new defined terms in their proper alphabetical order as
follows: 
 “Diesel Sale” shall mean the sale of assets of Franklin Power Products, Inc. and International Fuel
Systems, Inc. on the terms and conditions set forth in that certain Asset Purchase Agreement among Caterpillar Inc., Caterpillar Reman Acquisition LLC, and Remy International, Inc., Franklin Power Products, Inc., and International Fuel Systems,
Inc. dated as of January 29, 2007, copies of which have been delivered to Agent and any Term Lender requesting same, which Asset Purchase Agreement shall not be modified, amended, supplemented or otherwise changed in any manner materially
adverse to any Borrower or pursuant to which there would be a reduction in any material respect in the purchase price or any methodology for the calculation of purchase price or timing of payment of purchase price. 
 “S&A Reman Outsourcing Transaction” shall mean the sale of certain inventory, machinery, equipment and other assets of Remy
Reman, L.L.C. and as relating to Borrowers’ starter and alternator remanufacturing business in connection with a Remanufacturing and Supply Agreement being entered into by Parent with Caterpillar, Inc. on the terms and conditions set forth in
that certain Asset Purchase Agreement among Caterpillar Reman Acquisition LLC, Caterpillar Inc., Remy Reman, L.L.C. and Remy International, Inc. dated as of January 29, 2007, copies of which have been delivered to Agent and any Term Lender
requesting same, which Asset Purchase Agreement shall not be modified, amended, supplemented or otherwise changed in any manner materially adverse to any Borrower or pursuant to which there would be a reduction in any material respect in the
purchase price or any methodology for the calculation of purchase price or timing of payment of purchase price. 
 (b)
Section 9.7(b) of the Loan Agreement is hereby amended by amending and restating the introductory paragraph of Section 9.7(b) to read as follows: 
 “(b) issue, sell, assign, lease, transfer, abandon or otherwise dispose of any Capital Stock or Indebtedness to any other Person or any of its assets to any other Person, except as permitted by each of
clauses (i) through (vii) and (ix) below, which shall in each case be subject to the terms and conditions of clause (viii) below, and except as permitted by clause (x) below (which shall not be subject to the terms and
conditions of clause (viii) below):” 
  

 2 

 (c) Section 9.7(b) of the Loan Agreement is hereby amended by replacing the
period at the end of clause (ix) therein with “; and” and adding a new clause (x) immediately after clause (ix) to read as follows: 
 “(x) the Diesel Sale and the S&A Reman Outsourcing Transaction (including the payment to Navistar of a distribution in respect of its equity interest in Magnum Power Products, LLC which is estimated to be
approximately $2.5 million); provided, that, (A) the sale of assets with respect to the Diesel Sale is consummated on or prior to February 28, 2007, and the sale of assets with respect to the S&A Reman Outsourcing
Transaction is consummated on or prior to November 1, 2007 (B) Agent and, if so requested, the Term Lenders have received all documents, agreements and instruments governing the terms of such sales which shall be reasonably satisfactory to
Agent and Required Term Lenders, (C) no Default or Event of Default has occurred and is continuing at the time of any such sale or would result immediately after giving effect to any such sale, (D) Agent receives a separate Borrowing Base
Certificate at the time of each sale (giving pro forma effect to each sale), (E) the net cash proceeds from such sales shall be (1) at least $135,000,000 with respect to the Diesel Sale, and (2) at least $10,000,000 with respect to
the S&A Reman Outsourcing Transaction, (F) the first $50,000,000 of the proceeds from the Diesel Sale shall have been deposited in a depository account at the Reference Bank and Borrowers shall have granted Agent, for the benefit of Agent
and Lenders as additional collateral security for the Obligations, a first priority perfected security interest in such account pursuant to a blocked account agreement in form and substance reasonably satisfactory to Agent and the Required Term
Lenders (the “Restricted Account”), and (G) the remaining net cash proceeds from the Diesel Sale shall be used to prepay the full principal amount of all outstanding Revolving Loans (with a permanent reduction in the Revolving
Commitments in an amount equal to $40,000,000). Any proceeds from the Diesel Sale remaining after the initial deposit of $50,000,000 and the prepayment in full of the Revolving Loans (the “Excess Proceeds”) shall be deposited in the
Restricted Account. No withdrawals from the 

  

 3 

 
Restricted Account shall be permitted unless Agent, Required Lenders and Required Term Lenders have provided their prior written consent; provided that
notwithstanding the foregoing, so long as no Default or Event of Default has occurred and is continuing or would result therefrom, Borrowers may use the Excess Proceeds in such Restricted Account without further consent of the Agent, the Required
Lenders or the Required Term Lenders for (1) capital expenditures not otherwise prohibited by the terms of the Loan Agreement, (2) to repay revolver borrowings provided that the Revolving Commitment is permanently reduced by an amount
equal to the principal amount so prepaid, and (3) for general corporate purposes not otherwise prohibited by the Loan Agreement. The proceeds from the S&A Reman Outsourcing Transaction and any proceeds from post-closing adjustments for the
Diesel Sale shall also be deposited in the Restricted Account. Any additional proceeds from the Diesel Sale shall be treated as Excess Proceeds. So long as no Default or Event of Default has occurred and is continuing or would result therefrom,
Borrowers may use up to 50% of the S&A Reman Outsourcing Transaction proceeds without further consent of the Agent, the Required Lenders or the Required Term Lenders for the same purposes set forth in the immediately preceding clauses (1),
(2) and (3). The remaining proceeds from the S&A Reman Outsourcing Transaction may be used by Borrowers only with the consent of the Agent, the Required Lenders and the Required Term Lenders. 
 (d) Section 9.22 of the Loan Agreement is hereby amended by amending and restating clause (f) of Section 9.22 to read as
follows: 
 “(f) all out-of-pocket expenses and costs heretofore and from time to time hereafter incurred by Agent, Term Loan Agent and
Lenders during the course of periodic field examinations of the Collateral and such Loan Party’s operations, plus a per diem charge at the rate of $750 per person per day for Agent’s examiners in the field and office; and” 

(e) Section 13.1(d) of the Loan Agreement is hereby amended so that the prepayment fee percentage in clause (ii) is increased from
2.2% to 3.0% and the prepayment fee percentage in clause (iii) is increased from 0.25% to 2.0%. 
  

 4 

 Section 2 Conditions to Effectiveness. The effectiveness of the amendments set forth in
Section 1 above are subject to the satisfaction of each of the following conditions: 
 (a) Agent shall have
received a duly executed counterpart of this Amendment from Borrowers, Required Lenders and Required Term Lenders; 
 (b)
Agent shall have received a reaffirmation of guaranty from each guarantor of the Obligations in form and substance satisfactory to the Agent; 
 (c) Agent shall have received a duly executed counterpart of the amendment fee letter dated as of the date hereof between Borrowers and Agent; and 
 (d) The Term Lenders signatory hereto shall have received a duly executed counterpart of the amendment fee letter dated as of the date
hereof between Borrowers and such Term Lenders. 
 Section 3 Representations, Warranties and Covenants. In order to induce Agent and
Lenders to enter into this Amendment, Borrowers represent, warrant and covenant to Agent and Lenders, upon the effectiveness of this Amendment, which representations, warranties and covenants shall survive the execution and delivery of this
Amendment that: 
 (a) No Default; etc. No Default or Event of Default has occurred and is continuing after giving
effect to this Amendment or would result from the execution or delivery of this Amendment or the consummation of the transactions contemplated hereby. 
 (b) Corporate or Limited Liability Company Power and Authority; Authorization. Each Borrower has the power and authority to execute and deliver this Amendment and to carry out the terms and provisions of the
Financing Agreements, as amended by this Amendment, to which it is a party and the execution and delivery by such Borrower of this Amendment, and the performance by such Borrower of its obligations hereunder have been duly authorized by all
requisite action by such Borrower. 
 (c) Execution and Delivery. Each Borrower has duly executed and delivered this
Amendment. 
 (d) Enforceability. This Amendment constitutes the legal, valid and binding obligations of each Borrower,
enforceable against each Borrower in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ right generally, and by general
principles of equity. 
 (e) Representations and Warranties. All of the representations and warranties contained in the
Financing Agreements (other than those which speak expressly only as of a different date) are true and correct as of the date hereof after giving effect to this Amendment and the transactions contemplated hereby. 
  

 5 

 Section 4 Miscellaneous. 
 (a) Effect; Ratification. Borrowers acknowledge that all of the reasonable legal expenses incurred by Agent and Term Lenders in
connection herewith shall be reimbursable. The amendments set forth herein are effective solely for the purposes set forth herein and shall be limited precisely as written, and shall not be deemed to (i) be a consent to any amendment, waiver or
modification of any other term or condition of any Financing Agreement or (ii) prejudice any right or rights that any Lender may now have or may have in the future under or in connection with any Financing Agreement. Each reference in the
Financing Agreements to “this Agreement”, “herein”, “hereof” and words of like import shall mean such Financing Agreement as amended hereby. This Amendment shall be construed in connection with and as part of the
Financing Agreements and all terms, conditions, representations, warranties, covenants and agreements set forth in the Financing Agreements, except as herein amended are hereby ratified and confirmed and shall remain in full force and effect.

 (b) Counterparts; etc. This Amendment may be executed in any number of counterparts, each such counterpart
constituting an original but all together one and the same instrument. Delivery of an executed counterpart of this Amendment by fax shall have the same force and effect as the delivery of an original executed counterpart of this Amendment. Any party
delivering an executed counterpart of this Amendment by fax shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of this Amendment. 
 (c) Governing Law. This Amendment shall be deemed a Financing Agreement and shall be governed by, and construed and interpreted in
accordance with the internal laws of the State of New York but excluding any principles of conflicts of law or other rule of law that would cause the application of the law of any jurisdiction other than the laws of the State of New York.

 (d) Acknowledgement of Lien Release; Further Assurances. Agent acknowledges and agrees that upon delivery by
Administrative Borrower or any Loan Party of the compliance certificate contemplated by Section 12.11 (b)(ii) of the Loan Agreement Agent shall release all liens in the assets being sold pursuant to Section 1 (b) of this Amendment.
The parties hereto agree to execute and deliver such other instruments, and take such other action, as any party may reasonably request in connection with the transactions contemplated by this Consent and Amendment, including the delivery of any
documents or instruments which may be required in connection with the asset sales by Borrowers contemplated hereby. 
 [Signature Pages
Follow] 
  

 6 

 IN WITNESS WHEREOF, Agent, Lenders and Borrowers have caused these presents to be duly executed as of the
day and year first above written. 
 BORROWERS 
  

			
	 REMY INTERNATIONAL, INC.
  
 M. & M. KNOPF AUTO PARTS, L.L.C.
  
 NABCO, INC.
  
 REMY REMAN, L.L.C.
  
 REMY INC.
  
 REMY SALES, INC.
  
 HSG I, INC.
  
 HSG II, INC.
  
 UNIT PARTS COMPANY
  
 FRANKLIN POWER PRODUCTS, INC.
  
 INTERNATIONAL FUEL SYSTEMS, INC.
  
 POWRBILT PRODUCTS,
INC.
  
 REMY LOGISTICS, L.L.C.
  
 WORLD WIDE AUTOMOTIVE, L.L.C.
  
 WESTERN REMAN INDUSTRIAL, LLC
  
 For each of the entities above, by Craig Hart, as Treasurer for each entity

		
	By:	 	/S/ CRAIG HART
		 	Craig Hart

 [Signature Page to Amendment No. 1 to 
 Third Amended and Restated Loan and Security Agreement] 

									
		 		 	 AGENT
  
 WACHOVIA CAPITAL FINANCE CORPORATION (Central), as Administrative Agent for the Revolving Lenders and US Collateral Agent for the Lenders

					
		 		 		 	By:	 	    /S/
		 		 		 	Title:	 	  
			
	REVOLVING LENDERS	 		 	REVOLVING LENDERS
			
	THE CIT GROUP/BUSINESS CREDIT, INC.	 		 	WACHOVIA BANK, NATIONAL ASSOCIATION
					
	By:	 	    /S/	 		 	By:	 	    /S/
	Title:	 	  	 		 	Title:	 	  
			
	WELLS FARGO FOOTHILL	 		 	GMAC BUSINESS CREDIT, LLC
					
	By:	 	    /S/	 		 	By:	 	    /S/
	Title:	 	  	 		 	Title:	 	  
			
	NATIONAL CITY BANK	 		 	UPS CAPITAL CORPORATION
					
	By:	 	    /S/	 		 	By:	 	    /S/
	Title:	 	  	 		 	Title:	 	  
			
	RZB FINANCE LLC	 		 	
					
	By:	 	    /S/	 		 		 	
	Title:	 	  	 		 		 	

 [Signature Page to Amendment No. 1 to 
 Third Amended and Restated Loan and Security Agreement] 

					
	TERM LENDERS
	
	GSO SPECIAL SITUATIONS FUND LP, as a Term Lender
		
	By:	 	GSO Capital Partners, as Investment Advisor
		
	By:	 	/s/
		 	Name:	 	  
		 	Title:	 	  
	
	GSO SPECIAL SITUATIONS OVERSEAS FUND LTD., as a Term Lender
		
	By:	 	GSO Capital Partners, as Investment Advisor
		
	By:	 	/s/
		 	Name:	 	  
		 	Title:	 	  
	
	GSO SPECIAL SITUATIONS OVERSEAS BENEFIT PLAN FUND LTD., as a Term Lender
		
	By:	 	GSO Capital Partners, as Investment Advisor
		
	By:	 	/s/
		 	Name:	 	  
		 	Title:	 	  

 [Signature Page to Amendment No. 1 to 
 Third Amended and Restated Loan and Security Agreement] 

					
	GSO CREDIT OPPORTUNITIES FUND (HELLOS), L.P., as a Term Lender
		
	By:	 	GSO Capital Partners, as Investment Advisor
		
	By:	 	/s/
		 	Name:	 	  
		 	Title:	 	  

 [Signature Page to Amendment No. 1 to 
 Third Amended and Restated Loan and Security Agreement] 

			
	MAST CREDIT OPPORTUNITIES I (MASTER), LTD., as a Term Lender
		
	By:	 	/s/
		
	Title:	 	  
	
	NORTHWOODS CAPITAL IV, LIMITED, as a Term Lender
		
	By	 	Angelo, Gordon & Co., L.P., as Collateral Manager
		
	By:	 	/s/
		
	Title:	 	  
	
	NORTHWOODS CAPITAL V, LIMITED, as a Term Lender
		
	By	 	Angelo, Gordon & Co., L.P., as Collateral Manager
		
	By:	 	/s/
		
	Title:	 	  
	
	NORTHWOODS CAPITAL VI, LIMITED, as a Term Lender
		
	By	 	Angelo, Gordon & Co., L.P., as Collateral Manager
		
	By:	 	/s/
		
	Title:	 	  

 [Signature Page to Amendment No. 1 to 
 Third Amended and Restated Loan and Security Agreement] 

			
	
	NORTHWOODS CAPITAL VII, LIMITED, as a Term Lender
		
	By	 	Angelo, Gordon & Co., L.P., as Collateral Manager
		
	By:	 	/s/
		
	Title:	 	  
	
	SILVER OAK, LLC, as a Term Lender
		
	By:	 	/s/
		
	Title:	 	  

 [Signature Page to Amendment No. 1 to 
 Third Amended and Restated Loan and Security Agreement] 

 REAFFIRMATION OF GUARANTY 
 {U.S. Subsidiaries of Remy International, Inc.} 
 January __, 2007

 Wachovia Capital Finance Corporation (Central), 
 as Agent

 150 S. Wacker Drive 
 Chicago, Illinois 60606 
  

	 	Re:	Guaranty 

 Please refer to (1) the Third
Amended and Restated Loan and Security Agreement dated as of December 27, 2005 (as amended, supplemented, restated or otherwise modified from time to time, the “Loan Agreement”), by and among Remy International, Inc., a
Delaware corporation, Remy Inc., a Delaware corporation, Remy Sales, Inc., a Delaware corporation, Franklin Power Products, Inc., an Indiana corporation, HSG I, Inc, a Delaware corporation, HSG II, Inc, a Delaware corporation, International Fuel
Systems, Inc., an Indiana corporation, M. & M. Knopf Auto Parts, L.L.C., a Delaware limited liability company, Nabco, Inc., a Michigan corporation, Powrbilt Products, Inc., a Texas corporation, Remy Logistics, L.L.C., a Delaware limited
liability company, Remy Reman, L.L.C., a Delaware limited liability company, Western Reman Industrial, LLC, a Delaware limited liability company, World Wide Automotive, L.L.C., a Virginia limited liability company, Unit Parts Company, a Delaware
corporation (each individually a “Borrower” and collectively, “Borrowers”), Wachovia Capital Finance Corporation (Central), an Illinois corporation, as agent for Revolving Lenders (in such capacity and as US
Collateral Agent, “Agent”), the financial institutions (each individually, a “Lender” and collectively, “Lenders”) which are party thereto (capitalized terms used and not defined herein shall have
the meanings assigned to them in the Loan Agreement) and (2) the Guaranty dated June 28, 2002 (as amended, supplemented, restated or otherwise modified from time to time, “Guaranty”) by each of the undersigned, as
guarantors (collectively “Guarantors”), in favor of Agent. Pursuant to an Amendment No. 1 to Third Amended and Restated Loan and Security Agreement dated as of the date hereof (the “Amendment”) among Agent,
certain Lenders and Borrowers, the Loan Agreement has been amended in accordance with the terms and conditions of the Amendment. 
 Each
Guarantor hereby (i) acknowledges and reaffirms all of its obligations and undertakings under the Guaranty, and (ii) acknowledges and agrees that subsequent to, and taking into account all of the terms and conditions of the Amendment, the
Guaranty is and shall remain in full force and effect in accordance with the terms thereof. 
 [Signature Page Follows] 

 IN WITNESS WHEREOF, each Guarantor has executed and delivered this Reaffirmation of Guaranty as of the
day and year first above written. 
  

			
	 BALLANTRAE CORPORATION, a Delaware corporation
 REMAN HOLDINGS, L.L.C., a Delaware limited liability company
 REMY KOREA HOLDINGS, L.L.C., a Delaware limited liability company
 REMY INTERNATIONAL HOLDINGS, INC. (f/k/a Remy International, Inc.), a Delaware corporation
 MARINE CORPORATION OF AMERICA, an Indiana corporation
 POWER INVESTMENTS, INC., an Indiana corporation
 POWER INVESTMENTS MARINE, INC., a New Jersey corporation

	
	For each of the entities above, by Craig Hart, as Treasurer for each entity
		
	By:	 	/s/ Craig Hart
		 	Craig HartExhibit 10.1

 Exhibit 10.1 
 Fursa Alternative Strategies LLC 
 200 Park Avenue, 54th Floor 
 New York, NY 10166 
 January 31, 2007 
 Via Telecopy and Overnight Express 
 Integral Systems, Inc. 
 5000 Philadelphia Way, Suite A 
 Lanham, MD 20706-4417 
 Attention: Mr. Peter Gaffney 
 Dear Pete: 
 This will confirm that Fursa Alternative Strategies LLC (“Fursa”), William F. Harley, III (“Harley”) and Chartwell Capital Investors
II, L.P. (“Chartwell”) will not initiate or support a change in the membership of the Board of Integral Systems, Inc. (“Integral”) prior to 2008 in view of our mutual commitment to the following effect: 
  

	 	•	 	 By prompt Board action, Integral will undo the by-law changes made by the Company in the Summer of 2006, including de-staggering the Board and reinstating the prior
by-laws regarding the calling of special meetings and removing directors as they existed prior to March, 2006 (except that the changes made by Integral last summer to the section of the by-laws addressing the conduct of meetings (Section 8 of
Article II) shall remain in effect). 

  

	 	•	 	 Harley will join the Board at the next Board meeting, now scheduled for February 7, 2007 (but in any event, by a date sufficiently prior to the Annual Meeting
this April to permit the Company to timely provide its proxy materials), and will be included in the Company’s slate of Directors recommended for election at that Annual Meeting. 

  

	 	•	 	 Prior to mailing proxy materials for the next Annual Meeting, the Board will agree upon a slate of eight (8) directors for election at such meeting, of which
Harley will be one (1), and the remaining seven (7) other nominees will be currently serving Directors. A new outside Chairman would be selected from among the existing Directors by the Board prior to the Annual Meeting.

  

	 	•	 	 Beginning at the next Board meeting, the entire Board will work together to identify available strategic alternatives, and set goals for enhancing shareholder
value, including potential acquisitions, mergers, dispositions, recapitalizations and plans for internal growth. 

  

	 	•	 	 Chartwell agrees to withdraw its shareholder proposal submitted to Integral on November 17, 2006. 

  

	 	•	 	 Harley will honor his responsibilities as a Director of Integral including confidentiality of Board deliberations and of Integral’s proprietary information.
Harley acknowledges that his responsibilities include compliance with Integral’s Insider Trading Policy. 

  

	 	•	 	 The next Annual Meeting will be conducted in accordance with the provisions of the Addendum attached hereto. 

 Integral Systems, Inc. 
 January 31, 2007 
 Page 2 
  

 While Harley is a member of the Board, and the Company agrees to include him in its slate for
election at the upcoming Annual Meeting, Harley, Fursa and Chartwell will abide by the foregoing commitment with the understanding and on the condition that the Company will do likewise. As the obligations of the parties hereto are interdependent,
any failure by the Company to honor the foregoing commitment shall release Harley, Fursa and Chartwell from their respective commitments. As fiduciaries for our investors, we note that nothing here binds Fursa to vote its shares in any particular
manner on any issue requiring shareholder action, except that Fursa will agree to vote for the Slate of Directors described above. 
 [Remainder of Page Intentionally Blank] 

 Integral Systems, Inc. 
 January 31, 2007 
 Page 3 
  

  

			
	Very truly yours,
	
	Fursa Alternative Strategies LLC
		
	By:	 	 /s/ William F. Harley, III

	Name:	 	William F. Harley, III
	Title:	 	Chief Investment Officer

  

			
	Chartwell Capital Investors II, L.P.
		
	By:	 	 /s/ Kenneth E. Purcell

	Name:	 	Kenneth E. Purcell
	Title:	 	Managing Director

  

	
	William F. Harley, III, Individually
	
	 /s/ William F. Harley, III

 AGREED: 
  

			
	Integral Systems, Inc.
		
	By:	 	 /s/ Peter J. Gaffney

	Name:	 	Peter J. Gaffney
	Title:	 	Chief Executive Officer

 Addendum 
 Agreement Governing Conduct of Annual Meeting 
 1. The chairman of the meeting (the
“Chairman”) of the 2007 Annual Meeting of Stockholders of Integral Systems, Inc., currently scheduled to be held in April 2007 (together with any adjournment(s) or postponement(s) of such Annual Meeting, the “Meeting”), who will
preside at the Meeting, will be designated by a majority vote of Integral’s Board of Directors. To the extent that this paragraph 1 is inconsistent with Section 7 of Article II of the Amended and Restated By-Laws of Integral, as
amended and currently in effect (the “Bylaws”), such Section of the Bylaws shall be amended to the extent necessary to be consistent with this paragraph 1. 
 2. The Chairman will be impartial in the conduct of the Meeting, maintain the orderly conduct of the Meeting, and adhere to this Agreement Governing Conduct of Meeting. 
 3. Each of Fursa, Harley, Chartwell and Integral will conduct themselves in a professional manner and in accordance with this Agreement. 
 4. Each of Elaine M. Brown and Albert Alderete, or such other person(s) as may be designated by a majority vote of Integral’s Board of Directors,
will be appointed by Integral’s Board of Directors, with full power of substitution and resubstitution in each of them, to serve as proxies on behalf of the stockholders of the Company in connection with the Meeting. 
 5. The only matters to be voted on by the stockholders of the Company at the Meeting, and the only business to be considered at the Meeting, shall be as
follows: (1) the election of eight (8) directors and (2) consideration of any stockholder proposal previously made in accordance with the advance notice procedures set forth in the By-Laws and not withdrawn prior to the Meeting. Any
other business shall be deemed to have not been properly brought before the Meeting and shall not be transacted. 
 6. The Chairman will not
accept or consider any motions, nominations or proposals from the floor. 
 7. The agenda for the meeting shall be as follows: 
  

	 	A.	Meeting called to order 

  

	 	B.	Welcoming remarks 

  

	 	C.	Procedural matters, including proof of due notice of Meeting, determination of quorum and examination of proxies, reading and disposing of minutes of last meeting of stockholders;
and announcement of purposes for which the meeting was called 

  

	 	D.	Election of Directors (as set forth in paragraph 5 above) 

  

	 	E.	Consideration of Stockholder Proposal (as set forth in paragraph 5 above) 

  

 i 

	 	F.	Question and Answer Period 

  

	 	G.	Adjournment 

  

	 	H.	Report of Officers to Stockholders 

 8. During the
Question and Answer Period specified in the Agenda set forth in paragraph 7 above, any stockholder or proxy holder may ask appropriate questions from the floor and receive appropriate answers, which questions shall not be more than
three (3) minutes. All questions shall be directed to the Chairman who shall answer them or, if the Chairman shall determine, refer them to the appropriate person or persons for response. The questioners shall be asked to identify themselves by
name and to state on whose behalf they are speaking, if other than themselves. 
  

 ii

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]