-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PRqkEPJ/tOgO1wvUSBCC4sYviNN5a71LF9mcv+TVKkK4Dv5f1qMaGnTIljHlf4WA DBQmm8YgNvwlxoPz8t9Z3g== 0001099409-10-000018.txt : 20100819 0001099409-10-000018.hdr.sgml : 20100819 20100819104223 ACCESSION NUMBER: 0001099409-10-000018 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20100819 DATE AS OF CHANGE: 20100819 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: INTEGRAL SYSTEMS INC /MD/ CENTRAL INDEX KEY: 0000718130 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 521267968 STATE OF INCORPORATION: MD FISCAL YEAR END: 0924 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-55793 FILM NUMBER: 101027089 BUSINESS ADDRESS: STREET 1: 6721 COLUMBIA GATEWAY DRIVE CITY: COLUMBIA STATE: MD ZIP: 21046 BUSINESS PHONE: 4435395008 MAIL ADDRESS: STREET 1: 6721 COLUMBIA GATEWAY DRIVE CITY: COLUMBIA STATE: MD ZIP: 21046 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: VINTAGE PARTNERS GP, LLC CENTRAL INDEX KEY: 0001449935 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 5506 WORSHAM COURT CITY: WINDEMERE STATE: FL ZIP: 34786 BUSINESS PHONE: 407-909-8015 MAIL ADDRESS: STREET 1: 5506 WORSHAM COURT CITY: WINDEMERE STATE: FL ZIP: 34786 FORMER COMPANY: FORMER CONFORMED NAME: VINTAGE PARTNERS LLC DATE OF NAME CHANGE: 20081112 SC 13D/A 1 integralsystemsamendone.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D UNDER THE SECURITIES EXCHANGE ACT OF 1934 (Amendment No. 1)* INTEGRAL SYSTEMS, INC. ------------------------------------------------------------------------------- (Name of Issuer) COMMON STOCK ------------------------------------------------------------------------------- (Title of Class of Securities) 45810H107 - -------------------------------------------------------------------------------- (CUSIP Number) Bradley L. Finkelstein Wilson Sonsini Goodrich & Rosati Professional Corporation 650 Page Mill Road Palo Alto, California 94304 (650) 493-9300 - ------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) August 18, 2010 ------------------------------------------------------------ (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of 240.13d- 1(e), 240.13d-1(f) or 240.13d-1(g), check the following box [ ]. Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 240.13d-7 for other parties to whom copies are to be sent. *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). - ------------------------------------------------------------------------------- Page 1 of 6 Pages SCHEDULE 13D/A CUSIP No. 45810H107 - ------------------------------------------------------------------------ 1 Names of Reporting Persons I.R.S. Identification Nos. of above persons (entities only). Vintage Partners, L.P. - ------------------------------------------------------------------------------- 2 Check the Appropriate Box if a Member of a Group (See Instructions) a. [ ] b. [ ] - ------------------------------------------------------------------------------- 3 SEC Use Only - ------------------------------------------------------------------------------- 4 Source of Funds (See Instructions) WC - ------------------------------------------------------------------------------- 5 Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [ ] - ------------------------------------------------------------------------------- 6 Citizenship or Place of Organization Delaware - ------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF None SHARES BENEFICIALLY ---------------------------------------------------------- OWNED BY 8 SHARED VOTING POWER EACH 1,750,000 REPORTING PERSON ---------------------------------------------------------- WITH 9 SOLE DISPOSITIVE POWER None ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,750,000 - ------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 1,750,000 - ------------------------------------------------------------------------------- 12 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ] - ------------------------------------------------------------------------------- 13 Percent of Class Represented By Amount in Row (11) 9.9% - ------------------------------------------------------------------------------- 14 Type of Reporting Person (See Instructions) PN - ------------------------------------------------------------------------------- Page 2 of 6 Pages SCHEDULE 13D/A CUSIP No. 45810H107 - ------------------------------------------------------------------------ 1 Names of Reporting Persons I.R.S. Identification Nos. of above persons (entities only). Vintage Partners GP, LLC - ------------------------------------------------------------------------------- 2 Check the Appropriate Box if a Member of a Group (See Instructions) a. [ ] b. [ ] - ------------------------------------------------------------------------------- 3 SEC Use Only - ------------------------------------------------------------------------------- 4 Source of Funds (See Instructions) OO - ------------------------------------------------------------------------------- 5 Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [ ] - ------------------------------------------------------------------------------- 6 Citizenship or Place of Organization Delaware - ------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF None SHARES BENEFICIALLY ---------------------------------------------------------- OWNED BY 8 SHARED VOTING POWER EACH 1,750,000 REPORTING PERSON ---------------------------------------------------------- WITH 9 SOLE DISPOSITIVE POWER None ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,750,000 - ------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 1,750,000 - ------------------------------------------------------------------------------- 12 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ] - ------------------------------------------------------------------------------- 13 Percent of Class Represented By Amount in Row (11) 9.9% - ------------------------------------------------------------------------------- 14 Type of Reporting Person (See Instructions) OO - ------------------------------------------------------------------------------- Page 3 of 6 Pages SCHEDULE 13D/A CUSIP No. 45810H107 - ------------------------------------------------------------------------ 1 Names of Reporting Persons I.R.S. Identification Nos. of above persons (entities only). Vintage Capital Management, LLC - ------------------------------------------------------------------------------- 2 Check the Appropriate Box if a Member of a Group (See Instructions) a. [ ] b. [ ] - ------------------------------------------------------------------------------- 3 SEC Use Only - ------------------------------------------------------------------------------- 4 Source of Funds (See Instructions) OO - ------------------------------------------------------------------------------- 5 Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [ ] - ------------------------------------------------------------------------------- 6 Citizenship or Place of Organization Delaware - ------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF None SHARES BENEFICIALLY ---------------------------------------------------------- OWNED BY 8 SHARED VOTING POWER EACH 1,750,000 REPORTING PERSON ---------------------------------------------------------- WITH 9 SOLE DISPOSITIVE POWER None ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,750,000 - ------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 1,750,000 - ------------------------------------------------------------------------------- 12 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ] - ------------------------------------------------------------------------------- 13 Percent of Class Represented By Amount in Row (11) 9.9% - ------------------------------------------------------------------------------- 14 Type of Reporting Person (See Instructions) OO - ------------------------------------------------------------------------------- Page 4 of 6 Pages SCHEDULE 13D/A CUSIP No. 45810H107 - ------------------------------------------------------------------------ 1 Names of Reporting Persons I.R.S. Identification Nos. of above persons (entities only). Brian R. Kahn - ------------------------------------------------------------------------------- 2 Check the Appropriate Box if a Member of a Group (See Instructions) a. [ ] b. [ ] - ------------------------------------------------------------------------------- 3 SEC Use Only - ------------------------------------------------------------------------------- 4 Source of Funds (See Instructions) OO - ------------------------------------------------------------------------------- 5 Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [ ] - ------------------------------------------------------------------------------- 6 Citizenship or Place of Organization Delaware - ------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF None SHARES BENEFICIALLY ---------------------------------------------------------- OWNED BY 8 SHARED VOTING POWER EACH 1,750,000 REPORTING PERSON ---------------------------------------------------------- WITH 9 SOLE DISPOSITIVE POWER None ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,750,000 - ------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 1,750,000 - ------------------------------------------------------------------------------- 12 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ] - ------------------------------------------------------------------------------- 13 Percent of Class Represented By Amount in Row (11) 9.9% - ------------------------------------------------------------------------------- 14 Type of Reporting Person (See Instructions) IN - ------------------------------------------------------------------------------- Page 5 of 6 Pages SCHEDULE 13D/A CUSIP No. 45810H107 - ------------------------------------------------------------------------------- This Amendment No. 1 amends the Schedule 13D filed with the Securities and Exchange Commission (SEC) on July 16, 2010, on behalf of Vintage Partners, L.P., Vintage Partners GP, LLC, Vintage Capital Management, LLC and Brian R. Kahn (the Schedule 13D). Unless set forth below, all disclosure previously included in the Schedule 13D are unchanged. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Schedule 13D. Item 4. Purpose of Transaction The following amends and restates in its entirety the last paragraph of Item 4: On August 18, 2010, the Reporting Persons delivered a letter to the Issuer with respect to recent changes approved by the Board of Directors to the Issuers corporate governance. In the letter, the Reporting Persons express concern with respect to these changes and urge the Board to repeal the governance changes or submit them to a binding stockholder vote. The Reporting Persons also encourage the Company to provide the Reporting Persons information concerning the Companys business. A copy of the letter is attached hereto as Exhibit 1 and incorporated herein by reference. The Reporting Persons reserve the right to formulate other plans and/or other proposals, and take such actions with respect to their investment in the Issuer, including any other or all of the actions set forth in paragraphs (a) through (j) of Item 4 of Schedule 13D, or acquire additional Common Stock or dispose of all the Common Stock beneficially owned by them, in the public market or privately negotiated transactions. The Reporting Persons may at any time reconsider and change their plans or proposals relating to the foregoing. Item 7. Material to be Filed as Exhibits Item 7 is hereby amended to add the following exhibits: Exhibit 1: Letter to the Board of Directors of Integral Systems, Inc. dated August 18, 2010. SIGNATURE After reasonable inquiry and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this Statement is true, complete and correct. Dated: August 18, 2010 /s/ BRIAN R. KAHN ---------------------------------- Brian R. Kahn, for (i) himself; (ii) as Manager of Vintage Partners GP, LLC, for itself and as General Partner of Vintage Partners, L.P.; and (iii) as Managing Member of Vintage Capital Management, LLC, Investment Manager of Vintage Partners, L.P. Page 6 of 6 Pages EX-1 2 governanceltr.txt EXHIBIT 1 [Letterhead of Vintage Capital Management, LLC] August 18, 2010 The Board of Directors Integral Systems, Inc. 6721 Columbia Gateway Drive Columbia, Maryland 21046 Dear Members of the Board of Directors: I am writing to you on behalf of Vintage Partners, L.P. (collectively, Vintage or we), which owns 9.9% of the common stock Integral Systems, Inc. (the Company or Integral Systems). We are writing to express our surprise and dismay at the Companys Form 8K filing on Friday, August 13, 2010 describing the adoption of significant revisions to the Companys charter documentation and governance provisions. We believe these revisions serve to disenfranchise the Companys stockholders, seek to entrench the current Board and management, and are contrary to principles of good corporate governance. We believe the Company had made positive progress with respect to stockholder participation in the governance of the Company following its 2006 correspondence with Mellon HBV Alternative Strategies LLC, in keeping with recent market trends. We are very concerned that the Board appears to have completely undone this progress by implementing measures which include implementation of a classified board of directors, increasing the percentage of stockholders required to call a special meeting to a majority (as opposed to 25%), and providing the Board the sole power to set the number of directors and fill vacancies that serve only to limit stockholder participation in the governance of the Company and insulate the Board. We were very surprised to see the Board make these significant governance changes without consulting with, or receiving approval from, the Companys stockholders. In addition, as you know, we have made several requests for basic historical financial information regarding the Company, so that we could provide input (as requested by you) on the Companys operational efficiency and strategy, and have offered to enter into a customary nondisclosure agreement regarding this information. As you are aware, we believe there are several opportunities to reduce the Companys operating expenses, which would result in a significant increase in profitability. These cost reductions would simultaneously increase Integral Systems chances to win future program awards from an increasingly cost-focused Department of Defense. While we originally were assured on several occasions that this information would be promptly forthcoming and the Company was interested in working with us to improve its cost structure and ultimately stockholder value, the Company later changed positions and indicated it would not share this information with us. As the Companys largest stockholder, we are very concerned that the Companys Board is not acting in the best interests of the Companys stockholders, and we are prepared to take immediate action, if necessary, to preserve stockholder value. We urge the Board to immediately repeal these governance changes, or at a minimum submit them to a binding stockholder vote. In addition, as we have previously indicated, we are prepared to work constructively with the Company to improve stockholder value and encourage the Company to provide us the necessary information to do so. Very truly yours, Brian Kahn Manager of its General Partner - --------------------------------------------------------------------------- Vintage Capital Management, LLC Confidential 1 -----END PRIVACY-ENHANCED MESSAGE-----