Notice: You should consult with an attorney before signing this Agreement. You have 21 days from the date that
you receive this Agreement to consider whether to sign it. If you sign this Agreement, you will then have 7 days
following the date that you sign this Agreement to revoke it, and this Agreement shall not become effective or
enforceable until the expiration of the 7-day revocation period.
This Separation Agreement (“Agreement”) is between Innovative Solutions & Support, Inc. (the “Company”)
and James Reilly (the “Employee”). Intending to be legally bound, the Company and Employee agree as follows:
SECTION 1. Termination; Impact on Current Benefits
Employee’s employment with the Company will terminate on February 29, 2008 (“Separation Date”), and the
Company’s records will reflect that Employee’s separation was based on his retirement from the Company.
Except as provided in this Agreement, all wages, benefits, and other compensation will cease as of the Separation
Date. Employee’s final paycheck will be issued on the next regularly scheduled payday following the Separation
Date and mailed to Employee.
SECTION 2. Severance Pay and Other Benefits
a. Severance Pay
Subject to the conditions set forth in Section 4 of this Agreement, the Company shall deliver the
amount of $200,000.00 (the “Payment”) as described as follows, within 14 days following the
Company’s receipt of a signed original of this Agreement.
(i) The Company will deliver a check made payable to “James Reilly” in the amount of
$50,000.00, less all applicable withholdings and deductions to the law office of Raynes,
McCarty, attorney for Employee. This sum is being allocated as wages, and the
Company will report the payment on a Form W-2 at the appropriate time.
(ii) The Company will deliver a check made payable to “James Reilly” in the amount of
$100,000.00, without any withholdin