Company: MRCY
Filing Date: 2025-09-10
Form Type: DEF 14A
Source: 0001049521-25-000029
Chunk: 73

Company: MERCURY SYSTEMS INC
Filing Date: 2025-09-10
Form: DEF 14A
Chunk 73
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     |     |     |              |         |     |                       | 26,095 |     |           |     |          | 1,046,931 |

(1) Represents the cash payout opportunities under our annual incentive plan for fiscal 2025 that would be earned assuming achievement of the specific Threshold, Target or Maximum levels of performance established by the Committee for the performance measures under the plan. For a further discussion of the performance measures and payout opportunities for fiscal 2025, see "Compensation Discussion and Analysis – Elements of Fiscal 2025 Target Pay – Annual Incentives."

(2) Represents PSUs granted during fiscal 2025 that vest on the third anniversary following their grant date. The final number of shares of our common stock earned in respect of these awards will vary based upon Mercury's annual organic revenue and adjusted EBITDA margin results during the three-year fiscal performance period ending with fiscal year 2027, and is also subject to a modifier based on Mercury's TSR for the three-year performance period relative to the companies within the Spade Defense Index. The amounts disclosed in the Estimated Future Payouts Under Equity Incentive Plan Awards columns for these awards represent the number of shares of our common stock that would be earned assuming achievement of the specific Threshold, Target or Maximum levels of performance established by the Committee in respect of each award, applying the lowest (- 25%), the mid-point (0%) and the highest (+ 25%) TSR modifiers to these achievements, respectively. Any shares earned under these awards will be distributed at the time of vesting. For a further discussion of these PSUs, see "Compensation Discussion and Analysis – Elements of Fiscal 2025 Target Pay – Long-Term Incentives – Performance Stock Awards." See also "– Potential Payments Upon Change in Control or Termination of Employment" for a discussion concerning the effect of a change in control or termination of employment on these PSUs.

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(3) The amount disclosed in the Grant Date Fair Value of Stock and Option Awards column for PSUs granted during fiscal 2025 represents the grant date fair value of each award based on a Monte-Carlo valuation on the date of grant, determined under ASC Topic 718.

(4) Except as set forth in Note 6 below, RSUs granted in fiscal 2025 vest in annual increments of 50%, 25% and 25% over the three-year period following their grant date, and the distribution of shares underlying these awards will