Company: MRCY
Filing Date: 2025-09-10
Form Type: DEF 14A
Source: 0001049521-25-000029
Chunk: 42

Company: MERCURY SYSTEMS INC
Filing Date: 2025-09-10
Form: DEF 14A
Chunk 42
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 Company or any of its affiliates, and details of all Awards (the "Data"). In addition to transferring the Data among themselves as necessary for the purpose of implementation, administration, and management of the 2025 Plan and awards, the Company and its affiliates may each transfer the Data to any third parties assisting the Company in the implementation, administration, and management of the 2025 Plan and awards. Recipients of the Data may be located in the participant's country or elsewhere, and the participant's country and any given recipient's country may have different data privacy laws and protections. The Company may cancel the participant's eligibility to participate in the 2025 Plan, and in the Committee's discretion, the participant may forfeit any outstanding awards if the participant refuses or withdraws the consents described above.

#### U.S. Federal Income Tax Considerations
The following is a brief summary of the material U.S. Federal income tax rules that are generally relevant to 2025 Plan awards as of the date of this Proxy Statement. The laws governing the tax aspects of awards are highly technical and may change at any time. This discussion does not address state, local, or non-U.S. tax rules applicable to awards under the 2025 Plan.

Stock Appreciation Rights and Stock Options . Upon the exercise of a stock appreciation right or a nonqualified stock option, an award recipient will recognize ordinary income equal to the spread and we will generally be entitled to a corresponding federal income tax deduction in the same amount. Upon the sale of common stock acquired upon exercise, the recipient will generally recognize a long- or short-term capital gain or loss, depending on whether the recipient held the share for more than one year from the date of exercise. With respect to incentive options, a recipient generally will not recognize taxable income when the incentive option is exercised, unless the recipient is subject to the alternative minimum tax. If the recipient sells the shares more than two years after the incentive option was granted and more than one year after the incentive option was exercised, the recipient will recognize a long-term capital gain or loss, measured by the difference between the sale price and the exercise price of the shares. We will not receive a tax deduction with respect to the exercise of an incentive option if the incentive option holding period is satisfied. Award recipients do not recognize any taxable income, and we are not entitled to a deduction, upon the grant of a stock appreciation right, a nonqualified stock option, or an incentive option.

Other Awards . A recipient of restricted stock, restricted stock units, other