Company: MRCY
Filing Date: 2025-09-10
Form Type: DEF 14A
Source: 0001049521-25-000029
Chunk: 107

Company: MERCURY SYSTEMS INC
Filing Date: 2025-09-10
Form: DEF 14A
Chunk 107
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 to the Participant upon such Participant's automatic exercise thereof in an amount necessary to satisfy the payments such forth in Section 5(f) below based on the Fair Market Value of the Shares as of the close of trading on the date of automatic exercise. In accordance with procedures established by the Committee, a Participant may notify the Corporation's record keeper in advance that he or she does not wish for the Auto Exercise Eligible Award to be exercised. This paragraph shall not apply to any Stock Appreciation Right or Stock Option to the extent that the Committee determines that this paragraph causes the Award to fail to qualify for favorable tax treatment under applicable law. In its discretion, the Committee may determine to cease automatically exercising Auto Exercise Eligible Awards at any time.

f. Additional Rules for Incentive Stock Options. Notwithstanding any other provision of this Plan to the contrary, no Stock Option that is intended to qualify as an Incentive Stock Option may be granted to any Eligible Individual who at the time of such grant owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Corporation or of any Subsidiary, unless at the time such Stock Option is granted the exercise price is at least 110% of the Fair Market Value of a Share and such Stock Option by its terms is not exercisable after the expiration of five years from the date such Stock Option is granted. In addition, the aggregate Fair Market Value (determined as of the Grant Date) of the Shares for which Incentive Stock Options granted to a Participant under this Plan and any other plans of the Corporation and its Subsidiaries are exercisable for the first time by the Participant during any calendar year may not exceed $100,000 (or such other amount as may be fixed as the maximum amount permitted by Section 422(d) of the Code). To the extent a Stock Option that by its terms was intended to be an Incentive Stock Option causes this maximum amount to be exceeded, the portion of the Stock Option in excess of such maximum amount shall be treated as a Nonqualified Stock Option.

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g. Dividends and Dividend Equivalents. Dividends (whether paid in cash or Shares) and dividend equivalents may not be paid or accrued on Stock Appreciation Rights or Stock Options; provided that Stock Appreciation Rights and Stock Options may be adjusted under certain circumstances relating to dividends in accordance with the terms of Section 3(f).

#### SECTION 6: RESTRICTED STOCK