SEC Contract Filing

Filing Date: 2023-08-15

Document Content:
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<DIV><FONT size="1" style="font-size:1pt;color:white">EXECUTION VERSION Does not contain Technical Data. //Mercury Proprietary/No Tech Data// EMPLOYMENT AGREEMENT THIS EMPLOYMENT AGREEMENT (this &#8220;Agreement&#8221;), effective as of August 15, 2023 (the &#8220;Effective Date&#8221;), is entered into by and between Mercury Systems, Inc. (the &#8220;Company&#8221;) and William L. Ballhaus (the &#8220;Executive&#8221;). WHEREAS, the Executive is currently employed as Interim President and Chief Executive Officer of the Company; WHEREAS, the Company desires to continue to employ the Executive as its President and Chief Executive Officer and to enter into an agreement embodying the terms of such employment; and WHEREAS, the Executive desires to accept such continuation of employment with the Company, subject to the terms and conditions of this Agreement. NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 1. Employment Period. Subject to the provisions for earlier termination hereinafter provided, the Executive&#8217;s employment hereunder shall be for a term (the &#8220;Employment Period&#8221;) commencing on the Effective Date and ending on the fourth anniversary of the Effective Date. The Employment Period shall automatically renew for additional twelve (12) month periods unless no later than thirty (30) days prior to the end of the applicable Employment Period either party gives written notice of non-renewal to the other, in which case Executive&#8217;s employment will terminate at the end of the then- applicable Employment Period, subject to earlier termination as provided in Section 3 hereof. Notwithstanding the foregoing, the Executive&#8217;s employment hereunder is terminable at will by the Company or by the Executive at any time (for any reason or for no reason), subject to the provisions of Section 4 hereof. 2. Terms of Employment. (a) Position and Duties. (i) Role and Responsibilities. During the Employment Period, the Executive shall serve as President and Chief Executive Officer of the Company, and shall perform such employment duties as are usual and customary for such positions. After the 2023 annual meeting of shareholders of the Company, the Executive shall serve as Chairman of the Company, and the Executive shall report directly to the Board of Directors of the Company (the &#8220;Board&#8221;). At the Company&#8217;s request, the Executive shall serve the Company and/or its subsidiaries and affiliates (collectively, the &#8220;Company Group&#8221;) in other capacities in addition to the foregoing, consistent with the Executive&#8217;s position as Chief Executive Officer of the Company. In furtherance of the foregoing, following the Effective Date, Executive shall continue to serve as a member of the Board. In the event that the Executive, during the Employment Period, serves in any one or more of such additional capacities (including Executive&#8217;s service to the Board), the Executive&#8217;s compensation shall not be increased beyond that specified in Section 2(b) hereof. In addition, in the event the Executive&#8217;s service in one or more of such additional capacities is terminated, the Executive&#8217;s compensation, as specified in Section 2(b) hereof, shall not be diminished or reduced in any manner as a result of such termination provided that the Executive otherwise remains employed under the terms of this Agreement. (ii) Exclusivity. During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive may be entitled, the Executive agrees to devote his full business time and attention to the business and affairs of the Company. Notwithstanding the foregoing, </FONT></DIV>
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<DIV><FONT size="1" style="font-size:1pt;color:white"> 2 during the Employment Period, it shall not be a violation of this Agreement for the Executive to (A) manage his personal investments or (B) perform limited activities that the Board (or, after the Effective Date, the Nominating and Governance Committee thereof) has approved in writing, in each case, so long as such activities do not individually or in the aggregate materially interfere or conflict with the performance of the Executive&#8217;s duties and responsibilities under this Agreement. The Company and the Executive acknowledge and agree that the Executive shall be permitted to continue the activities described on Exhibit A, Section 1; provided, that the Executive&#8217;s time commitment with respect to such activities is not greater than his historical time commitment in more than a de minimis manner and so long as such activities do not individually or in the aggregate materially interfere or conflict with the performance of the Executive&#8217;s duties and responsibilities under this Agreement. The Executive agrees to provide information to the Nominating and Governance Committee of the Board at least annually, and upon request, regarding the time commitment and scope of such activities. To the extent that, as of the Effective Date, the Executive is engaged in any activities that are prohibited pursuant to the preceding sentence, including those activities described in Exhibit A, Section 2, the Executive shall have previously informed the Board of such activities and shall terminate the Executive&#8217;s engagement in such activities within sixty (60) days of the Effective Date, and a failure to do so shall